Wednesday, November 25, 2009


1.What do you think about Bovespa? Did you enjoy the visit? Was its purposes clear for you? It is nice, I was interested in buying some stocks but after my visit, its all gone.
2.What does a company have to do to enter the stock market?
Companies have to meet the requirements of the exchange in order to have their stocks and shares listed and traded there. Any business that wants to sell shares of stock to a number of different people does so by turning itself into a corporation. The process of turning a business into a corporation is called incorporating.
3.What is an IPO?IPO:Initial Public Offering. An initial public stock offering (IPO) referred to simply as an "offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.

An IPO can be a risky investment. For the individual investor, it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.

4.What is a Stock Index? Give some examples and explain them. (ex. Dow Jones, IbrX-50)
A stock market index is the delineation of the relative value of stocks that make up a particular market sector such as heavy industry, technology, telecommunications, healthcare, etc. A stock market index is, therefore, composed of the combined performance of a certain aggregate of individual publicly-traded company stocks best representing that specific sector of the market. Standard and Poor’s 500 Index (S&P 500), which tracks large- and mid-cap U.S. stocks, is one of the better-known examples of a stock market index. Perhaps the most widely quoted stock index is the Dow Jones Index. MSCI World is another popular one.
5.What kinds of stock are there in Brazil?common stock
preffered stock
different class stocks
6.What is the difference between “ações” and “opções”?
The opções market is to protect investors from volatility of stock prices. The opcoes market gives an option to automatically sell or buy shares after a particular period of time. Ações buys rights to buy or sell a stock at a certain time of exercise and pre-established price.
7.Why do stock prices go up or down?
Because it is dependent to the supply and demand laws. When there are many demand the price goes up but when there are less demand it goes down
8.What do you need to do to invest in stock?
using brokerage, or buy through Direct Investment Plans or Dividend Reinvestment plans
9.Explain how the recent financial crisis affected the bovespa index.
Increasing in selling movement, which that hurt the Bovespa index.

10.What are some strategies used to decide how, where and when to invest?Some research about the companies are extremely required to invest. By looking at the companies past couple month's reports, the decision can be made more easily.

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