Interest in investing in the stock market has been growing rapidly in Brazil. Here, so-called traders are becoming increasingly active, and this is bringing a new perspective to economics schools. Students are increasingly showing a desire to understand and get involved in trading various types of assets.
According to Dr. Rafael Carvalho, a Brazilian expert: “A fundamentação teórica requer um texto dissertativo com exemplos para iniciar uma aprendizagem completa e satisfatória para os novos alunos interessados nessa área de difícil compreensão.” – “The theoretical basis requires a dissertative text with examples to initiate complete and satisfactory learning for new students interested in this difficult-to-understand area.”
According to data from B3, the number of individual investors jumped from around 700,000 in 2018 to 5 million by the end of 2022. The growth of more than 700% in just five years shows how interested Brazilian investors are in having company shares in their investment portfolio.
What Types of Stock Market Investments Are Growing the Most in Brazil?
According to Brazilian bank Santander, with Brazilian inflation on the rise and economic growth, these are the 15 most quoted stocks:
- Totvs (TOTS3)
- Sabesp (SBSP3)
- Itau (ITUB4)
- Bradesco (BBDC4)
- Petrobras (PETR4)
- Eletrobras (ELET3)
- Hapvida (HAPV3)
- Renner Stores (LREN3)
- Safe Harbor (PSSA3)
- Direcional (DIRR3)
- Mercado Livre (MELI34)
- Smart Fit (SMFT3)
- Vivara (VIVA3)
- WEG (WEGE3)
- Vale (VALE3)
The increase in investors is directly related to the current ease of access to information about trading, which was previously something exclusive to high-ranking businesspeople.
And, as we can see from this note from Banco Santander, which indicates investment options, access to information and also education about the stock market has become quite accessible.
Ease of Studying the Current Trading Market in Brazil
One interesting fact about the boom in traders in Brazil is that banking institutions themselves offer courses for anyone who wants to learn about the market and how to trade in it.
These institutions have renowned professors behind their courses, ensuring very complete content, worthy of a major college. Economics students continue to have access to the most complete information, for obvious reasons. However, financial institutions have been offering increasingly complete economic education programs.
Exchange of Information Between Brazilian Students and Traders with Others Around the World
When it comes to interesting facts and curiosities about the stock market in Brazil, we cannot fail to mention how Brazilian students are gaining experience and great exchanges of ideas by coming into contact with traders and students and the economy of other countries.
The popularization and accessibility provided by the internet makes it much easier to get in touch with people from all over the world who are interested in the same subject. Trading is no different. New traders and economics students benefit greatly from this globalization, gaining experience that was previously only possible through travel to courses and seminars abroad.
What Makes Brazil So Important in the Stock Market Today?
B3, the Brazilian stock exchange, is the largest in Latin America. This attracts the interest of traders from all over the world. Our companies with the greatest commercial value are mainly linked to natural resources, such as Petrobras, which explores and sells oil and its derivatives.
Vale is another major powerhouse because it is a mining company. Working directly with mineral extraction, it retains a high level of interest from international buyers. And with the expansion of foreign trade, and new alliances and foreign investments arriving in Brazil, the tendency is for more and more companies like these to have their shares valued.
With this growth in mind, more and more students are diving into the world of trading in order to learn and ride this wave of growth in international transactions. Hence the importance of good mentoring for these students, since, although the stock market is becoming more accessible, it continues to be a highly volatile and high-risk activity.
The Importance of Knowing How to Invest in Stocks;
Especially for new traders and students who are just entering the world of the stock market, it is important to highlight some essential points for this type of business. Follow the list below:
- Don’t be fooled by false promises: the stock market is very volatile. There are some online brokers who take advantage of traders’ inexperience to try to lure them in with the illusion of getting rich quick. That’s not how things work.
- It’s not easy: being a trader requires constant study and updating. Even if you don’t enter this world through a traditional economics college, you will still have to seek to improve your knowledge and always keep up with market innovations.
- Being a trader requires responsibility: it is very easy to lose huge amounts of money on irresponsible investments. Therefore, if possible, always have a professor who can help you with your trading.
- Knowledge is power: If you are the type of person who doesn’t like to study, this is not a good career option for you. As mentioned before, a trader needs to always improve. Study market movements, understand the global economy and the consequences that political changes can have on the stock market. This will determine your timing when buying and selling stocks. The global market is tough. It’s literally, learn or get out!
- Start from the bottom: Don’t take a step bigger than your leg. Start with small steps to get a feel for the stock market. This way, you will naturally gain knowledge without going bankrupt right away and ending a career that has barely begun.
Although our text is about interesting facts, it is important to leave some tips for beginner traders. In fact, the tips themselves are interesting facts, as it is noticeable that the huge number of people wanting to invest on their own nowadays puts them at risk of real financial tragedies.
Some Extra Curiosities About the Stock Market in Brazil;
Since our main topic is interesting facts about the Brazilian stock market, it is only fair to end our text with some other interesting facts about our stock exchange.
- We already know that the Brazilian stock exchange is called B3, but what about its origins? Well, the first stock exchanges in Brazil were created in 1851 in Rio de Janeiro and Salvador.
- The IBOVESPA score has already been reduced 11 times.
- The result of the investment, profit or loss, is determined and settled daily through daily adjustments.
- The Brazilian government website has a section called “Investor Portal”, where anyone can consult information about the financial market, as well as its history.
- In the state of São Paulo, the first stock exchange was created in 1890 when Emílio Rangel Pestana created a Free Stock Exchange to operate financial values in the city of São Paulo.
Before the 1960s, Brazilians invested mainly in real assets (real estate), avoiding investments in public or private securities. In addition to an economic environment of rising inflation – especially from the end of the 1950s – there was legislation that limited the maximum interest rate to 12% per year, the so-called Usury Law, which also limited the development of an active capital market.
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