Glossary | Site Map | Home RI | Terms of Use | Português | Contact IR About VCP Corporate Governance Financial Information Quarterly Releases Notices and Material Facts Presentations and Audio Archive Calendar of Events Shares Other Services Company Profile Principles, Values and Mission Pulp and Paper Market Social Responsibility Ownership Structure Councils and Committees Minutes and Call Notices Company's Bylaws Policies and Code of Conduct Management System Corporate Governance Standards Awards and Recognition Historical Data USGAAP/BRGAAP Financial Statements IAN/ITR/DFP (CVM) Interactive Balance (CVM) Financial Indicators (CVM) Sustainability Annual Report Quarterly Results Guidance Conference Call & Webcast Notice to the Market Material Fact Dividend Release Presentations Audio Archives Upcoming Events Bovespa Corporate Events Calendar How to Invest Interactive Chart Historical View Investment Simulator Dividends Analyst Coverage Market Consensus E-mail Alert Download Center FAQ IR Kit Investor Services Investors Ombudsman FAQ What are "derivatives"? These are financial assets whose trading values and characteristics are tied to the assets that serve as the reference. In other words, the price of this asset is derived from another. For example, when the price of a company option is derived from the stock price of that same company. What is the best time to buy stocks? The ideal is to buy low and sell high, which is very easy to define, but not always so easy to do. One interesting strategy is to establish a limit for earnings or losses of the stock and execute the appropriate action as soon as the stock reaches the established limit. It is best to avoid operating in the first moments of a public offering when the market is forming the prices, and very close to closing, when the big investors are leveraging their offers. Also avoid days when futures options come due, as the prices can vary greatly during the day with the battle between bought and sold. What is "day trade"? Doing a "day trade" means buying and selling stocks on the same day. How much of my capital should I invest in stocks? You should only invest in stocks that part of your assets that can be left undisturbed for a minimum period of one year. Stock market applications diversify your investments and should not tie up all your capital, especially if you need liquidity. In this case you could lose money. Also, find out what the normal trading unit of the asset is before sending a buy or sell order and attempt to negotiate for this unit lot or multiples of the unit to avoid entering the odd lot market with less liquidity. What is the difference between the whole unit market and odd lot market? The stocks are negotiated in lots. The whole unit market is the one that negotiates complete lots and the odd lot market is the one that negotiates parts, or fractions of lots. The normal trading unit is defined by the stock exchange to streamline the trading of stocks and increase liquidity. What do the acronyms that appear after the stock name, like PN or ON, signify? These are the stocks of the larger companies, the most profitable and most traded on the market. This list is not official and constantly changes. What are the best papers to buy? Try to follow the analysts' buy and sell recommendations. If you are not yet an experienced investor, it is better to avoid second or third tier papers and choose the companies that are more traded in the market. To reduce risks, diversify your portfolio. What are the advantages of investing in stocks? Investment in the stock market, in the long term, offers better average earnings than traditional investments like savings and fixed income. Besides this, upon investing in stocks you become a shareholder, that is, a co-owner of the company, and have the right to receive part of the profits of the company in the form of dividends. What criteria should I use to choose a broker to intermediate in my business dealings? Consult the CVM, a federal agency that inspects the securities market. Get informed on the financial situation of the securities firm, its Bovespa ranking, type of clients, products and services offered. Is it better to invest in stocks directly or through funds? There are advantages to both modes. Direct investment is more agile than investing in funds. The purchase or sale of stocks is done at the market price at the moment of sale, in other words D+0. In funds, the investment or redemption is done at the closing quotation value of the day after the operation request, that is D+1. Direct investment is also cheaper, because you only pay brokerage commission costs, while in the funds you pay an administration fee and sometimes an additional performance fee. On the other hand, when you invest in stock funds, the investment decisions are the responsibility of professionals and your portfolio can be diversified even with limited capital, since funds invest in various negotiable papers. What are "blue chips"? These are the stocks of the larger companies, the most profitable and most traded on the market. This list is not official and constantly changes. Is there a minimum time of possession for a stock before it can be negotiated? No. Stocks may be purchased and sold on the same day. What is Ibovespa? It is the Bovespa Index, in other words, the São Paulo Stock Exchange. It measures the profitability of a hypothetical portfolio containing the stocks most traded within the BOVESPA. Each stock held in the portfolio is weighted in accordance with its liquidity. The composition of stocks and the weightings are frequently varied to better represent the stock market. What should I analyze to make a good stock investment? You should analyze the market tendencies. To do this, pay attention to the news, principally on economics and politics. Constantly update yourself in relation to the flow of investments in stocks, both those abroad and those in mutual funds, as well as direct investments in companies. Search for market professionals' recommendations and analyses on stock market tendencies.