What is B3 and how does it work?
After all, what is B3? Learn how the Brazilian Stock Exchange works
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Knowing what B3 is is essential for anyone who wants to invest in variable income.
Brazilians are increasingly interested in the financial market. That is why many beginners have started investing in stocks in recent years. However, despite having some knowledge of the financial market, many of them do not know how B3 works.
In other words, a large part of new investors are unaware of the history of the Brazilian Stock Exchange and how it became the monopoly of the capital market in the country.
If you want to start investing, or if you have already started but still don't quite understand what B3 is and how it works, continue reading this article! We will explain how it all works.
What is B3?
B3 is the name of the Brazilian Stock Exchange. It is currently the 5th largest stock exchange in the world by market value.
It was created in 1890 as Bolsa Livre, undergoing several reformulations over the years, until reaching its current form.
B3 officially emerged in 2017, after the merger between BM&F Bovespa (São Paulo Stock, Commodities and Futures Exchange) and Cetip (Central Securities Custody and Settlement Center).
The stock exchange is basically the digital environment in which stock and other trading takes place. financial assets.
In other words, it is at B3 that investors issue buy and sell orders and manage their assets.
How was B3 created?
To understand how B3 was created, you, the investor, must know how BM&FBovespa and Cetip operated.
As you already know, the stock market emerged with the merger of these two companies.
Previously, Cetip was a publicly traded corporation. It played a major role in the operation of securities such as CDB, LCI and LCA.
BM&FBovespa was the São Paulo Stock, Commodities and Futures Exchange, which emerged in 2008 through the merger between Bovespa (São Paulo Stock Exchange) and BM&F (Commodities and Futures Exchange).
A few years ago, these two companies were the main players in the financial and capital markets.
And the merger of the two companies was a strategy to strengthen the performance of both.
What is the function of B3?
B3 is the place where negotiations for the purchase and sale of financial assets take place, such as:
1. Company shares
Shares represent fractions of publicly traded companies, those that are traded on the stock exchange.
To the acquire a share, the investor becomes a partner in the company, that is, in a business.
The investor, who is taking a small part of a third-party company, begins to be called a minority shareholder.
Common shares (ON) guarantee the right to vote at company meetings, while preferred shares (PN) have preference when it comes to distributing dividends.
2. Stock options
An option is a contract for the right to a specific asset.
It has high yield volatility.
Because stock options require some market experience, they are not as well known as other types of investments.
3. Real estate funds
A real estate investment fund (FII) is basically a group of people who aim to invest in real estate funds.
Despite being an investment in the real estate market, the FII It works completely differently from an LCI (Real Estate Credit Letter).
The FII is an investment that you make through the acquisition of a share in a financial institution.
Furthermore, real estate funds are highly volatile and carry more risk (since they are variable income investments) and their shares are traded on the Stock Exchange.
4. Futures contracts
Futures contracts work in a very similar way to stocks.
However, here contracts are carried out based on other financial products on the market, such as commodities and currencies.
As the name suggests, futures contracts are those in which the investor commits to purchasing or selling an asset on a future date with a predetermined value.
5. Investment funds
Investment funds are a type of collective financial investment.
This means that they pool financial resources from several investors, who delegate investment decisions to a professional manager.
Is it safe to invest through B3?
This is a very common question for those who want to enter the investment market.
B3 is supervised by the Securities and Exchange Commission (CVM), an entity linked to the Ministry of Economy that regulates the entire financial market in our country.
If a company or investor violates any of the rules, they are subject to investigation.
What are B3's opening hours?
Due to the end of daylight saving time in the United States, the Brazilian Stock Exchange began operating on a new schedule.
The stock market maintains its opening at 10 am, but extends trading until 6 pm.
Derivatives and structured operations on exchange rates are closing at 6:30 pm.
How to start investing in the Stock Market?
To become a successful investor, it is very important to start studying the financial market.
Furthermore, it is very important that you know your investor profile and set financial goals. This way, you will be able to find the best investments for your profile.
It is important to remember that to start investing in the stock market, you must open an account with a stockbroker, a financial institution authorized to operate on the trading floor.
To choose a good broker, it is necessary to evaluate some factors, such as brokerage fees, availability of reports, reputation in the market, among others.
Conclusion
Now you know what B3 is, how it came about and what are the main financial products that are traded on the stock exchange.
But to become a successful investor, it is important to know the market, be patient and always focus on the medium and long term!
