What is the minimum amount to invest in shares?

Have you ever heard someone say that there is a minimum amount to invest in stocks? Well, that’s not quite the case! We’ll explain why.

Is investing in stocks on the stock exchange as difficult and complicated as it seems?

One thing is certain: to invest, it is important to have knowledge about the financial market.

However, as complex as this may seem, we assure you that the stock market is simpler than it actually seems.

And contrary to what they say, you don't need to have a lot of money to become an investor.

Want to know more about the subject? Keep reading.

What are shares?

To help you better understand the cost of investments, we will remind you what a share is on the stock exchange.

Well, shares are the smallest fraction of the share capital of a publicly traded company.

When purchasing a share, the investor becomes a minority shareholder in the company.

It is possible to buy a single share of a company. However, to do so, you need to access the fractional market.

Is there a minimum amount to invest in shares?

The truth is that there is no minimum amount to invest in shares on the stock exchange.

The value actually depends on the type of share and the number of shares. In other words, in practice, anyone can enter the world of investments.

An investor can start by buying a batch of 100 shares. This means that the value depends on the share price.

If the share is worth R$ 30 reais, R$ 3,000 would be needed to carry out the transaction.

If you find a company with shares worth R$ 2, that will be the minimum value.

But it is important to remember that some stocks are traded at a higher value and, therefore, the investment may become a little more expensive.

Additionally, you will need to inquire about the brokerage fee (a charge made by some stockbrokers), because depending on the rate, your profit may be impacted.

What is the minimum amount of shares an investor can buy?

We can say that there are two ways to acquire shares: through the “full lot” or the fractional market.

In the spot market, where investors trade shares at the price established by the auction, it is necessary to acquire at least a batch of 100 shares.

In the example we give, we show that in this case, the investor who wants to buy shares that cost R$ 30, will have to pay R$ 3,000.

But the good news for those who don't have much capital to invest is that there is a fractional market. In this case, the number of shares varies from 1 to 99.

In other words, you don't need to buy a batch of 100 shares, as in the fractional market, they are traded individually.

Fractional market: the solution for investors with little money

In recent years, the stock market has started to attract the attention of Brazilians.

Low savings yields have led many people who are in the habit of saving money to start looking for investments with higher returns, such as shares.

However, those who do not have a large capital may have some difficulty finding financial products, as shares are generally traded in lots of 100.

But as you already know, there is an option for those who cannot or do not want to invest a lot: the fractional market.

Buy as many shares as you want on the fractional market

If you cannot buy the standard lot of 100 shares, you can buy a fraction of it, i.e. 1 or 99 shares.

But after all, what is the difference?

Those who sell shares in batches have an easier time negotiating. In addition, liquidity (ease and speed of sale) is also greater.

Fractional lots are not in such high demand. For this reason, they are considered less liquid securities.

In other words, if you intend to invest in the short term, this option is not so advantageous. After all, you may have difficulty when selling the fractional lots.

But for those who focus on the long term, the fractional market is an excellent path, since high liquidity is not a benefit that is so sought after by those who invest with the future in mind.

This means that even with little capital, you can build a well-diversified portfolio and thus increase the possibility of having great financial returns.

How to buy fractional shares?

The operation is practically identical to the conventional market.

Therefore, don't worry about the complexity of this operation, as the process is relatively simple.

Just like someone who wants to buy a batch of 100 shares, you also need to have an account with a stockbroker and then access the financial institution's home broker.

To buy a share on the fractional market, add the letter F to the end of the stock ticker. The ticker is the code used on the stock exchange to identify an asset.

In other words, type the name of the asset ending in “F” and enter the number of shares you wish to purchase.

Depending on the broker's home broker (if you are registered with only one), the way of carrying out purchase and sale negotiations may be slightly different.

Furthermore, the price between standard lot shares and fractional shares may also differ slightly.

This is because standard lot assets have a slightly larger trading margin.

It is important to mention that fractional shares pay the same dividends as standard lot shares. The payment of dividends depends on the investment policy of each organization.

Conclusion

As you can see, there is no minimum amount to invest in stocks.

So, if you don’t have a lot of capital yet, don’t worry – there are many investment options on the market and you will certainly find options that fit your profile.

In fact, the idea is precisely that: to invest to increase capital and have greater financial peace of mind.

If you liked this article, also see “How to start investing in stocks: step by step”.

Click here.