💬 Meta description:
Understand what stocks are, how they work, the risks and benefits of this investment, and learn how to start from scratch safely and strategically.

What Are Stocks? A Beginner’s Guide to Investing in the Stock Market

📌 Introduction

You’ve probably heard that investing in stocks can make you rich — or that it’s risky and only for experts. The truth lies in between: stocks are a powerful tool to build long-term wealth, but they require knowledge and strategy.

In this Dicas de Bolso guide, you’ll learn:

• What stocks are

• How they work

• The risks and benefits involved

• How to start investing safely

• Practical tips for beginners

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💡 What Are Stocks?

Stocks represent small ownership slices of a company. When you buy a stock, you become a shareholder — even if it’s just a tiny part.

That means if you buy shares of Petrobras, Itaú, or Magazine Luiza, you actually own a piece of those companies. Depending on the stock type, you may also have voting rights and receive part of the company’s profits.

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⚙️ How Do Stocks Work?

1. Traded on the Stock Exchange

Stocks are bought and sold on B3 (the Brazilian Stock Exchange) via a brokerage. Prices change constantly based on supply and demand.

2. Price Appreciation

As a company grows, innovates, or earns more profit, its shares tend to increase in value. You can sell them later at a higher price to earn capital gains.

3. Dividends

Some companies share part of their profits with shareholders in the form of dividends — a great way to earn passive income from stocks.

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🧭 Types of Stocks

📃 Common Stocks (ON)

Give voting rights in shareholder meetings.
Example: PETR3 (Petrobras ON)

💰 Preferred Stocks (PN)

Priority in receiving dividends, but usually no voting rights.
Example: PETR4 (Petrobras PN)

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✅ Advantages of Investing in Stocks

📈 High potential for long-term returns
💸 Possibility of earning passive income through dividends
🌍 Portfolio diversification across sectors and industries
🏛️ Become a part-owner of national and international companies

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⚠️ Risks of Investing in Stocks

📉 Volatility — prices fluctuate daily
❌ Risk of loss if you sell during downturns
🧠 Requires learning and constant monitoring

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🛣️ How to Start Investing in Stocks?

✅ 1. Build an Emergency Fund First

Before investing, have a cash cushion in low-risk, highly liquid assets (like Tesouro Selic).

✅ 2. Open a Brokerage Account

Choose a trusted brokerage with zero stock trading fees and solid customer support.

✅ 3. Study the Market

Understand the basics:

• Fundamental analysis (focus on company financials)

• Technical analysis (focus on price charts and behavior)

• Key metrics like P/E ratio, ROE, Dividend Yield

✅ 4. Start with Solid Companies

Look for well-established, profitable businesses with a history of dividend payments. It’s safer for beginners.

✅ 5. Invest Regularly

Focus on long-term results. Instead of trying to “time the market,” invest consistently and benefit from compound growth.

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💰 Pro Tip: Reinvest Your Dividends Monthly

Over time, your portfolio will grow not only from stock appreciation but also from reinvesting the income you receive — accelerating your financial progress.

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🤖 Tools to Help Beginners

• Status Invest – for analyzing stocks, indicators, and dividends

• Trademap – app to track your portfolio

• Fundamentei – simple platform for fundamental analysis

• Stock simulators – practice before using real money

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❓ FAQ – Common Questions

📍Can I lose all my money in the stock market?

Yes, losses are possible. But with strategy, diversification, and education, the risk becomes manageable.

📍What’s the minimum amount to start?

Some stocks cost less than R$50. Ideally, start with R$200 to R$500 per month to create a habit and diversify.

📍Do I need to report stocks to the tax authority?

Yes, even if you didn’t sell. Gains under R$20,000 per month are tax-exempt, but all holdings must be declared.

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🧠 Conclusion

Investing in stocks is one of the most powerful ways to grow your wealth over time.
With discipline, financial education, and long-term thinking, you can:

• Become a shareholder of major companies

• Earn income from dividends

• Benefit from market growth

Start small, invest smart, and focus on the future. That’s the path to successful investing.