Investing in the stock market is for many an alternative to unknown savings and is usually associated with large investors. However, this is not reality. The stock market is a market or meeting point between sellers and buyers of shares and other financial assets and anyone can access it.
The first step is to know how it works, since its access is only possible through an intermediary authorized by the CNMV, the financial regulator. In addition, experts recommend, before starting to invest, “define precisely what risk you are willing to assume, or in other words, what level of profit/loss you expect to apply to said investment”, point out from BME, the operator of the Spanish bag.
Once the profile is clear -and depending on it-, the destination will be decided -variable income, fixed income, derivatives…- and the amount of the investment. For beginners, it is possible that an investment of less import but that is financially acceptable is recommended, or carried out on an instrument of a simpler nature to understand.
According to the commissions
There is no minimum amount when investing in shares. However, the fees associated with the investment charged by intermediaries must be taken into account. Investors cannot go directly to the market. To operate on the stock market, it is necessary to process orders through an authorized financial intermediary.
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Operations at the CNMV explain that investment services are usually contracted through credit institutions (banks, savings banks, or credit cooperatives), but it can also be operated through an “investment services company” ( ESI), among which are securities companies and brokers.
These intermediaries apply different types of fees associated with stock operations. From the commissions charged by intermediaries for processing the order to the commissions for contracting and settlement. Therefore, if the amount of the investment is small, it must be taken into account if it compensates the commissions applied, depending on how the commissions affect profitability. In this sense, it is advisable to have in writing the exact amount that is going to be charged and for what commission.
authorized intermediaries
“The most important thing is to make sure that you are registered with the CNMV and authorized to provide investment services,” the CNMV recommends when choosing an intermediary. This information is available in the Official Registers of the CNMV.
If it is not authorized, we will face a ‘financial shack’. The financial regulator explains that these beach bars are those entities that offer and provide investment services without being authorized to do so. And warn that they are dangerous “because in most cases the apparent provision of such services is just a cover to appropriate the capital of their victims, making them believe that they are making a highly profitable investment.”
Be aware of the investment
Likewise -regardless of the amount to be invested- it is important to be aware of the investment we are making and the possible risks. In this sense, the CNMV asks two questions: whether it is convenient to invest in the stock market -taking into account the financial objectives of the investor- and which one raises the profile of the investor -based on the level of risk that can be assumed, the financial objectives or the term of which available to invest your money.
In addition, once the investment is made, it is advisable to follow up. “It is neither necessary nor advisable to always be aware of the stock prices, but it is advisable to monitor other aspects that may affect you, such as the prospects and evolution of the business, changes in the company’s capital structure or its dividend policy” , indicates the CNMV.
The CNMV warns that “the main risk of equities is the uncertainty about their returns.” In other words, the value of the shares can go up or down with respect to their acquisition value and it is possible not to achieve the expected return and even lose the entire investment.
