Investors include all individuals and/or companies, domestic or foreign, that invest in financial instruments in order to make a profit. They represent market demand.
There are different types of investors. The first is institutional investors, represented by organizations that manage large volumes of assets, such as pension funds, mutual funds, investment funds, insurance companies and banks.
Non-institutional investors include individuals and corporations whose only requirement for participation in the market is to be of legal age. To invest in the market, they must go through a stockbroker, the only institutions legally authorized to transact in the market.
Investors can earn a profit in the market in two ways:
Dividends: earnings companies generate through their business activities. These earnings can be distributed quarterly, semiannually or annually. The frequency with which this return is delivered to shareholders depends on each company.
Capital gain: the difference between the purchase price and the sale price of a stock. When the stock is sold at a higher price than its purchase price, a capital gain is generated.
How to invest
- To invest in the market, the investor must be over 18 years old.
- There is no minimum amount of money to invest in stocks.
- Being informed of financial news and monitoring the performance of the shares comprising the IPSA stock index, the 40 most traded shares in the market, will help investors make educated investments.