FAQ

The investor must be aware that all investments have associated risks and must make a choice about the level of risk they are willing to assume. When deciding to invest, you must take into account the inherent costs (variable and fixed).
The investor must also use additional information about the market, made available by supervisory entities, organized forms of trading in financial instruments or professional associations.
Investors can and should use the CMVM to obtain information or make complaints and also for general information about the functioning of the markets and the characteristics of available products.

Stock
A stock is a financial instrument that represents partial ownership of a company. This allows the investor to hold a fraction corresponding to the set of assets and liabilities of the business, and consequently the results generated by the company, whether profits or losses.
The profits obtained from an investment in shares can be of two types: capital gains, when the market price obtained from the sale is higher than the purchase price; or dividends, regular remuneration consisting of the distribution of a percentage of the profits obtained by the company (the distribution of dividends depends on the company’s ability to generate profits and its policy for distributing those profits).
However, investing in shares can generate losses (capital losses) when the market price is lower than the purchase price.
Direct investment in stocks must be accompanied by knowledge of the company in which it is invested and knowledge of the generic conditions of the capital market, as the company’s behavior on the stock exchange is also determined by the behavior of the entire market.
Bonds
A bond is a financial instrument that represents a loan by the investor to the issuer. They are issued by governments and companies to finance projects and operations, and unlike shares, they do not give the investor ownership over the issuer.
When purchasing bonds, the investor is entitled to remuneration, generally depending on the issuer’s credit risk and market interest rates. This remuneration is paid at a certain frequency and at the end of a defined period (maturity) the invested capital is reimbursed.
When investing in bonds, there is a risk of not receiving interest or/and not repaying the capital, because the company’s financial situation does not allow it. It is therefore important, when investing in bonds, to know the company’s payment capacity and the existence or not of a third entity that guarantees the repayment of the issue and/or the payment of interest.
Information relating to each bond contract can be found in the issue prospectus, available from the issuing company, the placing banks and the Stock Exchange (when admitted to listing).
Investment in bonds may generate gains or losses when sales are made before maturity. Investment in bonds may generate gains or losses when sales are made before maturity. Like stocks, the liquidity of the issue must be analyzed, when purchased on the secondary market, or the liquidity prospects, when purchased on the primary market
Exchange Traded Funds (ETF)
An ETF is an investment fund listed on the stock exchange. ETFs represent an easy, low-cost and efficient way to invest your money, and typically replicate the returns of stock, bond or commodity market indices, providing a high level of diversification.
It should be noted that the performance of these funds only in certain contexts, and in certain time horizons, is identical to those of the benchmark indicators. In other words, investing in an ETF does not assume the same performance as the reference indicator.
ETFs do not guarantee invested capital or returns due to fluctuations in asset values, which depend on the characteristics of the securities and financial markets in which ETFs invest.