Single stocks are securities that represent a fraction of a company’s share capital. By acquiring a stock (or, a share), an investor becomes a shareholder, participating in both the results and the risks of that company. Publicly listed companies issue shares on the Exchange to raise capital to finance their operations, projects, and growth plans.
There are two main types of shares:
Common Shares – shareholders are granted voting rights at the company’s assembly meetings. Identified by trading codes ending in “3”.
Preferred Shares – shareholders are given priority in the receipt of dividends and capital reimbursement, however, generally voting rights are not granted. Identified by trading codes ending in “4”.
Units - consist of a bundle of shares issued under a single trading code. A Unit may combine, for example, one common share and two preferred shares. This structure offers investors the convenience of trading a single instrument, aggregating the characteristics and benefits of different share classes in a single transaction. Identified by trading codes ending in “11”.
ETFs, acronym for Exchange Traded Funds, are investment funds traded on an Exchange. In Brazil, these funds are designed to replicate the performance of a benchmark index, seeking to closely track its returns. Such indices may be linked to equities, currencies, commodities, or other markets, enabling investors to diversify their exposure in a practical and efficient manner.
By purchasing an ETF share, the investor gains exposure to the performance of a portfolio of assets that make up the underlying benchmark index, without the need to individually select each company or asset. As a result, ETFs provide a simple and accessible alternative for investing in entire sectors, strategies, or markets, while maintaining the same operational structure as stocks. ETF shares can be bought and sold under trading codes ending in “11,” in a swift and transparent manner.
Real Estate Investment Funds are collective investment vehicles that allocate capital to real estate developments and related assets. Investors can gain accessible and diversified exposure to the real estate market without the need to directly purchase a property.
Brazilian FIIs may invest in physical properties, such as shopping malls, logistics warehouses, corporate office buildings, and residential properties, or in real estate related securities, including Real Estate Receivables Certificates (CRIs) and units of other investment funds. The income generated by Real Estate Funds derives from rental revenues or capital gains and distributed to shareholders, periodically, in accordance with each fund’s distribution policy.
Like stocks and ETFs, Real Estate Funds shares are traded on the Exchange with the same level of ease and transparency. Each fund has a trading code ending in “11,” allowing investors to buy and sell units during exchange trading hours, monitor price movements in real time, and adjust their portfolios in line with their investment objectives.