STOCK MARKET

Investing in the stock market means buying and selling financial instruments, such as shares and ETFs, with the objective of obtaining profitability from the positive variation of the asset or earning income through dividend payments.

The value of investments can rise or fall over time, depending on market developments.

To start, just:

• Have an Account open at ActivoBank;
• Choose the financial instruments;
• Place the first order.

At ActivoBank you can invest through the App, in ETFs, Certificates, Investment Funds, retirement products / PPR or Unit Linked, make Term Deposits or use PoupeUp.

There is also the Trading Platform, in the Web and App versions, where you can invest in shares, ETFs, Certificates, Bonds, and Warrants.

Yes. Investing in the Stock Market is subject to market fluctuations, which may result in capital gains or losses.

Yes, you can sell your assets at any time during market hours. For example, in the Lisbon Stock Market, the hours are from 8:00 am to 4:30 pm. However:

• The price depends on the market conditions at the time;
• The final value may be higher or lower than the initial investment.

You can start with a small amount: €10, €20, or €50 per month.

The most important thing is not the initial amount, but rather:

• Invest regularly;
• Have a long-term horizon;
• Diversify investments;
• Do not invest money you may need soon.

Before investing in the Stock Market, you should have an emergency fund and understand that the value of investments can go up and down.

A simple strategy for beginners can be to invest regularly in a diversified ETF instead of trying to pick individual stocks.

For those starting out, the best Stock Market investments tend to be the simplest and most diversified. Global index ETFs allow investing in hundreds of companies at once, reducing the risk associated with choosing individual stocks.

A simple strategy for beginners:

• Create an emergency fund;
• Invest a fixed amount monthly;
• Choose 1 global ETF.

Keep in mind that investing in the Stock Market involves risk and capital can appreciate or depreciate. The longer the investment horizon, the less impact market fluctuations tend to have.

The main difference is that a stock represents a company, while an ETF represents a set of investments.

Stocks: When you buy stocks, you are investing directly in a specific company.

Advantages:

• Potential for higher gains;
• Possibility of receiving dividends;
• You can choose companies you know and believe in.

Disadvantages:

• Higher risk;
• Requires more study and monitoring;
• A bad decision can significantly affect your portfolio.

ETFs: An ETF (Exchange Traded Fund) is a fund traded on the Stock Exchange that gathers various stocks or other assets into a single investment. A single ETF can contain hundreds of companies.

Advantages:

• Automatic diversification;
• Lower risk than investing in a single stock;
• Generally low costs.

Disadvantages:

• Lower potential for extraordinary gains than hitting a stock;
• It remains subject to market ups and downs.

Diversifying means not putting all your money in the same place. The goal is to reduce risk so that poor performance of one investment does not affect your entire portfolio.

Diversification can be done in several ways:

1- Diversify by companies - Instead of buying shares of just one company, spread the investment across several;

2- Diversify by sectors - Invest in various sectors (Technology, Health, Energy, Consumer, etc.). If one sector faces difficulties, others may compensate.

3- Diversify by geographies - You can invest in various markets (USA, Europe, Japan, Emerging Markets).

Global ETFs do this automatically, investing in companies from several countries.

4- Diversify by asset types - You don’t need to invest all your capital in shares (for example, in ETFs, Bonds, and Savings or liquidity products).

In your choice, you should consider your age, objectives, time horizon, and risk tolerance.

The easiest way to diversify is to invest in a global ETF that provides exposure to several companies from various countries and sectors.

Golden rule: never invest all your money in a single share, sector, or country. The more diversified the portfolio, the lower the specific risk of each investment tends to be.