Uncomplicated: Know the main terms of the financial market
Do you know what are the most common investment terms in the day to day financial market? Regardless of the degree of involvement with the topic, it is always good to know and understand the particular vocabulary of this environment.
Therefore, in today’s post, we have brought some terms on investments that everyone who already invests or intends to invest needs to know to make their applications with greater preparation and assertiveness. Follow the text and stay on topic!
Selic is the abbreviation for Special Settlement and Custody System. Briefly, it is the rate that governs the interest of Brazil, defined by the Monetary Policy Committee. Their value should be similar to the rates paid for government bonds.
The rate is a percentage or a fixed amount, depending on what is being charged, applied to calculate the amount of any tax.
Simple interest rates are those calculated only from an initial value.
The compound interest is those calculated on the initial value plus interest accrued in previous periods.
The Stock Exchange is a market in which companies and interested people buy and sell their securities and shares. It works as a “meeting point” between who wants to sell and who wants to buy.
BM & F Bovespa
BM & F Bovespa is a Brazilian Stock Exchange, created in 2008, with the merger of the Mercantile & Futures Exchange and the São Paulo Stock Exchange. With this merger, the purse became the eighth largest in the world.
The Bank Certificate of Deposit (CDB) is a security created by banks that is available to clients seeking to invest. Basically, it is like a loan made to the bank and it brings a financial return to the investor.
Interbank Deposit Certificate (CDI) is a bond that allows financial institutions and banks to lend money (and also borrow) from other financial groups that are in need of replenishing their cash.
Another type of investment is the Real Estate Letter of Credit (LCI), in which the client invests in the real estate sector and receives the financial return from the operation.
Very similar to LCI, the Agribusiness Letter of Credit (LCA) is also a form of investment, however, this time the resources are applied in the agribusiness sector.
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