Stocks, also known as "shares" or "equity" in a company, represent the securities or financial instruments in which the ownership of a company is divided.

They are portions of a company’s capital, so purchasing them gives you a stake in the company's assets and profits. To buy or sell stocks, you can:

• Use the stock exchange as a more public alternative;
• Stocks can also be bought and sold privately.

Stocks form the foundation of most investment portfolios and are subject to government oversight to ensure fair practices.

Historically, stock markets tend to rise over time, which is why many investors prefer them as part of a long-term investment strategy.

How did the concept of company shares come about?

The concept of "public company shares" originated in the Netherlands when The Dutch East India Company sought a way to fund its maritime voyages.

In the past, buying shares allowed you to purchase a portion of an expedition, in exchange for a certificate naming you as a part-owner of the voyage's profits.

This led to the creation of the Amsterdam Stock Exchange, where people gathered to trade these shares through buying and selling.

Why do people buy stocks?

People buy stocks for various reasons:

• To earn profits when the stock price rises;
• To receive dividends, which are a portion of the company’s profits distributed to shareholders;
• To have voting power that can influence the company’s decisions.

Why do companies issue stocks?

Companies sell stocks when they seek to raise capital.

With that capital, they can:

• Reduce their debt;
• Invest in new product launches;
• Expand into new markets and improve or acquire new facilities.

How do stocks generate profits?

Investors make money in the stock market in two ways:

1. When the stock price increases during ownership, and they sell it for a profit;
2. Or through receiving dividends, which is a portion of the company's profits typically distributed to shareholders quarterly.

However, it's important to note that not all stocks pay dividends.

How to buy stocks from Latin America?

To buy stocks from Latam, choose an international broker: "Hapi Investments," supported by Y Combinator, the leading Silicon Valley accelerator, and Harvard Management Company, among other top-tier institutions.

Additionally, to open an account for buying and selling stocks, you must be of legal age and make the deposits of funds you wish to start investing.

At first glance, investing in the stock market might seem exclusive. However, technology has made entering the world of investment faster and more intuitive.

With online brokers and other information tools on the internet, more and more people can now independently invest in the stocks of companies they like.

Moreover, fractional investing, which allows individuals to purchase parts of a full share, has further lowered the barrier to stock market entry.

Technology has evolved! Today, more and more people can access the stock market, stay informed, and trade from any device, anywhere.

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