Analysis

The Capital Market

How the Brazilian stock exchanges and financial systems are regulated and monitored.

Regulatory agencies

Publicly-traded companies use the stock exchanges or over-the-counter market to raise investor funds in order to finance their investment projects and become more competitive. This is essential, since the corporate environment demands that investments in modernization, updating and research and development of new products and processes be continuous.

 

First steps for going public

The process of going public takes around 12 weeks on average and starts when the company undertakes the following actions: preliminary analysis of the advisability of going public and choice of lead coordinator.

After these actions, 12 more steps will be necessary to complete the process.

Required documents

Once registration of a publicly-held company is granted, the second step is to provide the information necessary to the CVM and the stock exchange, in accordance with CVM Instruction 480/09.

 

Costs of going public

If a company decides to go public, it will incur basically two different types of costs: those directly related to the offer and those related to listing the company on the stock market.

 

Stock classifications

The conceptual bases of the stock market and how investors, the stock exchange and companies use this market and interact will be shown on this section. For a stock to be traded on the exchange, the BM&FBovespa has established some company requirements.

Investor protection rules

Effective protection of investors is essential for the development and improvement of the Brazilian capital market. In addition to the existence of a set of rules to discipline the market, it is essential that there be effective compliance with the laws and regulation of corporate law and the capital market, both in the administrative and judicial spheres.

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