Identify which stocks are performing better

To invest in stocks, you must know in detail the types of assets that can offer you higher returns and how to acquire them.

Investing in the stock market is one of the first steps that anyone can take to increase their assets and obtain profits, although basic knowledge is required to understand how the market operates and what things to take into account when buying securities and financial assets to succeed.

In the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA) investors and companies find the space to carry out investments in stocks. Its objective is to facilitate transactions and the development of the stock market. The most common way to invest is to acquire different debt and equity securities with a positive return and good growth prospects. 

When a company decides to issue securities and go public, it can do so through a Public Offering for Sale (OPV or IPO). In this process, the company sets the price at which it will list the assets of its organization on the stock market.

The issuer and the agent or financial adviser agree on an initial value of the shares; Generally, this arises from dividing the figure at which the company has been valued by the number of titles that have decided to be put up for sale on the stock market.

The target price of a share is made with the estimate of what an asset of a corporation should be worth according to an evaluation of a specialist. If the value is above the actual cost, it is said that there is a recommendation to buy and, otherwise, if it is below, it is said that it is a recommendation to sell.

Investors want a profit when purchasing an asset. In a nutshell, they need an annualized return in favor. For this reason, it is important to know that to obtain returns, it is not only through the profit that arises between the difference between the purchase price and the sale price. It is also obtained from the returns offered by an instrument for the dividends provided by the issuer. 

Types of shares in the Mexican Stock Exchange 

In the stock market, there are different types of stock instruments, according to their characteristics, they grant rights and obligations to all investors, according to the Mexican stock market portal.

Common shares, known as common shares, are financial assets that represent the capital of a company and grant voting rights to the owner as well as to the company’s profits. Meanwhile, the nominative, are the titles that bear the name of the shareholders and the way to be transferable is through a notice from the issuing company signed by the seller and buyer.

There are also so-called preferred shares, which grant their holders some different rights than common shareholders, for example, priority to dividends with a set rate or amount. For this type of share, the owners do not have voting rights.

Although the stock or variable income market is divided by sectors, to determine which ones have the highest yields, the investor must take into account factors such as economic indicators and financial statements of the issuing companies.

There is a new sectoral classification scheme of the BMV to standardize with international standards of other exchanges. The new structure considers four classification levels, incorporating a total of 10 Sectors, 24 subsectors, ranging from energy, materials, health, telecommunications, among others. We present a table with the 10 sectors and their subsectors:

How to be a shareholder in the stock market?

The way to invest in stock instruments begins when there is an investor interested in buying an asset. In the first instance, the interested person must have an intermediation contract with one of the brokerage houses in the country.

To operate in Mexico, the institution must comply with the regulations for the authorization of the National Banking and Securities Commission (CNBV). Said brokerage houses are brokers authorized to operate in the stock market that serves as a contact between bidders and applicants. This is because the BMV cannot buy and sell variable-income assets directly.  

There are two types of brokerage houses: traditional and online. In the first case, it is more aimed at investors with high purchasing power, since the opening amounts are around 500,000 pesos. According to Condusef to invest in brokerage houses, the minimum amount can be from 100 pesos, although it clarifies that it depends on the financial institution or the investment plan.

It is important that the interested party has healthy finances and is aware of the financial instruments or assets in which they will invest so as not to expose their assets. The next step is to define the financial intermediary that will carry your investment portfolio. Another way to access the stock market is through banks and fund operators.

The National Commission for the Protection and Defense of Users of Financial Services (Condusef) recommends having diversification in the assets in which you are going to invest to obtain better returns. It is necessary to select various financial instruments considering the term, level of risk tolerance, and the age of the investor.

It also lists some practical tips for acquiring the best stocks:

• Invest only available money. It is important to have a clear budget so as not to commit resources for other expenses and obligations.
• Diversify the investment portfolio. Do not put all your eggs in one basket when buying, whether in fixed income or capital.
• Consider other alternatives such as investment funds.
• Have a flexible investment plan to change shares or assets depending on the economic context.
• Maintain monitoring of the financial markets.
• Evaluate how the stock market operates to consider or not a change in strategy and acquisition of shares.

In general, Condusef reiterates on its website that the investor must have a plan that meets their financial goal, whether it is to increase their assets or obtain liquidity in the market. It also invites the design of a strategy in which different amounts are allocated to different financial assets regardless of the investor’s profile – conservative with low risk, moderate, or aggressive with higher risk.

One should also not forget to have a stockbroker who can offer personalized attention, as a financial advisor does, to have a guide on the most profitable instruments, as well as continuous and updated monitoring of the economic outlook and its impact on the investment plan. investment.

The interest in participating in investing in stock shares is growing more and more, especially among people or companies that are looking for profitable alternatives to put their money to work and raise their assets.

If you are one of those interested and want to take the first step, you can approach the experts to choose a portfolio with the ideal stocks for your profile. In Grupo Financiero Monex’s Private Banking you will find the perfect advisor to guide you on that path. They know how to make your money work for you.