Friday, September 22, 2023

Stock Market: Benefits and Disadvantages of Investing in Stocks

This August 9, after more than a year since the announcement of the approval of the share issuance program by the Stock Market Superintendencethe company César Iglesias will offer up to 38,721,220 shares ordinary in the local market. This represents 30% of its total shares. The price per share will be announced this Wednesday during the bell at the National Palace.

However, like any investment, these actions carry benefits and risks. Economists Laura Camacho and Kimberly García, founders of EconomicData, explain that the advantages of investing in stocks include a attractive yield potential and the payment of dividends, with the advantage of not needing a large amount of capital. On the other hand, the drawbacks include the variability in profitability, that is, that the price of the shares can fluctuate and that your capital can be affected.

They emphasize that the price of a share is determined by the offer and demand From the market. So, if you want to be a part, it’s time to open a brokerage account at your chosen stock exchange. Currently, BHD Puesto de Bolsa and Inversiones Popular are placement agents, while Alpha Inversiones and Parval Puesto de Bolsa are distribution agents.

Meanwhile, Paula Nouel, a financial adviser, emphasizes the importance of potential investors Get to know the company in which they want to invest in depth, including its history and activities. “In the case of César Iglesias, you can access his website and consult the shareholders section, where valuable information is found, such as his financial statementswhich are fundamental tools for making investment decisions”, he highlighted.

Nouel explained that the shares are ordinary, which implies that for each share acquired, there is the right to one vote in the general, ordinary and extraordinary assemblies of the company. In addition, the dividends they are not fixed, but variable, and are only paid if the company decides to do so. With the issuance of common shares, there is no obligation to pay dividends, since the company can decide each year, according to its strategic plan, whether to reinvest its profits or distribute them to shareholders.

He adds that investors can obtain benefits through two ways: dividend payments or capital appreciation. The latter, for example, if a share is bought at RD$100 and later sold at RD$130, the profit would be RD$30.

Cesar Iglesias is a Dominican company with more than 100 years in the market, dedicated to the manufacture and marketing of consumer products in areas such as cleaning, personal care and food. In addition, it has more than 24 production plants and a portfolio of 62 brands, 35 of which are manufacturers.

Stock market: How to buy César Iglesias shares?


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