Stocks

What are stocks?

A stock represents a share of a company's capital stock. When investors purchase a particular stock, they become owners of a portion of the issuing company.

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Since they are equity instruments, the gains arising from investing in stocks are not pre-determined, but come from two main sources:

• Stock appreciation, resulting from price changes driven by the supply and demand for the asset.

• Dividend payments, which occur when the company decides to distribute part of its profits among its shareholders.

Only stocks of public companies listed in Argentina that have conducted an Initial Public Offering (IPO) can be traded on BYMA.

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Stocks can be traded:

Advantages for investors

• As shareholders, investors have the right to receive dividends distributed by the company they invested in.
• It is possible to start investing with small amounts.
• Potential for long-term returns through stock appreciation.
• Opportunity to participate in company meetings.
• Listed companies typically represent leading organizations within the country's economu, offering the chance to own a stake in a large, top-tier business.
• A diverse selection of sectors is available for investment.
• Shares are held in custody by Caja de Valores, Argentina's Central Stock Depository.
• As central counterparty, BYMA guarantees stock trading.
• Shares offer liquidity, allowing for purchase and sale at any time.

Advantages for issuers

• Access to Capital Market Financing: Raising capital by offering shares to the public.
• Enhanced Reputation: Listed companies increase their visibility and public attractiveness.
• Strategic Listing: Listing on the stock exchange as part of commercial strategies.