Should you go to a capital increase?

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De todos modos, la ampliación de capital es un movimiento muy ligado a la renta variable. Hasta el punto de que seguro habrás venido más de una vez. Debido a que en efecto, se trata de una strategy muy usada por las sociedades cotizadas para equip yourself with liquidity to meet your business needs. Both in the large securities of the Spanish Stock Market, as well as in those of medium and small capitalization. In this regard, there is practically no difference when starting a capital increase.

At the same time, this business movement has gained special importance due to its impact on the Santander Bank. Bueno, este hecho tan importante se está desarrollando como parte de la estrategia financiera para obtener Banco Popular. Y eso está llevando a que buena parte de los pequeños y medianos inversores estén inmersos en este procedimiento de gran relevance en las inversiones. Debido a que no puedes olvidar que además puedes rentabilizarlos.

However, one of the questions that investors ask the most is whether to go to the capital increase issued by companies listed on the equity markets. Because not in all cases will be the same results. It will depend on many factors that from now on you will have in this information. So that from now on you know what to do at all times. Because something you should pay attention to is that it will not be an easy decision that you will have to make. Because they are movements in the stock market that have many edges that you should know.

Capital increase: its reason for being

In the first place, it cannot be forgotten that it is a resource that listed companies have to enhance their business lines. Even to carry out new investments for better exposure in financial markets. It is something that became normal among all large financial groups. Even though its effects are not always the same. Because it can be very positive for the evolution of companies. But the same does not happen in some of the cases, as can be seen in recent years.

At the time a capital increase is launched, they are the former shareholders que disponen cierta preferencia por acudir a estos hechos notables. Aún cuando además si no estás posicionado en el valor afectado además puedes involucrarte en este tipo de operaciones. Debido a que además los harás rentables a los pocos meses de su emisión. Cuál es el target que se persigue con su implantación en los mercados financieros. Debido a que de hecho, en los mejores escenarios, puedes ganar mucho en estas operaciones tan especiales y ahora tradicionales a la vez.

Objectives of these movements

No cabe la menor duda de que el objetivo de cualquier ahorrador es sacar unos euros de cada una de las nuevas acciones. Sea cual sea el caso, no creas que su rentabilidad se generará a los pocos días de su lanzamiento. Debido a que esto no es verdaderamente así, pero los beneficios go to longer terms, as an example in the medium and long term. If what you want is a more or less rapid return through these variable income operations, you better forget about the capital increase.

Its effects on the price of the securities involved in these processes will begin to be noticeable after a few months. Period in which you should ask yourself if you should undo the accumulated positions of these movements. To the point that in the most positive cases it is even feasible double the price of new shares. Even more aggressive revaluations cannot be ruled out. That is why it is so important that you choose the most competitive capital increase. Because you cannot forget that not all are the same, far from it.

Badly received by the markets

Of all, a capital increase is not very well received by the financial markets. This is due to the distrust of the most stable investors in the face of this type of process in the financial markets. As a result of them, it is not surprising that the stock price depreciates after a few days. Because there are also many small and medium investors who choose to undo positions. Try not to be immersed in bearish processes that can generate large losses. At least when it comes to longer terms.

Based on this general scenario, it will be highly recommended that you analyze in great detail each of the capital increases that land on the financial markets. But especially look at its conditions and if it is convenient for you to subscribe. So that from this dynamic you can make the best decision to defend your interests as a retail investor. Where the price at which you must subscribe the new shares will be very important. And if the solution is yes, you will have no choice but to go to it and make the most of it.

First effect: price dilution

One of the main characteristics derived from these movements in equities is that share prices will fall in the short term. His explanation is very simple and it is because as there are more shares in the financial markets, they are worth less. Not surprisingly, these are trading sessions in which prices are adjusted according to the rules of financial movements. In this regard, your investments may suffer and lose their value in the next trading sessions. To a greater or lesser extent, depending on the capital increase to which it attends at all times.

However, as the days go by, prices tend to adjust to their real price. Of course, once the capital increase has been completed. Based on this scenario, after a few months, operations derived from this remarkable fact can be profitable in companies listed on the equity markets. This is exactly why these are operations that are intended for the medium and long term. For a very defined investor profile that is encompasses the most conservative. Where safety prevails over other approaches to investing in the stock market.

What goals can you achieve?

In all cases, if you go to one of these very special processes in the business world, you can benefit from a series of advantages. Otherwise, it cannot be generated by buying and selling shares directly in the stock markets. It will be very important that you take them on in case in the coming months you are going to be one of the investors who are going to attend one of the many capital increases that take place each year. Because it is something that is present every month and year after year. They will simply be the following premises that we are going to present to you from now on.

• It is a very special strategy through which you can buy shares at low prices than through traditional systems. Very beneficial for longer terms.
• You can expand your investment in a company. So that in this way, you have from that moment greater number of shares. With which the potential for revaluation of its shares will be increased. Even adjusting them to the profile that he presents as a small and medium investor.
• In the cases of companies that distribute dividends to their shareholders, it will involve a technique to charge more money for this remuneration. With a fixed and guaranteed return on savings each year. Regardless of how stocks are traded on the financial markets.
• In some cases it is a way of opening positions in the stock market with great discounts with respect to the purchase of shares through the more conventional systems. Even though it will be very interesting for you to read the conditions of the capital increase that interest you at that time.
• Not only because it is a capital increase, it will have to be a very profitable operation. Because in fact, it could be the opposite and you have some other problem when signing these common operations in equities.
• For a whole year you will have several proposals of these characteristics. To the point that it can create more than one doubt that can put you in serious trouble. To avoid these scenarios, you will have no choice but to opt for those operations that offer you the best guarantees. Failure to do so could cost you dearly from now on.
• You also can't forget that you must analyze the technical aspect sensible value of these operations. Because it will not be the same to do it with an upward trend than with another of absolutely different intensity. And that you can be the factor that determines the success or not of the capital increase. Like other figures that make up its technical side.
• Finally, you cannot rule out that these operations are not very positive, even so that you can lose money in your investment portfolio. For this reason, your decision should be the result of a extensive meditation. No wonder there is a lot of money at stake.