As the auto industry continues to grow, it is attracting more and more investors who are considering investing in this particular area of the stock market. At the same time, there have been several recent scandals in this industry that have affected the performance of the auto market and auto stocks such as that of Volkswagen.
Marcio Alaor is the executive of Banco BMG. He brings us the main news of this market by giving us a brief overview of automakers that are listed on the stock exchange. He says one of the first to go public was General Motors. This company has completed a century since the IPO took place. At present the company has about $ 53.52 billion in market value.
In 1956 the Ford Motor Company began an IPO that was the equivalent of 600 million back then, recalls Alaor. An IPO stands for Initial public offering and is a means of allowing people in invest in a company. Shares of the company can be traded in this way, often for both institutional investors and to the general public. Via this process, a private company can enter the public realm. Companies use an IPO to help raise funds and capital investment. This enables the monetization of investments.
Company shares can rise. For example, the Ferrari IPO had a 5% stock increase. As a result the company has $ 10 billion in market value, says Alaor. Alaor points that investments in auto companies have often paid off well for investors. Many such companies have also been able to enjoy a great deal of market success that has allowed them to expand into new markets as well as helping investors at the same time.
Marcio Alaor is a highly respected Brazilian bank executive. Alaor is a native of Brazil who has done much to help expand the Brazilian banking markets as well as help provide people in Brazil have the chance to be able have access to capital in order to allow them to be able to do things such as opening up a new business or expanding a new one. He has many years of experience in the banking markets in Brazil. As a result of his skilled leadership, he has been able help develop one of the region’s most impressive banks, BMG, into a local and national leader in the field of banking and finance as well.
Source: Exame Magazine