The president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, defended on Wednesday (24) the democratization of the capital market and more performance of the public promotion, via investment in companies, in strategic sectors such as decarbonization, innovation and green economy.
The capital market is the financial environment in which securities are negotiated – such as debt securities, business shares and participation in investment funds. It is a way for companies to raise funds for investments.
“The strong secondary secondary market and the consistent primary market boost industrialization and innovation, especially in these times that we have to have more speed, more agility, more ability for innovation,” Mercadante said during an event at BNDES headquarters in Rio de Janeiro.
The primary market is when companies issue debt and stock securities and raise funds. The secondary market is when these assets are negotiated among investors through purchasing and sales, much in a stock exchange environment.
Participation
Mercadante compared to other countries the participation of the Brazilian population in the stock market. According to him, in the United States, 48%of the population has investments in the stock exchange, surpassing China (16%), India (11%) and Brazil, with only 2%.
“So the challenge of democratizing the capital market,” he said.
The event had representatives of the financial sector, such as the Brazilian Federation of Banks (Febraban) and the banks Itaú, XP and BTG. Mercadante believes that the meeting can find ways to make capital market investment even safer for the “average income citizen”.
“Let your retirement think, your pension, the security of your family in variable income,” he said.
Multiplier effect
The acting president and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, stressed the multiplier role of the capital market.
“Every $ 1 helps leverage $ 3.4, an important lever for us to grow, generate even more employment, more income,” said Alckmin, who occupies the position while President Luiz Inacio Lula da Silva is on an official trip to the United States.
Among the strategic sectors to receive these investments, Alckmin cited health and biotechnology, startups (companies with innovation potential and high use of technology) and critical minerals-highly demanded raw materials for technologies associated with energy transaction.
