Ibex 35: How do stocks work?

First of all, what is a company share? Nowadays companies can belong to a multitude of buyers, so their value is divided into several parts, each of which is an action of the company.

These shares can be bought, sold, and exchanged, and do not have a certain value, but go up and down in price as the company has more or less profits and is more or less reliable for buyers. Ag-markets will talk about acciones ibex, a very important sector in Spain.

What is the Ibex 35?

The Ibex 35 is made up of the largest group of companies in the Spanish sector. According to the value of the shares of these 35 companies, we can get an idea of the economic power of the Spanish stock exchanges. Among them are such well-known companies as Banco Sabadell, Bankia, Endesa, Iberdrola, Inditex, MAPFRE, Mediaset España, Repsol and Telefónica.

This list is not fixed and varies over time according to the criteria of a technical advisory committee, which meets twice a year to decide which companies should belong to the group.

What do you want to know to be able to invest efficiently?

Spain has four exchanges, the main and most important being the Madrid exchange, followed by the Barcelona exchange, and two more, located in Bilbao and Valencia.

There are several web portals that allow you to know the updated financial status of all those companies that have stock market value, so that you can decide where you are most interested in investing your money. Either based on the criteria we explain below, or depending on your personal tastes, for example if you are a music lover you can invest in companies that are dedicated to promoting this business.

The most reliable stocks will always be the most expensive initially, as they are those of companies with demonstrable financial stability over time, as they are usually the oldest. But as a disadvantage, they provide fewer short-term benefits.

In those young companies with a promising future, little money can be invested, as their shares are economic, and they can earn a very high return if the company grows a lot and generates a lot of profits. But we run the risk that it will not succeed, go bankrupt, and we may lose the shares or be forced to sell them at a lower price than we bought them.

If you’re smart and lucky, you can detect changes in the value of your shares before they happen, and thus increase your profits, selling when their value is higher, and buying when it is low. It is a skill that is achieved with experience, the passage of time, and knowing the terrain very well.