WHAT THE SECOND STOCK EXCHANGE CAN DO FOR BRAZIL - PART 2

2.SIMPLIFICATION AND MARKETS FOR SMES AND VALUABLE STARTUPS TO LAUNCH STOCKS AND DEBT ASSETS

Simplifying the process of entering the capital market and at lower costs will encourage the entry of SMEs and valuable startups into the capital market, such as pharmaceutical SMEs and startups, medical device manufacturers, biotechnology companies, commodities and renewable energy companies, technology and telecom, educational and financial sector SMEs such as banks, insurance companies, and brokerage firms, for example.

With more listing options, SMEs and valuable startups will find greater visibility and access to capital, fostering competition and accelerated business growth.

3.INNOVATIONS AND INCREMENTAL GAINS:

3.1 Competition stimulating innovation: In the USA, competition between the NYSE and NASDAQ has led to technological advances and new financial products. The same will happen in Brazil;

3.2 Reduction of transaction costs: competition between stock exchanges can offer more competitive rates to companies and investors;

3.3 Increase in domestic savings, wealth, and financial education: more investors accessing a greater variety of capital market products will imply an increase in the country's domestic savings, and the elevation of Brazilians' wealth, as well as the much-needed financial education for all social classes.

4.CONCLUSIONS:

The second stock exchange in Brazil could dynamize, diversify, and expand access and liquidity to fixed income, variable income, and debt markets, including for SMEs and valuable startups, in addition to reducing information asymmetries by increasing the number of their sources for investors through fractional assets, making them more accessible in nominal values. The biggest challenges are regulatory and liquidity (flow of national and foreign investors), as well as transparency on the part of companies as a factor of trust for investors. Success will depend on how these factors align.

Currently, Terus Business Consulting is advising two companies that intend to launch stocks and tokenized assets in three years. Preparation is early!

Contact Terus right away: [email protected] / (+55 11) 2503-6747 /

"Terus, intelligence, advisory, concrete cases, and decisive actions!"

Ricardo Vitale

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