THE DETERMINING FACTORS FOR THE ENTRY OF SMALL INVESTORS INTO THE BRAZILIAN STOCK EXCHANGE

This study aims to verify the determining factors for the entry of small investors in the Brazilian Stock Exchange. For this, a questionnaire sent to respondents by electronic means was used. 698 valid responses were obtained. Homogeneity Analysis (HOMALS) was used to identify the association between the profile of investors and the determining factors for investors to enter the Stock Exchange. Through the results, it was found that the most important determining factors are: the possibility of obtaining extra income in the future, the fall in the price of shares, the low yield of savings and the drop in the SELIC rate. The factors that have less influence are: advertisements and encouragement from relatives and friends. In addition, almost half of the respondents agree that they see the Stock Exchange as an option to make quick money. It was identified that people with less knowledge about the market and a moderate risk profile disagree that the Stock Exchange is an opportunity to make quick money and that the more aggressive the investor's profile, the stronger the view that the fall in the price of shares is an opportunity for investments on the Stock Exchange. Differences were identified between the factors that determined the decision to invest in the Stock Exchange of investors who entered before and after the COVID-19 pandemic in Brazil. This study helps to fill the gaps in empirical research on the reasons that make small investors choose to invest in the Stock Exchange. It also contributes to the formulation of investment strategies and commercial strategies for those interested in increasing the number of Individual investors on the Stock Exchange..