Brazil’s equity market has grown rapidly in terms of both market capitalization and transaction volumes. Total equity market capitalization was about 55 percent of GDP in 2011 with a diversified investor base including individuals, institutional investors, financial institutions, and foreign investors. This growth has been fueled by a combination of strong market performance and a steady increase in the total quantity of shares. The introduction of the Novo Mercado (“New Market”), which encouraged corporations to adopt higher standards for corporate governance, transparency, and minority shareholder protection, as pre-requisites for listing, has also contributed to further market development. .
