Capital Market and Benefit's

Capital Market and Benefits

   Basically, capital markets (capital market) is a market for a variety of long-term financial instruments that can be bought and sold, either in the form of debt or the capital itself. Financial instruments are traded in capital markets such as stocks, bonds, warrants, rights, convertible bonds, and various derivative products (derivatives) like option (put or call).
In the Law No. Capital Market. 8 In 1995, the notion of capital markets more specifically described as activities concerned with the Public Offering and Securities Trading, public companies relating to the issuance of securities, as well as institutions and professions related to the Securities.

Capital markets provide a large role for the economy of a country because the capital markets provides two functions at once, including the economic and financial functions. Capital market is said to have functioning market economy because it provides a facility or vehicle that meets the interests of two parties who have excess funds (investors) and those who need funds (issuer).
With the stock market then a public company can obtain fresh funds through the sale of the Securities IPO shares through the procedure or debt securities (bonds).
Capital market is said to have financial functions, because the capital market provides the possibility and opportunity to earn rewards (return) to the owner of the funds, according to the characteristics of the selected investment. So expect the existence of capital markets to increase economic activity because capital markets financing alternatives for companies to increase corporate revenue and ultimately to provide prosperity for the wider community.
In general, the benefits from the existence of capital markets is:

1. Provide a source of financing (long term) for the business while enabling an optimal allocation of funds.
2. Provide a variety of investment vehicles for investors to allow for diversification. Alternative investments provide the potential benefits to the level of risk that can be calculated.
3. Provide a leading indicator for the development of a country's economy.
4. The spread of ownership of the company until the middle layers of society.
5. The spread of ownership, openness and professionalism to create a healthy business climate and encourage the use of professional management.

 

What Is a Stock ?

   When we follow a little about capital markets, the benefits to the people and companies in particular and the country in general, we will now discuss the stock, one of the products traded in capital markets. Shares can be defined as a sign of participation or ownership of a person or entity within a company or limited company.
Form of shares of a piece of paper explaining who owned it. However, now scripless system have been started in the Jakarta stock market where the form of ownership is no longer a given stock sheet owner's name but have a account on behalf of the owner or scripless shares. So the settlement will be the faster and easier.
Shares or equity securities which are already known to many people. Generally known types of shares are ordinary shares (common stock). Own shares divided into two types of shares, namely ordinary shares (common stock) and preferred stock (preferred stock).
Ordinary shares, a stake that puts most junior owner or the end of the distribution of dividends and rights on company property if the company is liquidated (no special privileges). Another Karakterisktik of ordinary shares is the dividends paid during the company's profit.
Each shareholder has voting rights in general meeting of shareholders (one share one vote). Ordinary shareholders have limited liability claims against other parties for the proportion of shares and have the right to transfer ownership of its shares to others.
As for preferred stock, a stock which has characteristics of a combination of bonds and common stock, because it can generate a fixed income (such as bond interest). Equation preferred stock with bonds lies in the 3 (three) things: there are claims on profits and assets of the previous, fixed dividend for the period of validity of the shares redeemed and have rights and can be exchanged for common shares.
Preferred stock is safer than common stock because it has a right to claim against the company's assets and the first dividend. difficult preferred stock to be traded as ordinary shares, because the numbers are small.
The attractiveness of stock investments are two advantages to be gained investors by buying stocks or shares, the dividends and capital gains. Dividends are profits given the publishing company's shares on the company profitable. Dividends are usually distributed after the approval of shareholders and conducted once a year.
To be eligible for dividend investors, these investors must hold the stock for a certain period until the ownership of the shares is recognized as a shareholder and entitled to a dividend. Dividends provided the company can be a cash dividend, which investors or shareholders to get cash in accordance with the number of shares owned and stock dividends which the shareholders get a number of additional shares.

   As for capital gains is the difference between purchase price and selling price occurred. Capital gains made by the trading activity in the secondary market. For example, say you buy for example Astra International shares at a price per share is USD 1800 and sold at a price of USD $ 2200 means you get a capital gain of Rp 400 per share. Generally short-term investors to profit from capital gains.
Stocks known to have characteristics of high risk-high return. This means that stocks are securities that provide higher profit opportunities but also potentially high risk. Shares allow investors a profit (capital gains) in large quantities in a short time. Berfluktuasinya but along with stock prices, stock can also make investors suffered heavy losses in a short time.

So if you decide to invest in stocks that need to be re-examined is the level of inherent risk (high risk) according to the level of risk you can bear. Do not invest in stocks provides a sense of worry and concern caused you sleepless nights and stress. Know your risk level and make decisions based on it.
In analyzing the existing public company, keep in mind keingian you invest in stocks for long periods with a relatively stable dividend or want the benefits of shorter-term in terms of capital gains due to company growth. As an investor, there are 3 reasons why you chose to buy a particular stock:

   1. Income. If your consideration in investing in stocks is to get a steady income from the annual investment return, then you can buy shares in established companies and provide dividends regularly.
   2. Growth. If your consideration is for the long term and give great results in the future, investing in shares of companies that are growing (usually a technology company) provides a big advantage, because the policy of the company's growing corporate profits generally will be invested back into the company's corporate does not provide dividends to investors. Benefits for investors only from an increase in stock price when you sell shares in the future (an increase of stock prices).
   3.Diversification. If you buy stocks for the benefit of your portfolio should be cautious in complete. Do you need a stock to buy a fixed income or bonds with a given interest as income.
Investing in stocks that are in need of extensive knowledge about the company itself (the company where you want to invest your funds). Many of the questions that may arise and must be answered before deciding to invest in stocks.

   The first question you need to know what the answer is the company? And what do these companies (line of business)? How much debt is owned by the company (debt to equity ratio)? How the development of industry in which they operate, and the development of the company itself?
Information or other knowledge that you need to know is the movement of the stock in recent years from 1, 5, until 10 years ago. And many more other questions. With all the knowledge or information that you can from the above questions, will help provide clarity about the company where you will invest your funds and future prospects of the company.
You'll find lots of information different from many institutions, you have to learn which institutions have the experience and high kridibilitas that the information you receive is true and accurate. So the information can help you make decisions about your investments take. 

Stock Transaction

   Before you can perform transactions on the stock market, you as an investor must be customer securities companies listed in the current capital market in number as many as 185 companies. The first thing to do is open an account by filling in the accounting documents.

The amount of funds that must be placed or deposit the amount required for different investors for various companies. There are companies that require investors to place funds amounting to Rp 25 million to invest or trade in capital markets. There are also requiring only Rp 15 million. But there are also companies that determine such effects 50 percent of transaction value to be placed. For example if you want to invest in shares amounting to Rp 10 million, you are only obliged to place USD 5 million.
In stock trading, the amount traded in the trading unit is called a lot. The Jakarta Stock Exchange, one lot is 500 shares of stock (especially for banking shares one lotnya shares amounting to 5000). For example the price of the shares of PT. Telkom is Rp 3,000. So to transact the minimum you must spend money or Rp 1.500.000 (USD 3000 x 500 shares per one lot).
Thus the basic understanding of stocks and capital markets pentinga existence of a nation. Hopefully this information can help you to give perspective on stock transactions in the capital market.

Hopefully useful......

indonesia economic development

INDONESIAN ECONOMIC DEVELOPMENT

   Historical background and style of the structure of the Indonesian economy can not be separated from the history of colonialism experienced by this country. As known, starting from the early 17 th century, the Indonesian people successively colonized by the Dutch trade union called the VOC, the Dutch Kingdom, the United Kingdom, and by the occupation government.

   Apart from these direct impacts, the impact of the crisis of American capitalism require attention seriously is the political development of the Indonesian economy in the long run. As a country that became the American colonies during the last 40 years, is substantially true, there is nothing really new for Indonesia. In fact, if the observed development of the Indonesian economy in the last two centuries, which is continuously faced this country, except in the Sukarno era, is the ongoing systematic process of permanent liberalization in Indonesia.

   The crisis has reduced the rate of economic growth in Indonesia. Dollar exchange rate had fallen sharply since July 1997 caused Indonesia's economic growth in the third quarter and fourth quarter declined to 2.45 percent and 1.37 percent. In the first quarter and second quarter of 1997, Indonesia recorded economic growth of 8.46 percent and 6.77 percent. In the first quarter of 1998 recorded a negative growth of -6.21 percent.

     Decline in economic growth can not be separated from the problem of private sector business conditions are more slow performance. This delay occurred partly because of the difficulty of getting raw material imports are not associated with receipt of LC Indonesia and burden of foreign debt payments are more swollen in line with the weakening rupiah and higher bank interest rates. Riots that swept several cities in the month of May 1998 is expected to further slow down private performance at the next turn further reduce economic growth, especially in the second quarter of 1998.

   Meanwhile, export growth in March 1998 showed that non-oil export growth that is encouraging about 16 percent. This growth rate is achieved thanks to the export commodity prices are more competitive with the falling value of rupiah. This increase contributed to a trade surplus jumped to 1.97 billion dollars compared with 206.1 million U.S. dollars in March 1997. Sharply declining imports is another factor creating the surplus. Imports in March 1998 fell by 38 percent in line with the decline in economic growth.  

   In addition, the direct impact of the crisis of American capitalism Indonesian real sector appear prominently on the occurrence of a sharp decline in export prices of primary commodities Indonesian couple. Oil prices, for example, in May 2008 that could penetrate U.S. $ 140 a barrel, later dropped drastically to around U.S. $ 35 per barrel. While the price of palm oil (Crude Palm Oil), which until mid-July 2008 continued to increase reaching the highest level of U.S. $ 1300 per ton, later fell quite sharply to only about U.S. $ 500 per ton. The picture is more or less the same can be seen in some other export commodities such as coffee, rubber, and cocoa.

   The greatest challenge facing the Indonesian people today really is not about anticipating the impact of the crisis or to determine a strategy to overcome. Much more fundamental than that is the growing urgency of the need to launch a series of struggles that real independence.

ekonomi fundamental

Economic Cycle

General economic conditions can be described in a repeating cycle.
In phase "expansion" of business activities develop, production and demand (demand) increases, increased employment, improved welfare, increased sales levels, the buildings constructed.
In this condition normally entrepreneurs and communities will borrow money (credit) to expand its business, which caused interest rates to rise.

Until the peak demand will exceed the capacity of goods while the money supply circulating in the community too much and jumped hargapun, a condition called "inflation".
Then there was phase "recession", where purchasing power is reduced, demand decreases, tesendat economic activity, employment decreases. Until eventually exceed demand and supply prices to be cheap, this condition is called "deflation".

With the low prices of the building began to pick up again and returned to the first phase.
The point is if there is inflation means prices will be high and the currency exchange rate low.
Hence the government of a country will try to curb inflation by controlling the supply of money in the community through interest rate policy centralnya bank.

Political & economic condition is very influential Americans to world economic conditions, because it was news and U.S. economic data is often used as a reference by investors against the movement of the world's major currencies.

Keep in mind that economics starts up (unbalance)", when the resources of a particular geographical make compliance with the area / people with the necessary resources. Of
imbalance towards equilibrium (balance) in fulfillment, a cycle that continues to move due to the process towards balance. Economic cycles caused temporary vacancies for compliance
equilibrium that makes the cycle spinning. Human beings with reason and faith (brain & will) attempt to meet the balance and then conducted a systematic fulfillment of balance, born of a science economy. However, the economics likewise created by human intervention that is not pure, which cause of excessive equilibrium and the desire to escape from the cycle economic.

The crisis today is the result of the economic cycle, when the economic system considered as a large ball with a fixed value of resources, economic values (economic value) is fixed. However, in real systems applied in the world, the drive wheel cycle based unbalance. It stopped. Large countries that seek out the reluctant cycle is at temporary vacancies to move the wheels of their economies. In the cycle there is always a resources rotation.

However, in practice countries are in the cycle (resourceful state) does not want to be in the opposite position. Desire and intention is that the wheels of the cycle disregarded and denied. Countries who hold certain powers "want" out of cycle, Countries with free-market deregulation will accumulate desire and a global prosperity was only a dream.

Economy

Economics

Economics is a system of human activities associated with the production, distribution, exchange, and consumption of goods and services. The word "economy" it self comes from the Greek word Oikos which means "family,household". And nomos, or "rules, regulations, laws," and generally translated as "household rules" or "management household. "
While the definition of an economist or an economist is a person using economic
concepts and data in the work. The study of economics known as economics.

Development economics

Adam Smith is often referred to as the first development economics in the 18th century as a separate branch of science. Through his great work The Wealth of Nations, Smith tried to find out the history of development of countries in Europe. As an economist, Smith did not forget the roots of morality, especially as stipulated in The Theory of Moral Sentiments. The development history of economic thought and then continued to produce such figures as Alfred Marshall, JM Keynes, Karl Marx, to the Nobel Prize in Economics in 2006, Edmund Phelps.
In general, the development of schools of thought in economics initiated by the so-called classical flow. The flow of mainly pioneered by Adam Smith emphasizes the invisible hand to regulate the distribution of resources, and therefore the government's role becomes very limited because it will interfere with this process. The concept is then invisble hand is represented as a market mechanism to price as the main instrument.
Classical flow experienced failures after the Great Depression of the 1930s which showed that the market could not react to the turmoil in the stock market. As a classical flow penanding, Keynes proposed the theory in his book General Theory of Employment, Interest, and Money which states that markets are not always able to create a balance, and therefore government intervention should be done so that the distribution of resources to reach the target. Two streams are then each "fight" in the world of economics and produce many variants of them such as: new classical, neo classical, new Keynesian, monetarist, and so forth.
But developments in developing this idea in another direction, such as class conflict theory of Karl Marx and Friedrich Engels, as well as the first institutional flow developed by Thorstein Veblen et al and later by the Nobel laureates Douglass C. North.


The properties of Economic Theory

General properties of theories in economics. Every theory has the following 4 essential elements:

• The definitions of the best menjelaskandengan variables related properties are described in the theory.
• A number of assumptions about the situation in order to form the theory applies very well.
• One or several hypotheses about the nature of the relationship between various variables in question.
• One or several predictions about the circumstances that will apply.

Main problem is the shortage economy.

Problem of scarcity or lack of effect as a result of an imbalance between :

1. The needs of society
2. The factors of production are available in the community

Production factors that can be used to produce these goods is relatively limited. Therefore people can not obtain and enjoy all the things they need or want. They need to create and make choices.