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.
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:
- Provide a source of financing (long term) for the business while enabling an optimal allocation of funds.
- 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.
- Provide a leading indicator for the development of a country's economy.
- The spread of ownership of the company until the middle layers of society.
- 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.
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.
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:
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.
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.
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......
