The stock market is a market for various long-term financial instruments that can be bought and sold, either in the form of debt (bonds) or equity (shares).
Benefits of Capital Market
- Provide a source of financing (long term) to the business world.
- As an investment vehicle for investors at the same time allowing diversification efforts.
- The spread of ownership of the company until the middle layers of society.
- The spread of ownership, openness and professionalism, creating a healthy business climate.
- Creating an attractive employment profession.
- Alternative investments that provide potential benefits and risks that can be calculated through information transparency, liquidity, and diversification of investment.
- Fostering a climate of openness to the business world, providing access to social control.
- Management of a professional company.
- Sources of long-term financing for the company (issuer).
Types of Capital Market
1. Primary Market. Is the first market securities sold to the public)
Primary Market Activities :
- Initial Public Offering (IPO). Initial public offering by underwriters.
- Public offering (offering corporate securities to the public).
- Rights Offering (offering its shares to shareholders on the basis of a pro rata basis).
- Private Placement (the sale of new securities directly with a select group of investors without going through the registration).
- Underwriting (underwriter).
- Underwriting Syndicate (underwriting syndicate.)
- Investment Banker (financial intermediation buying new securities from issuers and resell to the public).
- Selling Group (group sales).
2. Secondary Market (regular). Is the market where securities trading conducted by the Exchange members who wish to sell or buy securities dispute shall be settled on T +4 day.
Characteristics of the Secondary Market:
• The bargaining system is continuously (continuous auction).
• a minimum trading unit of 500 shares (1 lot) and specialized banking issuers 5,000 shares (1 lot).
• Fraction haggling prices or price movements performed with the top down.
• Transactions that occur on the basis of price and time priority.
• Have an organized stock trading place (organized securities exchanges).
• The bargaining system is continuously (continuous auction).
• a minimum trading unit of 500 shares (1 lot) and specialized banking issuers 5,000 shares (1 lot).
• Fraction haggling prices or price movements performed with the top down.
• Transactions that occur on the basis of price and time priority.
• Have an organized stock trading place (organized securities exchanges).
3. Non-Regular market (OTC transactions made by members of the stock listed on the stock exchange or other exchange organization)
OTC Market Characteristics :
• Electronic trading is done by negotiation between the buyer and the seller.
• Trade carried out in large numbers or blocks (block sale) with a trading volume of at least 400 lots (200,000 shares).
• Trade odd lots with trading volume of less than 1 lot (500 shares)
• Trade lid itself (crossing), namely the sale or purchase by a broker in an amount and at the same price.
• Trade carried out in large numbers or blocks (block sale) with a trading volume of at least 400 lots (200,000 shares).
• Trade odd lots with trading volume of less than 1 lot (500 shares)
• Trade lid itself (crossing), namely the sale or purchase by a broker in an amount and at the same price.
4. Cash Market (negotiation system based on cash payments and created for brokers who fail to meet obligations in the settlement on the regular market or non-regular.
5. Immediate Market: A securities trading market by the Exchange members and KPEI who want to sell or buy securities settlement made on the next trading day after the Exchange Transaction (T +1).
Share or Stock
Stock is ownership of a company sign the letter.
Stock Classification
1. Common Stock (Common Stock)
Is a stock which puts the owner at the end of the distribution of dividends, and rights to the assets of the company when the company liquidated.
1. Common Stock (Common Stock)
Is a stock which puts the owner at the end of the distribution of dividends, and rights to the assets of the company when the company liquidated.
2. Preferred Stock (preffered Stocks)
Shares that give the holder the privilege such as the right:
a. Receive a first dividend of the ordinary shareholders.
b. Receive distribution rights in advance of assets when the company liquidated.
Shares that give the holder the privilege such as the right:
a. Receive a first dividend of the ordinary shareholders.
b. Receive distribution rights in advance of assets when the company liquidated.
Shareholder Rights
1. Voting rights in matters relating to the corporation.
2. The right to get part of the income distribution.
3. Right to buy more shares when the company's first offering of new shares (preemptive right).
4. The right to get a part when the company liquidated.
1. Voting rights in matters relating to the corporation.
2. The right to get part of the income distribution.
3. Right to buy more shares when the company's first offering of new shares (preemptive right).
4. The right to get a part when the company liquidated.
Types of Stocks
1. Viewed from the right notes
- Ordinary shares (common stocks).
1. Viewed from the right notes
- Ordinary shares (common stocks).
Represents shares that put their owners at the end of the distribution of dividends and the right distribution of wealth at the time of liquidation
- Preferred stock (preferred stocks).
Represents shares that have characteristics of a combination of common stock with bonds, because it can generate regular dividend income as interest on bonds.
2. Judging from the way the transitional
- Shares Bearer (bearer stocks).
Represents shares not written the name of the owner, so you can easily transferable from one investor to another investor.
- Shares in the name (registered stocks).
It is written clearly shares the name of the owner, where the transitional way, must go through certain procedures.
3. Judging from the trade performance
- Stocks with high reputation (the blue-chip stock).
- Share of income (income stock).
- Shares of growth (growth stock).
- Shares of speculative (speculative stock).
- Shares of seasonal (cyclical stock).
- Stocks with high reputation (the blue-chip stock).
- Share of income (income stock).
- Shares of growth (growth stock).
- Shares of speculative (speculative stock).
- Shares of seasonal (cyclical stock).
Common Stock (Common Stock)
Characteristics of common shareholders' rights:
1. A dividend.
2. Have a vote in the general meeting of shareholders.
3. Has the residual rights in the division of assets when the company liquidated.
4. Having a limited liability against claims of other parties in proportion to owned.
5. Right to transfer ownership.
Characteristics of common shareholders' rights:
1. A dividend.
2. Have a vote in the general meeting of shareholders.
3. Has the residual rights in the division of assets when the company liquidated.
4. Having a limited liability against claims of other parties in proportion to owned.
5. Right to transfer ownership.
The advantage to buy shares of common stock
1. A dividend.
2. Get capital gains.
3. Get bonus shares (if any).
1. A dividend.
2. Get capital gains.
3. Get bonus shares (if any).
Risk purchase common stock
1. Do not get the dividend.
2. The selling price of shares under the purchase price (capital loss).
3. The company went bankrupt or liquidated.
4. Stocks in-delist (deleted) from the Exchange (delisted).
5. Shares were suspended (pending trade) of the Exchange.
Preferred Stock (Stock preffered)
Preferred stock is a combination (hybrid) between bonds and common stock. This means that besides having a characteristic such as bonds, preferred stock also has a characteristic common stock. Similar to bonds, preferred stock gives its holder a fixed result.
Preferred stock is a combination (hybrid) between bonds and common stock. This means that besides having a characteristic such as bonds, preferred stock also has a characteristic common stock. Similar to bonds, preferred stock gives its holder a fixed result.
1. Priority preferred stock
- Priority of payment (precedence in the receipt of dividends).
- Investors receive fixed dividends annually.
- Investors receive fixed dividends annually.
- Get a cumulative right to receive unpaid dividends in previous years.
- Convertible preferred stock, investors are entitled to exchange preferred stock it holds with ordinary shares.
- Adjustable dividend: investors receive priority payment adjusts with the common stock dividend.
- Convertible preferred stock, investors are entitled to exchange preferred stock it holds with ordinary shares.
- Adjustable dividend: investors receive priority payment adjusts with the common stock dividend.
2. Risk of preferred stock
- In situations where issuers went bankrupt (bankruptcy) and shall enter into liquidation, the rights of holders of preferred stock in payment of the liquidation order under the bondholders.
- Preferred stock that provides fixed dividend, usually the price is unchanged. Even if the publisher can print the company a large profit. Accordingly, holders of preferred shares that provide fixed dividend will not get the income from capital gains.
- In situations where issuers went bankrupt (bankruptcy) and shall enter into liquidation, the rights of holders of preferred stock in payment of the liquidation order under the bondholders.
- Preferred stock that provides fixed dividend, usually the price is unchanged. Even if the publisher can print the company a large profit. Accordingly, holders of preferred shares that provide fixed dividend will not get the income from capital gains.
3. Kinds of preferred stocks
- Nonparticipating preferred stocks, preference or privilege holders of preferred stock dividends are restricted to a certain amount.
- Participating preferred stocks; Preferred stock may receive additional dividends if certain conditions are possible.
- Deconcolidated preferred stocks; Preferred stock may contain certain fees if the regular preferred dividend is not promised (has passed) by the shareholders. This provision generally prohibits the payment of certain amount of common stock dividends if preferred stock dividends have not been paid. Preferred stock is called cumulative preferred stock in in arrears.
- Noncummulative preferred stocks. Preferred stock that has no known cumulative preferred stock nonkumulatif.
- Callable preferred stocks; Preferred stock may be redeemed under certain circumstances.
- Nonparticipating preferred stocks, preference or privilege holders of preferred stock dividends are restricted to a certain amount.
- Participating preferred stocks; Preferred stock may receive additional dividends if certain conditions are possible.
- Deconcolidated preferred stocks; Preferred stock may contain certain fees if the regular preferred dividend is not promised (has passed) by the shareholders. This provision generally prohibits the payment of certain amount of common stock dividends if preferred stock dividends have not been paid. Preferred stock is called cumulative preferred stock in in arrears.
- Noncummulative preferred stocks. Preferred stock that has no known cumulative preferred stock nonkumulatif.
- Callable preferred stocks; Preferred stock may be redeemed under certain circumstances.
Share Certificate (Certified of Stock)
Shares issued by corporations usually in the form of stock certificates that contain :
1. Par value of shares.
2. Name of shareholders.
3. The number of shares held.
Shares Outstanding (Outstanding stock)
Is the remaining shares are still in the hands of shareholders.
Is the remaining shares are still in the hands of shareholders.
Treasury shares (treasury stock)
Is of outstanding shares bought back by the company. (Further explanation see Treasury Stock).
Is of outstanding shares bought back by the company. (Further explanation see Treasury Stock).
Value of Shares Without Pari (No-par stock)
Shares issued without pari-called stock without par value.
Stock Discount (Discount on Stock)
Shares issued at a discount if the stock price lower than par price.
Share Premium (Premium on Stock)
Shares issued with a premium if the stock price higher than the price of par.
Dividend Shares (Stock Dividend)
Is a partial pro rata distribution of shares to shareholders. Dividend stocks are different from cash dividend that is, no cash distribution to shareholders.
Stocks, Split (Stock Split)
Companies sometimes need additional shares to increase the number of shares outstanding. One way of increasing the number of shares is by way of split of shares (stock split). The stock split does not reduce the book value of shares, the only change is the number of shares. For example, PT Faizah Irliati announced a stock split in which each one share split into two pieces. With this split, shareholders will receive 2 shares for every 1 share owned. As the number of its shares has doubled the cost of goods per share fell to half the cost of early nausea
Stockholders (stockholder's)
Is the owner of the company with some rights such as voting rights, eligibility for dividends, the right to get a share when liquidation, and so forth.
Stock Market (Capital Market)
A place of business which was organized with the aim to provide order and an efficient market for trading shares and other securities.
Shares issued without pari-called stock without par value.
Stock Discount (Discount on Stock)
Shares issued at a discount if the stock price lower than par price.
Share Premium (Premium on Stock)
Shares issued with a premium if the stock price higher than the price of par.
Dividend Shares (Stock Dividend)
Is a partial pro rata distribution of shares to shareholders. Dividend stocks are different from cash dividend that is, no cash distribution to shareholders.
Stocks, Split (Stock Split)
Companies sometimes need additional shares to increase the number of shares outstanding. One way of increasing the number of shares is by way of split of shares (stock split). The stock split does not reduce the book value of shares, the only change is the number of shares. For example, PT Faizah Irliati announced a stock split in which each one share split into two pieces. With this split, shareholders will receive 2 shares for every 1 share owned. As the number of its shares has doubled the cost of goods per share fell to half the cost of early nausea
Stockholders (stockholder's)
Is the owner of the company with some rights such as voting rights, eligibility for dividends, the right to get a share when liquidation, and so forth.
Stock Market (Capital Market)
A place of business which was organized with the aim to provide order and an efficient market for trading shares and other securities.
Shareholders' equity (stockholder's equity)
Residual Claims in which shareholders have the right to corporate assets, calculated by subtracting the value of total assets with total liabilities, also known as net worth.
Stock Symbol (Stock Symbol)
System specific identification given to the shares to facilitate trading of shares on the stock exchange and for reporting purposes. Some symbols such as symbols TLKM Telkom, Indonesia Miwon MWON symbol and symbol HERO Hero supermarket.
Stock Investment Analysis (Analysis on Investment Stock)
Ratio analysis is often used in analyzing stocks is, PE Ratio, Dividend Yield, and Book Value Per Share of Common Stock.
Shares Book Value (Book Value)
Is the number of equity owners of the company's books for each class of shares. If a company has outstanding shares, the company's book value is calculated by dividing total shareholders' equity by the number of shares outstanding. For example, a firm with total shareholders' equity (no preferred stock) to Rp 180 million and 5,000 shares of common stock outstanding has a book value of Rp 36,000 per share or USD 180 million / 5,000 sheets.
Initial Public Offering (IPO) shares
Is the most common stock was first traded companies to the public.
Liquidation Value of Shares (Liquidation Value)
Is the number of shares which were approved by the company to be paid to holders of preferred stock per share when the company liquidated. If there are dividends in arrears, the amount added to the liquidation value to determine the payment to preferred shareholders when the company liquidated.
Value of Stock Market (Stock Market Value)
The market value or price of the stock market is now the price of a stock that can be bought or sold by a person / investor. The market price of a stock is influenced by many factors, such as net income, financial position and future prospects and overall economic conditions.
Discontinued Stock (Retired Stock)
A company is likely to buy back shares (treasury stock) and stop its circulation by removing the stock certificate. Termination of preferred stock more often than the cessation of ordinary shares, because the company wants to avoid the payment of preferred stock dividends. A stock that has been discontinued published its circulation is not allowed anymore.
Security depends on its usefulness:
a. An assurance that the bonds will be fulfilled or settled;
b. Defend yourself from financial failure; financial independence;
c. Wealth that creditors can claim for failure to pay (default) its bond, or a formal promise to receive interest on dividends or dividends from bonds and stocks.
Residual Claims in which shareholders have the right to corporate assets, calculated by subtracting the value of total assets with total liabilities, also known as net worth.
Stock Symbol (Stock Symbol)
System specific identification given to the shares to facilitate trading of shares on the stock exchange and for reporting purposes. Some symbols such as symbols TLKM Telkom, Indonesia Miwon MWON symbol and symbol HERO Hero supermarket.
Stock Investment Analysis (Analysis on Investment Stock)
Ratio analysis is often used in analyzing stocks is, PE Ratio, Dividend Yield, and Book Value Per Share of Common Stock.
Shares Book Value (Book Value)
Is the number of equity owners of the company's books for each class of shares. If a company has outstanding shares, the company's book value is calculated by dividing total shareholders' equity by the number of shares outstanding. For example, a firm with total shareholders' equity (no preferred stock) to Rp 180 million and 5,000 shares of common stock outstanding has a book value of Rp 36,000 per share or USD 180 million / 5,000 sheets.
Initial Public Offering (IPO) shares
Is the most common stock was first traded companies to the public.
Liquidation Value of Shares (Liquidation Value)
Is the number of shares which were approved by the company to be paid to holders of preferred stock per share when the company liquidated. If there are dividends in arrears, the amount added to the liquidation value to determine the payment to preferred shareholders when the company liquidated.
Value of Stock Market (Stock Market Value)
The market value or price of the stock market is now the price of a stock that can be bought or sold by a person / investor. The market price of a stock is influenced by many factors, such as net income, financial position and future prospects and overall economic conditions.
Discontinued Stock (Retired Stock)
A company is likely to buy back shares (treasury stock) and stop its circulation by removing the stock certificate. Termination of preferred stock more often than the cessation of ordinary shares, because the company wants to avoid the payment of preferred stock dividends. A stock that has been discontinued published its circulation is not allowed anymore.
Security depends on its usefulness:
a. An assurance that the bonds will be fulfilled or settled;
b. Defend yourself from financial failure; financial independence;
c. Wealth that creditors can claim for failure to pay (default) its bond, or a formal promise to receive interest on dividends or dividends from bonds and stocks.
Security Stock equal to the Safety Stock.
Segment Revenue
Is the segment revenues, including revenues Intersegment which directly allocated to the segments. Includes interest income and dividend income related to gains.
Security (Security)
Securities are securities such as stocks and bonds may be traded in the stock market or outside of the capital market.
Securities Available for Sale (Available for Sale Security)
These securities may take the form of debt or equity form that can not be classified as securities held to maturity or equity securities traded on the stock market. These securities include short-term investment that is expected to be sold within one year or less. These securities are reported by their market value at the balance sheet. The difference between the market price and basic price is called the unrealized holding gain or loss.
Securities Held To Maturity (Held to maturities Securities)
Is the debt securities held by the buyer until maturity. Securities that will mature in one year are recorded at cost and reported as short-term investments at the balance sheet.
Debt securities (Debt Security)
Is a short-term debt that shows the relationship between the creditor and the entity that issued the securities and individuals or entities that hold securities. Debt securities are bonds issued by companies and government-issued debt securities are government securities.
Capital Securities (Equity Security)
Capital securities are representative of ownership in a business. The most common examples of these securities are common stock of the company.
Securities Trading (Trading Security)
These securities may be in the form of debt (debt) or capital (equity) in which management intends to trade it for profit.
Segment Revenue
Is the segment revenues, including revenues Intersegment which directly allocated to the segments. Includes interest income and dividend income related to gains.
Security (Security)
Securities are securities such as stocks and bonds may be traded in the stock market or outside of the capital market.
Securities Available for Sale (Available for Sale Security)
These securities may take the form of debt or equity form that can not be classified as securities held to maturity or equity securities traded on the stock market. These securities include short-term investment that is expected to be sold within one year or less. These securities are reported by their market value at the balance sheet. The difference between the market price and basic price is called the unrealized holding gain or loss.
Securities Held To Maturity (Held to maturities Securities)
Is the debt securities held by the buyer until maturity. Securities that will mature in one year are recorded at cost and reported as short-term investments at the balance sheet.
Debt securities (Debt Security)
Is a short-term debt that shows the relationship between the creditor and the entity that issued the securities and individuals or entities that hold securities. Debt securities are bonds issued by companies and government-issued debt securities are government securities.
Capital Securities (Equity Security)
Capital securities are representative of ownership in a business. The most common examples of these securities are common stock of the company.
Securities Trading (Trading Security)
These securities may be in the form of debt (debt) or capital (equity) in which management intends to trade it for profit.