Capital markets (stock exchange) is a market where supply meets demand and funds in the form of long-term purchases of sales of securities.
Types of Securities
* Stock is a sign of participation or ownership of a person or entity within a company. Stock consists of two types of common stock and preferred stock.
Common stock is the best known products by the public.
Preferred stock is a combination of common stocks and bonds.
* Bonds are securities or certificates containing the contract between the lender (the investor) and a given loan (issuer)
Capital Market Functions
1. As a means of enhancing capital
2. As a means of distribution of income
3. As a means of increasing production capacity
4. As a means of job creation
5. As a means of state revenue penigkatan
6. As an indicator of the state's economy
Factors that Mempengarui Capital Market Development
1. Number of securities
2. Demand for securities
3. Political and economic situation of a country
4. Pernagkat laws and regulations
5. Participation of institutions supporting
Supporting institutions of the Capital Market
1. Bapepam is the abbreviation of the Capital Market Supervisory Agency
2. Stock exchanges are institutions that conduct trading activities of securities
3. Dalan role of public accountants examine the financial statements that will memerbitkan company securities or companies that are listed on the stock exchange and provide an opinion on these financial statements.
4. Underwriter is an institution that ensures that all the securities sold.
5. Trustee is a rate of merit issuance of bonds associated with returns and payment of interest
6. Notary is the AGM approved the decision.
7. Legal consultants are lawyers who provide legal opinions to other parties and registered with Bapepam.
8. Clearing institution is an institution authorized to store and manage flow of securities.
1. Listing petition to Bapepam
2. Financial statements should have the unqualified opinion of the public accountant
3. Bonds nominal value of at least Rp 25 billion
4. Maturity period of at least 4 years
5. Has been operating for 3 years
6. Retained earnings elama last 2 years
7. Retained earnings are detained at least USD $ 0
8. Board of Commissioners and the Board of Directors has a good reputation
Investment in Securities
Securities are berhaga letter indicating the right of investors to get part of the company that publishes the wealth terebut securities.
The decisions that must be taken in the investment process are:
1. What securities the investment choices?
2. How much investment?
3. When will the investment be?
The steps in the investment decision are:
1. Investment policy
2. Securities analysis
3. Determination portfolio
4. Revised portfolio
