Tag Archives: investment

Mutual funds

Posted on September 6, 2011 | Leave a comment

Mutual fund is a collection of stocks, bonds and other securities purchased by a group of investors and managed by a professional investment company. A person with limited funds can buy some units of equity participation and enjoy the benefits of ownership of a variety of effects. Moreover, investors do not bother to analyze the effect.

There are two types of mutual funds, namely the type of company and collective investment. This type of liability is a form of mutual funds in a limited company (PT). In Indonesia are classified into two types, namely mutual funds open and closed mutual funds. Meanwhile, the type of collective investment is a contract between an investment manager and custodian bank representing the legalization of the unit owners or investors. This contract authorizes the investment menajer to manage portfolios of collective investment and custodian bank to act as custodian for collective funds.

There are many benefits that investors invest in mutual funds.
a. Potential rate of return. There are two kinds of rate of return expected by investors, the dividends or interest received from investment managers and capital gains from the increase in net asset value.
b. Diversification. A mutual fund portfolio consists of a variety of effects that can be owned by investors with relatively little cost.
c. Professional management. Investors do not need to analyze the effect because the task has been done by a professional investment manager.
d. Liquidation. Mutual funds are open-type highly liquid because investors can sell his units at any time to the investment manager.

In addition to these benefits, mutual funds can provide a huge potential losses as more vulnerable to risk, except for money market funds. In addition, for a closed mutual fund investors can not sell its investments whenever he wants. This is because the sale of mutual funds should be made on a stock depends on supply and demand is there.

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Posted in Business, Economics

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Stocks, definition of stocks and stock as capital market instruments

Posted on September 5, 2011 | Leave a comment

First we discussed about the understanding of stock. Stock is a certificate showing proof of ownership of a company. There are two types of shares, as follows:
a. Common stock, is the most frequent type of effect used by the issuer to obtain funds from the public. Shares of this type is the most popular stocks on the stock market because it has the following characteristics:
1. last claim rights over corporate assets if the company liquidated
2. proportional voting rights at general meetings of shareholders
3. acquisition dividend if the company makes a profit and approved in general meeting of shareholders
4. pre-emptive rights before the securities are offered to the public.

b. Preferred stock, has the following characteristics:
1. dividend payments in the amount fixed
2. claim first rights than common stock if the company liquidated
3. can be converted into ordinary shares

Any form of investment in capital market instruments has its advantages and disadvantages of each. The benefits that you can get at later want to invest in shares are as follows:
a. Dividends, is part of company profits distributed to shareholders. The amount of dividends to be distributed was decided in a general meeting of shareholders. Dividends can be distributed in the form of cash dividends (some cash) or dividend shares (new shares).
b. Capital gains. Investors can earn capital gains when the stock traded. If the stock price higher than the purchase price of the shares means that investors obtain capital gains.

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Posted in Economics

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Steeling Your Portfolio steel production

Posted on August 29, 2011 | Leave a comment

A week ago, I designed a promise that I’d abandon my unfocused ways and search in on five stocks that appear to be particularly interesting at this time. Taking center stage at this time is ArcelorMittal (New york stock exchange: MT  ) , the 500-pound gorilla of global steel production.

I’ll begin by saying that i’m no expert if this involves metals and materials, not to mention the steel industry particularly. Kind I even consider trading inside a company like ArcelorMittal?
Understanding what I’m not sure — that’s, the dynamics from the steel industry  – could keep me from attempting to wax poetical about the subject and attempting to make any kind of forecasts that hinge on that area of the picture. However, you will find things that I know, namely:
* What it really means to become a up and down integrated, world leader with scale.
* The significance of savvy, committed leadership having a substantial possession interest.
* The signposts of solid financial performance.
* How much of an beautifully listed stock appears like.
A good investment in ArcelorMittal would require work on my small part because I’d need to get more up-to-speed with an industry that I am not thoroughly acquainted with. That’s kind of a strike against it (only “kind of” because I actually do enjoy getting my start learning on). About the switch side, the points that I have layed out above are extremely strong selling points to have an investment. So that as a large fan of returns, the situation is not hurt through the stock’s nice dividend yield climax notable the dividend continues to be slashed by half from the peak level in 2008.

By at this time, this really is greatly in contention for that top just right my buy list — presently struggling for your place with Home Depot (New york stock exchange: HD  ) , that we checked out a week ago. But no champion is going to be crowned until I have examined all five from the stocks that I have set to search into. Stay updated for individuals dispatches and my pick from the eventual champion.

Meanwhile, hopefully I have given you plenty to consider. While you digest this and search in to the amounts yourself, you need to proceed and add ArcelorMittal for your watchlist to maintain what are you doing at the organization. Do not have a watchlist? You are fortunate, you can begin one free of charge on this link.

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Foreign Exchange

Posted on August 27, 2011 | Leave a comment

International trade will give the international consequences of the transactions related to international payments. Means of payment in international transactions using foreign currency or foreign currency. International transactions will affect a country’s balance of payments equilibrium.
International trade encourages countries to create a payment tool that can be accepted by many countries. Upon mutual agreement, international means of payment in the form of foreign exchange that can be cashed in foreign currency.

Foreign exchange rates
Every country has a currency that is different. This difference drives the need for exchange rates or exchange rates. This shows the nominal exchange rate of the domestic currency against foreign currencies in a single unit. However, in the foreign exchange rates you’ll see the difference between the selling rate and buying rate value. The value of foreign exchange rates have an important role in the smooth traffic of international payments. Foreign exchange rates facilitate the exchange of currencies and transfer funds from one country to another country. A foreign currency exchange rate will be amended from time to time. In general, to determine high or low foreign exchange rates consist of free exchange, fixed exchange rate, and exchange rate stabilized.

Factors that cause changes in currency values
Some important factors that influence changes in foreign exchange rates, among others:
a. Changes in prices of export goods
b. Inflation (rise in general prices)
c. Changes in interest rates and return on investment
d. Changes in public taste
e. Noneconomic factors.

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Posted in Economics

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Factors that influence the success of economic development

Posted on August 26, 2011 | Leave a comment

The success of economic development is influenced by two important factors.
a. Economic factors
1. Natural resources. Natural sources include soil, minerals, climate, minerals, and all of which can be termed as the natural wealth. Although the resources available in abundance, not enough to serve as economic development capital if it is not utilized as much as possible. Thus, the optimum utilization of natural resources is a more important factor than the amount or quality of the natural resource itself.
2. Human resources. An important factor in economic development due to be doers as well as critical success of economic development. Human resources equipped with physical strength, skill, and mental attitude to managing economic resources. Human resources are strong and high quality is a very important determinant of a country’s economic development success.
3. Capital resources. Capital is used to simplify and improve production efficiency. Capital formation is mostly done through investment in machinery, buildings, factories, and highways. Sufficient capital resources will be vital in supporting the effort to build a strong and stable economy
4. Technology and entrepreneurship. Technology is very influential in changing ways of producing a more efficient and increase in human productivity. So it is with entrepreneurship (entrepreneurship) as the ability to manage the factors of production available. Entrepreneurial skills that qualified will be added value to the success of economic development.

b. Noneconomic factors
In addition to economic factors, the development must also be supported by noneconomic factors. For example a stable political conditions, ease the bureaucratic, social, cultural, and positive attitude toward education.

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Posted in Economics

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