Tag Archives: STOCK

Primary market and secondary market in trading in the stock market

Posted on September 11, 2011 | Leave a comment

Capital market or securities exchange is not actually buy or sell stocks and securities that exist, but the stock is only a means or place for investors to transact in them. Capital markets in Indonesia consists of the primary market and secondary market.

a. Primary market, is the market where securities are traded for the first time. Here, stock or other securities for the first time offered to investors by the underwriter (an underwriter) through stock brokers (broker-dealer) as a stock dealer. This process is called an initial public offering (Initial Public Offering / IPO). In the primary market investors can directly buy shares or securities of the company through underwriters and securities dealers. Before you buy stocks or securities, investors should study the first company. This can be done through a prospectus issued by the company. In the prospectus includes information on historical financial records to forecast earnings and dividends will be paid until the current year. On the basis of forecasts in the prospectus, the underwriters and issuers set the offering price. The offer price is usually cheaper than the average stock of similar companies that already exist in the capital market. This is done to attract potential buyers. Pricing is also done to allow investors to get capital gains when the shares were listed on the stock.
b. Secondary market, is the market where securities have been listed on stock exchanges traded. Secondary markets provide the opportunity for investors to buy or sell securities listed on the stock after the implementation of the initial offer. In the secondary market securities will be traded from one investor to another investor. Secondary market began when the effects begin to be listed on the stock. Securities purchased with securities offered in the IPO. The difference is, investors buy them from other investors who want to sell these shares. Obviously such a mechanism through securities brokerage transactions. Brokerage firms have been licensed to conduct trading or brokerage and a member of the exchanges.

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definition of capital markets (stock exchange)

Posted on September 11, 2011 | Leave a comment

Capital markets are markets where traded funds in the form of securities, long-term (more than one year), such as stocks, bonds, evidence of benefits, warranties, proof of equity and other securities with a maturity more than one year. Activation of the capital market for longer than financial markets to raise funds for the long term is much more difficult than collecting short-term funds.

The new government can take concrete steps in order to realize capital markets and issued three important decisions regarding the capital market through a Presidential Decree. 52 of 1976 dated 28 December 1976, as follows:
a. Establish capital markets in Jakarta, which was then called the Indonesia Stock Exchange and was inaugurated by the president in 1977 with its inaugural sale of shares of PT Semen Cibinong shares to the public (go public).
b. Established PT Danareksa (Persero), whose duties are:
1) the guarantor (underwriter) expenditure of new shares will go public.
2) Buy shares of other companies (established) for resale to the public through the Indonesia Stock Exchange. This means that PT Danareksa act as a broker or securities broker.
3) Maintaining the stability of exchange rate effects.
c. Forming the Capital Market Executive Agency (Bapepam), which serves as executor and supervisor of capital markets and is responsible to the Ministry of Finance. In 1983, the name was changed to the Indonesian Stock Exchange Jakarta Stock Exchange (JSX), and later established in Surabaya Surabaya Stock Exchange (SSX). And in its development in 1990 reorganized the functions of Bapepam, among others, a dual role as implementers and supervisors abolished and only serves as an oversight body only by the name of the Capital Market Supervisory Agency. As for the technical implementation in the stock exchange more entrusted to the United Merchants Exchange and Securities (PPUE).

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Posted in 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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Function of capital markets and the role of capital markets

Posted on August 25, 2011 | Leave a comment

There are two functions of the economic functions of capital markets and financial functions. Fungi capital market economy is to provide a facility or vehicle that brings the two interests, ie that the excess funds and those funds are needed. With the stock market then the company can obtain funds from the public owner of the funds through the sale of securities.

Capital market finance functions related to various investment alternatives for investors in capital markets. In capital markets, investors can invest in stocks or bonds. Capital markets provide the possibility and opportunity to obtain rewards for investors. In addition, the existence of capital markets led to increased economic activity as an alternative capital market funding for companies to increase profits and revenue. It was eventually bring prosperity to society more broadly. Therefore, it is proper if all parties working to develop the presence and progress of capital markets in economic activity.

For the economy, capital markets have a very important role. The role is as follows:
a. The capital market is a place in an efficient allocation of funds. Investors can buy securities that are traded in capital markets. Conversely, companies can raise funds by offering instruments or securities in the capital markets.
b. Capital markets are an alternative investment to provide benefits and certain risks.
c. The existence of capital markets allow investors to participate have a healthy company and good prospects, such as through stock ownership.
d. Capital markets encourage the implementation of corporate management in a more professional, transparent, efficient, and profit-oriented. This is done to attract investors willing to invest their capital.
e. Capital markets can increase national economic activity. The companies will be easier to obtain funding so as to encourage more companies going forward. Furthermore, more and more employment opportunities, higher income, and welfare.

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Major commercial activities: (S), (IWM), (MSFT) (CSCO), (FAS)

Posted on August 22, 2011 | 1 Comment

As a very active list is not always positive, such as high activity because of the negative news. Regardless of high activity to the high liquidity. Large-scale movement of the combined price of what dealers need to make a profit.
Shares of Sprint Nextel Corp. (S) decreased by 1.75% or $ 3.36 to $ -0.06/share. Last year, the shares traded as low as $ 2.98 and as high as $ 6.45. S hands an average of 63174730 shares of exchange on that day and today’s volume of 12,433,413 recorded. The shares are currently trading below the 200-day moving average, which indicates that the shares are already suffering from the recent downward momentum. The stock could bounce further test the 200 day moving average, so look for the step up to the $ 4.63 area where the staff will meet resistance.
The following sets observed that among the most active trading on August 22: Sprint Nextel Corp., iShares Russell 2000 Index, Microsoft Corporation, Cisco Systems, Inc, and Direxion Daily Financial Bull 3X Shares. These kits are usually heavy traffic because of new relevant information became available to the company.
microsoft Major commercial activities: (S), (IWM), (MSFT) (CSCO), (FAS)
Shares of iShares Russell 2000 Index (IWM) traded 1.19% higher to $ 66.06, or $ 0.78/share. Last year, the shares traded as low as $ 58.09 and as high as $ 86.55. An average of 78046590 shares of IWM exchange hands on a given day, and today’s volume of 11,980,780 recorded. The shares are currently trading below the 50-day and 200 day moving average, which indicates that the shares have experienced downward momentum. The stock may rebound to test the 200 day moving average. So you should pay close attention to the above the $ 78.27 area, but be careful, because the stock may face selling pressure at this level.
Shares of Microsoft Corporation (MSFT) traded 0.54% higher to $ 24.18, or $ 0.13/share. Last year, the shares traded as low as $ 22.74 and as high as $ 28.91. 65785420 MSFT share price average, a hand that day and today’s volume of 11,350,027 recorded. The shares are currently trading below the 50-day and 200 day moving average, which indicates that the shares have experienced downward momentum. The stock may rebound to test the 200 day moving average. So you should pay close attention to the above the $ 25.67 area, but be careful, because the stock may face selling pressure at this level.

Shares of Cisco Systems, Inc. (CSCO) traded higher than 0.86% or $ 0.13/share to $ 15.21. Last year, the shares traded as low as $ 13.30 and as high as $ 24.42. Average share price 75058070 CSCO hands on a given day, and today’s volume of 10,863,401 recorded. The shares are currently trading below the 50-day and 200 day moving average, which indicates that the shares have experienced downward momentum. The stock may rebound to test the 200 day moving average. So you should pay close attention to the above the $ 15.42 area, but be careful, because the stock may face selling pressure at this level.

Direxion Shares Daily Bull 3X Shares Finance (SAF) traded 2.66% higher at $ 12.33, or $ 0.32/share. Last year, shares traded as low as $ 8.72 and as high as $ 34.29. SAF 31810950 Avg hand, a hand that day and the current volume of 10,787,589 registered. The shares are currently trading below 50 days and an average of 200 moving day, indicating that the shares have experienced downward momentum. The stock could rebound to test the 200 day moving average. So you should pay particular attention to the area above $ 21.77, but be careful, because the stock may face selling pressure at that level.

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