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 characteristics 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 Bumi Resources Tbk shares at a price per share is IDR 1800 and sold at a price of IDR 2200 means you get a capital gain of IDR 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. But as stock prices fluctuate, 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 your desire to 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. The first question that you need to know is what company is that? 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 plenty of information different from many institutions, You have to learn which institutions have the experience and high credibility so that the information you receive is true and accurate. So the information can help you make decisions about your investments take.
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