What is Stock Market?

Basically, the stock market is a market for a variety of long-term financial instruments that can be bought and sold, either in the form of debt or the capital itself. Financial instruments are traded in the stock market such as stocks, bonds, warrants, rights, convertible bonds, and various derivative products like option.

stock market gives a large role for the economy of a country because stock market provides two functions at once, including the economic and financial functions. stock market said to have a functioning economy since the stock market or provide a vehicle that meets the interests of two parties who have excess funds (investors) and those who need funds (issuer).
With the stock market is a public company can obtain fresh funds through the sale of the Securities IPO shares through the procedure or debt securities (bonds).

stock market is said to have financial functions, since the stock market provides the possibility and opportunity to earn rewards (return) to the owner of the funds, according to the characteristics of the selected investment. So with the expected stock market be increased economic activity due to the stock market is a financing alternative for companies to increase corporate revenue and ultimately to provide prosperity for the wider community.

In general, the benefits from the existence of the stock market are:
• Provide a source of financing (long term) for the business while enabling an optimal allocation of funds.
• Provide a variety of investment vehicles for investors to allow for diversification. Alternative investments provide the potential benefits to the level of risk that can be calculated.
• Provide a leading indicator for the development of a country's economy.
• The spread of ownership of the company until the middle layers of society.
• The spread of ownership, openness and professionalism to create a healthy business climate and encourage the use of professional management.