Capital Market: Understanding Capital Market

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In simple terms “market” could be interpreted as a meeting place for buyers and sellers to transact the sale. Along with the development of human civilization, the notion of “market” expanded. Currently, developing various kinds of modern markets, including capital markets (capital markets). Modern market is also growing. In fact, in the capital markets (capital markets), the product is no longer tangible goods diperjualhelikan but securities (securities). Now, thanks to advances in information and communication technology (TIM), effect transactions in capital markets (capital markets) is no longer wearing the letter and can be done from a distance by remote-trading.

Capital markets (capital markets) traded securities (securities / securities) such as stocks, bonds, derivatives, and mutual funds (mutual funds). Companies that need additional capital could sell some of its shares through the capital markets (capital markets) or issuing debt securities (bonds). The addition of venture capital by issuing shares or bonds by the company because it is cheaper than applying for a loan (credit) in the bank.

Capital markets (capital markets) is a market where trades long-term financial instruments that can be traded, such as stocks (equities / equity), bonds (debt securities), mutual funds, derivative products, as well as other instruments. Capital markets (capital markets) is a means of financing for companies and government institutions, as well as a means Hagi people to invest. With increasing order, capital markets (capital markets) facilitate a range of facilities and trading activities in securities and other related activities. Financial instruments traded in capital markets (capital markets) is a long-term instruments (greater than one year), ie: stocks, bonds, mutual funds, and various derivative instruments such as options, futures, warrants, rights, and others.

Capital markets (capital markets), according to the Capital Market Law No. 8 of 1995 is defined as “activities concerned with the public offering and trading of securities, public companies relating to the issuance of securities, as well as the institutions and professions related to the effect”. Capital markets (capital markets) has an important role for the progress of a country’s economy, which is a means for companies to obtain funds from the public (investors). Funds raised from capital markets (capital markets) can be used for business development, pay debt, increase working capital, and others. Capital markets (capital markets) is also a means for people to invest by purchasing financial products such as stocks, bonds, mutual funds, derivatives, and others.

Investors buy financial products in capital markets (capital markets), seeking greater profits than those earned from savings accounts or deposits. Although the share of investment (equity investment), bonds, or mutual promises greater profits, we still need to be careful. Investment in capital markets (capital markets, investment) are not government guaranteed, so investors may lose money hahkan total loss because its stock is not worth it at all. In camping, although small relationship, savings and time deposit is safe because the government guaranteed cq LPS. The greater the investment risk, the greater the potential returns. To minimize the risk of investment, we must understand that a large investment. To that end, continue to hone intuition and the added experience of your investment.


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