March 31, 2013

Definition, Types, Losses and Profit Shares

Understanding Stock

According to Suad Husnan, security is a piece of paper that shows the right investor (ie the party that has the paper) to a share of the wealth prospects or organization that issued the securities, and the conditions that allow the investor to run right.
According to SFAS. 42, shares / securities are securities, which is an acknowledgment of debt, commercial paper, bonds, evidence of debt, and units of collective investment contracts.
Stock is one of the few alternatives to choose to invest. By buying shares of a company, means that we have invested in the hope of getting profit from the resale of these shares.

Kinds of Stocks
There are two kinds of shares issued by the company, namely:

1. Common Stock
Ordinary shares are securities as proof of participation or individual and institutional ownership of a company. Shares as equity securities, giving the implication that ownership reflects ownership of a company. The nature of common shares:
v Eligible for earnings in the form of dividends.
v Eligible for company property.
v The right to make a sound.
v It has limited liability.
v Has preemptive rights.

2. Preferred Stock
Adaah preferred stock investment or ownership interest in a company at a limited level. The holders of preferred stock have no voting rights, but will be promised a definite amount of dividends and keep a certain percentage (the interest rate that the company promised) that the payment would take precedence over common stock dividend.

Types of Common Stock
Shares kind of what we want? It all depends on the characteristics of each investor. By knowing it, we can determine the category of stock that we will enter. It's very important to understand, if not a huge loss will always be waiting. Classification of types of common shares consist of:

1. Blue Chip Stock
A stock can be are classified as Blue Chip Stock publisher when the company has a good reputation and long-term experience emitennya able to generate high revenue and consistently paid cash dividends. Usually emitennya is a leader in its industry and is in stable condition.

2. Income Stock
A stock that emiotennya afford to pay higher dividends than - average dividend paid the previous year.

3. Growth Stock
Classifying stocks as if emitennya Growth Stock is a leader in its industry, and in recent years straight - were able to get the above - average.

4. Growth Stock
Issuers of shares of this type generally do not become a leader in its industry, however, this stock still has the characteristics such as Growth stocks, which is able to get a higher yield than average earnings - the average year last year. Issuers to share this type usually originates from the area, the companies that do not lead a national scale, but it has a strong position in the region. This type of stock is less popular among investors.

5. Stock Speculation
This type of stock used for stock emitennya can not consistently get the income from year to year, but these companies have the potential to earn a good income in the future - the future, even if that income is not necessarily to be realized.
Investors who try to share this type can be likened to gambling, because in the short term the stock will only be a small dividend, or even do not pay dividends at all.

6. Cyclical stock
The development of the stock is clearly following the situation of macro economic or business conditions in general. During macro is undergoing expansion, stock issuers will have high income, thus enabling high-paying dividends as well.

7. Stocks Survive
This type of stock is not affected by the macroeconomic conditions and general business situation. At the time of recession, stock prices remain high, as they can provide a high dividend as a result of the ability to earn a high emitennya the recession. Issuer's stock usually moves in the industry whose products are really - really needed by consumers.

Advantages and disadvantages of stock investing

The gains and losses that may be received by the investors who bought the stock are:
Capital Gain: the profits from the sale of shares, such as the difference between the selling price is higher than the value of the stock purchase.

Dividends, the profits to be distributed to the shareholders.
Shares can also be pledged to a bank to obtain credit as an additional budget from basic budget.
Shares of the company, as well as the type of soil or valuable assets, its value will increase over time and the development or performance of the company. Long-term investors rely on the increase in value of these shares for the benefit of the investment.

Capital Loss, the losses from the sale and purchase of shares, such as the difference between the selling price is lower than the value of the stock purchase.
Opportunity Loss, loss in the form of excess deposit rate minus the total returns from stock investments.
Losses due to the company liquidated, but the liquidation value is lower than the purchase price of the shares.

No comments:

Post a Comment