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.

Gains and losses in equity investments

There are two benefits investors to buy or hold shares, namely:

Dividend

That sharing of the benefits provided by the company issuing the shares on the company's income, dividends granted after approval from shareholders at the AGM. Dividends distributed to companies in the form of cash dividends to shareholders meaning given in the form of cash dividends in the amount specified for each stock or stock dividends may also be a means to any given shareholder dividend number of shares so that the number of shares owned by investors increases with the division in = eviden stock.

Capital Gain

Capital gain is the difference between purchase price and selling price, which the selling price is higher than the purchase price, capital gain made by the trading activity in the secondary market

Besides these two advantages, the shareholders also possible to get:

Shares Bonus

Stock bonus (if any) that the shares were distributed to shareholders of the company taken in capital, share premium is the difference between the selling price of the nominal price of the stock when the company initial public offering market.

While the losses that could occur in the stock investment, namely:

Not getting dividend

The Company will distribute dividends if the company's operating profit. Thus, the company can not distribute dividends if the company suffered losses. Thus, the potential benefits dividend investors untukmendapatkan determined by the performance of the company.

Capital Loss

In stock trading activity, investors do not always get a capital gain or a gain on the shares he sold. There are times when investors sell their shares lower price than the purchase price, so investors had capital loss.

In stock trading, sometimes an investor to avoid potential losses greater to the steady decline in the stock price, then the investor is willing to sell its shares at a price lower than the purchase price, the term is known as Cut Loss.

The company went bankrupt and liquidated

If a company goes bankrupt, then the course will have a direct impact to the company's shareholders. In accordance with the listing rules on stock exchanges.

How to Play Stock?

          People today are somewhat more intelligent investing. Both the long and short term, to support them in old age later. There are comfortable investing in gold, property, and even stocks.

For beginners who want to invest in the stock play, certainly do not know what steps to take to start playing the stock. How to play a safe stock. Shares is the unit value or books in a variety of financial instruments which refers to the ownership of a company.

By issuing shares, allows companies that require long-term financing to sell interests in the business, the stock (equity), in exchange for cash. This is the primary method for businesses to raise capital other than issuing bonds. Shares sold through the primary market or the secondary market.

According to Marketing Director Paula Rianty Ciptadana Asset Management Komarudin, when someone is going to play the stock, it must have three things. First of adequate funding, adequate time and sufficient knowledge about the stock.

"The funds are sufficient for buying a lot of shares are not cheap. Enough time because we had to ngawasin and analyze a variety of stocks. Whilst considerable knowledge means, let us not stuck playing time shares, we should understand what stocks have the potential to continue to rise.

As an illustration, quoted from Wikipedia, there are several types of stock, including common stock and preferred stock. Preferred stock usually referred to as mixed stock because it has characteristics similar to ordinary shares. Usually the common stock has only one kind but in some cases there is more than one, depending on the needs of the company.

Then, the common stock has several types, such as class A, class B, class C, and others. Each class with the advantages and disadvantages of their own letters and symbols have no meaning nothing.

Buying Stocks

Furthermore, in order to become an investor in the stock exchange, one must be a customer of a company's securities.

Shares Business Online

Facilitate Internet stock investors to do business online. Stock trading becomes easier than before, because every investor can get information about the stock position in realtime. Due to rapid changes in the financial sector and everything related to it, then needed a tool that can connect to the situation and condition of the stock market quickly every second. In this situation, online stock trading is the only solution that can solve this problem and to allow every investor to keep in touch with the latest updates.

Stock business online can be done anywhere as long as the investor internet access available. This business is in demand by most investors, because in addition to the process also has the potential gains easy as expected. Along with the development of online stock trading then many emerging online stock broker. Often novice investors quite difficult to determine the choice of broker to use. But by studying the performance of the broker and find as much information as possible, it will be easier the process of selecting the online stock broker. After finding a broker that matches his expectations, investors could start his business.

One factor online stock business is developing very fast when using a conventional system, the process will take a long time. In addition, investors can do other business simultaneously. In fact the presence of stock online, as well as a detailed stock data, or any matters relating to the shares of the issuer company, making investors easily do business. Currently, investors are easy to do business stock, without the need to rush here and there, which is quite time-consuming and exhausting. Quick and easy to consult the stock is is another factor causing stock business online is more popular among investors and the company issuing the stock. For investors and companies issuing shares consultation available online. So that they can interact. The success of this business is strongly influenced by the presence of online stock broker, who has a particularly good reputation. Are you interested?

Stock Journal

Stock trading in the stock market is unstable, as beginners we require complete data on stocks traded. It is useful for the analysis of materials in making trading decisions that we do. These data we can get from the market itself and the online stock broker. In addition, we should make our stock trading journal. The stock market is changing all the time, therefore, to keep track of our stock trading, it would be easier if we have a journal. Every transaction we do we should write off or write down.

Journal of the stock has some benefit for us, for example:

1. Make it easy to track stocks that we trade.

2. As the material development frameworks trading stocks for us.

3. Materials reflection on trading stocks we have done.

4. As a matter of learning for us in the next stock trade.

All trading stocks we have done and the events that affect the stock price changes in the stock market online we noted in one document. Should also be equipped with charts and explanations.

Recording of stock trading that we post the document or in a journal called the stock does not have to be done every day, but the moment we only stock trading. Could be 2 to 3 times a week or whenever, we certainly every stock trade. In stock trading online we should have a picture or plans. Do not let us do online stock trading without a plan, it will have an unplanned trading can result in losses. There should be limits when buying and vice versa. As well as the strategy that we will pursue. There are more important things we need to consider, that we should not compare with others moments of online stock trading. This could lead to desires for the shares outside the plan. Our primary goal is to trade stocks benefit, therefore, to realize one's make stock journal.

How Business Stock

World stock markets more lively, it is supported by the existence of the internet. Many novice investors who are interested in this field falls. Now the question for investors is how the business novice stock? If we want to get involved in the stock market, then we have truly mastered and have good skills. This is to reduce losses. We have to start learning the stock business. The first step is that we learn everything related to the stock. We can get from books, internet and information from others. Furthermore, play virtual stock market.

The way business is very different from the stock business. Business can not be underestimated, we must concentrate if do not want to suffer huge loss. Often novice investors do not know how that should be taken in initiating the stock business. To learn about the stock and increase the stock business intuition, we need to know and follow a number of ways, for example:

1. Attend seminars stocks, which discusses the basic principles of the stock market and the strategies used in this business. By following this seminar we are expected to know and understand the stock business.

2. Read books that discuss trading stocks and shares on the stock exchange or books related to it. This method is adopted to expand the knowledge and techniques of stock trading.

3. In the following stocks trade are expected to always have patience, yet we can be sure that every day can find stocks that have the potential for large profits.

4. Venturing stock business with small funds first,

Learning Business Stock

If you are seriously interested in the investment world, you also need to learn to share. Why? because the stock is one of the many popular types of investment because it promises a huge advantage.

What is a stock?

For those of you who want to learn to share, the stock is a sign of capital to a company statement. By having stock means that you have a claim against the income and assets of a company.

Investors buy stocks purpose is to profit from the company. Financier? categorized into two kinds of investors: investors and speculators.

Investors are people who buy shares in order to benefit from a company in the long term, while speculators are people who buy stocks for immediate resale when there are considered to be more favorable exchange rate.

Types of shares

Stock is the most powerful instrument traded on stock exchanges. For those of you who are learning shares, types of shares differentiate between common stock and preferred stock.

- Common stock, an equity ownership of business entities in the form of a limited liability company. Usually provide a guarantee to participate in profit sharing.

- Prefern shares are shares that have a combination of properties between bonds and common stock.

Form of shares

What about stocks? A sheet of paper stock is a piece of paper stating that the owner has the right to benefit a company, regardless of its portion.

Certainly has a share price.

The Process of Stock Trading

1. where the shares traded?

Shares only traded on stock exchanges. Securities can not be purchased at the mall. These securities can be purchased on the company's financial capital and sekuritis with enough knowledge about the stock market plus identification cards. Come to a brokerage firm or securities. Gladly, they will serve you.

2. who is doing the trading?

That did the stock is any person who meets the requirements specified in the company's securities, submit a photocopy of the identity card, fill in the account opening, signature on the stamp, as well as the ability to obey the rules that have been set and receive all resio losses that may occur.

3. is traded?                          

This is an important question-before starting to trade stocks. To answer what is traded in the stock market, here's an explanation. Shares are bought and sold securities brokerage firm. Looks similar to a stock certificate.

In the stock, there is a collective share certificate number, the value of the authorized capital of the company, the nominal value of shares, name of the owner of the shares, and so on. This information is made known stocks of securities and made tradable.

4. when the trade takes place?

Shares are traded on the stock exchange on weekdays, between Monday to Friday.