Stock Investing Terms Beginners Must Know

Ngopisantuy.comStock Investing Terms Beginners Must Know, The quantity of profit that can be made from shares makes this financial instrument appealing to a wide range of people.

Stocks captivate not only those who are already established in finance, but also a younger set of recent graduates. It is critical to understand some stock investment terminologies in order to avoid making mistakes.

Stocks, as you are surely aware, are one of the financial tools with a high risk, or high risk. Jumping into the stock market just because.

Stock Investing Terms Beginners Must Know

Stock Investing Terms Beginners Must Know You joined and then being unwilling to study the ins and outs of the capital market, including certain stock investing words, implies you are committing’suicide’ and squandering your time.

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So, in order to avoid becoming a professional stock investor or trader, here are a few stock investment phrases you should understand first. The following reviews are very important to grasp if you are a beginner:

1. Issuer of Securities

In a stock market, investors or traders can select stocks based on their financial objectives and budget. When selecting equities, you must, of course, evaluate the issuer. What exactly are securities and issuers?

Simply explained, securities are assets that are traded or exchanged on the stock exchange. There are several sorts of securities available.

Including debt acknowledgments, commercial securities, evidence of debt, units for participation in collective investment contracts, securities futures contracts, bonds, and, of course, stocks.

A company’s shares are proof of ownership. The IDX (Indonesian Stock Exchange) requires a minimum purchase of 1 lot or 100 shares in its ecosystem.

If you wish to purchase securities in the form of shares from Telkom (TLKM) at a price of 3,390 per share, the minimum capital required to hold 1 lot of TLKM shares is IDR 339 thousand.

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The word “issuers” refers to firms or organizations that issue and sell securities to the general public. Where the issuer is issuing and selling securities through a public offering in accordance with the IDX’s guidelines.

2. Securities Firm (Broker)

Can we execute direct stock exchange transactions if we already have the funds to acquire shares? No, it does not.

Because all securities transactions in the capital market need the employment of a securities business business or broker. This broker has the power to carry out transactions.

Including the purchase and sale of shares and other securities. Securities firms, in carrying out their tasks, serve as a “bridge” between investors and the capital market.

Only securities firms with an OJK (Financial Services Authority) license can conduct stock exchange transactions. To acquire shares as an investor.

You must first create an RDN (Customer Fund Account) to hold your investment cash. There are now many brokers in Indonesia. Choose a securities firm with a good track record on the stock exchange.

3. Stock Market

The stock exchange is the next stock investment word that frequently emerges. This stock exchange, on the other hand, is the party that organizes and offers a system and methods of buying and selling securities amongst sellers, purchasers, and other parties that trade securities.

Initially, Indonesia had two stock exchanges: the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (BES).

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However, in 2007, the two markets amalgamated to form the IDX or IDX (Indonesia Stock Exchange), which is based in Jakarta. The IDX includes a Composite Stock Price Index (JCI) that gauges the performance of all shares listed on the exchange.

For your knowledge, the JCI has been available to the public since April 1, 1983, and it continues to serve as a benchmark for investment performance on the IDX.

In addition to the JCI, the LQ45 and IDX30 are frequently utilized as references. Meanwhile, equities on the IDX are classified into nine industry categories, including agriculture, mining, real estate, commerce, consumer goods, and finance.

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Author: Irdansyah
I'm a regular contributor to IRDANSYAH commander, and in my business blog, my team and I share tales on the experience of starting a business from zero, how it feels to build a startup, and how to scale-up.