Ngopisantuy.com – What is Securities? 4 Tips for Choosing Stock Securities for Beginners, People are slowly but steadily becoming addicted to stocks. Young people, particularly millennials and Generation Z, are becoming more interested in investing their earnings in equities.
Profitable? Without a doubt. It’s only that these newcomers should be aware of how to select the best investment stocks ahead of time.
Because securities play a key role when it comes to investing in equities and entering the capital market. In reality, because it serves such an important purpose in stock investing, newcomers must first.
Why Invest In Stock Securities?
Understand what securities are before deciding on one firm to serve as a ‘extension’ in the harsh world of the capital market.
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Securities are unquestionably one of the most important aspects of stock investing. According to the OJK (Financial Services Authority), securities are evidence of debt or proof of capital ownership in the form of securities that may be sold. Bonds, stocks, certificates of deposit, mortgages, and options are all examples of securities.
You must be familiar with at least two types of securities: debt securities and equity securities. Debt securities, such as bonds and certificates of deposit, are proof of ownership of debt with a payment date. While equity securities represent proof of ownership in a corporation or entity.
Understanding Securities Firms
It is not the case in this article’s advice for selecting stock stocks. securities, as previously said, but rather to comprehend the securities company
A securities firm, according to Law No. 8 of 1995, is a person that acts as an underwriter, securities trading broker, or investment manager (MI).
To be able to trade securities or shares, a securities business must, of course, receive a permission from the OJK and be registered as a licensed member of the stock exchange.
1. Pay Close Attention to the Initial Deposit
The first advice for picking stock securities that inexperienced investors should follow is to focus on the first investment. Because it’s common known that new investors have limited resources, it’s a good idea to pick a securities firm that has a low initial investment.
Each securities business has its own set of requirements for initial deposits ranging from Rp. 100,000 to Rp. 10,000,000. So, make your decision based on your financial capabilities.
2. Understand the Transaction Fee
Aside from the initial deposit amount, the second item that newbies should be aware of is transaction fees. Yes, securities firms openly establish transaction fees (fees).
As their commissions and revenue as a middleman between investors and the capital market. Transaction costs vary per securities firm, much as deposit or initial deposit fees.
However, the typical fee for a buy transaction is 0.15%, while the fee for a sell transaction is 0.25%. Make sure you are aware of this price so that it can be tailored to your financial situation.
After all, the lower the transaction costs levied on investors, the higher the profits.
3. Quality Control Analyst
Investing in stocks is not a game of luck. Serious study is required to forecast capital market movement, profit or loss. Are you perplexed because you are still a beginner? Keep your cool. A professional securities firm must have a number of skilled analysts that can assist investors in managing capital and profitably.
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Furthermore, if their analysts are well-known and frequently become investing speakers in the media, potential investors may be interested in joining the securities firm.
4. Online Transaction Service
Want to invest in stocks but don’t want it to be difficult? The following recommendation for selecting stock shares is You might select a securities firm that offers online apps so that you can transact over the internet.
Not simply an application, but one that has great features that aid in stock investment so that beginners are not perplexed.