Economy, Business and Investment

Stock is a unit of value or books in a variety of financial instruments which refer to the ownership of a company. By issuing shares, allows companies that require long-term funds to "sell" business interests in shares in exchange for cash. This is the main method to improve the business capital, in addition to issuing bonds. Sales of shares made ​​the primary market or secondary market.

Stock Type
Stock consists of several types of which the common stock (common stock) and preferred stock. Typically, preferred stock referred to as a mixed stock because it has characteristics similar to ordinary shares. Meanwhile, the common stock has only one type. However, in some cases there is more than one, depending on the needs of the company.

For ordinary shares, there are several types, such as shares of class A, class B, class C, and lainnya.Masing each class has advantages and disadvantages of each. Please note, the symbol of the letter does not mean anything.

Stocks characteristics
1. Preferred Stock

- Have different levels, can be issued with different characteristics.

- Claims against assets and income. Preferred shares have a higher priority than common shares in terms of dividends.

- Dividends are cumulative. If you have not paid from the previous period, then it could be paid in the current period and the first of its common stock.

- Convertibility. Prefern shares are convertible into ordinary shares if the agreement between the shareholders and publishers formed an organization.

2. Common Stock

- Shareholder voting rights can memillih board of commissioners.
- Rights take precedence if the organization issuing new shares issued.
- Of responsibility limited to the amount given alone.

Category Stocks

1. Blue Chip Stock
Ordinary shares which have a high reputation as a leader in its industry and has a stable income and consistent in paying dividends.

2. Income Stock
Shares of an issuer with the ability to pay dividends is higher than average dividends paid on the previous year.

3. Growth Stock
This category consists of stocks of well-and lesser-know know.

4. Speculative Stock
Stocks consistently earn income from year to year and have the possibility of high earnings in the future, but uncertain.

5. Counter-cyclical Stock
Shares of this category is not affected by macro conditions and the general business situation.

Shares Application
The public may purchase common shares on the stock exchange through a broker (the stock player). In Indonesia, the purchase of shares must be made by multiples of 500 sheets or often referred to as 1 lot. Fractional shares (less than 500 sheets) can be traded in over the counter. One purpose of the public to buy shares is to benefit by increasing the value of capital and earn dividends.

Offer of its shares on the public first before listing on the stock exchange is called an Initial Public Offering (IPO). Meanwhile, if already registered (listing) and the company wants to increase the shares outstanding prior to giving rights to the old shareholders to buy shares of the company concerned is called Pre-emptive Rights (ER) or known as a rights issue.

Stock Trading Mechanism
The first step that needs to be taken by investors is to be a customer of a securities company in advance. Then, investors are required to open an account by paying a sum of money that has been determined by the company's securities (the deposited amount varies). Basically, the minimum limit or a nominal amount of shares purchased does not exist. However, in the Indonesia Stock Exchange a minimum purchase of 500 pieces or 1 lot.