Getting to Know the Products, Actors, and Benefits of the Capital Market

Speak stock investment, trading saham, and also scalping shares, it's incomplete if you don't discuss the capital market. Even though the capital market houses the various investment products that you use now.

However, it should be remembered that the capital market is not like a market in general, but rather an activity of buying and selling securities.

You can find out what the capital market is right now. Listen to the discussion carefully, yes!

Understanding Capital Market

In general, the capital market is an activity for buying and selling securities or securities carried out by the issuer company as a capital market participant with investors. The place to conduct capital market transactions is the Indonesia Stock Exchange (IDX).

Through the Indonesian capital market law in Law no. 8 of 1995, the definition of the capital market is an activity related to securities trading and public offerings between actors and issuers.

Capital Market Products

In the capital market there are several products or investment instruments that are quite profitable, namely as follows.

1. Stock

Shares are a financial market instrument in the form of a sign of a person's or business entity's capital participation in a company or limited liability company.

2. Mutual Funds

A mutual fund is an investment product whose securities portfolio is managed by an investment manager.

3. EFT Securities

EFT securities are usually sold on the Indonesia Stock Exchange (IDX) and have similarities to mutual funds because the capital you provide will be managed by a professional.

4. Derivative Stocks

Derivative stocks are also like securities, but have a different mechanism. This stock has two derivatives, namely warrants and rights.

5. Bonds or Debt

Bonds are capital market instruments issued by companies in the form of debt securities. Examples of bonds are Sukuk or Government Securities.

Capital Market Participants

As the name implies, the transaction must have actors or capital market parties behind it.

1. Investor

Investors become one of the most important capital market players, because investors will invest their money or capital in trading capital market products to earn profits.

2. Broker

A company or institution that will become an intermediary for trading capital market products can also be called a company security company or broker.

3. Issuer

Issuers are parties who have securities or securities portfolios which will later be issued in the capital market to obtain capital from investors. The issuer will also manage the investors' money.

4. underwriter

Maybe you are already familiar with the term underwriter or the underwriter who is in charge of entering into a contract agreement with the issuer to make an offer for securities that are not sold out.

5. Intermediary Agent

The last capital market participant is an intermediary agent who will seek investors to invest their capital in certain capital market products.

Capital Market Benefits

1. Providing Funding for Companies

Investors will invest their capital in capital market products in order to make a profit. Meanwhile, companies or entrepreneurs operating as issuers will get capital funding to make their business grow.

2. Increase Tax Revenue

In addition to investors and entrepreneurs, the capital market can also assist the government in increasing taxes, because with the increase in people's income, taxes will also increase.

3. Can Increase Workforce

With the capital obtained from investors, a growing company will certainly require more human resources. Thus, it also opens up employment opportunities.

Now, after knowing the discussion of the capital market, now you can choose which capital market product you will pursue for investment. You can look for capital market products that match your financial capabilities!

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