Learn stocks for beginners
#1 stock
What are Shares?
Shares in simple terms are proof of ownership in a company.
That's why stocks are referred to as securities.
Shares are securities – definition in Capital Market Law 8 1995, "Securities are securities, i.e. bonds, commercial securities, stocks, bonds, proof of debt, Participation Units of collective investment contracts, futures contracts on Securities, and any derivatives of Securities".
What are the types of stocks?
Common stock; on this type of stock investors can claim ownership of all assets and profits belonging to the company, while shareholders have limited liability. If the company is insolvent or faces other risks, the maximum loss incurred by the investor is limited to the amount of investment in its shares in the company only (Limited Liability Company).
Preferred shares; types of stocks that combine bonds (bonds) with common shares. The advantage is that these stocks can provide a fixed income as well as bond interest.
#2 Dividend
The main source of profit of shares is dividends, which is the distribution of the company's profits to shareholders.
Shareholders receive a dividend amount depending on:
What portion of the profit is divided into shareholders because it could be a loss company or a profit company but does not divide all profits as dividends;
The distribution of the amount of profit to shareholders depends on the shareholding in the company.
There are two indicators that are often used to assess the quality of the company's dividend: (a) what is the % of profit divided as dividend payout; (b) dividend value per share divided by dividend yield.
#3 Source of Profit
The source of stock profits comes not only from dividends but from the increase in the share price on the exchange.
The dynamics of demand and stock offerings on the exchange determine the level of the stock price.
Just like a trade person, the share price is the result of a bargain between the goods, shareholders, and prospective buyers.
When demand goes up, prices will go up, when deals go up otherwise the share price will go down.
The increase in the share price provides a profit for shareholders from the difference between the purchase price and the selling price.
In short, stock investments provide a profit from (1) dividends paid by the company and (2) appreciation of the share price on the exchange.
It is better where the stock gains from dividends or price appreciation on the exchange.
Each has a plus-minus.
Dividends are usually relatively small but stocks do not need to be sold in order to get dividends, meaning that next year shareholders can continue to enjoy dividends as long as the shares have not been sold.
Price increases usually give you a greater return than dividends, but remember that you have to sell those stocks, which means you can't enjoy any more profit after that.
#4 IPO
Before entering the exchange, companies that want to sell shares to the public, make an initial public offering (IPO).
Companies that want to sell shares IPO to the public or the public, with the following process:
Publish the Prospectus in the mass media, where the Prospectus contains a business overview and various other important information related to the company, including the share offering price
People who are interested in buying fill out the order form and pay in advance according to the share price in the prospectus and the number of shares to be purchased
After the offer period is completed, the Company will allot shares to investors who have already booked and if the allotment of shares is less than the money that has been deposited then the company makes a refund.
People who already get will receive shares in stock accounts in each stockbroker.
According to the schedule specified in the prospectus, shares will be listed on the Indonesia Stock Exchange and that means investors can sell or even buy more shares from other shareholders.
#5 Indonesia stock exchange (IDX)
To have the option to exchange stocks, you should do as such on the Indonesia Stock Exchange (IDX).
What is the Indonesia Stock Exchange?
Indonesia Stock Exchange is an organization that gives a framework to help the execution of customary, sensible, and effective protections exchanging and effectively available to all partners.
IDX conducts protections exchanging, which is one of the stocks.
The proprietor of IDX is an Exchange Member and strangely, IDX isn't a benefit arranged, benefit situated organization, however the's organization will likely give the best foundation to protections exchanging.
You can get to the full data at www. IDX. co. en IDX official site.
Stock financial backers should know the significant things about IDX, in particular:
the best offer data source is in IDX on the grounds that each organization recorded and selling shares should submit budget reports, corporate activity, and any remaining material data to IDX
rundown of true protections organizations situated in IDX where stock exchanging must be done through this authority protections organization
Free stock courses are given by IDX as a component of its central goal as capital market schools that should be possible disconnected (up close and personal) and on the web
IDX characterizes shares in IDX into 9 areas, specifically:
Farming: remembers organizations for the field of food crops, estates, domesticated animals, fisheries, ranger service, and administrations straightforwardly identified with the field.
– Crops
– Plantation
– Animal Husbandry
– Fishery
Mining: Mining and quarrying organizations, like coal, oil, and gas mining, metal seeds, rock quarrying, earth, sand, salt mining and quarrying, mineral mining, synthetics, and composts, just as vagabond, black-top, and limestone mining.
– Coal Mining
– Crude Petroleum &Natural Gas Production
– Metal and Mineral Mining
– Land/Stone Quarrying
Essential industry &chemicals: fundamental enterprises incorporate endeavors to change over fundamental materials into semi-completed products; or completed merchandise that will in any case be handled in the following area of the economy. The substance business incorporates the preparing of essential synthetic related materials to be utilized in resulting creation measures and the drug business.
– Cement
– Ceramics, Glass, Porcelain
– Metal And Allied Products
– Chemicals
– Plastics and Packaging
– Animal Feed
– Wood Industries
– Pulp and Paper
– Others
Different industry: covering the matter of making weighty and light apparatus; including supporting segments.
– Machinery And Heavy Equipment
– Automotive and Components
– Textile, Garment
– Footwear
– Cable
– Electronics
Purchaser merchandise industry: a handling business that proselytes fundamental/semi-completed materials into completed products that can by and large be burned-through actually/family.
– Food And Beverages
– Tobacco Manufacturers
– Pharmaceuticals
– Cosmetics and Household
– Houseware
– Others
Property, land, and building development: development incorporates the matter of making, fixing, destruction of houses and different kinds of structures. Land incorporates the purchasing, selling, renting, and activity of a wide scope of private and non-private structures.
– Property and Real Estate
– Building Construction
Foundation, utility, and transportation: organizations that incorporate the arrangement of energy, transportation, and broadcast communications offices, just as framework structures and supporting administrations. Foundation structures incorporate non-building structures and houses.
– Energy
– Toll Road, Airport, Harbor, and Allied Products
– Telecommunication
– Transportation
– Non-Building Construction
Account: monetary area related organizations, including monetary middle people, financing establishments, protection, protections organizations, and venture organizations.
– Bank
– Financial Institution
– Securities Company
– Insurance
– Others
Exchange, administration, and speculation: incorporates enormous and little/retail party exchange organizations, just as administrations area related organizations like lodgings, eateries, PCs and gadgets, promoting and media just as the printing business.
– Wholesale
– Retail Trade
– Restaurant, Hotel, and Tourism
– Advertising, Printing &Media
– Healthcare
– Computer And Services
– Investment Company
– Others
#6 Stock Analysis
As with all investments, before determining the instrument you choose, you should do an analysis to make the best decision.
Stock analysis, I think, is important and crucial because with a good analysis you can manage the risk of a stock investment well and get optimal profit.
Therefore, it is best to understand well the stock analysis before deciding to buy shares.
Don't get carried away with hot recommendations or suggestions – other suggestions that are not clearly sourced.
In general, there are two types of stock analysis:
First, a fundamental analysis of stocks that determines the fair share price based on the analysis of the company's financial statements using various financial ratios.
Second, technical analysis that determines future stock price trends based on past stock price movement patterns.
Which is the most appropriate analysis?
Each investor in the stock must have their own preferences.
I personally choose fundamental analysis as the basis of investing in stocks because the fundamental analysis is in line with the essence of buying shares i.e. investing in the company's business or business so that the analysis to make decisions to buy or sell shares based on performance reflected in financial statements.
#7 How to Buy and Sell Stocks
PT Bursa Efek Indonesia Open Online Account
After understanding the stock analysis and hopefully already know what stock to buy, the next step is how to buy and sell shares.
First, you must open a stock account with a broker or securities company that is an Exchange Member in IDX.
Second, you must open a Customer Fund Account (RDN) at the bank along with the opening of a Stock Account at the broker.
Third, deposit funds to RDN to be able to start trading stock transactions.
Fourth, place a buy or sell order to the stock trading application at the broker where you open a stock account.
These four steps you follow to be able to trade stocks.
#8 Stock Trading Mechanism
What are the mechanisms and settlements of stock trading?
Some important things you need to know:
•Trading Hours
Trading is conducted from Monday to Friday in two sessions a day, namely Morning (09.00 – 12.00) and Noon (13.30 – 16.00) and Friday only, Morning trading hours (09.00 – 11.00) and Noon (14.00 – 16.00).
•Trading Mechanisms
The trading system applies on the exchange is the mechanism of the trading anonymously continuous auction with the method of price formation based on price priority and time priority.
Price priority: Buying requests at higher prices have priority over buying demand at lower prices while selling offers at lower prices have priority over selling offers at higher prices.
Time Priority: When a sell offer or buy request is submitted at the same price, the Exchange system gives priority to the first request to buy or sell.
•Minimum Stock Investment
Trading on IDX must be in a round lot of shares or multiples, i.e. 100 (one hundred) shares.
For example, the share price of Rp 1,000 then the minimum purchase is 1 lot, meaning 100 shares, so the investment value is Rp 100,000.
•Transaction Settlement
When does the money from the sale of shares go into the Account? When to purchase shares to be paid or settled?
This is related to the settlement of stock transactions regulated by IDX, which is determined that the settlement of transactions (money and shares) is T+2 trading days (T is the day the transaction is conducted).
#9 KSEI AKSes
How would we realize that the offers we own are as per the number and stock?
This time, I depended on data from dealers in online stock applications, however how to check the accuracy of the merchant's data.
There is an AKSes office given by KSEI – Indonesian Central Securities Depository, which is a methods for financial backers to screen the position and change of their offers held in KSEI.
When opening a stock record at the representative, every financial backer will get KSEI AKSes, with the goal that financial backers can access continuously the offer proprietorship information and their transformations in Sub Securities Account held in the KSEI framework (C-BEST) up to the most recent 30 days.
In the event that the financial backer has a stock record in a few dealers, the AKSes office gives the financial backer the straightforwardness to solidify his portfolio reports spread across a few representatives and overseer banks.
#10 Diversification
Broadening is key in stock contributing.
The best approach to oversee hazard in corporate shares isn't to put interests in a couple of stocks, however to isolate or enhance into numerous stocks.
The objective is that when the stock value falls, you actually have the endurance to endure in light of the fact that not the entirety of your corporate shares fall.
One notable broadening system is to purchase record reserves, which is to purchase all stocks as indicated by the weight contained in the file with the goal that the benefit follows the file's benefit.
#11 stock screener
How to pick stocks without any problem?
It is difficult considering there are a ton of stocks on the trade.
Nonetheless, you can begin by utilizing the stock screener included, accessible for nothing at the intermediary, which channels stocks dependent on the models you pick.
I felt that the stock screener was extremely useful in light of the fact that I didn't need to check the stocks individually.
There are a few different ways to decide the measures in a stock screener:
In the first place, you characterize your own measures dependent on experience or conversation with others, which in this manual way you can make a rundown of favored stocks that suit your requirements.
Second, you can utilize preset standards, which are regularly utilized and recognizable measures, in view of the style of venture educators like Warren Buffet, William O'Neil, and others that can be utilized right away.
Which methodology would it be a good idea for you to pick, my recommendation, changes with your insight and convictions about stock determination rules?
#12 Stock Investor Protection
Without numerous who realize that there is a financial backer insurance plot in the Indonesian securities exchange.
What is financial backer assurance?
To improve the security in putting resources into the Indonesian capital market, every financial backer's resources are ensured by the foundation of a Capital Protection Fund by the indonesia Securities Investor Protection Fund (SIPF).
Indonesia SIPF is an organization that sorts out the Investor Protection Fund program and is administered by the Financial Services Authority (OJK).
However, to have the option to get the assurance of financial backers, there are conditions.
Monetary benefactors whose assets are gotten by the Investor Protection Fund are monetary patrons who meet the going with necessities:
(a) Deposit his assets and have a Securities account with the Custodian;
(b) Opened a Sub Securities Account at the Depository and Settlement Institution by the Custodian and
(c) Have a solitary financial backer distinguishing proof number of the Depository and Settlement Institution.
Is it if the misfortune because of corporate security or misfortune because of entering seared stocks can be supplanted by the Investor Protection Fund?
I'll see you later.
To have the option to get financial backers pay then a system applies.
The Organizer of the Investor Protection Fund makes a case for financial backers who lose their Assets after the OJK proclaims there are conditions:
There is a deficiency of Capital Assets
Caretakers don't can return lost Investor Assets For Custodians as Securities Trader Intermediaries who administrate Securities proclaimed incapable to proceed with their business exercises and considered their permit to operate repudiated by the OJK; or Overseer Bank is announced incapable to proceed with its business exercises as a Custodian Bank and considered the endorsement of Commercial Bank as Custodian disavowed by OJK.
To put it plainly, OJK should choose first that there are misfortunes of financial backers, just the substitution cycle should be possible.
#13 Stock Risk
Stocks are investments including those that are high risk. I don't want to close - cover that up.
That's also why stocks provide the highest return on investment to compensate for high risk.
I think, as an investor, you have to be aware of the risk of the stock so that it can manage the risk.
I noticed many investors, because they do not understand high-risk stock investments, do not do risk management well.
How to manage stock investment risk?
It's not hard actually.
From experience, here's what I do when investing in stocks:
First, diversify into stock investments, by making a stock portfolio consisting of placements that are divided into multiple stocks and not concentrated in one or two stocks.
Second, do not buy shares if they do not understand the performance and business of the company because I believe that in the long run the share price is influenced by the company's performance (this is the only thing we can rely on).
Third, don't buy stocks, which though are good but costly compared to their value.
#14 GMS & Public Expose
How do shareholders meet with the Company's Board of Directors?
Attend the General Meeting of Shareholders (GMS).
The presence of shareholders at the GMS is not only important but also profitable because:
Meet with the Company's Board of Directors and can ask directly about the company's policies and strategies
Following important decisions in the GMS, such as dividends, corporate action, and so on
GMS is usually held in a hotel that is quite luxurious so that it can enjoy during the meeting
To be able to participate in the GMS is very easy.
See the GMS schedule listed on the www . idx. co. id website
You contact the broker where you buy and sell shares, who will check your name in the shareholder register, and later the broker gives an invitation to the GMS that you bring to the meeting location by showing your identity.
In addition to the GMS, another event that is also no less important is the public expose where the company presents the current condition of performance and business plan in the future.
In public expose, the company's directors will be present and shareholders can ask directly to the board of directors.
There is an obligation from IDX to require the company of the stock issuer to conduct a public expose periodically and public expose schedule is announced on the website www.idx. Co.. Id.
#15 Share Price and JCI
What is the offer cost?
The stock cost is the worth of a stock on the stock trade that is utilized as a benchmark when exchanging shares.
How would I see stock costs on IDX (Indonesia Stock Exchange)?
You can look on the IDX site to see the offer cost whenever, for example, the offer cost of Unilever, BCA, BBRI, or different backers.
On the site, there is a rundown of offers costs of organizations recorded on IDX, which are summed up in the Price Index.
Value developments in the financial exchange are estimated from the list, the most well known of which is the Composite Stock Price Index (JCI).
What is a record?
In the realm of capital business sectors, the file of stocks is an arrangement of imaginers that actions the value change of a market or part of that market.
At the point when a stock record climbs, it implies that the cost of the majority of the stocks estimated by the file is climbing.
On the other hand, on the off chance that the stock record drops down, the vast majority of the file constituent stocks drop down.
By taking a gander at the development of a stock record, financial backers can know the overall value execution of their offers.
Furthermore, financial backers can likewise realize the overall securities exchange conditions in the event of strategy changes from home and abroad.
The files on the Indonesia Stock Exchange numbered 24 lists and a portion of the renowned ones are:
Composite Stock Price Index (JCI) – A document that activities the advancement of all stocks recorded on the Indonesia Stock Exchange.
LQ45 Index – A record that activities the worth execution of 45 stocks that have high liquidity and enormous market capitalization and are maintained by worthy corporate fundamentals.
IDX30 Index – A rundown that activities the worth execution of 30 stocks that have high liquidity and gigantic market capitalization and are maintained by worthy association basics
KOMPAS100 Index – A record that activities the worth execution of 100 stocks that have incredible liquidity and huge market capitalization. KOMPAS100 Index was dispatched collectively with the KOMPAS GRAMEDIA association.
Indonesia Sharia Stock Index – Index gauges the worth execution of all Sharia stocks according to the Sharia Securities List (DES) set by the Financial Services Authority (OJK).
Jakarta Islamic Index (JII) – The document assesses the worth execution of 30 sharia stocks that have incredible money related execution and high trade liquidity.
PEFINDO I-Grade/PEFINDO Investment Grade Index – A record that activities the worth execution of 30 supplies of underwriters that have theory grade assessments from PEFINDO (idAAA to idBBB-) that have the greatest market capitalization. Petfinder I-Grade Index was dispatched and supervised in a joint exertion with rating association PT Pemeringkat Efek Indonesia (PEFINDO).
Conclusion :
Stocks are one of the significant speculation instruments that give high-benefit potential and liquidity for financial backers.
Shockingly, in Indonesia, the quantity of stock financial backers is still minuscule.
One reason is on the grounds that proficiency about stocks is as yet restricted locally.