Stocks

Stock is a unit of value, or accounting in a variety of financial instruments which refer to the ownership of a company.
he first company to issue shares is expected to Stora Kopparberg 13th century.
There are several types of shares, including ordinary shares (common stock), preferred stock (preferred stock), shares of property (treasury stock), and dual-class shares (dual class stock). Preferred stock generally has a higher priority than common shares in the distribution of dividends and assets, and sometimes have the right to select a higher like the ability to veto the merger or acquisition or the right to decline when the new shares issued (ie, preferred stock pemgang may purchase shares issued as much as he wants before the stock was offered to someone else). Ordinary shares sold on the stock exchange is the common stock and preferred stock is not traded on stock exchanges. Dual-class structure has several classes of shares (for example, Class A, Class B, Class C) each with advantages and disadvantages individually. Property stocks are shares that have been bought back from the community

Applications

Community members can purchase ordinary shares in the stock market via the broker. In Indonesia, the purchase of shares must be multiples of 500 pieces or referred to as 1 lot. Shares fractions (not round 500 sheets) can be traded in over the counter. One of the purposes the public to buy shares is to benefit by way of:

1. The increased value of capital (capital gains).
2. Getting dividends.

Some Indonesian companies to dual listing of shares on the Jakarta Stock Exchange and the New York Stock Exchange. Shares are traded on the NYSE is commonly known as American Depositary Receipt (ADR). Stock prices, may rise or fall, along with the circumstances that exist. At the time of monetary crisis in 1998, Composite Stock Price Index (JCI) which is a barometer of the stock in Indonesia slumped to reach values under 400. This causes the shares in the country to be under value. In the period 2002-2006, the value of JCI has been restored several times and even set a record.

In order to assess whether a stock is worth expensive or cheap, normally used as Earning ratio calculations-per-Share (EPS), Price-to-Earning Ratio (PER), Price-to-Book Value (PBV) and others. To invest in stocks, it is advisable to perform first valuation techniques and the money distributed to invest in some stocks, so that risk can be shared. In addition, many experts (Jeremy J. Siegel, James P. O'Shaughnessy) suggested that investing in the stock is in the long run. They suggested a range between 10-20 years to get significant results in berinvestadi in stock.