Investing in Capital Markets
Taken from Saxobank & the link
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Definition of Capital Market
Capital Market is a place where the Stocks and the Derivative Products are traded on weekdays. The Derivative products consists of the Options and the Warrants. The unique of the Capital Market is the place where the investee company can get or collect a lot of money for developing their businesses without any debts. This condition will bring many benefits for the investee company, they can have unlimited or bigger figure amount of funds and have flexibility in the pay back term to the investors. The investees are paying back through the Dividends when the companies record profits in their businesses. The money that are collected from the capital markets by selling the Common Stocks will be recorded as the Paid in the Capital in the Owner Equity Section. And the Capital Gain or Loss are |
recorded as Additional Paid in Capital or Discount/Premium Paid in Capital also in the Owner Equity Section. As the return from the investments, if the investee company has profit which is recorded in the Retained Earning account, the investee company is able to decide and declare to divide dividends to the Shareholders.
Who Should invest in the Capital Markets?
Capital Markets are opened for Institution and Individual investors. The ones that are considered as the Institution Investors are consisted of :
Who Should invest in the Capital Markets?
Capital Markets are opened for Institution and Individual investors. The ones that are considered as the Institution Investors are consisted of :
- Holding Company which are intended to have several certain stocks of public companies more than 50% from the Capital Markets.
- Common Company which has spare money and divide to invest in the Stocks or the Derivative Products from the Capital Market. The Percentage of investment in the investee company is between 1% to 50%.
- Pension Plan, Fund, Insurance, or Asset Management Company which are intended to collect Stock and the Derivative Products for their portfolios. They are able to sell some part of their portfolios to the public as open end funds, closed end funds, or other forms; and the investors of their funds are considered as the indirect Investors of the stocks and the derivative products.
Types of Investing in the Capital Markets
An Investor either it is an Institution investor or Individual investor can invest Directly or Indirectly in the Capital Markets. Direct Invest can be done through the Brokerage account or the investor can act as the trader directly. And Indirect invest can be done by investing through buying units of the Asset Management, Insurance, Pension Plan Company’s Portfolios which are formed through Mutual Funds or Exchange Trade Funds (ETF), and specifically in Closed End Funds or Open End Funds, and Other Form funds. When you decide to invest in the Capital Markets, you must realize the risks contained inside while you also can consider the investments strongly as these investments offer the high level returns. |
Taken from Manulife & the link
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If you are young, can bear the high risk, and trying to collect large amount of funds, you should choose these investments.
If you have no experience for this investment and considered new to this world but can take high risks, we suggest you to use the brokerage account, through that account, you will be guided by experts to do the investments. The traders will help you to collect big yield from the Capital Markets and as the compensation they will charges you some reasonable fees.
If you prefer to avoid high risks and think that you have a little knowledge about investing directly in the Capital markets, you still can try the indirect Investing through the mutual funds or Exchange Traded Funds (ETF).
Investing in the mutual funds or ETF definition is to invest directly into the pool of funds built by the Asset Management Company for specific reasons and for certain period of time, it assigns some the best traders and staffs to be the Persons in Charges which manage the portfolios of the stock and derivatives in the funds. The Portfolio value will be reflected in the Net Asset Value (NAV) of the funds and announce daily in the specific newspapers. The Unit of the funds are traded based on the daily NAV for institution Investors or Individual Investors. The price of the funds can be fluctuated depended on the Market condition and the fluctuation for the stock prices. By buying the units, the investors are considered to have the units of the portfolios and indirectly invest in the capital market, it does not mean that you have specific stocks from the portfolios.
The Difference of the Mutual Funds and the Exchange Traded Funds is The ETF is traded and recorded directly through the Capital Market because they are listed in the Listing Board of the Capital Markets. While the Mutual Fund is traded and recorded, privately and directly in the Asset Management company or other form company which are mentioned above. Before you decide to invest in the mutual funds or ETF, you should read the Prospectus first, so that you will not be surprised or afraid because of the potential risk, and you will know and fully understand everything about the investments.
Suggestion for Investing in the Capital Markets
Investing in the capital markets is able to be done for short term or long term period. The investment is commonly considered more secured when an investor decide to invest for long term. Investing in the capital market for short term is relatively considered as speculative action. And remember all of the decisions should be made by doing researches and examining the financial reports of the investee company first, they called it, investing based on the Fundamental Analysis. By doing so, the investors can prevent the potential loss carried because of the Fundamental Conditions from the Investee company.
It is quite easy to understand, how to invest in the capital market. You can always ask opinions about the fundamental conditions of some stocks to your traders before you decide to invest. the technical of the investments are generally quite simple, “ You buy when the Stock is Undervalued and decide to sell when the Stock is considered Overvalued”.
Based on the Author researches, during Booming and the Bullish (uptrend) market condition, investing in the Capital Markets indirectly through mutual funds can result 400% capital gains. While during bearish, you should be ready to lose TEMPORARY your capital up to 50% (the author experienced herself).
Warning : DO NOT SELL your investments during bearish condition, to avoid loss. Be patient, wait until the market condition Bullish, your funds will recover and proceed profits. Sell your investments only at Bullish Market Condition. If you have the “nerve” and ready for the risks, you can decide to buy during bearish (please consult with the trader first if you do not have experience before) when the stocks undervalued, or right away after the prices hit the rebound point.
Good Luck!
Useful Resources :
If you are need consultation for your investment plans, you can consider Reputable Asset Management Company as follows :
If you have no experience for this investment and considered new to this world but can take high risks, we suggest you to use the brokerage account, through that account, you will be guided by experts to do the investments. The traders will help you to collect big yield from the Capital Markets and as the compensation they will charges you some reasonable fees.
If you prefer to avoid high risks and think that you have a little knowledge about investing directly in the Capital markets, you still can try the indirect Investing through the mutual funds or Exchange Traded Funds (ETF).
Investing in the mutual funds or ETF definition is to invest directly into the pool of funds built by the Asset Management Company for specific reasons and for certain period of time, it assigns some the best traders and staffs to be the Persons in Charges which manage the portfolios of the stock and derivatives in the funds. The Portfolio value will be reflected in the Net Asset Value (NAV) of the funds and announce daily in the specific newspapers. The Unit of the funds are traded based on the daily NAV for institution Investors or Individual Investors. The price of the funds can be fluctuated depended on the Market condition and the fluctuation for the stock prices. By buying the units, the investors are considered to have the units of the portfolios and indirectly invest in the capital market, it does not mean that you have specific stocks from the portfolios.
The Difference of the Mutual Funds and the Exchange Traded Funds is The ETF is traded and recorded directly through the Capital Market because they are listed in the Listing Board of the Capital Markets. While the Mutual Fund is traded and recorded, privately and directly in the Asset Management company or other form company which are mentioned above. Before you decide to invest in the mutual funds or ETF, you should read the Prospectus first, so that you will not be surprised or afraid because of the potential risk, and you will know and fully understand everything about the investments.
Suggestion for Investing in the Capital Markets
Investing in the capital markets is able to be done for short term or long term period. The investment is commonly considered more secured when an investor decide to invest for long term. Investing in the capital market for short term is relatively considered as speculative action. And remember all of the decisions should be made by doing researches and examining the financial reports of the investee company first, they called it, investing based on the Fundamental Analysis. By doing so, the investors can prevent the potential loss carried because of the Fundamental Conditions from the Investee company.
It is quite easy to understand, how to invest in the capital market. You can always ask opinions about the fundamental conditions of some stocks to your traders before you decide to invest. the technical of the investments are generally quite simple, “ You buy when the Stock is Undervalued and decide to sell when the Stock is considered Overvalued”.
Based on the Author researches, during Booming and the Bullish (uptrend) market condition, investing in the Capital Markets indirectly through mutual funds can result 400% capital gains. While during bearish, you should be ready to lose TEMPORARY your capital up to 50% (the author experienced herself).
Warning : DO NOT SELL your investments during bearish condition, to avoid loss. Be patient, wait until the market condition Bullish, your funds will recover and proceed profits. Sell your investments only at Bullish Market Condition. If you have the “nerve” and ready for the risks, you can decide to buy during bearish (please consult with the trader first if you do not have experience before) when the stocks undervalued, or right away after the prices hit the rebound point.
Good Luck!
Useful Resources :
If you are need consultation for your investment plans, you can consider Reputable Asset Management Company as follows :
- BlackRock (United States)
- UBS Global Asset Management (Switzerland)
- Allianz Asset Management (Germany)
- The Vanguard Group (United States)
- State Street Global Advisors (United States)
- Fidelity Investments (United States)
- AXA (France)
- J.P. Morgan Asset Management (United States)
- Credit Suisse Asset Management (Switzerland)
- Schroder Asset Management (International)
- Scott Trade (USA)
- DBS Asset Management (Singapore)
- Saxo Bank (Singapore)
- Aberdeen (Singapore)
- Danareksa Asset Management (Indonesia)
- Fortis (USA)
- Bahana Asset Management (Indonesia)
- Sinar Mas Asset Management - Simas (Indonesia)
- Panin Asset Management (Indonesia)
- HSBC Global Asset Management (International)
- MNC Asset Management (Indonesia)
- BNI Asset Management (Indonesia)
- Manulife Asset Management (Indonesia)
- Prudential (International)
- Mandiri Asset Management (Indonesia)
- EY Wealth & Asset Management (Indonesia)