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SHARES
Shares is the unit value or bookkeeping is done in a variety of financial instruments which refer to part ownership of a company. By issuing stock, can allow companies who require long-term funding to 'sell' interest in the business - shares (equity securities) - in exchange for cash or cash. Meupakan a main method used to increase business capital other than by issuing bonds. Shares sold through the primary market (primary market) or the secondary market (secondary market).
TYPE SHARES
Shares are divided into several types, including ordinary shares (common stock) and preference shares (preferred stock). Preferred shares are usually often referred to as a stock mixture because it has characteristics similar to ordinary shares. Usually the common stock has only one type but in some cases there is more than one, depending on the needs of each company. Common stock has some kind, such as class A, class B, class C, and others. Each class has its advantages and disadvantages singly and letter symbols have no meaning nothing.preferred stockPreferred shares have the following characteristics:
• Have a variety of levels, and can be issued with different characteristics
• Claims against the assets and income, have a higher priority than the common stock in the distribution of dividend
• cumulative dividends, if unpaid from the previous period, it can be paid in the current period and ahead of ordinary shares
• Convertibility, can be exchanged into ordinary shares, if the agreement between the shareholders and the issuer organization formed therein.
Common stockOrdinary shares have the following characteristics:
• The voting rights of shareholders, a board of directors can memillih
• The right of precedence, if an organization issuer to issue new shares
• Responsibility is limited, the amount given alone
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APPLICATION
Communities could purchase an ordinary share on the stock exchange through a broker. In the State of Indonesia, the purchase of shares is required to be done on a multiple of 100 sheets or also called 1 lot. Fractional shares (not round 100 sheets) and can be traded over the counter. As one of the goals of people to buy stocks is to benefit in the following ways:
1. Increase capital value (capital gain).
2. Obtain a dividend.
Special Shares of the Company to the public first before listing on the stock named after the Initial Public Offering (IPO), whereas if already registered ata listed (listing) and the company wants to increase outstanding shares by providing the right prior to the existing shareholders to buy it called the Preemptive rights (ER) or better known as the Right Issue.Many companies in Indonesia do a dual listing shares on the Jakarta Stock Exchange and the New York Stock Exchange
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| Example Shares Document |
Shares are traded on the NYSE usually known as American Depositary Receipt (ADR). Stock price could go up or down, in tandem with the situation and conditions. As an example at the time of the financial crisis on September 15, 1998, the Composite Stock Price Index (CSPI) also is a barometer of stock in Indonesia slumped to the value of 292.12 points. In September, JCI reached the lowest value that is worth 254 points. This caused the shares in the country be under value. The period 2002-2007, the value of JCI has recovered even been a few times to break the record. For example, in 2006 and 2007 JCI positioned itself as one of the indices that reserve the best performance in the world (ranked second after China, reached the level of 2745.826 points) .On December 11, 2007, JCI reached the level of 2810.262 points at once made history as the highest index level in the history of Indonesia. In addition, JCI has increased significantly due to an annual average increase of 42.18% as compared to the movement of the highest index with an increase in the index in Asia.