Stock Investing in Stock Market

Andre is one of the individuals who enliven the stock trading at the stock exchange in Jakarta. It was about 3 years Andre has always followed and transact shares. All decisions made by himself by relying on the information seen, heard, or read. Based her narrative, she benefit much greater than if he just put his money on deposit.
Although the market is still in a state of flux, Andre saw an opportunity there. Along with the extra time given Indonesia's debt payments by the Paris Club and accompanied by the strengthening of the rupiah against the U.S. dollars, Composite Stock Price Index (JCI) on the Jakarta Stock Exchange (JSX) was jack too. Andre take advantage of stock price movement at that time.

Investment and consumption

Definition of Investment and consumption

• Investment is the delay of current consumption for use in the efficient production during a certain period of time
• Consumption is the use of the definition of resources available to get the satisfaction or utility.

Consumption and investment are two related activities. Postponement of consumption can now be interpreted as an investment for future consumption. Individuals do consumption by using existing resources to obtain or utiiti satisfaction (utility). Each individual is assumed to prefer more consumption to less than consumption. This assumption means that the marginal utility of consumption is positive, ie the addition will increase the consumption of utility (satisfaction). Another assumption is that the marginal utility of consumption is decreasing in nature, namely to increase the utility for the same consumption will become smaller than before.

Know Share

Small fragments

Please note, in the business world not only stores that can provide benefits. Other businesses that do not form too many stores that can provide benefits. Business usually is in the form of business entity, or popular terms: the company. Same with shops, corporate ownership can also be purchased. So you can choose which companies about always profitable in the past year, and you can buy a property (capital) of the company.

Different from the store, the capital of a company is generally much larger than the capital of a store. For example, the capital of the store you want to buy may be USD 30 million, but the capital of the company you want to buy can be reached USD 300 million.

The problem is, not everyone has cash USD 300 million. Maybe people just have a USD 3 million, so this means he only got possession of one percent of the value of the company's ownership. But how could so he could buy a property that only one percent of it?

By law, arranged in a way: the company's ownership is divided into small fragments, called the stock. For example, ownership of a company valued at USD 300 million was divided into shares which rated the stock a say USD 1,000. Thus, if you only have USD 3 million, then you can only buy 3000 shares.