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.

Understand Investment Risk For Stock Market motion can be anticipated

Understand Investment Risk For Stock Market motion can be anticipated

Invest in any of the risks that could affect the level of profit or loss will always be a consideration for investors. As possible risk factors that may affect the level of profits in the stock investments should always be detected in order that all the market movement can be anticipated.

For that investment advisers and even professional investors are always looking for information relevant to market conditions. In capital markets, at least the risk that investors should be observed in general, including inflation risk, interest rate risk, market risk, company risk and political risk. Each of these risks are there among each other mengkait hooks, and a dominant run. However, sometimes completely unrelated.

Of risk is always related to the risk of inflation. Usually known as high inflation, will be followed by policy changes in interest rates. The logic high inflation, can be ascertained the value of money falls. The fall in the value of money, could be because the amount of money circulating in the community is more abundant. For that purpose, so that the mobility of the money supply fell usually be followed by an increase in interest rates, rising levels of interest rates by itself would bring the funds back to the banking system, which in turn will decrease the stock market.

IHSG corrected Thin

market-moving 1Sempat strengthened through the morning session, Composite Stock Price Index (IHSG) finally ended in negative territory triggered profit taking towards the close of trade.

Weakening of the shares of PT Bumi Resources Tbk (BUMI) major contribution to the weakening of IHSG today. BUMI shares are still listed as the most active stock by value of trading in all markets reach Rp 945 trillion, or about 19% of the total transaction value.

Attractive stocks are very decisive EARTH IHSGmovement. However, the weakening stock EARTH by profit taking in the last minute IHSG eventually dragged into negative territory. EARTH shares close lower Rp 40 to Rp 1900.

While the trading Thursday (16/7/2009), IHSG closed lower end thin 5.328 points (0.25%) to the level of 2117.950, LQ 45 index were also down 0.707 points (0.17%) to the level of 413.874. IHSG had reached its highest point at 2154.877.

Whereas regional bourses are still scored reinforcement. Nikkei-225 index closed up 74.91 points (0.81%) to the 9344.16 level, the Hang Seng rose 103.21 points (0.57%) to the level of 18,361.87, KOSPI index rose 11.36 points thin (0.8%) to the 1432.22 level.

Trade in all markets recorded at frequencies 117,525 times the volume of 5880 million shares valued at Rp 4.827 trillion. A total of 77 stocks up, 117 stocks fell and 69 shares stagnated.

Stock price printed on top Gainer including Astra International (ASII) rose Rp 600 to Rp 27.500, Indo Tambangraya (ITMG) rose USD 400 emnjadi Rp 19.600, Semen Gresik (SMGR) rose Rp 200 to Rp 5600, Bank Mandiri (BMRI) rose Rp 75 to Rp 3375, BCA (BBCA) rose Rp 75 to Rp 3800.

Meanwhile, shares in the ranks of top loser among others, Telkom (TLKM) fell Rp 200 to Rp 7850, BRI (BBRI) fell Rp 400 to Rp 6950, PT Tambang Coal Evidence acid (PTBA) fell Rp 150 to Rp 11,200, PGN (PGAS) falls USD 50 to RP 3375.