How to Invest in the Stock Exchange
Exchange is an organized market where traders buy and sell shares / securities with different set of rules defined in the Securities Exchange. Then, how to do business or invest in shares on the Stock Exchange?
More detailed information about the stock can be read in the following articles:
Understanding About Stocks
Main Stocks Make Money
Stock Fundamental Analysis: Understanding the Value Stocks, Equities, etc.
Technical Analysis of Stocks and Shares Price Change
IPO: How to Buy Stocks IPO
Tips on Buying Stocks
If we take an example bandar bola , the Stock Exchange is like PD Pasar Jaya is as manager of the kiosk market where stall-leased to traders. Traders here are a broker or securities companies. While buyers are called investors or financiers.
So buyer not associated with PD Pasar Jaya, but rather deal directly with the merchant. The relate directly with PD Pasar Jaya is the traders who occupy the stall.
Basically, if you want to trade / business good stock purchases or sales of shares, then you have to deal with securities companies or so-called broker or brokerage firm that is a member of the exchange.
The securities firms are represented in the Exchange commonly called the broker. Stockbrokers is exactly what will make transactions on the basis of an order or mandate you gave both to sell and to buy. Brokers can also provide suggestions or any other advice with respect with your investment plans. for his services to it then you are obliged to pay commission fees to brokers.
Minimal Funds To Invest
Basically there is no limit to the amount of funds and buying and selling stock. In stock trading, the number of which is traded in the trading unit called lots.
Indonesia Stock Exchange means a lot of 100 shares, which is the minimum limit of the share purchase. Then the funds needed for the business share to vary because of varying price of shares listed on the Exchange. For example, the price of the shares of PT . ABC Rp. 1,000, then the minimum funds needed to buy one lot of shares to be (100 multiplied by Rp. 1,000) Rp. 100,000. as another illustration, if XYZ stock price per share of Rp. 2,500, and the minimum to purchase these shares means (100 multiplied by Rp. 2,500) to Rp. 250,000.
How to Become a Securities Company Customer (Customer Account Opening)
Before you make trades, like opening a bank account then you must first open an account in one or several securities companies. With the opening of the account is then officially you have registered as a customer and identity data to be recorded in the Company’s books effects such as name, address, bank account number and other data. Along with the opening of this account, you sign an agreement with the Securities Company concerning the rights and obligations of both parties.
Cost of share purchase
Components of the cost of the purchase of shares is as follows:
The value of the purchase of shares + shares brokerage commissions + VAT 10%
Components of the cost of sales of shares are as follows:
The sales value of stock brokerage commission + VAT + 10% + 0.1% income tax.
For the purchase and sale of shares, investors have to pay a commission to the broker / stockbroker who carry out the order. This means that the amount of the commission fee can be negotiated with the broker / broker where the shares or business investors buy and sell shares . Generally for investors buying transaction brokerage fee charged is 0.3% of the transaction value, while for transactions subject to 0.4% (for the sale and financiers are still subject to income tax on sale of shares amounting to 0.1% of the transaction value).
As an illustration, for example, an investor purchase transactions on the shares of XYZ 5 (five) lots where the stock price of ABC occurred at Rp. 3,000 per share.