Post on 12-Mar-2015
description
SMART DECISION ABOUT INVESTING YOUR MONEY
ALL ABOUT INVESTMENT THAT YOU NEED TO KNOW
YOU NEED TO WORK VERY-VERY HARDLEARNING ABOUTTHE PRODUCTS
LEARNING BY DOING
LEARNING ABOUTTHE MARKETS
LEARNING ABOUTTHE TECHNIQUES
LEARNING TO CONTROL YOURSELF
SUKSES BERINVESTASI ?
PENGANTAR PASAR MODAL
• Essential nature of investmento Reduced current consumptiono Planned later consumption
• Real Assetso Assets used to produce goods and
services• Financial Assets
o Claims on real assets
Investments & Financial Assets
Characteristics of Financial Assets
• Financial assets are sought after because they promise future returns to their owners and serve as a store of value (purchasing power).
• They do not depreciate like physical goods, and their physical condition or form is usually not relevant in determining their market value.
• Their cost of transportation and storage is low, such that they have little or no value as a commodity.
• Financial assets are fungible – they can easily be changed in form and substituted for other assets.
Characteristics of Financial Assets
Different Kinds of Financial Assets
• Any financial asset that is generally accepted in payment for the purchases of goods and services is a form of money. Examples include currency and checking accounts.
• Equities represent ownership shares in a business firm and are claims against the firm’s profits and proceeds from the sale of its assets. Common stock and preferred stock are equities.
• Debt securities entitle their holders to a priority claim over the holders of equities to the assets and income of an economic unit. They are either negotiable or nonnegotiable. Examples include bonds, notes, accounts payable, and savings deposits.
• Derivatives have a market value that is tied to or influenced by the value or return on a financial asset. Examples include futures contracts, options, and swaps.
Different Kinds of Financial Assets
The Creation Process for Financial Assets
• To acquire assets, households and business firms may use current income and accumulated savings – internal financing.
• An economic unit may also raise funds by issuing financial liabilities (debt) or stock (equities), provided that a buyer can be found – external financing.
Financial Markets
• Brings together Borrowers and Savers• Trade Financial Assets
o Stockso Bondso Commercial Papero Treasury Securities
• Cost of Funds Determined by Interest Rate
• Efficient transfers of funds from savers to borrowers.
Savings
BorrowBorrow
Savings
Financial Markets
• Trades financial assets (securities which are claims on real assets)o Financial vs Physical assetso Trades bonds, stocks
Financial Markets
• Primary v. Secondary Marketo Primary
Company sells stocks or bonds in order to raise money to finance it's projects.
Securities
Money
PrimaryMarket
Financial Markets
• Primary Market
Financial Markets
• Primary MarketoMarket in which new issues of a
security are sold to initial buyers.
Financial Markets
• Primary MarketoMarket in which new issues of a
security are sold to initial buyers.
• Secondary Market
Financial Markets
• Primary MarketoMarket in which new issues of a
security are sold to initial buyers.
• Secondary MarketoMarket in which previously
issued securities are traded.
Financial Markets
• Primary v. Secondary Marketo Primary
Company sells stocks or bonds in order to raise money to finance it's projects.
Securities
Money
SecondaryMarket
• Secondaryo Investors buy and sell
securities to other investorso Necessary in order to make
stocks and bonds marketable. If ready market did not exist then people not as willing to hold securities.
Financial Markets
• Capital Transfer between Savers and Borrowerso Direct Transfer - from borrower to lender.
i.e. new business, or venture capitalists.
Stocks, Bonds
$$
Financial Markets
• Capital Transfer between Savers and Borrowerso Direct Transfer - from borrower to lender. i.e.
ESOPo Indirect Transfer - Investment Banker
Securities
Securities$$
$$
Financial Markets
• Capital Transfer between Savers and Borrowerso Direct Transfer - from borrower to lender. i.e.
ESOPo Indirect Transfer - Investment Bankero Financial Intermediary – Banks & Mutual Funds
Company’sStocks & Bonds
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Mutual FundShares
Financial Markets
Role of Financial Assets and Markets in the Economy
• Consumption Timing• Allocation of Risk• Separation of Ownership
Financial System Clients and Their Needs
• Household Sectoro Primary Need: Invest Funds
• Business Sectoro Primary Need: Raise Funds
• Government Sectoro Primary Need: Raise Funds
How the Financial System Meets the Needs of Participants
• Financial Intermediation• Investment Banking• Financial Innovation & Derivatives• Responding to Regulation & Taxes
Technology and Delivery of Service• Computer advancements• On-line trading• More complete and timely information
Globalization• Domestic firms compete in global markets.• Performance in regions depends on other regions.• Causes additional elements of risk
Investments and Innovation
International and Global Markets ContinueDeveloping• Managing foreign exchange• Diversification to improve
performance• Instruments and vehicles continue to
develop.• Information and analysis improves.
Key Trends - Globalization