STOCK EXCHANGE

Stock Exchange

• Stock exchange is the place where investors go to buy or sell their shares.

• Once a company’s public offering is complete, it gets listed in a stock exchange.

After listing it would be available for trading to all investors in the stock exchanges where they are listed.

How Companies Raise The Capital?

• By followong mean’sDebenturesEquityLoan

Why Companies Issue Stock?

• When a company would like to grow, it issues stock to raise funds and pay for on going business activities.

• It’s populer because : 1. The company does not have to repay the

money 2. Paying devidens is optional Dividens are distributions of earnings paid to

stockholders

What is a Stock?

• Stock is a share in the ownership of a company. It represents a claim on the company’s asset and earnings.

• Whether you say shares, equity or stock, it all means the same thing.

Type of Share

• Four types of share :

OrdinaryPreferenceCumulative preferenceRedeemable

Market Segments

• Primary Market - Channel for creation of new securities.

• Secondary Market - The new securities issue in the primary

market are traded the secondary market.

Stock Exchange World Wide

• New York Stock Exchange – United States

• NASDAQ (National Association of Security Dealers Automated Quotations) – Unites States

• Shanghai Stock Exchange – China• London Stock Exchange – UK• Tokyo Stock Exchange - Japan

Stock Exchange in Indonesia

• Indonesia Stock Exchange is stock exchange based in Jakarta.

ISSUES

• The way to invite share capital from the public is through a PABLIC ISSUE

• Issue is a legal entity that develops, registers and sells securities for the purpose of financing its operations

Type of Issues

How The Market Work?

Indonesia Stock Exchange

• Indonesia Stock Exchange (IDX) was previously known as Jakarta Stock eXchange (JSX) before its name changed in 2007 after merging with Surabaya Stock eXchange (SSX).

• As of 28 June 2010, the Indonesia Stock Exchange had 341 listed companies with a combined market capitalization of $269.9 billion.

Trading System

• JSX/IDX trading system is called the Jakarta Stock Exchange Automated Trading System (JATS) which facilitates order input, opening price formation, order matching and trade confirmation.

• Orders are matched first by price priority and then by time priority. Upon trade execution, JATS generates trade confirmations online.

Trading Hours

• Monday to Thursday:Morning Session: 09:30 – 12:00Afternoon Session: 13:30 – 16:00

• Friday:Morning Session: 09:30 – 12:00Afternoon Session: 14:00 – 16:00

Stock Market Index

• Index is basically an indicator. It gives you a general idea about whether most of stocks have gone up or most of stocks have gone down.

Indonesia Stock Index

THANK YOU