Analyze the difference of stock and bonds

Stocks and bonds are investment tools that can generate wealth. Both are sometimes considered to be the same. In fact, there is no difference at all. But actually, stocks and bonds have significant differences. To that end, let’s try to peel the difference in stocks and bonds to expand insight will be two means this investment in order to determine the right choice of investment that would like to do.

Form

On the basis of its form, proof of ownership shares in the form of a specific company. If you have shares, you can be said to be the owner of the company with stock owned. In contrast to stocks, bonds form as evidence of the recognition of the debt. In this case, You have evidence that the company has a debt to you a number of which are listed in the bond.

Earnings

The owner of the stocks have earnings that are called dividends with the frequency of the income is not specified. Bond owners get income from the interest rate that is specified in a certain period of time as set forth in the bond.

Advantage

Profits obtained by the owner of the shares is difficult because of the benefit estimates depend on corporate profits. In fact, if the company loss, shareholders can also be losers. Another case with shares, the owner of the bonds have the advantage that can be taken into account.

Price

Stocks have unpredictable price. Sometimes, have a high price, but it is not uncommon to also have a low price. This depends on the development of the company itself. Meanwhile, bond prices tend to be stable though highly sensitive to interest rate and inflation that has occurred.

Time

Based on the time, the stock has an unlimited period of time. There is no determination until when you have a stake in the company. Its own bond like an agreement receivable that has a specified time period. Specified clearly when you can charge or the company will refund your money, which provided the capital in the company.

Tax

For owners of stocks, net profits obtained as already taxed. While for the owner of the bonds, the advantages granted would still have to cut taxes so that taxes could also be taken into account first before the bonds paid the company.

Voting Rights

The owner of the shares have voting rights to be heard in determining the policies of the company because its status is the owner. The owner of the bonds have absolutely no right to vote to determine corporate policy. He only gave a loan of money. After that, off. The most important part for the owner of the bonds is paid on time with payment in accordance with the time is right and appropriate bonds which it owns.

Liquidation

If the company You are planting stocks experienced liquidation or dissolution of the company, the owner of the bonds have inferior claims, he has the rights to the Division of the remnants of the dissolution of the company that has been done. Here, the Division was not a priority of the company. Meanwhile, the bond owners obtained rights to the claim against assets belonging to the company according to the bond he has. The owner of the bonds are prioritized in the ownership of the assets of the company.

The Process Of Stock Trading

Have you read the article regarding  shares? If not, please read the article this stock. Talking about the process of stock trading, it would be more clear if it is inseparable from the questions 5W + 1 h, i.e. Where-Who-What-When-Why and How.

1. Where: where the Shares Traded?

Shares traded on the stock exchange only. These securities may not be purchased at the mall. Securities can be purchased at a securities company with a capital money and enough knowledge about the stock exchange plus ID CARD. Come to a brokerage firm or other securities. Happily, they will serve you.

2. Who: who is doing the trade?

Do stock trading is any person who has fulfilled the conditions set out the company securities, i.e. submit photocopy of ID CARD, fill out account opening, the signature above duty, as well as adhering to the eligibility rules have been defined and accepted all risk of loss that may occur.

3. What: is it traded?

This is an important question before the start of trading of stocks. To answer what is traded in the stock market, here’s the explanation. Stocks are devices of securities brokerage firm. Stock shape similar to a certificate.

In stocks, there are A Number of shares, the value of Collective capital firm basis, nominal value of shares, the name of the owner of the shares, and so on. Here’s the information that makes stocks called securities and can be traded.

4. When: When the trading process take?

Shares traded on the stock exchange on the day-labor day, Monday to Friday. Starting at 09.30-16.00. At about 9.30 am, there is the opening price. The opening price is the price requested by the buyer or the seller when the trade transaction has just begun.

This can be an opening price of the market price. Trading hours ended at 16.00 and at that time there was a closing price is the price requested by the buyer and seller when closing.

5. Why: Why Stocks are traded?

Shares traded, such as shares go public. Shares are traded so that the public can also have a share (capital) in big companies (went public).

6. How: How The trade process?

When Sir Bobby can contact the broker/dealer/broker who worked on the trading floor. Broker/dealer/broker will give you a buy order slip and Mr. Bobby will fill out the form with the name of the stock, the number of shares, (lot) and the asking price (bid price).

Mr Bobby mandatory sign slip order buy. Broker immediately forward the order bought the Bobby Lord over the internet, phone, and so on. Here’s a bit of a process of stock trading.

The Influence Of The Crisis Egypt To Stock Trading

As a child of the American gold in the area of the Middle East, Egypt holds a very important role. Not only to world trade, but the key to solving some issues involving the Middle East, including Israel and the Palestinian problem.

Now, the political crisis in Egypt this has affected the world economy. The Suez Canal which is one of the most densely populated trade traffic flow in the world to make the price of crude oil jumped. Stock trading has become a bit tergoncang. The proof, these negative sentiment is visible from the decrease in share price Index on the Jakarta Stock Exchange Composite.

TRADE between the price of gold and oil

The price of oil, the price of gold, and stock prices, intertwined. When oil prices rise, the price of gold also rose. Then, what about the stock price? Stock prices could have been tergoncang. On January 28, 2011, stock trading has begun plagued Egypt crisis. TRADE closed below 3,500.

This pretty much TRADE corrected than the first day of trading in the stock of 2011, the Jsx Composite (TRADE) which was at the level 3.727,517. Please note that this is an increase in TRADE on the record are pretty fantastic for the Jakarta Stock Exchange and is considered the best se-Asia Pacific for 2011.

Overview Of Stock Trading

Only those who dare to take a high risk that dare to play the stock. An enticing advantage makes the risk takers this brave desperately cultivating his money in the stock trading sector. However, for newbie, you should stock players play it safe by choosing mutual funds or bonds at lower risk. If fear, enter only the money deposits or else have a good deposit, bury it just money into gold bars. These last two products are reasonably safe and not high risk.

Stock trading is indeed very challenging. Many things can cause negative sentiment that could lead to TRADE on the decline. When Gladstone, could instantly wealthy. Conversely, if buntung, within seconds it could go bankrupt. Trade stocks at risk of compromising the health of the heart and high blood if not robust to manage stress and pressure that always haunting investors and stock broker.

Factors that affect stock trading

1. Politics

Gonjang ganjing in the realm of primaries greatly affect stock prices. The issue of any new issue, though, was taken very quickly by the perpetrator shares. They certainly do not want to risk. The game sell selling which involves certain parties also sometimes make a stake of that particular company looks strange moves. Fortunately there is a supervisory body any time trying to secure the stock trade is a path that doesn’t harm anyone.

For example, when Sri Mulyani resigned, there is negative sentiment on the stock. However, this did not last long. Sentiment in the primaries is apparently able to make a world of trading stocks to rise and reached a pretty fantastic TRADE.

2. the world economy

The global economy has made all things happening in other countries affect the economy of Indonesia. These effects could have been very ugly but could only be temporary. The crisis Egypt is currently expected don’t really affect stock trading.