Stock Investment Benefits

Lately, stock investment has been echoed by influencers and even artists by showing their portfolios. 

In fact, the Indonesia Stock Exchange has a program to attract as many investors as possible to enter the capital market.

Not a few are still confused about what the stock market is and what are the advantages of stock investment, see below.

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What is the Stock Market?

To make it easier to understand I will first discuss what a stock is.

Shares are letters / proof of ownership that represent the value of a company. To make it easier to understand, it can also be said that proof of ownership is part of the value of a company or proof of capital ownership of a company.

Shares are issued in units of shares, for example company A, the total number of shares outstanding is 1 million shares, if you have 500 thousand shares of company A, it means that you own 50% of the company.

You have the right to hold or sell the ownership of company A’s shares on the stock market.

The stock market or commonly known as the stock exchange is a place where shares of companies listed on the Indonesia Stock Exchange are traded.  

In the stock market you can buy or sell shares of listed companies.

Stock Investment Benefits

Straight to the main discussion, what are the advantages of investing in stocks?  

According to the explanation on the financial and investment website vinansio , broadly speaking , there are 2 stock gains, namely dividends and capital gains. 

1. Divide

Dividends are profit sharing or profit sharing on company operations. If you own shares of a company then you are entitled to the profits of the company.

Usually dividends are distributed once a year and the amount of dividends distributed depends on the amount of profit the company gets and whether or not there are expansions or operations that require large subsequent costs.

For example, in 2021 BBRI (Bank BRI) will distribute dividends of 98.9 rupiah / share. 

If you own BRI Bank shares and do not sell before or during the dividend cum date, the dividend cum date is the date on which anyone who is entitled to receive dividends is recorded. 

Then you will get a dividend of 98.9 rupiah per share. If you have 100 lots (10,000 shares) of shares, the total dividend you will get is 98.9 x 10,000 = 989,000 rupiah.

Dividends will be paid by the company at the specified payment date and will automatically enter your RDN (Customer Fund Account).

2. Capital Gain

Capital gain is the gain on the increase in the price of a stock. 

Fluctuating stock prices are caused by the number of investors and each investor assesses the price of a stock differently. 

There are those who judge shares based on the company’s intrinsic value, there are those who judge from the company’s performance, there are also those who only speculate, because of that stock prices fluctuate greatly. 

When the stock price goes up and you sell it at a higher price than the purchase price it is called a capital gain.

For example, if you buy 100lots of shares in BBRI (Bank BRI) in 2018 at a price of 2,100 rupiah per share, it means that the money you spend to buy BBRI shares is 2,100 x 10,000 = 21,000,000 rupiah, not including the purchase fee. specified securities, usually below 0.25%. 

Then you sell all 10,000 shares of BBRI at the beginning of 2021 when the market price hits 4,830 rupiah per share, so the total sales value is 4,830 x 10,000 = 48,300,000, not including the selling fee discount. The amount of the selling fee depends on the security, usually below 0.30%.

So the profit or total profit you get is 48,300,000 – 21,000,000 = 27,300,000. Your profit is 27,300,000, more than 100%.