Definitions and Determinants of Investment INVESTMENT

Written By IMAGINATION on Minggu, 21 Agustus 2011 | 15.32


Definitions by Big Indonesian Dictionary, defined as investment money or investment in a company or project for purposes of profit fare. Basically, the investment is to buy an asset that is expected in the future can be resold at a higher value.
Investments can also be regarded as a delay current consumption for future consumption. Expectations on future benefits is a compensation for time and risk associated with an investment made.
Someone would have to think about the future at which time the needs of living continues to rise, the need is to be education, transportation, health, shelter, the need for recreation, worship, until the need for the unproductive. With a background in the matter, a person set aside a portion of his income in the productive and to invest for the future which is less productive.
There are many choices in investing, including the opening of deposit, saving, buying land and buildings, bonds, buy gold, stocks, and others. In general the form of assets at Invest divided into two types:

1. Real Investment
And a certain amount that is invested in tangible assets, like land, gold, buildings, gold, and others.
2. Financial Investment
Namely a certain amount of funds invested in financial assets, such as deposits, stocks, bonds, and others. In this case the securities are traded or that are often referred to as the effect is in the form of shares. According to Law No.8 of 1995 on capital markets, the definition of the stock exchange is the party that organizes bidding buy and sell securities of other parties with the aim of such securities trade. In Indonesia, the stock trades conducted on the Indonesia Stock Exchange. Not all companies can immediately issue a securities (stock), so companies seeking to issue securities must meet the criteria or rules that existed prior to issuing an effect.
Determinants of Investment
For an investor who wanted to make an investment, must do an analysis beforehand to determine their investment decisions. To perform an analysis of investment, there are at least three factors must be analyzed, namely:
1. Analysis of macroeconomic conditions
2. Analysis on the type of industry
3. Fundamental analysis of a company
The first stage is carried out by an investor in investing is to conduct an analysis of macro variables, the analysis phase was conducted to analyze the condition of a country's macro economy in the process of an investment. Macro-economic variables that are analyzed include the rate of inflation, current account, exchange rate / exchange rate (exchange rate of a country's currency against the currencies of other countries), interest rate of SBI (Bank Indonesia Certificate), and others.
In the second stage, analysis was performed on a variety of industries. At this stage, we choose the type of industry provides the most benefit if performed invstasi prospects. Which sectors will be an investment can be seen from the movement in the sectoral indices on the capital markets industry. Sectors that have a good index for long-term investment will certainly be selected. In the third stage of analysis, performed fundamental analysis on companies, using financial ratios of a company.
In the financial ratios, subdivided into five ratios, namely:
1. Liquidity ratio, expressed the company's ability to meet short-term obligations maturing.
2. Activity ratio, shows the ability and efficiency in utilizing aktifa companies owned or turnover (turnover) aktifa-aktifa a company.
3. Debt, serves to show kemampun company to meet its long-term liabilities.
4. Profitability ratios, indicating the level of the company's success in generating profits.
5. Market Ratios, describe how the market value of shares of a company.

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