There are many investment options and investment variations that you can use to invest in the hope of making a profit in the future. We will focus on stock in this article. You can invest by saving, opening up savings deposits, buying land and buildings, buying gold or buying securities such as stocks, bonds and others.
Basically, all investment options contain profit opportunities on the one hand and potential losses or risks on the other.Such as savings and time deposits in banks have a small risk because it is stored safely in the bank, but the weakness is a smaller profit compared to the profit potential of stocks. Investments in property (houses and land) are getting higher and higher, but are also at risk of being displaced or occurring, fires against the house, while self-employment (self-employed) at risk of bankruptcy / insolvency while investment in gold has a downside price risk.
Especially for stocks, opportunities and risks that may occur include:
1. Capital Gain
That is the advantage of the proceeds of selling or buying shares in the form of excess selling value of the stock purchase value.
Stocks are the most popular securities among the securities that are in the capital market.Why? because when compared with other investments, stocks allow investors to earn a return or greater profit in a relatively short time (high return).
In addition to returns, stocks also have a high risk property that is when the stock price can also slump rapidly or its shares in delist (abolished recording) of the stock so that for sale should buy the buyer or the seller himself and the stock does not have a market benchmark price With this high risk high return characteristic, the investor needs to keep monitoring the stock price movement he holds, so that the right decision can be generated in the right time.
It is a benefit of the company that is distributed to shareholders.Usually not all the profits of the company are distributed to shareholders, but there are parts that are replanted. The amount of dividends you receive is determined in the General Meeting of Shareholders (GMS) the company.
What is noteworthy, however, is that the company’s dividend policy does not always pay dividends to shareholders but depends on the condition of the company itself (especially with respect to the profits) which means that if the company suffers losses, distributed in the current year.
1. Capital Loss
It is the opposite of capital gains, which is a condition where you sell the stock you own below the purchase price.
2. Liquidation Risk
The company whose shares are owned, declared bankrupt by the court or the company is dissolved In this case the rights of claim from the shareholder can be the last priority after all the obligations of the company can be repaid (from the sale of company’s wealth). If there is any residual proceeds from the sale of the company’s assets, the remainder is shared proportionally to all shareholders.
But if there is no residual wealth of the company, then shareholders will not get anything. This is the greatest risk of a shareholder. For that a shareholder is required to continuously follow the development of the company whose shares are owned.