Forex Education Center- investment in equity,Equity investments are generally associated with the purchase and storage of capital stock on a stock market by investors, both individuals (individuals) and companies (institutions) in anticipation of income from dividends and capital gain as the value of these shares is increased. It is also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When investments are made in the new company, it is called as a venture capital investment and is generally understood to have a greater risk than investments made in situations where the shares are listed on a stock exchange.
Direct Investments and Funds collected
Investments can be done directly by the investor in several ways:
Venture capital investment
Direct equity investments in companies that have been established and are not listed on the stock market. Usually done to strengthen the financial position of the company, or the company's business expansion can also save oparasional companies due to liquidity problems.
Direct investments in companies that have been listed on the stock market. In general, the buying and selling of shares is done by using the services of a broker (in Indonesia known as the securities brokerage company), while the trading mechanism established by the authority of the capital market and securities brokerage company in question.
Indirect investments generally made by individuals through mutual funds or any other form of storage that is specifically from the investment of funds collected, most of them list prices are displayed in financial newspapers or magazines business magazines.
According to the Capital Market Law number 8 of 1995 Article 1, paragraph (27): "Mutual fund is a container used to collect funds from the public Financier to be invested in portfolio securities by the Investment Manager."
Mutual funds are typically managed by a fund management company that is well known (eg Fidelity or Vanguard). Such holdings by individual investors an opportunity to diversify risk with little capital and managers have access to the expertise of professional managers in the management of these funds. An alternative usually employed by large investors and institutions (such as large pension funds) is to hold shares directly; in the institutional environment many customers who have their own portfolios have what are called segregated funds in the opposite sense with, or in addition, collected, such as alternative mutual funds.
