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Knowing the Capital Market

Capital market is a market for long-term financial instruments that can be traded, either debt or bonds, equities or stocks, mutual funds, derivative instruments and other instruments. The capital market is one of financing way for companies and other institutions eg government and as a means for investing activities.

Financial instruments traded in capital markets is a long-term instruments (maturity of more than one year) such as stocks, bonds, warrants, rights, mutual funds, and various derivative instruments such as options, futures, and others.

Benefits of Capital Market
  • Community ownership of the company
Through the capital market, the company can sell its ownership rights to the public, this will encourage the development of the company becomes more transparent, where the company shouldbe responsible to shareholders (AGM).
  • Transparency of Corporate Management
The participation of community in corporate ownership prompted the company to implement a management professional, efficient and profit-oriented, so as to create a condition of "Good Corporate Governance".

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