Types of Capital Market Investment Products, from Stocks to Bonds



Investing in the capital market is tempting. Besides being able to benefit from the value of money that is not eroded by inflation, there are also various choices of investment products in the capital market.

Not surprisingly, this investment is increasingly popular among the public.

The capital market itself is defined as a meeting place for companies and other institutions (such as the government) that need funds from the public for business development, expansion, additional working capital, etc. invest their funds.

To obtain funding, the company or institution issues shares or bonds. Public investors ( investors ) who funded the company or the institution can buy such instruments in the capital markets, either directly or in the form of mutual funds. Because of this, it can be said that the capital market has an important role for the economy of a country.

The investment products in the capital market are stocks, bonds and mutual funds. The capital market also trades other forms such as warrants, rights, and other derivative products. For more details, you must read this article to the end, yes you must!

Please to also read Investor Definition, Types And Characteristics.

Various capital market investment products

Before buying investment products in the capital market, you need to understand a few things first. The reason is, the investment product chosen must be adjusted to three things:

  1. Investment objectives, whether short-term, medium-term, or long-term needs.
  2. Risk appetite (or “risk appetite”), whether you prefer high-risk, moderate-risk, or relatively safe investments.
  3. The amount of investment funds that will be routinely invested. This is important, because funds for investment are different from funds for daily living needs.

After knowing all that, you can invest more safely. This is because there are many choices of investment products in the capital market.

Law No. 8 of 1995 concerning the Capital Market (UUPM), article 1 paragraph 5 also states that securities are securities, namely debt acknowledgments, commercial securities, shares, bonds, proof of debt, Participation units in collective investment contracts, futures contracts for securities, and any derivatives of securities.


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