CAPITAL MARKET
Oleh, Diana Pitasari
Accounting
students of the Faculty of Economics university
of Majapahit
Indonesia had experienced economic devastation that
had been built through the joints of the new order policy began crawling back
construct the foundation of the economy. International
Financial Corporation (IFC) classification of stocks linked to the
classification of the state. If the country is still classified as a
developing country, the market in the country is also in a developing stage,
although market shares are fully functional and well organized.
Developed capital markets can be identified through a country, whether the
country is a developed country or a developing country
classified. Indicator is the per capita income of a country, which is
usually included in the low to middle- income countries. But the most
striking characteristic is seen the value of the market capitalization of
companies listed, the cumulative trading volume, the tightness of capital
markets regulation, sophistication and culture to domestic investors.
Consequences of growing capital market is a small
market capitalization value. A measure of market
capitalization ratio is usually seen from the comparison with the value of a
country's gross domestic product. In addition to the other consequences is
the presence of thin trading volume (thin trading) caused by trade (non -
syncronous trading) on the market. Synchronous trading is not caused by
the number of securities traded not entirely, meaning that there is some
specific time in which a securities transaction does not occur (Hartono, 2003). Indonesia
which is still listed on the IFC is still a developing country with the worst
investment climate in the East Asian region. Even with a record like that,
in fact we are still considered by foreign investors. The fact that there
are national companies with actually being in the strategic sectors of the
country, offered by some foreign institutions through the acquisition of
shares. The presence of capital inflows as investments in general is
foreign investment should be a booster of the macro economy. The main reason
for foreign investors to move their funds to developing countries is that
developing countries have the potential untapped business entirely, as in the
classic motifs of investment to other countries. Michael Fairbanks and Stace
Lindsay senior consultant at Monitor Company express purpose of foreign
investors coming to the poorer countries is usually only see an opportunity to
attract natural resources, cheap labor and wages as the target product or
service that is not good quality.
But there are other reasons that accompany such
motives, the striking differences with developed countries. If we use a life cycle approach to the business of developing countries
into the category growth (growth) than developed countries that fall into the
category of ripe (mature). It means that there is the attraction of high
economic growth which of course is accompanied by a high return anyway, because
economic growth is an aggregate indicator of industry in a country. For
example, the mobile telecommunications business in Indonesia, which explored
the new solid in Java alone, while outside it still has high potential to serve
new markets.
Sumber
:
Pitasari, Diana (2014).
“artikel bahasa Inggris tentang Ekonomi”.(online).
Tersedia : http://dianapitasari97.blogspot.co.id/2014/11/artikel-bahasa-inggris-tentang-ekonomi.html
[05 November 2014].
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