N T

E
S TM
V E
IN
 INTRODUCTION
 Investment is: a commitment to allocate a number of
funds to one or more assets (at this time) which is
expected to be able to provide a return in the future
• Investors are currently allocating funds based on the
consideration that there is hope for an attractive
profit in the future, without hope there is no
investment
 TYPE OF INVESTMENT
• Investment in real assets: investing in tangible assets
such as gold, land, real estate and establishing
companies

• Investment in financial assets: i.e. investment by

buying financial instruments in stocks, bonds,
warrants, pre-emptive rights, mutual funds etc.
 INVESTMENT ALTERNATIVE
• Investments in financial instruments are divided into
2, namely:
 Direct investment
 Tradable instruments
 Instruments that cannot be traded
• Indirect investment
 NON-TRADABLE INSTRUMENTS
• Time Deposits (interest is paid when due
date)
• Certificate of Deposit (prepaid interest)
 FINANCIAL INSTRUMENTS IN THE CAPITAL
MARKET
 Debt Instruments (Bonds)
 Equity Instruments (stocks)
 Mutual fund (Reksadana)
 Sukuk
 BOND CLASSIFICATION
1. Treasury bonds, (government bonds), are issued by the federal government.
Treasury bond prices decline when interest rates rise, so these bonds are not free
of all re
2. Company bonds. (corporate bond), according to the name issued by the
company. Corporate bonds have a risk of failure, if the bond issuer has a
problem then he may not be able to pay interest and principal.
3. Convertible bonds (convertible bonds) bonds that can be exchanged with
company shares at a certain time
4. Foreign bonds, issued by foreign governments or foreign companies. Foreign and
government corporate bonds are also at risk of failure. Additional risks arise if
the bonds are stated in foreign currencies.
 CHARACTERISTICS OF BONDS
• Nominal Value (par value) is the nominal value determined for
bonds; generally shows the amount of money borrowed and
paid back by the company at the due date.
• Coupon Interest Rate.
• Due date.
• Withdrawal Provision, a provision in a bond contract that gives
the issuer the right to redeem the bond for a certain period
before the normal due date.
• Repayment fund, a provision in a bond contract that requires
the issuer to withdraw a portion of the bond annually
 STOCKS
• Stocks are securities that can be bought or sold by individuals or
institutions in the market where the securities are traded. Shares are
a sign of ownership or ownership of a person or business entity in a
company
• The value of shares based on function can be divided into:
• Par value
• Base price
• Market price
• Shares are divided :
• Common stock
• Preferred Stock
 MUTUAL FUND & SUKUK
• Mutual funds are a invesment instrument that used
to raise funds from the public for further investment
in the securities portfolio by investment managers

• Sukuk retail is an investment instrument in the form

of state securities (a type of bond) based on sharia.
 DERIVATIVE SECURITIES
• Derivative securities are securities that are derived from other
securities (the right to buy or sell certain shares at a certain
time at a certain price)
• Derivative prices are strongly influenced by the parent's shares
• Types of derivative securities
• Pre-emptive rights (HMETD / Right), given to old shareholders, the
prices are lower than market prices
• Warrants (Warrant), given to preferred shareholders or bonds, the
price is more expensive than the market price
• Stock Option Contracts (options), sold to the public
 FUTURES MARKET
• Forex: foreign exchange
• Commodity Exchanges; world commodity markets
(gold, CPO, Arabica coffee, cocoa, etc.)
 STOCK ANALYSIS
• Fundamental Analysis
• Technical Analysis
 FUNDAMENTAL ANALYSIS
• Fundamental analysis is an analysis to find out the
issuer's condition (emiten), industrial growth and
macro aspects of a country.
• From these aspects it is expected to know the
fundamentals of investment in certain stocks so that
the intrinsic value of a stock can be calculated
• Intrinsic value of shares is the value that should be
from a stock based on all information that can be
obtained
Issuer's conditions include: financial condition,
management conditions, and business prospects of the
issuer in the future
Industrial conditions include; report on development /
growth in each industry
Macro aspects include; political, economic, socio-
cultural conditions, defense, law, environmental issues
and investment security aspects in a country's capital
market.
 TYPES OF FUNDAMENTAL ANALYSIS
• Dividend Discount model; The intrinsic value of a stock can be
calculated by discounting the estimated future dividends from past
dividend data
V1 = D1
ke – g

• V = intrinsic value
• D = dividend
• Ke = expected profit
• g = dividend growth
 EXAMPLE
• Shares of PT XYZ, currently pay dividends of
Rp. 125 per sheet (D0), and from historical
data it is known that the average dividend
growth is 7.5% per year in the last five years.
If profits are required by investors, the
average is 12%. Make a decision whether to
buy shares or not if the shares are sold at Rp.
3000, -
 ANSWER
• V= 134
12% - 7,5%
= Rp 2.978,-
• Another fundamental analysis
• Issuer's profile (related to GCG, CSR, <audit results etc.)
• Analysis of financial statements
• Corporate action
• Dividend Policy
• Right issue
• Bonus shares
• Stock split
• IPO
• Withdrawal of shares
• RUPS
 TECHNICAL ANALYSIS
• Technical analyst is a method for predicting the direction of
stock price movements, future market trends of a financial
instrument, future price movements and other stock market
indicators based on historical market data such as price and
volume information.
• In technical analysis, evidence is presented through various
indicators and basic principles including patterns, trend lines,
moving averages, and price momentum
• Technical analysis pays attention to what actually happens in
the market rather than what will happen in the market.
 ASSUMPTIONS 0F TECHNICAL ANALYSIS
Levy (1966), put forward a number of assumptions that underlie technical
analysis:
1. The market value of goods and services, determined by the interaction of
demand and supply.
2. The interaction of demand and supply is determined by various factors,
both rational and irrational factors.
3. The prices of individual securities and overall market values tend to
move following a trend over a relatively long period of time.
4. Changes in price and market value can change due to changes in supply
and demand relationships.
 TECHNICAL ANALYSIS TOOLS
• Some techniques for using charts (charting)
in technical analysis, namely:
1. The Dow Theory,
2. Analysis of moving averages
 THE DOW THEORY
• This theory of The Dow Theory was proposed
by Charles H. Dow in the 1800s, which aims
to identify long-term stock market price
trends based on historical data of stock
market prices in the past.
 THE DOW THEORY
• This theory basically explains that stock price movements can be
grouped into three, namely:
1. Primary trend is the movement of stock prices over a long period of
time (several years).
2. Secondary (intermediate) trend, namely the movement of stock
prices that occur during price movements in the primary trend.
3. Minor trends or day-to-day moves are stock price fluctuations that
occur every day.
 THE DOW THEORY
• To describe the pattern of movement of stock prices in primary
trends, in The Dow Theory there are two main terms, namely:
1. Market in a passionate condition (bull market).
Bull market occurs when the movement of stock prices in the
primary trend tends to move up.
2. Sluggish market (bear market).
Bear market shows the movement of stock prices in primary
trends that tend to fall.
 MOVING AVERAGE
• The purpose of using this technique is to detect the direction of
movement of stock prices and the magnitude of the level of
movement.
• The data used is the closing price for a certain time (for example
200-days).
• To calculate the moving average value of the daily stock closing
price data for several observation periods
 MOVING AVERAGE
• The decision to buy shares, if:
• The average line moves horizontally and the stock
market price exceeds that line.
• The stock price is below the moving average line that is
going up.
• The current stock price is above the moving average
line, which tends to decline, but returns up before
reaching the line.
 MOVING AVERAGE
• The decision to sell shares, if:
• The current stock price is below the horizontal moving
average line.
• Stock prices move up above the moving average line,
but the moving average line is actually declining.
• Stock prices tend to increase (below the moving average
line), but again decline before reaching the moving
average line.