Products
Equity products that are traded on the exchange are stocks, warrants, rights, and Exchange Traded Funds (ETF). A stock is defined as a proof of ownership entitled to a person or party (institution) for a corporation or limited liability company. By investing in the company, the person or institution has a claim on the company's income, a claim on the company's assets, and has voting rights at the General Meeting of Shareholders (GMS). Warrants are securities issued by a company that entitle the stock owners to buy additional shares of the company at a specified price for a 6 (six) months period or more. Rights are rights attached to the shares and can be transferred, which allows existing shareholders to buy new securities, including stocks or securities that can be converted into shares and warrants, before being offered to the other parties. Meanwhile, ETF is portfolio investment products that are admitted to listing or trading on a regulated exchange.
Currently, exchange transactions are dominated by equity products, especially stocks, while debts and derivatives have been less attractive to investors. Investors perceive that stock investment risk is more scalable compared to derivatives, while investors trading debt securities prefer to trade over the counter (OTC).
Stocks
Stock is one of the most popular financial instruments. Issuing stock is one of the choices for a company’s funding. Moreover, stock is investors' favourite investment instrument because it offers them an interesting return rate.
Stock can be defined as a sign of capital participation of an individual or institution in a company or corporation. By investing in a company, the party has the claim for the company’s income, assets, and right to attend the General Meeting of Shareholders
Clearing of Equity Transactions Simulation (Stocks):
Date Buy Sell Clearing 26 November 2021 CM X buys ASII 4.000 shares at IDR 8,000 with transaction valued at IDR 32,000,000 from CM Y CM X sells ASII 5.000 shares at IDR 8,000 with transaction valued at IDR 40,000,000 to CM Z CM X buys TLKM 3.000 shares at IDR 5,000 with transaction valued at IDR 15,000,000 from CM Y CM X sells TLKM 1.000 shares at IDR 5,000 with transaction valued at IDR 5,000,000 to CM Z 28 November 2021 Netting for ASII: CM X conduct securities submission of 1.000 shares of ASII to IDClear and receive cash valued IDR 8,000,000 from IDClear Netting for TLKM: CM X conduct cash submission valued IDR 10.000.000 to IDClear and receive securities 2.000 shares of TLKM from IDClear Warrants
Warrants are Securities issued by a company which gives the Securities holder the right to order shares from that company at a certain price after 6 (six) months after the Securities in question are issued.
ETF
Exchange Traded Fund (ETF) is a Mutual Fund in the form of KIK whose UP is traded on the Stock Exchange, where there is a Participating Dealer who signs an agreement with the Investment Manager managing a Mutual Fund in the form of KIK whose UP is traded on the Stock Exchange to make sales or purchases of the UP- Mutual Funds are intended both for their own interests and for the interests of the UP-Mutual Fund holders in question.
Right Issues
Right Issues are rights attached to shares which give the relevant shareholder the opportunity to purchase shares and/or other Equity Securities, either which can be converted into shares or which give the right to purchase shares, before being offered to the other parties.