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11/21/2024

TYPES OF STOCKS THAT ARE GOOD FOR BEGINNER INVESTORS TO CHOOSE

types of stock

Stocks are an investment tool that is widely sought after by business people who want to make big profits. Because of the attractiveness of this stock investment, various efforts have been tried by business people to transact on the stock exchange.

Data from the Indonesian Stock Exchange shows that by 2023, there were 833 business entities (issuers) listed on the stock exchange trading floor. The problem for a beginner is,

what kind of stocks are worth choosing or buying in order to make a profit?

Well, in this article review, I will try to help you introduce some stocks that have the potential to reap maximum profits.

Types of business sector stocks 

In line with the diverse types of businesses that are developing in the world, there are so many types of stocks traded on the stock exchange floor.

There are no less than 9 types of business sectors whose stocks are listed on the stock exchange, namely the agricultural sector, the mining and oil and gas sector, the basic industry sector (metal, cement, chemical), the infrastructure sector, the consumer goods sector and the various industrial sectors.

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So we will often find stocks in these nine sectors when we first enter the stock exchange floor.

It should also be noted that stocks that have been listed on the stock exchange are stocks of companies that have been operating for at least the last 3 years.

So it is clear for stock investors, they can follow the profit trend obtained during the 3 years the company has been operating, so that it can be a consideration for buying its shares.

types of stocks according to market capitalization >

The important point in this section is the company's shares calculated according to the total value of the shares if they are sold out. This will indirectly also show the value of the company itself if it is sold to the public. There are no less than three groups of shares in this section, namely: 

1. Large capitalization (big caps) 

This first type of stock is also commonly called blue chip stocks because its value reaches up to IDR 40 trillion. Blue chip stocks are in great demand by long-term investors, because they have good performance and routinely distribute dividends to investors.

2. Medium capitalization

For stocks with a value below Rp. 40 trillion, they are included in the middle-level stock category. Stocks at this level are usually occupied by growing companies so that their stock prices tend to fluctuate and are still cheap.

Now for those of you who have not too loose capital, you can consider buying stocks at this second level. The reason is that the price is still affordable and the fundamentals of the company that owns the shares are not too worrying.

3. Small capitalization

As the name implies, stocks in this third level have a total stock value of under IDR 1 trillion. In addition to the cheap price, the risk level also tends to be high, therefore for novice investors it is not recommended to buy stocks in this group even though the price is very cheap.

Stocks according to stock index 

On the stock exchange floor, the price of a stock often changes in a large or small price range. The degree of change is termed the stock index, and there are no less than 10 stock indexes that novice investors must know, namely 

1. LQ45 Stocks

The abbreviation LQ means "liquidity and Quality", which means that stocks in this group must have good liquidity and quality.

Well, as the name implies, the stock group is inhabited by 45 leading stocks with high liquidity and large capitalization as explained earlier. Lq45 stocks are often evaluated every six months by the management of the Indonesian Stock Exchange so that their performance is really considered.  

Some types of Lq 45 group stocks include ANTM, ADRO, UNVR, BBCA, ACES, ARTO, AKRA, BBRI and many more.

2. Sharia stocks

In recent years, the term sharia has begun to echo and become a spotlight in the world of capital markets, including in stock trading.

Sharia stocks are a way for Muslims to invest using Islamic principles, namely businesses that are free from alcohol, gambling, and usury.

One interesting thing about sharia stocks is the principle of sharing risks and profits between investors and companies that own shares. So an investor will get a percentage of the profit according to the agreement that has been discussed previously.

3. BUMN Stocks

Not to be left behind, state-owned companies owned by the Indonesian government also enlivened the stock exchange floor by issuing shares of their companies. No less than 20 types of BUMN shares have been listed on the Indonesian stock exchange, including ADHI, PTBA, SMGR and many more 

Stocks based on collection rights

As an investor, of course, when deciding to invest by buying shares, you will hope to get profit from the shares you buy.

However, a bad situation can happen to the company that issued the shares so that it can automatically have an impact on investors by not receiving a penny of profit sharing.

Well here you need 2 types of shares according to the claim of collection rights 

1. Common stock

This type of stock is the most widely traded where a stock investor is given the right to receive dividends when the company makes a profit from its business. However, on the other hand, when the company's performance declines, the stock investor will not receive any dividends at all.

2. Preferred stock

Unlike the second type of stock, a stock investor will always get priority to receive income even though bad conditions are hitting.

So this preferred stock is like a bond or debt instrument, whether there is a profit or not, a company is obliged to return the money of the capital owners who have invested.

Instead, if the company collapses or goes bankrupt, stock investors are still given their rights through the proceeds from the sale of the company's remaining assets.

On the stock exchange floor, preferred stock has the letter P behind the name of the stock. Well, those are some types of stocks that novice investors can choose from, 

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