Stock
2.3.1 Definition of Stock
According to Sutrisno (2012), "Shares (stock) are proof of ownership of a company or statement
in a company in the form of a limited liability company". Meanwhile, according to Fahmi (2012),
"Shares are paper that clearly states the nominal value, company name, along with the rights and
obligations described to each holder."
Based on this definition, it can be concluded that shares are securities as evidence that shows the
ownership of a person or entity in a company in the form of a Limited Liability Company (PT)
accompanied by the rights and obligations described to each holder.
2.3.2 Types of Stock
The types of shares traded in the capital market according to Gumanti (2011), as follows:
1. Common stock (common stock)
Common stock is a securities sold by the company. Common stock explains the nominal
value (Rupiah, Dollar, Yen, etc.) where the holder is given the right to attend the GMS (General
Meeting of Shareholders) and EGMS (Extraordinary General Meeting of Shareholders) and has
the right to determine whether to buy a right issue or not, which then at the end of the year will
benefit in the form of dividends. There are six types of ordinary shares as follows:
1) Growth stocks
Growth stocks are company stocks, attached to smaller companies in asset size, that have
sales and profit growth above the industry average. The company usually does not pay dividends
or even if it pays a relatively small value, but instead invests the profits earned to fund its
expansion.
2) Income stocks
Income stocks are common stocks that tend to be older, owned by mature companies that
pay high dividends and are not growing rapidly.
3) Blue-chip stocks
Blue-chip stocks are common stocks of large, financially well-established companies with
a history of paying good dividends and having consistent profit growth. Stocks of these types of
companies tend to have a small risk of failure.
4) Speculative stocks
Speculative stocks are the opposite of blue-chip stocks. They tend to be riskier and have a
high level of short-term volatility. If the market responds excessively, the stock price can increase
2.3.1 Definition of Stock
According to Sutrisno (2012), "Shares (stock) are proof of ownership of a company or statement
in a company in the form of a limited liability company". Meanwhile, according to Fahmi (2012),
"Shares are paper that clearly states the nominal value, company name, along with the rights and
obligations described to each holder."
Based on this definition, it can be concluded that shares are securities as evidence that shows the
ownership of a person or entity in a company in the form of a Limited Liability Company (PT)
accompanied by the rights and obligations described to each holder.
2.3.2 Types of Stock
The types of shares traded in the capital market according to Gumanti (2011), as follows:
1. Common stock (common stock)
Common stock is a securities sold by the company. Common stock explains the nominal
value (Rupiah, Dollar, Yen, etc.) where the holder is given the right to attend the GMS (General
Meeting of Shareholders) and EGMS (Extraordinary General Meeting of Shareholders) and has
the right to determine whether to buy a right issue or not, which then at the end of the year will
benefit in the form of dividends. There are six types of ordinary shares as follows:
1) Growth stocks
Growth stocks are company stocks, attached to smaller companies in asset size, that have
sales and profit growth above the industry average. The company usually does not pay dividends
or even if it pays a relatively small value, but instead invests the profits earned to fund its
expansion.
2) Income stocks
Income stocks are common stocks that tend to be older, owned by mature companies that
pay high dividends and are not growing rapidly.
3) Blue-chip stocks
Blue-chip stocks are common stocks of large, financially well-established companies with
a history of paying good dividends and having consistent profit growth. Stocks of these types of
companies tend to have a small risk of failure.
4) Speculative stocks
Speculative stocks are the opposite of blue-chip stocks. They tend to be riskier and have a
high level of short-term volatility. If the market responds excessively, the stock price can increase
