vina wahyu astuti
19213152
4EA25
english softskill
CAPITAL MARKET
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.
Analysis
:
Simple
Present tense :
1 capital market is a small market capitalization value
S To Be V1
2.
The country
is still classified
S To Be V1
Simple Present Continous Tense :
1.
The market in the country is
also in a developing stage.
S To
Be Ving
Sources :
