Capital markets can accelerate economic development by providing companies a source of capital, mitigating moral hazard through stock prices, enabling change of ownership through takeovers, allowing individuals to diversify risks, and generating wealth for nations. However, capital markets face challenges like inefficiency, low awareness, concentrated wealth, and low understanding of risks. Investing is important to combat inflation and allow one's assets and lifestyle to grow over time. Investors should choose investments that balance appropriate risk and returns, and analyze companies through both fundamental analysis of financial statements and technical analysis of past price movements.

1. Capital Markets : Hidden
Treasures to Accelerate Economic
Development
“Are you
Investor or
Trader ?”

2. How Capital Market could accelerate Economic
Development??
Capital Market is An Engine for Economic Growth
•Source of Capital for Company
•Moral Hazard (The stock Market plays a subtle but important role in mitigating
the moral hazard problem. The stock price in an efficient market gives us good
measure of the firm’s performance and its long term value. Tying the managers
compensation to stock prices reduces the incentives for imprudent actions and
therefore increase the firm value)
•Change of Ownership (declining of the stock prices below the potential value
of the assets put the company as a takeover targets for investor who will
increase the value of shares by replacing the current manager)
•Ability To Diversify (with the creation of stock markets, individual can
diversify firm-specific risks thus making investment in firms more attractive)
•Wealth for the Nations

3. Capital Market Challenges?
•Market is not efficient
•Low awareness about the capital
Market
•Low awareness about the Risk
•Wealth is concentrated

4. Why We Must Invest ???
• Do you know inflation?
Inflation is defined as a sustained increase in the general level of prices for goods
and services. For example, if the inflation rate is 10%, then a $1 pack of gum will
cost $1.1 in a year, in ten years is $2 (100% Increase).
• Why should I care about inflation?
Do you have salary and assets right? Can both of them grow equally with the
inflation pattern? For example, if inflation rate is 10% and your salary is fix or
increasing under the inflation rate, then Your assets value will shrink. And what
will happen to your life style?
• investment will help you to promote your life over inflation rate.

5. Life is a choice
Mr. Party salary is 10 million and he has 66 million
saving. He decides to buy a car worth 220 million.
He needs to pay 3,75 million for 5 year (not
included services and gas)
In 5 years his asset is his car worth less than 220
million
Mr. Party salary is 10 million and he has 66 million
saving. He invests 3,75 million per month with
target return 5% per month
In 5 years his asset is 2,55 billion

6. Risk On Investing
The principle that potential
return rises with an increase in
risk. Low levels of uncertainty
(low-risk) are associated with
low potential returns, whereas
high levels of uncertainty (high-
risk) are associated with high
potential returns.
Because of the risk-return tradeoff, you must be aware of your personal risk
tolerance when choosing investments for your portfolio. Taking on some risk is
the price of achieving returns; therefore, if you want to make money, you can't
cut out all risk. The goal instead is to find an appropriate balance - one that
generates some profit, but still allows you to sleep at night.

7. What I Should Choose For My Investment?
Korea
Indonesia
Level growth Index of 5 years
between Korea and Indonesia :
Korea : 1600 – 2100 (31,25%)
Indonesia : 3000 – 5000 (66,67%)
Remember “ High Return, High Risk “

8. Stock Market Is Not Gambling
There are two kinds of analysis in Stock Market :
Fundamental Analysis (Investor) : a method that attempts to predict the
intrinsic value of an investment from business's financial statements (usually to
analyze the business's assets, liabilities, and earnings).
&
Technical Analysis (Trader) : the forecasting of future financial price
movements based on an examination of past price movements and volume.

9. Fundamental Analysis
• Calculating the value of the
company 's financial statements
and forecasts based on
macroeconomic conditions
• Financial reports every 3 months ,
6 months and 1 year
• The Company does not perform
manipulation of financial
statements as a basic assumption
• Can only be explained
undervalued and overvalued , but
not necessarily accepted by the
market
• Calculate a target price based on
past price movements
• Trade data available every
second
• Believe that everything has been
reflected in the price movement
and volume
• Calculate the top and bottom
target to read market movements
Technical Analysis

10. The Easy Way To Understand Of Analys
Fundamental Analysis (Investor) : Will tell you which stocks have a good value
on the future.
&
Technical Analysis (Trader) : Will tell you when you have to buy or sell the
stock.
SO.. COMBINE THOSE TWO ANALYSIS FOR A SUCCESS

11. EXAMPLE
Fundamental Analys (Investor) : Choose a stock of the company that you
believe will be still operating and growing ten years from now
&
Technical Analysis (Trader) : select stocks trend in graph form a 45-degree line
and more is better