A. Money Market
In general, the money market is where funds or securities denominated which have a maturity of less than one year (short term).
The function of the money market is as an alternative means, especially for financial institutions, financial companies and other participants to meet their short-term funding needs as well as to place funds on their excess liquidity. What is meant by excess liquidity are financial institutions that have excess funds in the form of fresh funds, either in cash or in forms of securities-securities with a period of one year.
The various transactions that occur in the money market include:
** 1. Interbank Money Market**
The money market of a bank is a transaction of surplus excess of a bank to another bank. Banks that have excess funds are called excess liquidity, while banks that lack the funds are called lack of liquidity or lose clearing
** 2. Certificate of Bank Indonesia (SBI)**
Bank Indonesia Certificates are a type of securities issued by Indonesian banks as central banks, which are intended to be purchased by commercial banks with a very large nominal value. The purpose of the Indonesian bank to issue the certificate is to reduce the circulation of money in the community.
** 3. Precious Money Market**
Money Market Securities (SBPU) are securities issued by commercial banks and are only purchased by Indonesian banks with substantial nominal value. The purpose of this SBPU is to boost the liquidity of commercial banks and to suppress inflation.
** 4. Certificates of Deposit**
The deposit certificate is a kind of securities issued by the Bank in certain nominal value as a bribe of performance.
** 5. Foreign Exchange Market (Foreign Exchange)**
The foreign exchange market is where a person can buy or sell a foreign currency or exchange with rupiah currency. The exchange rate of money exchanged is called the foreign exchange rate.
B. Capital Market
The capital market is one where buyers and sellers meet, and goods traded are capital. Can also be said to meet the buyer of capital and the seller of capital. Capital Marketers are those who, individually or as an institution or business entity that put aside their excess money for a more productive business, while the buyer is a capital company that requires funds or additional capital for expansion of his business.
In daily activities, the stock market is commonly known as stock exchange. Jump transactions buy in trading on the stock exchange using the services of an intermediary (broker or commissioner).
Capital market participants include:
Emitter, ie a party that emits or offers securities for sale or sale.
A securities company, a company that has obtained a business license from Bapepam (Badan Implementasi Pasar Modal) to conduct an activity or activities as an underwriter, broker, securities trader, investment manager or investment adviser.
The public company, which is owned by more than 100 shareholders and has paid up capital of at least USD.2 billion.
Mutual funds (invesment fund), the main activity to invest or re-vest. This activity is conducted by PT. Danareksa.
The benefits of a capital market for a country are:
Providing long-term financing for the world's business as well as enabling optimal allocation of funding resources.
Providing investment rides for investors while enabling diversification efforts.
The spread of company ownership to the middle class.
Creating an exciting job / profession.
Draw a climate of openness to the business world and provide access to social control.
Long-term funding sources for the issuer.
C. Futures Market
According to Law No.32 / 1997, the futures market is anything related to the sale and purchase of commodities to the subsequent delivery under a futures contract.
Trading of futures is done in futures exchange, hereinafter referred to as the exchange, which trades commodity futures contracts. The place to trade futures contracts is called futures markets.
On the exchange, buyers and sellers meet and transact to buy or sell commodities for later on, subject to the contents or contract specifications.
Companies that are allowed to sell their shares in the Jakarta Stock Exchange (BEJ) are companies that have gone public.
D. The Labor Market
The labor market or job market is a meeting place for labor suppliers with end users. Manpower is someone who has the ability to do a kind of work well and be for others and for himself.