Yanuar Dananjaya, Bsc.

, MM

Intro
Grading:
UTS 30%
UAS 30%
Quiz 10%

Capital Market

Final Assignment 30%

Text Book:
Financial Institution and Market, Madura
Financial Market and Institution, Mishkin

Yanuar Dananjaya, Bsc., MM

Financial Institution and Financial

Market
Financial Market Where people with money to
invest (surplus party/lender) meet people who
need investment (shortage party/borrower)

Capital Market

Function of Financial Market Channeling funds

from surplus parties to shortage parties
Parties household, government, firms, foreign
parties
Financial Institution Institutions that facilitate
transactions in Financial Market
Bank, Bursa Efek, Dana pensiun, Reksadana,
Broker saham, dll

Yanuar Dananjaya, Bsc., MM

Financial Institution and Financial

Market
Relation between surplus and deficit party can be
Direct or indirect

Capital Market

Direct lender connect directly with borrower

Indirect lender connect with borrower
through financial intermediary, ex bank,
reksadana
Direct use securities/financial instrument surat
berharga stock, bond
Important due: matching surplus and shortage
parties difficult without market amount,
timing, convenience

Yanuar Dananjaya, Bsc., MM

Financial Institution and Financial

Market
Important due: (cont)

Capital Market

efficient allocation of capital higher

economic growth. Efficient money goes to
those who can best use it
Provide fund for customer, ex KPR. Increase
economic activity

Yanuar Dananjaya, Bsc., MM

Financial Intermediaries
Commercial Bank
Credit Unions (koperasi kredit)
Pension Fund (Jamsostek)
Insurance Companies

Capital Market

Mutual Fund
Finance companies Adira fund

Financial Market
Bursa Efek Indonesia
Brokerage company Kiwoom securities, etc

Yanuar Dananjaya, Bsc., MM

Terms on Financial Institution and

Market
Debt and Equity Market
Bond vs. Stock
Coupon vs. Dividend
Debt vs. Company ownership

Capital Market

Primary and Secondary Market

Money and capital market
Money market: debt < 1 year
Capital market: debt > 1 year and equity