What Is a Stock? Beginner-Friendly Illustration for First-Time Investors

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What Is a Stock? Beginner-Friendly Illustration for First-Time Investors

Stock illustration for beginners
Understand the basics of stocks with real-world examples. Learn how owning shares connects you to top companies and why investing is easier than you think.

Ever seen companies with “TBK” after their names? It means “Terbuka” or “Public,” and those companies are open to public ownership. You, as an everyday person, can own a piece of well-known businesses like BCA, Mandiri, Telkom, Sampoerna, Unilever, Astra, and many more. There are now over 600 public companies in Indonesia, and chances are, their products are already part of your daily life.

What Is a Stock?

A stock is a certificate of ownership in a company. Imagine a company like Gudang Garam as a single building, then split that building into 100 pieces of paper. If you own one piece, you own 1% of the company. In reality, large companies are divided into billions of shares, but the principle is the same: own a share, own a part of the business.

Stocks Used to Be Physical – Now They’re Digital

Years ago, stock ownership was proven with a physical certificate. Today, all shares are held electronically. When you buy stocks, you get digital proof of ownership. The standard trading unit is a Lot, which is 100 shares.

How Much Money to Start Investing?

To begin, you only need to buy one Lot (100 shares). For example, if the price of one Bank BRI share is IDR 3,110, buying one Lot costs just IDR 311,000. That makes you an official shareholder—even if you only own one Lot!

What Is a Public Company (TBK)?

A public company (TBK) is one whose shares are available for public purchase. Many famous brands are publicly listed, with their names shortened to four-letter codes: for example, Sampoerna is HMSP, Bank BRI is BBRI, Telkom is TLKM, and Astra Indonesia is ASII.

Why Do Companies Go Public?

Companies open up to public investors to raise extra capital—maybe to expand their factories, pay off debt, or fund new projects. When a company sells shares to the public, it exchanges a part of ownership for investment funds. That’s how you, as an investor, become a business partner.

What’s In It for Stockholders?

By owning shares, you get a portion of the company’s profits. For example, Sampoerna (HMSP) earned a net profit of IDR 13.7 trillion in 2019. With 116 billion shares, each share entitled the owner to a profit share (called a dividend) of IDR 118 per share. The more shares you own, the more dividends you receive!

Fun Fact: Sometimes, a single share of a top company can cost less than a pack of cigarettes or a parking fee—making investing in stocks surprisingly accessible for beginners.

Key Stock Market Terms for Beginners

  • Stock: A unit of ownership in a company.
  • Lot: The minimum unit for trading stocks, equal to 100 shares.
  • Dividend: A portion of the company’s profits shared with shareholders.
  • TBK (Public Company): A company that offers shares to the public.

Simple Illustration

Imagine Sampoerna wants to build a new factory. To raise funds, it sells 7.5% of its shares to the public. You buy some shares—now you’re a co-owner and share in future profits!

Why Should You Consider Stocks?

  • Start investing with small amounts—just one Lot is enough.
  • Become a part-owner of major businesses you already know.
  • Potential to receive dividends as the company grows.
  • Build long-term wealth, not just short-term gains.

Insight Worth Remembering

“Owning shares isn’t just about money—it’s about being part of something bigger and growing with it.”

Are you ready to start your investment journey? If you found this article helpful, share it with friends and check out other Finance guides for beginners. Want a deeper dive? Watch the original YouTube video or explore IDX (Indonesia Stock Exchange) for real-time info!

Label: Finance

Reference:
"Apa itu Saham? | Ilustrasi Untuk Pemula"
Channel: Saham dari Nol
https://www.youtube.com/watch?v=uGzToPCX8nU

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