scholarly journals Conceptual study of the difference between the money market and the capital market

2020 ◽  
Vol 4 (1) ◽  
pp. 51-59
Author(s):  
Ildikó Wieland ◽  
Levente Kovács ◽  
Taras Savchenko
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Financial Risk ◽  
Capital Requirements ◽  
Money Market ◽  
Financial Assets ◽  
Legal Basis ◽  
Short Term ◽  
Professional Literature ◽  
The Capital Market

The article is devoted to the research of theoretical principles of development of such components of the financial market as the money market and the capital market, identification of key differences between them on the basis of the analysis of scientific professional literature and key provisions of the legislative framework, substantiation of the general interpretation of their essence that could be used in international practice. The article analyzes the peculiarities of formation and functioning of each type of markets, traditional differences between them, examines international practice and statistics on the use of these terms by economic agents, defines the legal basis for understanding their essence and the legal basis for the delineation of these two types of markets. It is proved that a thorough analysis of the peculiarities of the functioning of individual markets, the frequency, and popularity of the use of their definitions in economic practice, the definition of users of these types of markets and their functions, form the prerequisites for clarifying the definitions of the essence of each of these markets, with their further global harmonization. The result of the research is the authors’ own interpretations of the concepts of the “money market” and “capital market”. The money market offers an understanding of the transaction system for the purchase and sale of liquid cash or other short-term financial assets, which typically include short-term financial liabilities (up to one year), the purpose of which is usually to provide financing for current operations, short-term profit or financial risk management in the short-term. The capital market is defined in the article as a system of transactions for the purchase and sale of financial assets, which include securities, derivatives, or financial transactions, which usually involve long-term financial liabilities, the purpose of which is to satisfy capital requirements or increase capital. Keywords: money market; capital market; financial market; legal basis; international practice, definitions.

scholarly journals Optimization of Financial Asset Neutrosophic Portfolios

Mathematics ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 1162
Author(s):  
Marcel-Ioan Boloș ◽  
Ioana-Alexandra Bradea ◽  
Camelia Delcea
Keyword(s):  
Capital Market ◽  
Financial Risk ◽  
Financial Asset ◽  
Financial Assets ◽  
Portfolio Risk ◽  
Financial Return ◽  
Additional Information ◽  
Triangular Numbers ◽  
The Capital Market

The purpose of this paper was to model, with the help of neutrosophic fuzzy numbers, the optimal financial asset portfolios, offering additional information to those investing in the capital market. The optimal neutrosophic portfolios are those categories of portfolios consisting of two or more financial assets, modeled using neutrosophic triangular numbers, that allow for the determination of financial performance indicators, respectively the neutrosophic average, the neutrosophic risk, for each financial asset, and the neutrosophic covariance as well as the determination of the portfolio return, respectively of the portfolio risk. There are two essential conditions established by rational investors on the capital market to obtain an optimal financial assets portfolio, respectively by fixing the financial return at the estimated level as well as minimizing the risk of the financial assets neutrosophic portfolio. These conditions allowed us to compute the financial assets’ share in the total value of the neutrosophic portfolios, for which the financial return reaches the level set by investors and the financial risk has the minimum value. In financial terms, the financial assets’ share answers the legitimate question of rational investors in the capital market regarding the amount of money they must invest in compliance with the optimal conditions regarding the neutrosophic return and risk.

Analisis Faktor-Faktor yang Mempengaruhi Minat Mahasiswa Berinvestasi di Pasar Modal Syariah

2021 ◽  
Vol 5 (2) ◽  
pp. 347-361
Author(s):  
Sufiati Annisa ◽  
Ismu Hartarto ◽  
Surya Ningsih Damanik ◽  
Reni Ria Armayani Hasibuan
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Millennial Generation ◽  
Islamic Law ◽  
Knowledge Capital ◽  
Islamic Banks ◽  
The Capital Market

Investment is the process of saving money and putting it somewhere in the hope that it will increase in value.  Many people are not familiar with the capital market, and many people who don't know much about it are more likely to invest in it and fall victim to fraud.  In order to reduce fraud and feel safe when investing, the Indonesian people need to learn investment knowledge.  The growth of Islamic banks has helped Islamic law develop as a part of the financial market.  Although Indonesia is currently being hit by the Covid-19 pandemic, it is undeniable that the growth of the Islamic capital market in Indonesia has increased quite significantly.  The Millennial generation is now looking for and trying to start investing. The millennial generation has the highest rate of unemployment of any generation in history. Keywords: investment knowledge, capital market, millennial generation

scholarly journals Multi Criteria Analysis for Selecting Sharia Capital Market Management Investment Using ANP

2021 ◽  
Vol 12 (2) ◽  
pp. 93
Author(s):  
Hamzah Abdul Karim Prasetyo ◽  
Hendri Tanjung ◽  
Abrista Devi
Keyword(s):  
Capital Market ◽  
Financial Literacy ◽  
Financial Risk ◽  
Self Control ◽  
Performance Criteria ◽  
Control Individual ◽  
Investment Performance ◽  
Macroeconomic Factors ◽  
Market Criteria ◽  
The Capital Market

<div><p class="1eAbstract-text"><em>The society orientation has shifted from a saving-oriented society to an investing-oriented society. Currently, investors have many choices of investment instruments to invest in the Islamic capital market. Previous studies have shown the factors that influence the capital market and influence investors' decisions to invest in the capital market. This study uses the Analytic Network Process (ANP) method to (1) determine the criteria that need to be taken into consideration in choosing an Islamic capital market investment instrument. (2) knowing the ideal investment instrument based on established criteria. The criteria used in this study include seven criteria, namely: investment performance criteria, risk criteria, liquidity criteria, macroeconomic factor criteria, individual circumstance criteria, psychological factor criteria, and demographic criteria. The respondents in this study were five experts from academics, practitioners, and regulator. The major findings of the research are (1) the criteria to be considered in choosing Islamic capital market investment instruments are divided into investor criteria and capital market criteria. Investor criteria include; psychological factors (motivation and self control), individual circumtances (financial literacy), demographics (income and education). Capital market criteria include: investment performance (capital gain, yield, and fundamental analysis), risk (financial risk, market risk and management risk), macroeconomic factors (exchange rates and gross domestic product), liquidity (liquidity ratio). (2) the alternative with the highest priority is sharia mutual funds, then sukuk and sharia stocks</em><em>.</em></p></div>

scholarly journals Differences in Investment Concepts between Chinese and Western Investors from the Cultural Perspective

2021 ◽  
Vol 2 (6) ◽  
Author(s):  
Zhiming Gong
Keyword(s):  
Cultural Differences ◽  
Capital Market ◽  
Public Information ◽  
Cultural Perspective ◽  
Short Term ◽  
The West ◽  
Independent Decision ◽  
Investment Portfolios ◽  
The Capital Market

The investment concept, reflecting the investor's investment purpose and willingness, is a value that embodies the investor's investment personality characteristics, prompts investors to carry out investment analysis, judgment, decision-making, and guides investor behaviors. Due to different maturity of the capital market in China and Western countries, there are many differences in the regulatory level, cultural and behavioral patterns of the supervision and management departments of the capital market between Chinese and Western investment philosophy. This article analyzes the differences in investment ideas between Chinese and Western investors from the culture perspective. This thesis studies on the basis of four cultural differences: "The Golden Mean" and "Interest Maximization"; the face-culture and individualism; rule of man and rule of law; and gambler psychology and adventure spirit. Based on these four aspects of cultural differences, four different investment concepts of Chinese and Western investors are analyzed: long-term investments and short-term speculation; "Herd Effect" and independent decision; grapevines and public information; and leveraged trading and allocation of funds. This thesis adopts several cases to analyze the differences between Chinese and Western investors in financial products such as stocks, gold, and futures, and in investment behavior such as the long-term investment, short-term speculation, leveraged trading, and investment portfolios. With cultural differences between China and the West probed into, the differences between Chinese and Western investors' investment concepts are justified. It is hoped that this effort will help investors deepen the understanding of the capital markets in China and the West, enable Chinese investors to learn the Western mature investment concepts, and facilitate the regulators to manage the capital market effectively.

scholarly journals STRATEGI DOLLAR COST AVERAGING UNTUK MENARIK MINAT MASYARAKAT BERINVESTASI DI PASAR MODAL DALAM RANGKA PENINGKATAN PENERIMAAN PAJAK

INFO ARTHA ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 53-64
Author(s):  
Sony Hartono
Keyword(s):  
High Risk ◽  
Potential Risk ◽  
Capital Market ◽  
Consumer Goods ◽  
Short Term ◽  
Lump Sum ◽  
Negative Perceptions ◽  
The Many ◽  
Public Concerns ◽  
The Capital Market

The government's efforts to promoting investment in the capital market encountered several obstacles, one of which was negative perceptions and public concerns about high risk onstockinstruments.Theemergenceofnegativeperceptions due to the many beginner investors who experience losses when entering the capital market. The method used in this research is a simulation of 14-year return calculation on severalBlueChipsstocksinthefinancialsectorandconsumer goods. The stock purchase simulation is carried out by a routine purchase method called Dollar Cost Averaging (DCA) and the Lump Sum method as the benchmark. The results showed that the DCA method proved to be able to reduce the potential risk of loss in the short term due to errors in the timing of stock purchases, and even eliminate the risk of loss in the longrun. Upaya pemerintah dalam membudayakan investasi di pasar modal menemui beberapa kendala, salah satunya adalah persepsinegatifdankekhawatiranmasyarakatterhadaprisiko yang tinggi pada instrumen saham. Munculnya persepsi negatif dikarenakan banyaknya investor pemula yang mengalami kerugian ketika masuk di pasar modal. Metode yang digunakan dalam penelitian ini adalah simulasi penghitungan return selama 14 tahun terhadap beberapa saham Blue Chips sektor finansial dan consumer goods. Simulasi pembelian saham dilakukan dengan metode pembelianrutinyangdisebutDollarCostAveraging(DCA)dan metode Lump Sum sebagai benchmark-nya. Hasil penelitian menunjukkanbahwametodeDCAterbuktimampumereduksi potensirisikokerugiandalamjangkapendekyangdikarenakan kesalahandalampenentuanwaktupembeliansaham,bahkan mengeliminasi risiko kerugian dalam jangkapanjang.

scholarly journals Solvency Regulation—An Assessment of Basel III for Banks and of Planned Solvency III for Insurers

2021 ◽  
Vol 14 (6) ◽  
pp. 258
Author(s):  
Peter Zweifel
Keyword(s):  
Risk Taking ◽  
Capital Market ◽  
Regulatory Focus ◽  
Capital Requirements ◽  
Business Strategies ◽  
Insurance Companies ◽  
Basel Iii ◽  
Solvency Regulation ◽  
The Impact ◽  
The Capital Market

Basel III, regulating the solvency of banks, is to be fully implemented by 2027 while Solvency III directed at insurers is being prepared. In view of past experience, it will be closely modelled after Basel III. This raises two questions. (i) Will Basel III and Solvency III be more successful than their predecessors? (ii) Is it appropriate to continue regulating the solvency of banks and insurers in the same way? The first question is motivated by an earlier finding that Basel I and II risked inducing more rather than less risk-taking by banks, which also holds for Solvency I and II w.r.t. insurers. The methodology applied was to determine the slope of an endogenous perceived efficiency frontier (EPEF) in (μ^,σ^)-space derived from banks’ and insurers’ optimal adjustment to exogenous changes, in expected returns dμ¯ and volatility dσ¯ on the capital market. Both Basel I and II and Solvency I and II neglected the impact of these developments on banks’ and insurers’ EPEF. This neglect had the effect of steepening the EPEF, causing senior management to opt for an increased rather than reduced value of σ^, and hence a lower solvency level. This issue is resolved by Basel III (Principle 5), which requires banks to take developments in the capital market into account in the formulation of their business strategies designed to ensure solvency. In combination with increased capital requirements, this is shown to result in a reduced slope of their EPEF and hence a reduced risk exposure. However, planned Solvency III may cause the EPEF of highly capitalized insurance companies to become steeper, with a concomitant decrease in their risk-taking and an increase of their solvency level. The second question, concerning the appropriateness of the uniformity of solvency regulation directed at banks and insurers, arises because the parameters determining the slope of the respective EPEF are found to crucially differ. Therefore, the uniformity of Basel and Solvency norms creates the risk of a mistaken regulatory focus.

scholarly journals MOTIVASI INVESTASI, FINANCIAL LITERACY, DAN PERSEPSI RESIKO PENGARUHNYA TERHADAP MINAT BERINVESTASI DI PASAR MODAL

2021 ◽  
Vol 1 (1) ◽  
pp. 523-532
Author(s):  
Hikmah Hikmah
Keyword(s):  
Risk Perception ◽  
Capital Market ◽  
Financial Literacy ◽  
Financial Management ◽  
Sampling Technique ◽  
Developed Countries ◽  
Money Market ◽  
Public Understanding ◽  
Investment Motivation ◽  
The Capital Market

Indonesia is one of the countries where financially most of the population continues to make short-term investments or save. If you look at the difference with some very developed countries, the investment is in the long term or investment. The existence of public understanding of financial management so that people are able to set aside a portion of the income earned in conducting investment activities. At present, there are many financial effects that exist both in the money market and in the capital market, for example in the money market such as savings and time deposits, while in the capital market there are securities such as bonds and shares from various companies or government owned. This study aims to determine investment motivation, financial literacy and risk perception of its influence on public investment interest in the capital market in Batam City. The population in this study is the sub-district of Sagulung, with 204 respondents as the sample in this study. The respondents in this study are people who are interested in investing in the capital market. The sampling technique used is purposive sampling. The analysis method used is SEM with the SmartPLS application. The results show that investment motivation has a positive and significant effect on investment interest, financial literacy has a positive and significant effect on investment interest, risk perception has a positive and significant effect on investment interest in Batam city

scholarly journals The Jurisdiction of Sharia Supervisory Board in Indonesia Sharia Capital Market

2020 ◽  
Vol 7 (9) ◽  
pp. 763-774
Author(s):  
Bagas Heradhyaksa
Keyword(s):  
Qualitative Research ◽  
Capital Market ◽  
Financial Services ◽  
Supervisory Board ◽  
Legal Basis ◽  
Bank Deposits ◽  
A Company ◽  
The Capital Market

AbstractThe capital market is an institution that brings together those who need funds, to develop their business, and those who are excess funds, to make investments. Unlike the concept of financing in banks, the capital market uses the concept of buying and selling shares. So that it can be a solution for a company that wants to develop its business without using debt. Investors can also get profits that are higher than the profits from bank deposits. Thus, the capital market is growing in the middle of society. However, there are some activities in the capital market that are contrary to Islamic principles. Therefore, the Islamic capital market emerged. To oversee activities in the Islamic capital market, the role of the Sharia Supervisory Board is needed. The objective of this article is to find out the jurisdiction governing the Sharia Supervisory Board in the Islamic capital market in Indonesia. The methodology used is qualitative research. The data used in this study is library data. This study found that the existence of the Sharia Supervisory Board already has a legal basis based on the Indonesian Financial Services Authority Regulation. However, there are no specific laws governing the Islamic capital market. So it is necessary to make a special law that accommodates all aspects of sharia in the Islamic capital market, specifically with regard to the Sharia Supervisory Board.Keywords: Capital Market, Sharia Capital Market, Sharia Supervisory Board, Jurisdiction, Indonesia. AbstrakPasar modal adalah lembaga yang mempertemukan mereka yang membutuhkan dana, untuk mengembangkan usahanya, dan mereka yang memiliki kelebihan dana, untuk melakukan investasi. Berbeda dengan konsep pembiayaan di bank, pasar modal menggunakan konsep jual beli saham. Sehingga dapat menjadi solusi bagi perusahaan yang ingin mengembangkan usahanya tanpa menggunakan hutang. Investor juga bisa mendapatkan keuntungan yang lebih tinggi dari keuntungan dari deposito bank. Dengan demikian, pasar modal tumbuh di tengah masyarakat. Namun, ada beberapa aktivitas di pasar modal yang bertentangan dengan prinsip syariah. Oleh karena itu, pasar modal syariah muncul. Untuk mengawal aktivitas di pasar modal syariah, diperlukan peran dari Dewan Pengawas Syariah. Artikel ini bertujuan untuk mengetahui yurisdiksi yang mengatur Dewan Pengawas Syariah di pasar modal syariah di Indonesia. Metodologi yang digunakan adalah penelitian kualitatif. Data yang digunakan dalam penelitian ini adalah data perpustakaan. Studi ini menemukan bahwa keberadaan Dewan Pengawas Syariah sudah memiliki dasar hukum berdasarkan Peraturan Otoritas Jasa Keuangan. Namun, tidak ada undang-undang khusus yang mengatur pasar modal syariah. Sehingga perlu dibuat undang-undang khusus yang mengakomodir semua aspek syariah di pasar modal syariah, khususnya yang berkaitan dengan Dewan Pengawas Syariah.Kata Kunci: Pasar Modal, Pasar Modal Syariah, Dewan Pengawas Syariah, Yurisdiksi, Indonesia

scholarly journals A Study on Investor’s Attitude Towards SBI and HDFC Mutual Fund in Coimbatore City

2021 ◽  
pp. 443-447
Author(s):  
Dr. L. Senthilkumar
Keyword(s):  
Capital Market ◽  
Mutual Fund ◽  
Low Cost ◽  
Money Market ◽  
Short Term ◽  
Stated Objective ◽  
Financial Goal ◽  
Joint Ownership ◽  
The Common ◽  
Common Man

A Mutual Fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

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