Market
Market is one
of a variety of systems, institutions, procedures, social relationsand
infrastructures in which businesses sell goods, services and labor for the
peoplein exchange for money. Goods and
services sold to use as legal tender fiat money. This activity is part of the economy. It is an arrangement that allows
buyers andsellers to exchange items. Competition is very important in the
market, and separate from the trading market.
Two people may do the trade, but it takes at
leastthree people to have a market, so there is competition on at least one of
the twosides. Markets vary in size, range, geographic scale,
location, type and variety of the human community, as well as the type of goods
and services traded. Some examples include
local farmers market held in the town square or parking lots ,shopping centers
and shopping malls, international currency and commodity markets, the law
creating such a market for pollution permits, and illegal marketslike the
market for illicit drugs.
In mainstream economics, the concept of the market
is any structure that allows buyers and sellers to exchange any type of goods,
services and information.Exchange of goods or services for money is a
transaction. Market
participantsconsist of all buyers and sellers are both affecting its price. This influence is a
majorstudy of economics and has spawned several theories and models of basic
market forces of supply and demand. There are two roles in the market, buyers
and sellers. Markets facilitate trade and allow the distribution and
allocation of resources in the community. Markets allow all items to be
evaluated and traded prices. An emergingmarket is more or less spontaneous or deliberately
constructed by human interaction to allow the exchange of rights (ownership) services
and goods.
CAPITAL MARKET
Indonesia had experienced economic
devastation that had been built through the joints of the new order policy
began crawling back construct the foundation of the economy. International
Financial Corporation (IFC) classification of stocks linked to the
classification of the state. If
the country is still classified as a developing country, the market in the
country is also in a developing stage, although market shares are fully
functional and well organized.
Developed capital markets can be identified
through a country, whether the country is a developed country or a developing
country classified. Indicator is the per capita income of a country, which is
usually included in the low to middle- income countries. But the most
striking characteristic is seen the value of the market capitalization of
companies listed, the cumulative trading volume, the tightness of capital
markets regulation, sophistication and culture to domestic investors.
Consequences of growing capital market is a small
market capitalization value. A measure of market capitalization ratio is
usually seen from the comparison with the value of a country’s gross domestic
product. In addition to the other consequences is the presence of thin trading
volume (thin trading) caused by trade (non – syncronous trading) on the
market. Synchronous trading is not caused by the number of securities
traded not entirely, meaning that there is some specific time in which a
securities transaction does not occur (Hartono, 2003). Indonesia which is
still listed on the IFC is still a developing country with the worst investment
climate in the East Asian region. Even with a record like that, in fact we
are still considered by foreign investors. The fact that there are national companies with actually
being in the strategic sectors of the country, offered by some foreign
institutions through the acquisition of shares. The presence of capital
inflows as investments in general is foreign investment should be a booster of
the macro economy. The main reason for foreign investors to move their funds to
developing countries is that developing countries have the potential untapped
business entirely, as in the classic motifs of investment to other
countries. Michael Fairbanks and Stace Lindsay senior consultant at
Monitor Company express purpose of foreign investors coming to the poorer
countries is usually only see an opportunity to attract natural resources,
cheap labor and wages as the target product or service that is not good
quality.
But there are other reasons that accompany such
motives, the striking differences with developed countries. If we use a
life cycle approach to the business of developing countries into the category
growth (growth) than developed countries that fall into the category of ripe
(mature). It means that there is the attraction of high economic growth
which of course is accompanied by a high return anyway, because economic growth
is an aggregate indicator of industry in a country. For example, the mobile telecommunications business in Indonesia,
which explored the new solid in Java alone, while outside it still has high
potential to serve new markets.
