In the world of stocks, there are special terms that are often mentioned when you start investing. This term is called a large share. Perhaps you are already familiar with this term because it is a unit for calculating stock investments.
Unlike other investments, for every 1 lot purchased you will receive several shares. So how many shares are there in 1 lot?
So that you do not make mistakes and do not have surprises when you invest in stocks. Know what a stock lot is and how to calculate it. Let's find out more in the article below!
What is Stock Lot?
A share lot is the standard unit of account used in stock trading. Lots here play the role of showing the number of stock units that are bought and sold on the stock exchange or capital market.
You can start by buying 1 lot of shares or multiples. One lot consists of several shares.
Share purchases can only be made per lot. Therefore, you cannot buy just a few shares.
How many shares are there in 1 Lot?
The number of shares in 1 lot is determined and regulated by the Indonesia Stock Exchange (BEI). Until now, 1 lot is 100 shares.
according to the latest policy The standard number of shares in 1 lot is 100. Regulations on this number of shares have been in force since 2014.
Previously, 1 lot was 500 shares. However, in order to increase public investment awareness and enable everyone to invest, IDX changed to 100 shares per lot.
Each company participating in the capital market can set the price of 1 different lot of shares. However, the number of shares must still be determined according to IDX regulations, so a company cannot sell 1 lot of more than 100 shares.
One lot of shares may have different prices. Starting from 100,000 baht to tens of thousands of rupiah. Of course, this price depends on the company's policy and also on capital market conditions.
So how do you calculate the number of shares? See the simulation below:
You want to start investing in shares in a company/issuer at a price of IDR 100,000.00 per share. That means you need to multiply the price by 100 shares, so the calculation is as follows:
Number of shares = 100 shares
Total price = 100 shares x IDR 100,000.00 = IDR 10,000,000.00
Therefore, if you want to invest in this company, you must prepare 10 million IDR to buy 1 lot of shares.
The purpose of determining the number of shares of the stock exchange
So why has the Indonesian Stock Exchange set rules regarding this share lot? Some of the reasons and objectives are as follows:
1. Stabilize the ideal value of the stock market.
The same is true of the general economic market. Prices in the capital market must also maintain stability. The aim is to create the optimal nominal value for the transaction between the issuer/company and the investor.
The lot counting unit is set so that small purchases or transactions do not occur. For example, IDX specifies purchases based on the number of shares, not lots. Investors can only purchase a few shares at the lowest price.
If this happens, it is feared that the capital market conditions will be unbalanced and inefficient. This will harm the sustainability of the issuer and even the stock exchange –
2. Provide opportunities for various social groups to invest.
The previous IDX regulations, which stipulated that one lot was 500 shares, made the capital market quieter as few investors were brave and able to invest. Which of course has an impact on the capital market. This is because many companies/issuers are embracing the opportunity. But there are few buyers.
By changing the number of shares in 1 lot, anyone has the opportunity to try investing in stocks. Starting from students, employees, and even housewives (IRT). In addition, many stocks are currently open starting at low prices so that everyone can can buy
3. Make it easier for companies to get funding from investors.
The company's goal in launching an equity issue is to acquire a large amount of capital. Imagine if investors could buy in bundles?
Of course, this will have quite a negative impact on the company/issuer. This is where the role of stock caps by stock exchanges is to protect the company.
Tips for starting to invest in stocks from 1 lot
before buying a large amount of stock You can start investing in stocks from 1 lot by paying attention to the tips below:
1. Understand the world of stock investing more deeply
The first tip you need to pay attention to is to make sure you learn more about the world of sharing. You can find information about stocks that are stocks. Related regulations Conditions of stocks used, etc. Stock recommendations for beginners–
The goal is that you will no longer be surprised if changes or turmoil occur in the capital markets. You can observe the price changes from time to time to make the best decision.
2. Set investment goals
Once you understand stocks, you must also set your investment goals. Remember, it is best not to invest in stocks using “hot money” or funds used for daily needs.
Make sure you use “cold money” or funds that will remain untouched for a long time. Therefore, investment goals should be set such as education, emergency funds. and retirement Of course, setting this goal must come with understanding the risks of buying large amounts of stocks, okay?
3. Make a list of investment plans for different types of companies.
before buying a large amount of stock You must first list the plans of the company in which you want to buy shares. For beginners You can try to start by buying lots from smaller companies first.
This initial purchase is to view the progress or development of the investment that has been made. If you see fit, try investing in stocks of large companies.
Listing this investment plan can be balanced with publishing information about the company/issuer's stock price, market conditions, and industry trends. and risk
Apart from that, you can also consider some things. Best Short-Term Investment Stock Options If you don't have the courage to start it long term. The goal is for you to be able to adapt to capital market conditions and watch. profit Was what you received as expected?
4. Design an opportunity analysis
The next tip to start investing in stocks from 1 lot is to design an opportunity analysis. This analysis is carried out by collecting various data. About the target company/issuer
You can then predict how much profit you will make and predict capital market conditions.
5. Make logical decisions.
The last tip, which is no less important, is to always make decisions based on observation and logical thinking. Avoid making decisions based on emotion. In this case, you shouldn't rush to sell or buy a large number of stocks just because the price is high or has gone 'viral'.
That is the discussion about stock lots that you need to understand before investing in stocks. Make sure you understand capital markets, calculations, and risks, okay?
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