Trading and investment are familiar terms in the business world. Both of these terms are very often used in managing a business. Trading and investment function are to increase the amount of profit in a certain period of time. Many people always assume that trading and investment are the same activity. Although trading and investment have the same function, both of these activities are very different. Below will be discussed about the differences of trading and investment, the types of trading and investment, and how much are penny stocks.
The Differences of Trading and Investment
Trading is an exchange activity from one party to another party. These exchanges can be in the form of goods or services. The advantage of trading is that businessmen can control or plan how much profit you want to get each period. Behind these advantages, certainly there are deficiencies that you need to be aware of. The disadvantage of trading is that businessmen can experience huge losses. These losses can occur and this can be caused by irregular management. Therefore, trading must be managed very well so that you get a large profit in accordance with the targeted. On other hand, investment is an activity carried out to increase profits by investing. In the economic world, investment is often known as capital. Different with trading, investment has the advantage that business people will get benefits in the form of interest. Meanwhile, the disadvantage of investing is that you cannot control how much profit you want to get each period.
The Types of Trading and and Investment
Trading and investment have many types. The types of trading are Meta Trader, Streamster, and trading platform based on website. Meanwhile, the types of investments are deposits, bonds, mutual funds, property investments, and gold. The types of investments mentioned are already familiar, but there is one definite type of investment that is certainly very foreign to many people. This type of investment can be known as Penny Stock.
All about Penny Stock
What are Penny Stocks? Penny stock is one of the most popular types of investment. Penny stock is taken from the word “Penny” which is the lowest nominal money in America. It can be concluded that penny stock is an investment activity with very cheap nominal. How much are penny stock? In Indonesia, the nominal of the penny stock investment is only 50 rupiahs. This nominal does make investor very tempted. There are many things that cause the low nominal penny stock and one of the causes is the company’s condition that is not good. If the company’s fundamental conditions deteriorate, it is not surprising that the shares continue to decline to the lowest nominal. In Indonesia there are several companies that have a nominal of 50 rupiah. These companies such as:
1. Bakrie & Brothers Inc. (code: BNBR)
2. Mahaka Media Inc. (code: ABBA)
3. Bekasi Asri Pemula Inc. (code: BAPA)
4. Bakrieland Development Inc. (code: ELTY)
5. Energi Mega Persada Inc. (code: ENRG)
6. Leyland International Inc. (code: LAPD)
7. Mas Murni Indonesia Inc. (code: MAMI)
8. Gading Development Inc. (code: GAMA)
9. Indonesia Transport & Infrastruktur Inc. (code: IATA)
10. Mitra International Resources Inc. (code: MIRA)
The advantage of penny stock is that its nominal is very cheap and is expected to make the company’s shares more active for trading. Although the stock price is very cheap, of course, penny stock also has a huge risk. The risk that often occurs is a decline in stock prices. The stock price can be invested up to 1 rupiah per share. Therefore, investors must be able to prevent these risks by making appropriate plans and strategies, no matter how much are penny stocks.