The Importance of Market Information

Information is a daily menu in the capital market. Without the supply of capital market information may be stagnant. Because, in the absence information means no factor that drives investors’ expectations that investors will not say anything, do not do anything.

Type of information is diverse, ranging from mild to severe. Of information about the company until the information is macro, both economically and politically. For example information about management turnover, decreased performance, distribution of dividends, stock splits, mergers and acquisitions, changes in the stock index abroad, changes in exchange rates, economic growth, and others. The information comes after another, from one issuer to another issuer.

Another example of many. Information about rising prices (fuel), about the world oil price, about inflation, on interest rates and expectations vary so wake up in every investors mind. Numerous examples can be seen, how the information is crucial in the stock price changes. When circulating information that the economic growth of Indonesia first quarter 2009 reached 4.4 percent, the market reacted positively.

It is hard to argue that the existence of information is always a major impact on stock price changes. Negative nature of information which would lower stock prices, instead of positive information that will boost interest in buying market. In each of the information is always a force that gives rise to expectations of investors. This expectation that drives interest in buying and selling interest so that the resulting changes in stock prices in the market.

An investment experts prescribe how to counteract the rumors in the market. The reason the rumors could not be resisted, but must be conquered. From discussions with some market players, said of the market liquidity, the existence of the rumors are actually quite important. But the player must react smart. There are several tips that made the actors themselves.

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