2 types of Capital Market Participants


In the capital market, there are 2 (two) main players in the capital market. Capital market participants are commonly referred to as stock traders. The capital market participants in question are: Companies / issuers and the public / individuals. Here's the full explanation:

Stock Traders

a. Company / issuer

Issuer is a party that conducts a public offering (which proposes to conduct an initial public offering or issue shares to the public). The company conducts a public offering in order to obtain funding sources from the capital market to maintain the company's business continuity.

The company can also act as a party that conducts buying and selling shares. So, the company does not only act as a party conducting public offerings or other corporate actions. However, companies can actively participate in buying and selling certain shares on the Stock Exchange.


b. Community / individual

Communities or individuals are also referred to as investors or investors. It is these people who carry out share buying and selling transactions. The public can act as a trader (buy and sell stocks in the short term), and traders benefit from the difference between the selling price - the buying price. Meanwhile, there are also people who act as stock investors, who benefit from long-term stock price growth.

If depicted in the scheme, the capital market participants are as follows: 

Gotou Sakurajima
Gotou Sakurajima A female trader from Japan who now lives in Jakarta, Sakura loves Forex and Stock Trading since moving to Jakarta and Sakura loves to write articles about Trading.