What is Equity? 3 Equity Stocks in Indonesia: BBRI, BBCA, ANTAM

Term equity often appears in the world of finance, especially when discussing stocks. To some, this term may sound complicated, but its meaning is quite simple. Equity refers to the value of a shareholder's ownership of a company.

In practice, equity is an important basis for assessing a company's financial health and potential investor returns.

We'll discuss a simple definition of equity, its benefits, and examples of three major Indonesian stocks frequently chosen by investors: BBRI, BBCA, and ANTAM. Let's break it down briefly to make it easier to understand.

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What is Equity in Finance?

Equity is the net value of a company after deducting its liabilities. The simple formula isEquity = Total Assets – Total LiabilitiesThis figure shows how large a portion of shareholder ownership is in the company.

Equity can be viewed from two perspectives: book value and market value. Book value is derived from official financial statements, while market value is calculated based on the prevailing stock price on the stock exchange.

The difference between the two often occurs because accounting reports record past conditions, while market values ​​reflect future expectations.

For investors, equity isn't just a number. This value can indicate a company's ability to grow, pay dividends, and generate capital gains. The healthier the equity, the more attractive the company is to potential investors.

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Benefits of Equity for Investors

Equity offers many benefits to shareholders. One of them islimitations of responsibilityThis means that investors' risk is limited to the capital they invest and does not extend to the company's liabilities.

In addition, stocks have the potential for higher returns compared to other financial instruments. Investors canget dividendsperiodically, while also profiting from rising share prices, or capital gains. With high liquidity, shares can also be sold at any time on the capital market.

Equally important, there are also tax advantages. Capital gains in many countries are taxed at lower rates than ordinary income. This makes stock investing more attractive.

For modern investors, understanding equity helps them make smarter decisions.

3 Large Equity Stocks in Indonesia: BBRI, BBCA, ANTAM

BBRI

Bank Rakyat Indonesia (BBRI) is one of the largest banking issuers in Indonesia. BBRI's equity continues to grow in line with its business expansion in the microcredit and digital services sectors. BBRI shares are often sought after by investors due to their consistent performance and stable dividends.

BBCA

Bank Central Asia (BBCA) is known as the largest private bank in Indonesia. BBCA's equity reflects solid capital strength and maintained asset quality. Many investors favor BBCA shares for their stable returns and strong reputation in the financial sector.

ANTAM

Aneka Tambang (ANTAM) is a mining company focused on gold, nickel, and other minerals. ANTAM's equity reflects its strategic role in the commodity sector. ANTAM shares are often in demand when gold and nickel prices rise, making it an attractive diversification option for investors.

These three stocks, BBRI, BBCA, and ANTAM, are real examples of how company equity is reflected in stock performance on the capital market.

Conclusion

Equity is a crucial foundation in the investment world. It indicates the extent of shareholder ownership in a company and serves as a benchmark for the company's financial health.

Examples of large stocks in Indonesia, such as BBRI, BBCA, and ANTA,M show how equity can attract investors with the prospect of long-term profits.

For those of you who want to expand your financial knowledge, don't forget to read the latest news about the market and crypto at Bittime Blogor start trading on Bittime Exchange.

FAQ

What is equity?

Equity is the value of shareholder ownership in a company after deducting total liabilities.

What are the benefits of equity for investors?

Equity provides limited risk protection, large profit potential, and flexibility in investing.

What is the difference between the book value and the market value of equity?

Book value is derived from financial statements, while market value is determined by the stock price on the stock exchange.

Why are BBRI, BBCA, and ANTAM called large equity stocks?

All three have strong capitalisation, stable performance, and high liquidity in the Indonesian capital market.

Does equity only apply to stocks?

No, the concept of equity can also apply in the crypto world through tokens owned by investors.