1. Seminar Investasi dan Pasar Modal Session 1: Introduction By Dr. Ir. Sugeng Purwanto MBA,FRM Jakarta, 3 February 2010 Source : BKM (2005). “INVESTMENTS”, 6 th Edition, Chaper 1-3, Page 1-100. 1

2. 2 2 Ir. Sugeng Purwanto MBA, Ph.D, FRM s-p@cbn.net.id Current Activities * Consultant for strategic finance, financial restructuring * Speaker of Public Seminars and Workshops * Dean Paramadina Graduate School of Business (since November 2008) * Independent Director PT Garudafood Putra Putri Jaya * Supervisor and examiner for Ph.D Dissertation of University of Indonesia – Faculty of Economics: Financial Management/Strategic Management/Marketing Management/Accounting Management * Lecturer: FEUI Ph.D Seminar on Corporate Finance, Advanced Corporate Finance * Lecturer: CFA Exam Preparation Experiences Director of Corporate Strategy and Project Management Office PT Smart TelecomApril – Sept 2007 Director PT Mitrasari Kartikatama [CBS Holdings owned by Mr. Henry Pribadi]Dec.2005-Jan 2007 Head of Commercial Unit Bandung Institute of Technology2005 Finance Director PT Surya Citra Media Tbk – Holding Company of SCTV2004-2005 Director PT Bhakti Investama Tbk (restructuring, M&A)2001-2003 Director PT Agis Tbk – Holding of elektronics business, Production House 2002-2003 Comissioner (PT Agis Aweca Asia, PT Metro Selular, PT datakom Asia, PT Media Citra I) 2001-2003 Project Executive Director Niaga Tower – Property Office Developments1996-1998 Executive Project Advisor PT Grahaniaga Tatautama1991-1993 Technical Consultant for Branch Developments of PT Bank Niaga Tbk 1989-1990 Sales Coordinator PT Berca Indonesia1987-1988 Business Owner1985-1986 Project Coordinator PT Berca Indonesia1983-1984 Education Ph.D in Monetary Economics FEUI 2004, cum laude, Index 3.95 of max. 4 in 13 months ~ Awarded by MURI RECORD as the fastest doctorate graduate in Indonesia 2004 Ph.D in Finance FEUI 2001, Summa Cum Laude, Index 3.98 of maximum 4 in 22 months ~ Awarded by MURI as the fastest doctorate graduate in Indonesia 2001 MBA Monash University - Melbourne 1995 IPMI Magister Management 1994 ITB Electrical Engineering 1983 Professional Certificates Financial Risk Manager (FRM) by GARP. Fund Manager, Underwriter, Broker Dealer. Fund Management License. Other: Nominee for Candidate of Rector of Bandung Institute of Technology ITB 2005

3. THE INVESTMENT ENVIRONMENT ASSETS:  REAL ASSETS  FINANCIAL ASSETS BKM Chapter 1: THE INVESTMENT ENVIRONMENT

4. CLIENTS OF FINANCIAL SYSTEM  THE HOUSEHOLD SECTOR  THE BUSINESS SECTOR  THE GOVERNMENT SECTOR

5. RESPONSES TO CLIENTELE DEMANDS  FINANCIAL INTERMEDIATION  INVESTMENT BANKING  FINANCIAL INNOVATIONS AND DERIVATIVES

6. MARKETS AND MARKET STRUCTURE  DIRECT MARKET  BROKERED MARKET  DEALER MARKET  AUCTION MARKET

7. ONGOING TRENDS  GLOBALIZATION  SECURITIZATION  FINANCIAL ENGINEERING  REVOLUTION IN INFORMATION AND COMMUNICATION NETWORK

8. FINANCIAL INSTRUMENTS  THE MONEY MARKET  THE BONDS  EQUITY SECURITIES  DERIVATIVES PRODUCTS o OPTIONS o FUTURES BKM Chapter 2 : FINANCIAL INSTRUMENT

9. STOCK MARKET INDEXES  PRICE-WEIGHTED AVERAGE : DJIA  VALUE-WEIGHTED INDEXES : IHSG, S&P  EQUALLY WEIGHTED INDEXES

10. BKM Chapter 3 : SECURITIES TRADING

11. SECURITIES TRADING PRIMARY MARKET Securities purchased by investors at the “IPO” SECONDARY MARKET Selling and buying securities among investors after securities floated in the market

12. SECURITIES ISSSE For the first time : IPO Firms which are going public are called “emiten” (in Indonesia). Role: o Investment banker/under-writer o Financial advisor o Legal consultants o Notary o Law firm o Auditors o Valuer Seasonal Issues (Right Issues)

13. TRADING ON EXCHANGES ORDERS:  LIMIT ORDER o BUY LIMIT ORDER o SELL LIMIT ORDER  MARKET ORDER o BUY MARKET ORDER o SELL MARKET ORDER

14. OTHERS DEFINITIONS:  SPECIALISTS  MARKET MAKER  MARGIN TRADING  SHORT-SALES End