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Bumi Saham

In short

Bumi Saham is the portion of a company's total capital that is divided into small, tradable units owned by investors.

In plain words

When a company wants to grow, it splits its value into many tiny pieces. People buy these pieces to own a small part of the business. If the company does well, the value of these pieces usually goes up.

A simple example

If a bakery is worth £1,000 and is split into 1,000 pieces, each piece costs £1. If you buy ten pieces, you own 1% of the bakery.

Why it matters

It allows companies to raise large amounts of money without taking on debt. It also gives regular people a way to build wealth by participating in a company's success.

Easy to mix up

Do not confuse it with total company value, which is the whole pie rather than the individual slices.

Sources

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