Daftar Isi:
  • Common stock as one of the investment instrument in capital market has a high potential rate of return that attracts many investors. However, the instrument contains high risk in line with the high rate of return. To minimalize the risks, investors always looking for relevant information that can be used to help them in making investment decision. There are several factors that influence stock price in the market. One of them is the company’s performance which can be seen from its financial ratios. The objective of this research is to understand financial ratios (especially current ratio, debt to equity ratio, return on equity, net profit margin, price to book value ) that influence stock’s price. This research uses linear regression analysis as the model and companies that included in 2006-2010’s LQ45 Index as the object. With purposive sampling method, only thirteen companies are selected. This research shows that all independent variables give significant influence toward the stock price partially and simultaneously.