Risk on Securities Transactions

Securities transactions involve activities aimed at acquiring, disposing, or utilizing securities that result in a change of ownership or do not result in a change of ownership. Stocks are one of the most attractive instruments in securities transactions and have a large number of enthusiasts. Therefore, market participants are expected to understand the inherent risks associated with stock transactions, such as:

  • Capital Loss 

    Capital loss is the risk incurred by market participants when selling stocks below the acquisition price. For example, if Investor A buys shares of company EFGH at Rp 1,000 per share for a total of 10,000 shares, and then sells all the shares at Rp 950 per share, Investor A incurs a capital loss of Rp 500,000.

  • Liquidity Risk

    Liquidity risk is related to the volume and value of transactions for a particular stock. This risk occurs when an investor cannot sell the stock at the prevailing market price. This can happen when there are no interested buyers and may result from unforeseen circumstances.

  • Delisting Risk 

    Delisting occurs when a company's shares are removed from trading on the Indonesia Stock Exchange. This can happen due to the company's poor financial performance, violation of established regulations, or voluntary delisting by the company.

The stock price is determined by supply and demand. Supply and demand are influenced by numerous factors, both specific to the stock (the company's performance and the industry it operates in) and macroeconomic factors such as interest rates, inflation, exchange rates, as well as non-economic factors like social and political conditions, among others.