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Jakarta Post

Vague thin line between endorsement and insider trading

  • Ricky Pratomo

    Jakarta

Jakarta   /   Wed, January 13 2021   /  01:00 am
Up and down: A visitor walks past an electronic board showing the movement of the Indonesian Composite Index at the Indonesia Stock Exchange building in Jakarta on Sept. 10, 2020. The pandemic has led to a significant rise stock trading, with about 488,000 new trading accounts registered in 2020, marking a 93 percent annual increase.(JP/JP/Seto Wardhana)

The year 2020 was a very unique period, not only because we were forced to stay at home, but there was a swift shift in our financial habits. As a consequence of being unable to spend wealth on lavish trips or pointless possessions, wealth unexpectedly accumulated and soon became a ripe investment means. Thanks to technological advancements providing easy access for any person, especially young investors, to open a trading account, stock trading came out as everyone’s weapon of choice. In 2020 alone, there were ±488,000 new trading accounts (a 93 percent increase), and most of them are retail traders. Unfortunately, using a weapon without the underlying proper knowledge of its mechanism comes with great risk. However, while incompetent, those new traders do not come out in a cold sweat when trading stocks regularly. Why? The clue lies in the so-called “stock infl...