Abstract
<p><em>This article aims to describe the characteristics of insider trading according to the Act No. 8 of 1995 on Capital Market and the implication with legal effort that can be taken by minority shareholder. </em><em>The characteristics of insider trading according to the act No 8 of 1995 on Capital Market are in line with fiduciary duty theory principle, there is involvement of insider by the misappropriation trusted. Insider trading has impacts to the other investors, especially to minority shareholder. The difference opportunity to do transaction causes financial disadantages, and for the loss, minority shareholder can doing legal effort, submit their civil lawsuit </em><em>to the insider trader.</em><em></em></p>
Highlights
Share market is an indicator of economic growth beside banking and other direct investment, such as insurance, property, gold and so on
Share market development aims to face business growth, encourage community faster to invest in go public companies, and motivate community to participate in funding management, so it can be used productively to support national development cost (Nindyo Pramono, 2013: 2)
The unfair felt by minority shareholders when there occur insider trading is caused by the different chance to have transaction in share market, which gives special position for certain people and benefit for them
Summary
Share market is an indicator of economic growth beside banking and other direct investment, such as insurance, property, gold and so on. The unfair felt by minority shareholders when there occur insider trading is caused by the different chance to have transaction in share market, which gives special position for certain people and benefit for them. The minority shareholders selling their shares to insider trading doers do not know this, causing the selling offer is based on the spread information in the market and in standard price.
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