Avoiding Oversold Situations

Oversold is a situation where you sell more shares than you actually have.

Avoiding Oversold Situations in Bursa Malaysia

Oversold is a situation where you sell more shares than you actually have. This can happen due to system errors or certain corporate actions. If you find yourself oversold, you'll have to buy back the shares at the current market price, which can result in a loss.

Common Causes of Oversold

  • System errors: Sometimes, technical glitches can lead to incorrect reporting of your shareholdings.
  • Corporate exercises: Events like share consolidations can affect your share count.
  • Islamic accounts: If you're using an Islamic account and shares are kept in a conventional account (Stocks becoming Shariah non-compliant or purchase of Shariah non-compliant IPO), the system might not detect the entry correctly, leading to oversold.

How to Avoid Oversold

  • Double-check your share quantity: Before selling, always verify that you have enough shares to cover your transaction.
  • Consult your dealer or remisier: If you're unsure about your shareholdings, don't hesitate to reach out to your dealer or remisier.