What is a CA certificate and why is it important for investors

When observing in a trading application, you will notice many symbols attached behind stock symbols, such as CA, XM, XD, XN, and many others. These symbols actually communicate important information relevant to investment decisions. This article will clarify these markers in an easy-to-understand manner.

What does the CA mark indicate?

The CA mark stands for Corporate Action, which means “This stock will have a significant event occurring within the next 7 days.”

When you see the CA symbol appear, you can click to view details of the upcoming announcement, helping you understand what will happen and the relevant dates. These events are often indicated by various symbols behind the stock symbol, which can be categorized into 3 main groups.

Symbols of type X – Excluding rights or benefits

Symbols starting with the letter X derive from “Excluding”, meaning “Shareholders will not receive certain rights” when purchasing stocks during the display of an X symbol.

XD – No dividend entitlement

XD stands for Excluding Dividend. If you buy stocks when XD is displayed, you will not be entitled to receive dividends for that period. However, if you continue to hold the stock until the next XD appears, you will receive dividends in the subsequent cycle.

Frequently Asked Questions:

• Why check the XD date? You can view the main securities calendar on the stock exchange website or click the CA symbol to see if an XD event is upcoming.
• How long should I hold the stock? Actually, you can buy just before the XD date increases and still receive dividends.
• Is the amount the same? Yes, everyone receives the same dividend rate regardless of when they buy.

XM – No voting rights at the meeting

XM stands for Excluding Meetings. Buyers of stocks with the XM symbol will not be able to attend shareholder meetings. These meetings are opportunities for shareholders to approve company decisions.

XW – No warrant rights

XW stands for Excluding Warrant. When buying stocks with XW, you will not have the right to purchase warrants, which are derivatives of the parent stock that can be converted into common shares with additional payment.

XS – No short-term warrant rights

XS stands for Excluding Short-term Warrant. Buyers of stocks with this symbol will not have the right to subscribe for short-term warrants.

XR – No rights to subscribe for capital increase

XR stands for Excluding Rights. Investors will not have the right to subscribe for new shares issued to raise capital, often for business expansion or financial restructuring.

XT – No subscription certificate rights

XT stands for Excluding Transferable Subscription Right. Buyers will not receive the certificate of rights to subscribe for new shares, which are issued to raise funds.

XI and XP – Interest and principal

XI (Excluding Interest) means no interest is received, while XP (Excluding Principal) means no principal repayment announced by the company.

XA – All rights excluded

XA stands for Excluding All. When this symbol appears, buyers will not receive any rights announced by the company. You can check further details to see which rights are excluded.

XE – No conversion rights

XE stands for Excluding Exercise. Buyers will not be able to exercise the conversion of securities into shares.

XN – No capital return

XN stands for Excluding Capital Return. When the company reduces capital, stockholders holding during XN will not receive a return from the capital reduction.

XB – Other benefits

XB stands for Excluding Other Benefit. Buyers cannot subscribe for other types of shares, such as preferred shares or other securities allocated to existing shareholders.

Symbols of type T – Price control measures

Symbols of type T appear when stock prices increase sharply with high speculation. The stock exchange implements measures to control speculation, divided into 3 levels.

T1 – Level 1

T1 stands for Trading Alert Level 1. At this level, buyers must use a Cash Balance account only. The display of this symbol lasts for 3 weeks from the announcement date.

T2 – Level 2

T2 stands for Trading Alert Level 2. If a stock with T1 remains under the Trading Alert criteria for less than 1 month, it will be upgraded to T2. At this level, stocks must be purchased with Cash Balance only and cannot be used as collateral. Duration is 3 weeks from the announcement.

T3 – Level 3

T3 stands for Trading Alert Level 3. If a stock remains under T2 criteria within 1 month, it will be escalated to T3. Restrictions are more severe, including a ban on netting. This means when you sell stocks, the buying power will be restored the next day, not immediately. This is a market method to prevent multiple trades within a single day.

Warning symbols – Be cautious of risks

There are groups of symbols issued to warn investors to exercise caution.

H – Temporary trading halt

H stands for Trading Halt. This symbol indicates that trading of the stock is paused for one trading session. (There are 2 sessions per day – morning and afternoon.)

Cause: Some news leaks out but the company has not officially announced to the stock exchange.

SP – Trading suspension longer than 1 session

SP stands for Trading Suspension. The stock will be halted for more than one session. Causes may be similar to H but longer, or due to failure to submit financial statements on time.

NP and NR – Pending notice and notice received

NP (Notice Pending) indicates the company has something to report to the market. Once the report is submitted, the symbol changes to NR (Notice Received), indicating the market has received clarification.

NC – Non-compliance

NC stands for Non-Compliance. A company may be delisted due to issues such as prolonged accumulated losses or failure to submit financial statements. The company has 1 year to resolve concerns.

ST – Price stabilization

ST stands for Stabilization. This symbol appears when a company issues an IPO and uses the “Greenshoe” method, which involves issuing more shares than initially planned to keep the price near the IPO price during the first 30 days.

C – Financial caution

C stands for Caution. This symbol indicates the company has financial problems and high risks, serving as a warning for investors to avoid investing in this stock for now.

A company may be marked with C when:

• Financials: Shareholders’ equity is less than 50% of paid-up capital or the court has accepted a rehabilitation petition.
• Financial statements: Auditors issue a disclaimer or the SEC orders corrections.
• Business: The company is a Cash Company, having sold most of its assets.

Summary

The CA mark and other symbols attached to stocks are essential tools for investors to check relevant information and events related to stocks. Simply clicking the CA symbol allows viewing all details. Understanding these abbreviations is crucial for making informed investment decisions and reducing risks due to lack of information.