Getting to know the stock suffix symbols in the stock exchange

When you enter the stock trading platform, you may notice strange letters appended to various stock symbols, such as CA, XM, XD, XN and many others. These are not just random letters but are specific identification systems that help investors understand the status and events of each stock. This article will help you understand what ca in stocks means and why it is important for making investment decisions.

CA: Corporate Action and Its Significance

ca in stocks is an abbreviation for “Corporate Action,” which refers to actions taken by the organization. When a stock shows CA, it indicates that “a significant event will occur with this stock within the next 7 days.”

Clicking on the CA abbreviation will display detailed information about:

• What the event is
• When it will happen
• The nature of the event (whether it involves dividend payments, capital increases, or shareholder meetings)

These stock suffix abbreviations are divided into 3 main groups based on the nature of the event and its impact on shareholders.

Group 1: X Series Symbols - Rights You Will Lose

Stock suffixes starting with the letter X mean the same: “Excluding”, which indicates that “investors will not receive rights related to that matter” if they buy the stock after the date the symbol appears.

XD: Loss of dividend rights

XD stands for “Excluding Dividend,” indicating that new buyers will not be entitled to receive dividends for this round.

Example: If you buy the stock after the XD mark appears, you will not receive dividends. However, if you continue to hold the stock until the next dividend payout, you will be entitled to receive that dividend.

Common investor questions:

Q: How do I know when this stock will go XD?
A: You can check the calendar of events on the stock exchange website or click on the CA symbol to see the XD announcement date.

Q: How long do I need to hold the stock to receive dividends?
A: The fastest way is to buy before the XD date appears. Even purchasing the day before still grants entitlement to dividends.

Q: If I buy just before the XD date, will I get the same dividend as existing shareholders?
A: Yes, regardless of when you buy, the dividend amount remains the same because the payout rate is fixed percentage.

Other X Symbols You Should Know

XM (Excluding Meetings): New shareholders will not have the right to attend shareholder meetings, which are important meetings where shareholders participate in decision-making about key company matters.

XW (Excluding Warrant): You will not have the right to subscribe for Warrant shares, which are convertible securities that can be converted into common stock at a set ratio (usually 1:1)

XR (Excluding Rights): Buyers will not have the right to subscribe for new issued shares (capital increase), which companies often issue to raise additional funds for business expansion.

XS (Excluding Short-term Warrant): No rights to subscribe for short-term warrants.

XT (Excluding Transferable Subscription Right): No transferable rights to purchase additional shares.

XI (Excluding Interest): No interest rights.

XP (Excluding Principal): No principal repayment rights.

XA (Excluding All): No rights at all; the company’s announcement details can be viewed by clicking.

XE (Excluding Exercise): No rights to convert securities into shares.

XN (Excluding Capital Return): No capital reduction refunds, which are adjustments to the company’s capital structure, especially for companies with accumulated losses.

XB (Excluding Other Benefits): No rights to subscribe for various types of shares, such as preferred shares or securities of affiliated companies.

Group 2: T Series Symbols - Restrictions on High-Risk Trading

When a stock’s price rises rapidly with high speculation, the stock exchange implements protective measures by marking it with T, which has 3 levels.

T1 (Trading Alert Level 1): First level - this stock can only be bought with a Cash Balance account, valid for 3 weeks from the announcement date.

T2 (Trading Alert Level 2): Second level - if the stock remains within T1 criteria for 1 month, it will be upgraded to T2, which still requires Cash Balance and prohibits using it as collateral. It also lasts for 3 weeks.

T3 (Trading Alert Level 3): Third level - if the stock remains within T2 criteria for over 1 month, it will be upgraded to T3, with additional restrictions including immediate settlement restrictions (which means when you sell the stock, the buying power will not be restored immediately but the next day). This measure helps prevent multiple trades in a single day.

Note: Cash Balance accounts are suitable for beginners because you can only invest up to the amount of money you have, making it easier to understand and limiting your purchase capacity.

Group 3: Warning Symbols for Investors

This group of symbols aims to alert investors to be cautious and aware of risks or issues that require attention.

H (Trading Halt): The stock is temporarily halted from trading for 1 trading session (each day has 2 sessions: morning and afternoon), usually due to leaked press releases that have not yet been officially announced to the stock exchange.

SP (Trading Suspension): The stock is suspended from trading for more than 1 session, caused by the same reasons as H or failure to submit financial statements.

NP (Notice Pending): The company has pending disclosures to the stock exchange. Once submitted, NP changes to NR.

NR (Notice Received): The stock exchange has received clarification from the company.

NC (Non-Compliance): The company is at risk of delisting, often due to significant losses or prolonged failure to submit financial statements. The company has 1 year to rectify.

ST (Stabilization): The company is stabilizing its stock price, often during IPOs, using the “Greenshoe” method, which involves issuing more shares than planned to support the price and prevent it from falling below the IPO price during the first 30 days.

C (Caution): This company is facing problems and has high financial risk. This is a warning for investors to consider carefully. The company will be marked with C if it meets any of the following criteria:

Financial:

• Shareholders’ equity less than 50% of paid-up capital
• Court has accepted a reorganization or bankruptcy petition
• Regulatory authority has ordered financial correction

Financial Statements:

• Auditor’s opinion is unqualified
• SEC orders amendments or special audits

Business:

• The company is a Cash Company (only cash and short-term securities)

Summary: Understanding ca in stocks is like reading a map of the stock market

The CA symbol and all these abbreviations are essential tools for tracking what happens to stocks. Once you understand what ca in stocks means and the significance of other symbols, you can make smarter investment decisions.

Whether preparing for dividends, avoiding risky stocks, or understanding capital increases, these symbols serve as warning signals to keep you informed and protected in your decisions.

For new investors just starting out, understanding these symbols is a crucial step before engaging in trading activities.