The meaning of the CA symbol in stock trading

What is CA: A Guide for Investors

When opening a stock trading app, many people notice strange abbreviations following stock names, such as CA, XD, XM, XN, T1, T2 and many others. But do you understand the meaning behind these abbreviations? Since these symbols play an important role in investment decisions, this article compiles knowledge about stock suffix abbreviations so investors can understand them clearly.

CA stands for Corporate Action, which means “company operations.” This symbol indicates that “a significant event will occur with this stock within the next 7 days.” Investors can click on the CA symbol to see details about what the event is and when it will happen. The system will display various abbreviations with specific meanings.

Group of symbols starting with X: Important for investors to know

The X series symbols stand for “Excluding,” meaning “investors will lose certain rights” if they decide to buy the stock during the period when these symbols are present.

XD - Excluding Dividend (Loss of Dividend Rights)
If you buy the stock during the XD period, you will not receive dividends for that round. However, if you hold the stock until another XD appears, you will be entitled to dividends in the next round. Dividends are a share of the company’s profits distributed to shareholders.

Frequently Asked Questions (Q&A)

Q: How do I know when XD will occur?
A: Check the securities calendar on the stock exchange website or click on CA to verify if an XD event is scheduled.

Q: How long do I need to hold the stock to receive dividends?
A: You can buy the stock up to the day before XD occurs. For example, buy on day 1, and if XD occurs on day 2, you will still receive dividends.

Q: If I buy just before XD, do I get the same dividends as those who bought earlier?
A: Yes, dividends are calculated at the same rate regardless of when you buy.

XM - Excluding Meetings (Loss of Shareholders’ Meeting Rights)
Buying stock when XM is active means you cannot participate in the company’s annual general meeting. This meeting is an opportunity for shareholders to participate in strategic decision-making.

XW - Excluding Warrant (Loss of Warrant Purchase Rights)
A warrant is a security issued to shareholders that can be converted into common stock. If you buy during XW, you will not have this right. Typically, the conversion ratio is 1:1, and additional payment is required to convert, providing the company with additional capital.

Other X series symbols:

• XS: Excluding Short-term Warrant - No rights to subscribe for short-term warrants
• XR: Excluding Right - No rights to subscribe for new shares (Capital Increase) due to the company’s need for additional funding for business development
• XT: Excluding Transferable Subscription Right - No transferable rights to purchase additional shares
• XI: Excluding Interest - No interest received
• XP: Excluding Principal - No principal from redemption announced by the company
• XA: Excluding All - No rights at all; check details for what is included
• XE: Excluding Exercise - No rights to convert securities into shares
• XN: Excluding Capital Return - No capital refund (Capital reduction is a restructuring process to better balance the company’s capital structure, especially when there are accumulated losses over a long period)
• XB: Excluding Other Benefit - No rights to subscribe for preferred or common shares, including securities offered to existing shareholders

Group of symbols starting with T: Warnings about risky stock trading

The T series symbols indicate rapid price increases and high speculation. The stock exchange implements measures to control volatility, divided into 3 levels.

T1 - Trading Alert Level 1
The first level indicates that this stock can only be bought from a Cash Balance account. This status remains for 3 weeks from the date the stock exchange announces it.

T2 - Trading Alert Level 2
If a T1 stock remains on the Trading Alert List for no more than 1 month after measures are announced, it escalates to T2. It still requires a Cash Balance account and cannot be used as collateral. This status also lasts for 3 weeks.

T3 - Trading Alert Level 3
If a T2 stock remains on the list, it escalates to T3, which has additional restrictions: it can only be bought with Cash Balance, cannot be used as collateral, and (Settlement) is prohibited. This means that after selling the stock, the buying power does not return immediately but the next day. This restriction helps prevent multiple trades within the same day.

Note: A Cash Balance account is suitable for beginner investors because you can only invest with the funds available in your account, making management and control of investment limits easier.

Warning symbols for investors to be cautious about

Besides the abbreviations above, there are other symbols that require special attention.

H - Trading Halt (Temporary trading suspension for 1 round)
The stock temporarily stops trading, possibly due to leaked news not yet officially announced by the listed company to the stock exchange.

SP - Trading Suspension (Extended trading halt)
A longer trading suspension than a halt, usually for reasons such as undisclosed news or delays in financial reporting.

NP - Notice Pending (Report pending)
The company has pending reports to submit to the stock exchange. Once submitted, the symbol changes to NR (Notice Received).

NC - Non-Compliance (Non-compliance)
The company risks delisting due to long-term accumulated losses or delays in financial reporting. The company has 1 year to rectify the situation.

ST - Stabilization (Price stabilization)
The company is stabilizing its stock price, often through “Greenshoe” issuance, which involves issuing more shares than planned to support the price and prevent it from falling below the IPO price within the first 30 days.

C - Caution (Investment warning)
The company is experiencing problems and has high financial risk. This warns investors to avoid investing at this time. Companies marked with Caution may be in situations such as:

Financial status:

• Shareholders’ equity less than 50% of paid-up capital
• Bankruptcy or reorganization filed in court
• Regulatory orders to rectify financial status

Financial statements:

• Auditor’s opinion is limited or disclaimed
• SEC orders to amend financial statements or conduct special audits

Business characteristics:

• The company is a Cash Company (selling all or nearly all assets, leaving only cash or short-term securities)

Summary: The importance of knowing CA and stock suffixes

The CA symbol indicates that a significant event is about to happen with that stock, which can be easily checked by clicking for details. However, these events often appear as abbreviations, so understanding their meanings is crucial for investors.

Once you understand CA and other symbols, you can make more informed investment decisions and better assess risks. This article aims to help you understand stock suffix abbreviations clearly and be prepared for your next stock trading.