Stocks with CA are warning signs that investors need to be aware of

When entering a stock trading application, you often see mysterious symbols attached behind stock names, such as CA, XD, XM, T1, H, SP, etc. These symbols do not appear randomly but indicate that the stock is experiencing a “special event” that investors should be aware of to prevent reckless losses.

CA stands for Corporate Action - a signal that the stock is undergoing a change

CA stands for Corporate Action, which means “actions taken by the company.” When a stock has a CA, it indicates that within the next seven days, the stock will undergo a significant event, such as dividend payments, new share issuance, or other rights related to shareholders.

Clicking on the CA symbol will clearly show details about what the event is and when it will take effect. Usually, this information is displayed as an abbreviation, divided into three main groups based on the nature of the event.

First group: X symbols - Rights exclusion

Symbols starting with X come from the word “Excluding,” indicating the loss of certain rights for new buyers. If you buy the stock from the date the symbol appears, you will miss out on the rights that follow.

XD - Dividend exclusion

XD stands for Excluding Dividend. If you buy the stock when it is marked XD, it means you will not receive dividends for this dividend cycle, even if you own the stock. However, if you hold the stock until the next dividend cycle, you will be entitled to receive the dividend then.

How to know the date when XD occurs: Click on the CA abbreviation or check the securities calendar on the stock exchange website to see the dividend declaration date.

How long should you hold the stock to receive dividends: Ideally, buy the stock before the XD date. For example, if you buy on the 1st and 2nd, and the stock is marked XD, you still receive the dividend rights.

Do all investors receive the same dividend regardless of purchase date: Yes, everyone gets the same dividend rate, whether bought before or after XD.

XM - Excluding shareholder meeting participation

XM stands for Excluding Meetings. Investors who buy stocks from this symbol will not have the right to attend shareholder meetings, which are forums where shareholders can participate in decision-making about important company matters.

XW - Excluding Warrant rights

XW stands for Excluding Warrant. Investors will not receive Warrants or “sub-shares,” which are securities issued to shareholders that can be converted into common shares upon additional payment, usually at a ratio of 1:1.

( XS - Excluding short-term warrants

XS stands for Excluding Short-term Warrant. Buyers will not have the right to subscribe for short-term warrants.

) XR - Excluding rights to subscribe for new shares

XR stands for Excluding Rights. If the company decides to increase capital by issuing new shares, investors who bought before the XR mark will not have the right to subscribe for the new shares. Companies usually do this to expand their business.

XT, XI, XP, XA, XE, XN, XB - Other rights

Besides the above rights, there are other rights that may be lost:

• XT ###Excluding Transferable Subscription Right### - Not entitled to transferable rights to purchase additional shares
• XI (Excluding Interest) - Not entitled to interest
• XP (Excluding Principal) - Not entitled to return of principal
• XA (Excluding All) - Not entitled to any rights as announced by the company
• XE (Excluding Exercise) - Not entitled to convert securities into shares
• XN (Excluding Capital Return) - Not entitled to capital reduction refunds
• XB (Excluding Other Benefit) - Not entitled to subscription rights for preferred shares or other new share formats

Second group: T symbols - Trading restrictions

Stocks with rapid and abnormal price increases are marked with T, which has three levels to prevent excessive speculation.

( T1 - First warning level

T1 )Trading Alert Level 1### means you must use a Cash Balance account only. (This refers to your own cash account.) The duration of this mark is 3 weeks from the announcement by the stock exchange.

( T2 - Second warning level

T2 )Trading Alert Level 2### is applied if the stock remains under T1 after one month. The level is raised, and investors still must use a Cash Balance account but with additional restrictions: no collateralizing the stock. Duration: 3 weeks.

( T3 - Highest warning level

T3 )Trading Alert Level 3### indicates that the situation has not improved, and the restrictions are most stringent: Cash Balance only, no collateral, and no immediate trading power. This means that after selling the stock, you must wait until the next trading day to regain trading power. This system helps slow down multiple trades within the same day.

Third group: Other warning symbols - Danger signals

( H - Trading Halt )Temporary trading suspension###

H stands for Trading Halt. When a stock has this symbol, trading will pause for 1 session, either morning or afternoon, usually due to negative news leaks before the company officially announces to the stock exchange, giving the company time to clarify.

( SP - Trading Suspension )Longer trading halt(

SP stands for Trading Suspension. When the situation is more serious than H, trading will be suspended for more than 1 session, often due to reasons like the company not submitting financial statements on time.

) NP and NR - Notification statuses

NP ###Notice Pending( indicates the company has a report to submit to the stock exchange. Once the report is sent, the symbol changes to NR )Notice Received###, meaning the market has received and reviewed the information.

( NC - Non-Compliance )Long-term trading ban(

NC stands for Non-Compliance. This is a red warning sign indicating the company may be delisted from the stock exchange due to reasons such as: accumulated losses exceeding 50% of paid-up capital, prolonged failure to submit financial statements, or other fundamental issues. The company has 1 year to rectify the issues; failure to do so may result in delisting.

) ST - Stabilization ###Price stabilization(

ST stands for Stabilization. It indicates the company is reducing price risk after an IPO. The method often called “Greenshoe,” where the company issues more shares than planned to support the price and prevent it from falling below the IPO price during the first 30 days.

) C - Caution ###Warning - Company has problems(

C stands for Caution. This is a warning signal to avoid investing. The company faces serious financial issues, such as:

Financial problems:

• Shareholders’ equity less than 50% of paid-up capital
• Court petitions for rehabilitation or bankruptcy
• Regulatory orders to correct financial status or suspend operations

Financial reporting issues:

• Auditor’s disclaimer due to scope limitations
• SEC orders to amend financial statements or conduct special audits

Business issues:

• The company is a Cash Company )selling most assets and only holding cash###

Summary of CA and other symbol groups

The CA symbol attached to the stock name is an extension indicator that says “Warning: a certain event is about to happen.” When you click to see details, the system will show what the event is, when it ends, and which rights will be lost.

Understanding these abbreviations is crucial because buying stocks with these symbols can affect your benefits—dividends, other rights, or the company’s risks. Always invest with caution, take your time, review the information, and make decisions carefully.