Monday, June 6, 2011

Short form in Remarks column of the Share prices

Extracted from http://share.sg/2010/08/19/cd-cum-dividend-what-do-these-remarks-beside-the-share-means/
BI=Buy In Only
BI is normally used in the buy-in market. This is normally for people who short sell the shares but they never cover in the same day. Therefore, when the time comes for settlement, SGX will buy-in those shares for them in the market to cover their short position.
CA=Any combination of Cum remarks
CB=Cum Bonus
The share is generally known as cum-bonus in case where the purchaser will receive the current bonus. A stock trades cum-bonus up until the ex-bonus date. Before a bonus share is issued, the board of directors is supposed to propose the bonus during a board meeting. This issue will be approved in the company meeting. Then the company directors can decide whether they can give shares to particular shareholders. The date of the issue of shares is known as record date.
CD=Cum Dividend
Cum dividend means “with dividend.” When a buyer of a security is entitled to receive a dividend that has been declared, but not paid. A stock trades cum-dividend up until the ex-dividend date. On or after this point, the stock trades without its dividend rights. When you see CD next to a stock’s name on the Singapore Exchange (SGX) website, this tells you the firm will be paying out dividends in the near future, and it’s your pre-empt notice.
You should continue reading about important dates in the dividend process, and take a look at the period transiting from Cum Dividend to Ex-Dividend.
CE=Cum Entitlement
It might be an entitlement to capital reduction or cash distribution or free shares given out by the company.
CI=Cum Interest
Applies to interest rate securities only, and in this case, interest (or coupons) is for SGX-listed bonds. Securities trade on the basis that the securities carry an entitlement to the next interest payment. The purchaser of securities cum interest is entitled to the next interest payment. Securities are traded on a cum interest basis until the Ex Interest date. When a bond is trading at CI, it means that it is going to give interest to its holders.
CO=Cum Offer
CR=Cum Rights
Issue of rights where the offeree can choose to take up the rights offered, let them lapse, or trade them on the market. Privilege granted to shareholders to buy new shares in the same company.
DL=Delisted
The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company for which the stock is issued,  whether voluntarily or involuntarily, is not in compliance with the listing requirements of the exchange. Listing requirements include minimum share prices, certain financial ratios, minimum sales levels, and so on.
H=Trading Halt
A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be canceled and options may be exercised.
J=Adjust
Indicates that the equity derivative series is associated with an underlying security of an issuer that has declared a change to its ordinary share capital structure which is effective prior to the recommencement of trading in those securities on that day. Trades entered into the associated derivatives series will be on an adjusted basis with the extent of the adjustment published by SGX after trading closes on that date.
PL=Pending Listing
In the process of adding a listed security on the exchange on which it trades.
Susp=Suspended
A stoppage in the trading of a security for an extended period of time that normally occurs when there is a lack of material financial information on the security. Once the security is suspended, shares of that security cannot be traded on the market until the suspension is lifted or lapses. The exact amount of time for the suspension will be determined on on a case-by-case basis.
WI=When Issue
When issued basis. This is normally for IPOs when it is being listed and people trade it on WI basis. Which means, those shares had yet to be credited into the CDP account but they had already been issued with the shares. Nowadays, IPO shares seldom trade on WI basis and you might want to ignore this remark.
XA=Any combination of Ex remarks
XB=Ex Bonus
Those shares that are bought before the record date are known as cum-bonus. This creates a situation where the investor should buy the bonus shares. Just opposite to this, those shares which are sold after the record date forms the ex-bonus. No bonus shares will be issued out for stocks bought after this date. The value of the shares under the cum-bonus will have high value as compared to ex-bonus.
XD=Ex Dividend
A stock trades ex-dividend on or after the ex-dividend date. At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. For example, if Company A’s XD is Jul 13.
This means if you own the stock on or before Jul 12, you would get the 1.1-cent dividend as the stock would be trading CD then.
If you own the stock on Jul 13 or after, you would not be entitled to the dividend.
Investors who sell their shares on or after the XD or ex-dividend retain their rights to the dividends.After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.
You should continue reading about important dates in the dividend process, and take a look at the period transiting from Cum Dividend to Ex-Dividend.
XE=Ex Entitlement
Shareholders who buy shares on this day onwards are no longer entitled to capital reduction or cash distribution or free shares given out by the company.
XI=Ex Interest
Opposite to Cum Interest. SGX-listed bonds trade as XI from the Ex Interest date onwards. Buyers of bonds on and after the Ex Interest date are not entitled to receive associated interest.
XO=Ex Offer
XR=Ex Rights
Shares of stock that are trading but no longer have rights attached because they have either expired, been transferred to another investor or been exercised. The rights originally assigned to the stockholder are, for whatever reason, no longer valid or no longer applicable to the stock.

1 comment:

  1. I like to say that corporations finance themselves by either taking out loans, or selling stock to investors. Most investors attribute equity ownership to common stock. Preference shares and dividends, however, also provide ownership privileges for investors.

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