Understanding CA stocks, XM, and the suffix symbols you need to know before trading stocks

When you access a stock trading app, you’ll see strange abbreviations attached to stock names, such as CA, XM, XD, T1, T2, and many others. These symbols are not just random letters but important indicators of upcoming events related to that stock and its trading status. Understanding these symbols correctly is crucial for investors to make informed decisions.

What is CA – The Indicator of Stock Movement News

The CA symbol stands for “Corporate Action,” which means a company’s action. If a stock has CA at the end, it indicates that the company is preparing to announce significant information that could impact the stock price within the next 7 days.

Clicking on CA will show more details about what the event is and when it will occur. This information is often displayed as other abbreviations divided into three main groups, helping investors understand the nature of upcoming events.

First Group: X Symbols – Indicators of Investor Rights Loss

Symbols starting with X mean “Excluding,” indicating that rights are not received. Buying stocks during the period when an X symbol appears means investors will not receive certain benefits the company is about to offer.

XD – The Most Important Dividend Rights

XD stands for “Excluding Dividend.” If you buy stocks when XD appears, you will not receive dividends. Conversely, if you already hold the stock before XD and continue to hold it, you will receive dividends from the company’s profits as usual.

Common investor questions:

• Q: How do I know the XD date?
  A: Check the securities calendar on the stock exchange website or click on the CA at the end of the stock name.

• Q: How long do I need to hold the stock to receive dividends?
  A: You can buy the day before XD. If XD occurs on the 2nd and you buy on the 1st, you will still receive the full dividend.

• Q: Is there a difference if I buy just before or after XD?
  A: No, the dividend rate is the same for all entitled shareholders.

XM – Rights to Attend Shareholders’ Meeting

XM stands for “Excluding Meetings.” Investors who buy stocks when XM appears will not have the right to attend the shareholders’ meeting, an important event where shareholders participate in decision-making about the company’s affairs.

Other Rights You Might Lose

Besides XD and XM, there are other X symbols investors should understand:

• XW (Excluding Warrant): No right to purchase warrants (convertible shares)
• XS (Excluding Short-term Warrant): No right to subscribe for short-term warrants
• XR (Excluding Rights): No right to subscribe for new shares (capital increase)
• XT (Excluding Transferable Subscription Right): No transferable rights to buy additional shares
• XI (Excluding Interest): No interest received
• XP (Excluding Principal): No principal repayment
• XA (Excluding All): No rights at all
• XE (Excluding Exercise): No right to convert securities into shares
• XN (Excluding Capital Return): No capital return (a measure to adjust company finances)
• XB (Excluding Other Benefit): No other subscription rights

Second Group: T Symbols – Price Surge Warning Indicators

Stocks with a T suffix indicate rapid price increases. The stock exchange has measures to control such surges, divided into three levels.

T1 – First Level: Initial Control

T1 stands for “Trading Alert Level 1.” When a stock hits T1, you must use a Cash Balance account (only available for cash funds) to buy the stock. This status lasts about 3 weeks after announcement.

T2 – Second Level: Additional Control

T2 means “Trading Alert Level 2.” If a stock remains at T1 within one month, it will be upgraded to T2. Besides using Cash Balance, you are also prohibited from using this stock as collateral.

T3 – Highest Control Level

T3 stands for “Trading Alert Level 3.” If a stock remains at T2 for another month, it will be upgraded to T3. At this level, in addition to T2 restrictions, settlement with other trades is also prohibited. This means when you sell T3 stocks, the proceeds will not be available immediately but will be settled the next day.

Third Group: Risk Warning Symbols – Danger Signals to Avoid

H – Trading Halt

H stands for “Trading Halt.” When a stock shows H, trading is temporarily suspended for one trading session (morning or afternoon). Usually caused by the release of confidential news not yet officially disclosed to the stock exchange.

SP – Trading Suspension

SP means “Trading Suspension,” which lasts longer than one session. Unlike H, which is a temporary halt, SP can be due to reasons like failure to submit financial statements or other serious issues.

NP and NR – Announcements and Confirmations

• NP (Notice Pending): The company has pending reports to the stock exchange.
• NR (Notice Received): The company has received official documents and clarifications.

NC – Non-Compliance Warning

NC stands for “Non-Compliance.” Companies with NC are at risk of delisting due to issues like prolonged losses or failure to submit financial reports. They have one year to resolve these issues.

ST – Stabilization

ST indicates “Stabilization,” used for IPO stocks to maintain price stability during the first 30 days. The “Greenshoe” method involves issuing extra shares to help keep the price from falling below the IPO price.

C – Caution – Risk Warning

C signifies “Caution.” Companies marked with C are facing problems and financial risks, such as:

Financial issues:

• Shareholders’ equity less than 50% of paid-up capital
• Court-approved rehabilitation or bankruptcy
• Regulatory orders to rectify financial status

Financial statement issues:

• Auditors’ disclaimers
• SEC directives to amend financial reports

Business issues:

• Becoming a Cash Company (selling almost all assets and holding only cash)

Summary: Understanding CA, XM, XD, T1, T2, T3, and Other Symbols for Smarter Investing

A stock with CA indicates an upcoming significant event. Recognizing the meanings of XM, XD, T1, T2, T3, and other warning symbols is essential because they reveal what activities are about to happen and the associated risks.

Remember, investing involves risks and may not be suitable for everyone. Always study thoroughly, understand these symbols, and make decisions based on accurate information to ensure safer and more effective investments.