CA and the stock suffixes that investors need to know

When entering the stock trading application, you may see various abbreviations following stock names, such as CA, XM, XD, XN, T1, T2, T3, H, SP and others. These symbols are not just random letters but important signals indicating upcoming events and changes that will occur with the stock in the near future.

Meaning of the CA symbol at the end of a stock

CA stands for Corporate Action, which means organizational/company activities. This symbol alerts investors that “this stock will have significant movements in the next 7 days.” When you click on the CA symbol, the system will display details about what the movement is and when it will happen.

The symbols at the end of stocks are codes indicating the type of event that will occur. They can be broadly categorized as follows:

Group of X symbols: Signals of loss of rights

Symbols starting with X stand for “Excluding,” meaning investors who buy the stock during this period will not receive certain benefits, which will be reserved for existing shareholders.

XD (Excluding Dividend) - Signal of no dividend payout If you buy the stock on a day with XD, you will miss out on receiving the dividend for this round. However, if you continue to hold the stock, you will be eligible for dividends in the next payout cycle. Dividends are profits distributed by the company to shareholders.

XM (Excluding Meetings) - Signal of no right to attend shareholder meetings Buying stock when XM appears means you will not have the right to participate in shareholder meetings, which are crucial for shareholders to influence company decisions.

XW (Excluding Warrant) - Signal of no warrant rights Seeing XW indicates you will not receive the right to purchase warrants (small stock options) issued by the company. Warrants can usually be converted into common stock at a ratio of 1:1.

XR (Excluding Rights) - Signal of no rights to subscribe for new shares If you see XR, it means you will not have the right to subscribe for newly issued shares, often used to raise capital for business expansion.

XS, XT, XI, XP, XA, XE, XN, XB - Other signals

• XS (Excluding Short-term Warrant): No rights to short-term subscription warrants
• XT (Excluding Transferable Subscription Right): No transferable rights to subscribe for additional shares
• XI (Excluding Interest): No interest received
• XP (Excluding Principal): No principal repayment announced by the company
• XA (Excluding All): No rights to any benefits announced by the company
• XE (Excluding Exercise): No rights to convert securities into shares
• XN (Excluding Capital Return): No capital return (capital reduction to adjust the company’s capital and reduce accumulated losses)
• XB (Excluding Other Benefit): No other rights, such as subscription for preferred shares or securities of affiliated companies

Group of T symbols: Signals of risk warning due to rapid price increase

Symbols starting with T appear when a stock’s price rises rapidly with high speculation. The stock exchange implements measures to limit price volatility, divided into three levels based on severity.

T1 (Trading Alert Level 1) - First warning level Stocks with T1 can only be traded in a Cash Balance account (cash account). This measure is effective for 3 weeks after announcement.

T2 (Trading Alert Level 2) - Second warning level If a stock remains unstable and continues to meet the Trading Alert List after T1, it will be upgraded to T2. In this case, trading must still be in a Cash Balance account, and the stock cannot be used as collateral. The measure lasts for 3 weeks.

T3 (Trading Alert Level 3) - Highest warning level When a stock on T2 remains highly risky, it will be escalated to T3. This level has the strictest rules: it must be traded only in a Cash Balance account, cannot be used as collateral in any account, and no net settlement (Settlement) is allowed. This means that when you sell the stock, the buying power may not be immediately restored but will be available the next day. This measure helps prevent multiple trades within the same day.

A Cash Balance account is designed for beginners seeking simplicity. You can only invest with the amount of money available in your account, making fund management easier.

Other symbols indicating risk

H (Trading Halt) - Temporary trading suspension When a stock has H, it means trading for that stock is halted for 1 trading session (each trading day has 2 sessions, morning and afternoon). This usually occurs when significant news leaks to the public before the company has officially announced it to the stock exchange.

SP (Trading Suspension) - General trading halt Unlike H, which halts trading for one session, SP indicates trading is halted for more than one session. The reason could be pending important news not yet reported or the company not submitting financial statements.

NP (Notice Pending) - Pending report notification This symbol shows the company has important information to notify the stock exchange. Once the report is submitted, NP changes to NR (Notice Received), meaning the exchange has received the complete clarification.

NC (Non-Compliance) - Non-compliance risk This symbol indicates the company is at risk of delisting, such as having accumulated losses over a long period or failing to submit financial statements on time. The company has a 1-year window to rectify the situation.

ST (Stabilization) - Price stabilization by the company Mostly appearing after IPO (initial public offering), this symbol indicates the company has used the “Greenshoe” option by issuing additional shares and using those shares to stabilize the stock price for the first 30 days.

C (Caution) - Financial health warning The C symbol appears when the company faces severe financial problems. Investors should be cautious, as this may include:

Financial status:

• Shareholders’ equity less than 50% of paid-up capital
• Court petitions for business rehabilitation or bankruptcy filings
• Regulatory authorities requiring financial or management corrections

Financial statements:

• Auditors’ opinion is limited or disclaimed
• SEC orders for financial correction or special audits

Business characteristics:

• The company becomes a Cash Company (selling almost all assets)

Why is it important to understand these symbols?

Understanding the meaning of CA and other stock symbols is a crucial tool for making informed investment decisions. These symbols are not just ordinary letters but warning signals indicating upcoming events that could impact trading activity. Most trading platforms provide additional details when you click on these symbols, helping you make smarter decisions and reduce investment risks.