CA Symbol in the Stock Market: The Complete Guide for Investors

When observing stock trading applications, you may notice strange abbreviations appended to stock names, such as CA, T1, XD, SP, NC, etc. These symbols are not just random letters but carry deep financial meanings that significantly impact shareholders’ rights. This article aims to provide knowledge about these symbols, especially CA, which is the most frequently appearing abbreviation in stock investments.

What is CA: Corporate Action

CA stands for Corporate Action, meaning “Corporate Activity or Organizational Action.” When a stock has the CA symbol displayed, it indicates that “a significant change or event will occur with that stock within 7 days.”

Investors can click on the CA itself for more details. The system will clearly show how the movement will happen, including the ranking and date of occurrence. CA can be divided into several types based on the nature of the action, each with different impacts.

Warning Symbols Investors Must Be Aware Of

Before understanding other CA details, it is essential to recognize warning symbols indicating potential issues with a stock.

H (Trading Halt): This symbol means that trading of that stock is temporarily suspended for just 1 trading session. (There are 2 sessions per day: morning and afternoon.) Generally, H appears when rumors surface but the company has not officially announced to the stock exchange.

SP (Trading Suspension): This indicates a longer suspension than 1 session, possibly due to similar reasons as H or because the company has not submitted financial reports. The severity of SP is greater than H.

NP (Notice Pending): The company has something to notify the stock exchange. Once notified, the symbol will change to NR (Notice Received).

NC (Non-Compliance): The company may be at risk of delisting due to violations or failure to submit financial statements for an extended period. The company will have 1 year to resolve the issue.

ST (Stabilization): The stock is undergoing price stabilization, often after IPO during the first 30 days. The company may perform a “Greenshoe” to prevent the price from falling below the IPO price.

C (Caution): A warning sign indicating the company has financial or management issues. The shareholder portion is less than 50% of paid-up capital, the auditor cannot express an opinion, or the court has accepted a reorganization petition. The presence of C indicates high risk.

Trading Level Alerts: T1, T2, T3

When a stock rises rapidly with high speculation, the stock exchange implements control measures using the T series symbols to limit sharp increases and protect retail investors.

T1 (Trading Alert Level 1): The first level. The stock must be traded only with a Cash Balance account. This symbol remains for 3 weeks.

T2 (Trading Alert Level 2): If the stock remains under T1 for more than 1 month, it escalates to T2. Besides requiring a Cash Balance account, the stock cannot be used as collateral. The period is 3 weeks.

T3 (Trading Alert Level 3): The highest level. If the stock remains under T2 for another month, it escalates to T3. In addition to previous restrictions, netting (Settlement) is prohibited. This means that when you sell the stock, the proceeds will not be immediately available but will be settled the next day. This measure prevents multiple trades within the same day.

Note on Cash Balance Accounts: This account type is suitable for beginner investors because you can only invest up to the amount of money in your account, helping to limit the use of borrowed funds.

The X Series: Rights and Benefits Lost

The X series symbols stand for “Excluding,” indicating that investors will lose certain rights. Understanding these symbols is crucial as they affect stock prices and your returns.

XD (Excluding Dividend): If you buy the stock after the XD date, you will not receive the dividend for that round. However, if you hold the stock until the next XD, you will receive the dividend then.

Investor Question: How do I know which day is XD? You can check the stock exchange’s calendar or click on CA in the app.

Question: How long do I need to hold the stock to receive dividends? You can buy anytime before the XD date. Even purchasing just one day before XD entitles you to the dividend.

Question: Will the dividend rate be the same regardless of when I buy? Correct. Everyone eligible will receive the same rate.

XM (Excluding Meetings): Investors will not have the right to attend shareholder meetings, which are important for shareholders to participate in key decision-making.

XW (Excluding Warrant): You will not have the right to purchase Warrant securities, which are issued for fundraising and can be converted into the parent stock. The conversion ratio is usually 1:1.

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) issued to raise funds for business expansion.

XT (Excluding Transferable Subscription Right): No transferable subscription rights for additional capital.

XI (Excluding Interest): No interest rights.

XP (Excluding Principal): No right to receive the principal amount announced for repayment.

XA (Excluding All): No rights at all. You can click to see details to understand what rights are excluded.

XE (Excluding Exercise): No right to convert securities into shares.

XN (Excluding Capital Return): No right to receive a return of capital from capital reduction. (The company reduces capital to balance accounts when there are accumulated losses.)

XB (Excluding Other Benefit): No right to subscribe for various types of shares, such as preferred shares or other related securities.

Summary: Why CA is Important

The CA symbol is a notification tool indicating that a significant event is about to happen with the stock. Understanding CA symbols such as X series, T series, and other warning signs is key to making informed investment decisions. Always check these symbols before buying or selling stocks, as they reveal rights and risks you may face. Safe and smart investing begins with proper understanding of this information.