What is a Corporate Action? Understanding the CA symbol and other abbreviations in the stock market

When observing stock trading applications, you may encounter strange abbreviations at the end of stock names, such as CA, H, SP, T1, T2, T3, XD, XM, XW, etc. What do these abbreviations mean, and why do investors need to know them before following the hype? This article will explain all the details of the suffix symbols to help you understand intelligently.

Corporate Action (CA) is a movement of the company that investors must be aware of

Corporate Action abbreviated as CA means “that the stock is about to have a signal or corporate action within 7 days.” When a stock shows CA, you can click to see what the upcoming event is and when it will occur.

Suffix symbols can be categorized into three main groups, each with different meanings and impacts.

Risk Warning Symbols: H, SP, NP, NR, NC, ST, C

Abbreviations warning to halt trading

H (Trading Halt) means the stock temporarily stops trading for only 1 session. This usually occurs when there is transparent news that has not yet been officially announced to the stock exchange.

SP (Trading Suspension) is a longer trading halt than 1 session. The reason may be due to undisclosed news or delays in submitting financial statements.

Abbreviations indicating company condition

NP (Notice Pending) indicates the company has matters to report to the stock exchange, and NR (Notice Received) appears once the market has received full clarification.

NC (Non-Compliance) signals that the company may be subject to delisting due to prolonged losses or delays in submitting financial reports. The company has 1 year to rectify the situation.

ST (Stabilization) appears when the company implements price stabilization measures, such as the “Greenshoe” option, which involves selling IPO shares exceeding the specified amount to maintain the price and prevent it from falling during the first 30 days.

C (Caution) warns that the company has financial risks, such as shareholders’ equity below 50% of paid-up capital or requests for business rehabilitation.

X Series Symbols: Rights options that investors will lose

Symbols starting with X come from “Excluding,” meaning “not entitled.” If you buy stocks with an X symbol, you will not receive the rights that follow.

Main rights and benefits

XD (Excluding Dividend) – You will not receive dividends for this round. However, if you hold the stock until the next dividend round, you will receive dividends normally. Regardless of when you buy, everyone will receive dividends at the same rate.

XM (Excluding Meetings) – You will not have the right to attend shareholder meetings to decide on important company matters.

XR (Excluding Rights) – You will not have the right to subscribe for new shares (capital increase), which companies often use to raise additional funds from existing shareholders when expanding their business.

XW (Excluding Warrant) – You will not have the right to purchase Warrants (convertible securities), which can be converted into parent shares. The conversion rate is usually 1:1, but you may need to pay an additional amount based on the exercise price.

Additional X Symbols

XS (Excluding Short-term Warrant) – Not entitled to subscribe for short-term warrants.

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 the principal amount announced for repayment.

XE (Excluding Exercise) – No right to convert the security into shares.

XN (Excluding Capital Return) – Not entitled to capital reduction refunds (which reduces the company’s accumulated losses).

XA (Excluding All) – Not entitled to any rights announced by the company. Click to see details of what is included.

XB (Excluding Other Benefit) – Not entitled to subscription rights for preferred shares allocated to common shareholders, or common shares allocated to preferred shareholders, or securities of affiliated companies.

T Series Symbols: Levels of speculative warning

The T symbol appears when a stock’s price rises rapidly with high speculation. The Stock Exchange implements measures divided into 3 levels.

T1 (Trading Alert Level 1) – The first warning level. Stocks must be traded only with a Cash Balance account. This lasts for 3 weeks.

T2 (Trading Alert Level 2) – The second warning level. If the T1 stocks still meet criteria within the first month, they are upgraded to T2, requiring cash-only trading and prohibiting collateral. This lasts for 3 weeks.

T3 (Trading Alert Level 3) – The highest warning level. If T2 stocks still meet criteria within the first month, they are upgraded to T3, which, in addition to cash-only trading and prohibiting collateral, also restricts net settlement. That is, after selling stocks, the buying power will not return immediately but will be available the next day. This measure helps limit multiple trades within the same day.

A Cash Balance account is suitable for beginners because it is designed for those who want to follow the hype with real money, without leverage, making it easier to understand and limiting investment amounts.

Additional Information: Frequently Asked Questions

Q: How can I tell when a stock will go XD?
A: Check the stock calendar on the stock exchange website or click the CA symbol at the end of the stock name to see the schedule.

Q: How long do I need to hold stocks to receive dividends?
A: The best way is to buy before the XD date. Even purchasing just 1 day before can still entitle you to dividends.

Q: Is there a difference if I buy stocks at different times but both before the XD day?
A: No, dividends are the same for everyone who has the rights.

Summary

The Corporate Action (CA) symbol and other suffix abbreviations are essential tools that help investors track stock events. The best practice is to click and view details when you see the CA symbol. Understanding the meanings of X, T, and various risk warning symbols will help you make better investment decisions and avoid unnecessary risks.