Understand the CA stock suffix and other abbreviations correctly

When studying stock investments, you will encounter various abbreviations following the stock name, such as CA, XD, XM, T1, T2, T3, and many more. Each of these abbreviations has different meanings and significance. Understanding them correctly is essential for investors before trading stocks.

What does CA mean? Learn the in-depth meaning

CA stands for Corporate Action (CA means the company’s action or corporate movement)

When a stock has a CA suffix, it indicates that the company will announce or carry out an important action soon (usually within 7 days) Investors can click on the CA symbol to see details about what kind of movement will occur and on what date.

All suffix symbols at the end of stocks can be divided into 3 main groups, each with different meanings and impacts on shareholders’ rights.

First Group: X symbols indicating loss of rights

Stock suffixes starting with X mean “Excluding” or “not including,” indicating that buyers during that period will not receive certain rights.

XD - No dividend entitlement

XD stands for Excluding Dividend. If you buy stocks with XD suffix, you will not receive dividends for the current period. However, if you hold the stock until the next XD, you will be entitled to dividends in the following cycle. These dividends come from the company’s profit share allocated to shareholders.

Common investor questions:

• How to check the XD date? You can view the securities calendar on the stock exchange website or click on the CA to verify.
• How long should I hold the stock? The latest purchase date is the day before the XD date. For example, buy on the 1st and 2nd when XD occurs; you still receive dividends.
• Are dividends the same regardless of purchase timing? No, the dividend rate remains the same for everyone, whether bought early or late.

XM - No voting rights at meetings

XM stands for Excluding Meetings. Buyers of stocks during the XM period will not have voting rights at shareholder meetings, which are opportunities for company owners (shareholders) to participate in important decision-making.

XW - No warrant purchase rights

XW stands for Excluding Warrant. Warrant stocks (or subsidiary stocks) are additional stocks issued by the company, convertible into parent stocks at a specified rate (usually 1:1), and you may need to pay extra to exercise this right.

XS - No short-term warrant rights

XS stands for Excluding Short-term Warrant. Buyers during the XS period will not have the right to subscribe for short-term warrants.

XR - No rights to subscribe for new stocks

XR stands for Excluding Rights. Rights to subscribe for new stocks (or “capital increase”) are often issued when the company finds new business opportunities but lacks funds. To expand, the company seeks to raise additional capital from existing shareholders.

XT - No transferable subscription rights

XT stands for Excluding Transferable Subscription Right. Buyers during the XT period will not have the right to receive transferable subscription rights for new capital increase stocks (which can be transferred).

XI, XP, XA, XE, XN, XB - Other rights

• 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 (see more details)
• XE (Excluding Exercise) - No rights to convert warrants into shares
• XN (Excluding Capital Return) - No return of capital from capital reduction (the company manages capital appropriately, especially during long-term losses)
• XB (Excluding Other Benefits) - No other rights, such as preferred shares, common shares for preferred shareholders, or securities of affiliated companies

Second Group: T symbols for controlling rapid stock price increases

The T series suffixes indicate that the stock price has risen rapidly with high speculation, prompting the stock exchange to implement measures to control this surge.

T1 - First warning level

T1 stands for Trading Alert Level 1. Stocks with this mark can only be purchased through a Cash Balance account (cash account). This account type is suitable for beginners because it limits the amount of money that can be invested. The T1 mark remains for about 3 weeks after announcement.

T2 - Second warning level

T2 stands for Trading Alert Level 2. If a stock remains on the Trading Alert List after the T1 measures for over 1 month, it will be upgraded to T2. Stocks at this level still require purchase via Cash Balance only and cannot be used as collateral in any account. The T2 mark stays for about 3 weeks.

T3 - Third warning level

T3 stands for Trading Alert Level 3. If a T2 stock remains on the Trading Alert List after measures for no more than 1 month, it becomes T3. Stocks at this level must be bought only with Cash Balance, cannot be used as collateral, and cannot be netted (settlement). This means that after selling, the buying power does not return immediately but the next day instead. This measure prevents multiple trades within the same day.

Third Group: Warning symbols for investor caution

These symbols indicate risks and problems within the company, serving as warnings for investors to exercise caution.

H - Temporary trading halt (1 cycle)

H stands for Trading Halt. The stock temporarily halts trading for 1 cycle (a day has 2 cycles: morning and afternoon), usually due to leaked news to the public before the company has officially reported to the stock exchange.

SP - Trading suspension exceeding 1 cycle

SP stands for Trading Suspension. The stock is suspended for more than 1 cycle, caused by similar reasons such as unofficial news or the company not submitting financial statements on time.

NP and NR - Pending clarification report

NP stands for Notice Pending. The company has something to report to the stock exchange. Once the report is submitted, the status changes.

NR stands for Notice Received. The stock exchange has received clarification from the company.

NC - Non-compliance with regulations

NC stands for Non-Compliance. The company is at risk of being delisted due to long-term heavy losses or failure to submit financial statements for an extended period. Once marked NC, the company has 1 year to rectify.

ST - Price stabilization

ST stands for Stabilization. The company is maintaining stock price stability. A common method is “Greenshoe” — the IPO issues more shares than the set amount to support the price during the first 30 days, preventing it from falling below the IPO price.

C - Risk warning

C stands for Caution. The company has issues and high financial risk, serving as a warning for investors to be cautious and consider carefully before investing. Companies meeting these conditions will be marked with C:

Financial issues:

• Shareholders’ equity less than 50% of paid-up capital
• Court petitions for business rehabilitation or bankruptcy (company heavily indebted and unable to pay)
• Regulatory authority orders financial restructuring

Financial statement issues:

• Auditor’s opinion is limited or disclaimed
• SEC orders corrections or special audits

Business nature issues:

• Cash Company (selling almost all assets, leaving only cash and short-term securities)

The importance of understanding these symbols

Symbols following stock names like CA (Corporate Action) serve as indicators to inform investors about upcoming significant events related to the stock. Properly understanding these symbols is crucial for making smart investment decisions and avoiding unnecessary risks, whether from rights that may be lost or financial problems within the company.

Therefore, before clicking buy or sell, check the suffix behind the stock name. It might be vital information that helps you avoid making wrong decisions.