Getting to Know CA and the Important Stock Suffixes for Investors

When you enter a stock trading platform, you’ll notice that after each stock ticker symbol, there are often strange letters appearing, such as CA, XD, XM, T1, H, and many more. These symbols are not just random letters that appear out of nowhere; they are important indicators issued by the stock exchange to signal upcoming events related to that stock. Understanding the meanings of CA and these other symbols is a fundamental skill that investors should not overlook.

What is CA? Symbols Indicating Stock Movements

CA stands for Corporate Action — which translates to “Company Action” in Thai. This term indicates that the stock is about to undergo some change within the next 7 days. When you see this symbol, you can click to view details about what kind of movement is expected and when during those 7 days it will occur.

Symbols with CA are presented as abbreviations, which can be grouped into three main categories. Each group has different meanings and impacts on investors.

X Group: When Stocks Rise, Symbols Indicate Rights Loss

Symbols starting with the letter X generally mean “Excluding” or that certain rights are not being received. When a stock has an X prefix, you will encounter several types:

XD – Excluding Dividend: Indicates that if you buy the stock during the period when the stock is marked XD, you will not receive dividends (a share of the company’s profits paid to shareholders) for this round. However, you will receive dividends in the next round if you continue to hold the stock.

For dividend eligibility, investors need to buy the stock just before the XD date. For example, if you buy on the 1st and the stock goes XD on the 2nd, you can still receive the dividend. Whether you buy early or late, all investors will receive dividends at the same rate.

XM – Excluding Meetings: Means you will not have the right to attend the shareholders’ meeting, which is an opportunity for shareholders to participate in important company decisions.

XW – Excluding Warrant: Means you will not receive the right to purchase warrants, which are derivative securities issued by the company that can be converted into common shares at a set rate.

XS – Excluding Short-term Warrant: Means you do not have the right to subscribe for short-term warrants.

XR – Excluding Rights: Means you will not receive the rights to subscribe for new shares, which are “capital increase” shares used by companies to raise additional funds during new investments or business expansion.

XT – Excluding Transferable Subscription Right: Means you do not receive the transferable rights to purchase additional shares (these rights can be transferred to others).

XI – Excluding Interest: Means you will not receive interest payments.

XP – Excluding Principal: Means you will not receive the principal amount that the company has announced to pay back.

XA – Excluding All: Means you will not receive any of the rights the company is about to announce. Clicking on this will show details of all the rights you might lose.

XE – Excluding Exercise: Means you do not have the right to exercise the conversion of securities into underlying shares.

XN – Excluding Capital Return: Means you will not receive a capital return, which is a reduction of share capital used by companies to improve financial health, especially when they have accumulated significant losses.

XB – Excluding Other Benefits: Means you will not receive rights to subscribe for new shares in various cases, such as preferred shares, securities offered to the public, or securities of affiliated companies.

T Level: Warning System for Sudden Stock Price Surge

The T symbols are entirely different from the X group. When a stock is marked with T, it indicates a sharp increase in the stock’s price, often driven by speculation. The stock’s price has surged significantly, prompting the stock exchange to implement measures to limit this rapid rise. These are divided into three levels:

T1 – Trading Alert Level 1: The first level. When a stock hits T1, investors must trade using a Cash Balance account only (an account where you can only use available cash). This symbol remains for 3 weeks from the date the exchange announces it.

T2 – Trading Alert Level 2: If the stock remains on the Trading Alert List after a few days, it escalates to T2. At this level, investors still must use a Cash Balance account and are prohibited from using this stock as collateral in any account. The duration is also 3 weeks.

T3 – Trading Alert Level 3: If the stock remains uncorrected and continues to meet the criteria, it escalates to T3, the most stringent level. Investors must use a Cash Balance account only, cannot use the stock as collateral, and most importantly, “no offsetting” is allowed. This means that when you sell the stock, your Buying Power will not be restored on the same day but only the next day. This measure prevents multiple trades within a single day.

Warning Symbols to Watch Out For

Besides the CA indicator signaling upcoming events, there are other warning symbols that investors should pay attention to:

H – Trading Halt: Indicates a temporary suspension of trading for one trading session (a day has two sessions: morning and afternoon). Usually caused by the release of important news that the company has not yet disclosed to the stock exchange.

SP – Trading Suspension: Means trading is halted for more than one session. Similar reasons as H, such as pending news or failure to submit financial reports on time.

NP – Notice Pending: Indicates the company has information to notify the stock exchange. Once the report is submitted, the symbol changes to NR (Notice Received), meaning the exchange has received and approved the information.

NC – Non-Compliance: Indicates the company may be delisted due to long-term losses or failure to submit financial statements on time. The company has one year to rectify the situation, such as submitting financial reports.

ST – Stabilization: Means the company is stabilizing its stock price. A common method is the “Greenshoe” option, used during IPOs, where the company issues more shares than planned to support the stock price and prevent it from falling below the IPO price during the first 30 days.

C – Caution: A warning to investors. Companies with this symbol face serious issues, such as shareholders holding less than 50% of paid-up capital, court proceedings for reorganization or bankruptcy, auditors issuing disclaimers, or being a “Cash Company” (selling almost all assets, leaving only cash and securities). This is critical information investors should consider carefully before investing.

Using CA and Other Symbols for Smarter Investing

The CA symbol is a vital tool that provides real-time information about upcoming significant events within 7 days. Clicking to view details shows various abbreviations, but if you do not understand their meanings, this information becomes meaningless signals.

Therefore, studying and understanding the meanings of CA, along with X, T, and other warning symbols, is a crucial foundational step before starting to trade stocks. Having this basic knowledge helps investors analyze stock situations better and make decisions more wisely, reducing risks.