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> LYN stock market FAQs & Guide, T+3, Dividends, commissions/fees, etc...

kmarc
post May 23 2009, 09:14 PM, updated 7y ago

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"Rights Issue" in progress thumbup.gif


Hi guys. After discussing with Cherroy, I have decided to do a noob guide for our stock market section. As I’m just a baby ikan bilis in stocks and I'm not in the financial field, would appreciate it if you guys could help me out.

My plan is to make it as simple as possible, and cover common issues that are FREQUENTLY asked.

Index

Part 1 - T+3
Part 2 - Dividends
Part 3 - Commissions & brokerage fees
Part 4 - Taxes and stocks/dividend
Part 5 - Warrants - The confusion, the headache and the frustration
Part 6 - Warrants - How and when to trade warrants?
Part 7 - Rights Issue

Post #5 - Trading accounts
Post #6 - Can I ask when is the best time to buy stocks or the TP for a stock?
Post #7 - etc
Post #10 and above – for noob to ask questions (including me!!!!)

Going to start off with T+3 first. Please help or give opinion. No spamming please.

Note : Let me draft out the rough outline on T+3 first then you guys can comment/help/give opinion. Thx!

This post has been edited by kmarc: Mar 30 2011, 09:18 PM
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kmarc
post May 23 2009, 09:16 PM

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Part 1 - T+3

Content ---------------------------------------------------

a) What does "T" and "+3" mean?
b) Details on T+3 (the day of settlement)
c) Why are investors sometimes afraid of T+3?

-------------------------------------------------------

What does "T" and "+3" mean?

Refers to the term “Settlement period

"T" = Transaction @ Trade day/date (the day you bought or sold a stock)

"+3" = 3 working/business days after "T". That’s the day when you have to settle your transaction

--- If you bought shares, you have to make payment on day 3
--- If you sold shares, you must deliver the stocks on day 3

T+3 is only relevant to you if you decide to hold on to the stocks. If you sold your stocks on any day prior to T+3, then it is a contra trade. The rest of the guide will assume that you plan to hold on to the stocks you bought.

Important:
Note that it is 3 working/business days and if there is a holiday in between, it is not counted

In generally, those days when our stock market (KLSE/KLCI) is open are considered "business" days. That means, even if your state is having a holiday, doesn’t mean KLSE/KLCI is not opened!!!

Example

user posted image

For Trade 1 – Trade on Monday, settle on Thursday
For Trade 2 – Bought on Wednesday, but over the weekend, so settle on Monday
For Trade 3 – Bought on Thursday, but over the weekend and also holiday on Tuesday, so settle on Wednesday

Details on T+3 (the day of settlement)

Is there a specific time on T+3 when you need to settle the trade?

Yes. You need to settle your trade on day 3 (T+3):
1) Before 12:30pm in general (that means, before the morning session ends)
2) Before a pre-determined time if you request a further extension from your remisier
--- For example, your remisier may allow you to extend your settlement day to T+4 at 12 noon.
--- The extension limit depends on your remisier (who ultimately bears the responsibility) and you need to request the extension

How do you settle the trade on T+3?
This depends on whether you have a cash account or a margin account.

> Buy stocks, cash account

- You do the trade within your credit limit. At T+3, you will need to settle your payment.

- If you do not pay up after T+3, your remisier will sell your shares, and charge you if you sustain any loss from the sell.
------- When they sell your stocks, they will sell it at whatever price traders queued to buy.
------- For example, if you bought your share at 90 cents and the highest buyer's price is 80 cents, then you stocks would be sold at 80 cents and you would incur a loss of 10 cents per share.

To avoid such a case, you could top up your trading account with cash prior to any trading. The value of your stocks will be deducted from your trading account (but you have to make sure you have sufficient cash in that account). The brokerage could pay you interest on any balance in your trading account.

> Buy stocks, margin account

- To buy shares using the margin facility, you need to have enough collateral in that account before you are allowed to buy the stocks. Your brokerage firm will charge you interest on your "borrowed" money.

> Sell stocks, either accounts

- Don’t forget that after you've bought some shares, you will have 3 days before you need to pay for it if you intend to hold on to the shares. This also applies if you sold some shares. You will only get the money after 3 days.
- This also means that you can't use the money from shares you sold until T+3 as the buyer hasn't paid you yet!!! tongue.gif

Why are investors sometimes afraid of T+3? What happens to the stock market at T+3?

- In certain cases, traders are afraid T+3 as share prices might drop after a recent rally i.e. there might be a "pull-back" in share prices after a recent upward trend
- This usually happens when the stock market suddenly jumped higher or stock prices suddenly shot up higher
- When stock prices go up suddenly, it usually means that many traders were buying that counter, some using their margin facilities
- On T+3, those traders who used the margin facilities might not want to hold on to the shares and they might dump the shares regardless of whether they made or lose money
- The effect of "dumping" by many traders may cause the share price to drop
- That's the reason why you sometimes see traders warning you on T+3 as share prices might drop
- Note that this doesn't always happen

For example, the counter "IOICORP" suddenly jumped up 50 cents on Monday. On T+3, which is on a Thursday, some traders might be afraid of buying IOICORP because of this "T+3" effect where the stock price might drop as people NEED to sell their shares (which they bought on Monday).


References:
http://www.investopedia.com/terms/s/settlement_period.asp
http://www.sec.gov/investor/pubs/tplus3.htm

This post has been edited by kmarc: Jul 16 2009, 09:35 AM
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post May 23 2009, 09:17 PM

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Part 2 - Dividends & stocks

Content -----------------------------------------------------------

a) What is "Dividend"?
b) Differences between "Dividends" and "Interests"
c) Forms of payment for dividend
--- Cash dividends
--- Stock or scrip dividends
--- Property dividends or dividends in specie
--- Other forms
d) Cum dividend/ex-date/payment date
--- In-dividend date (cum dividend)
--- Ex-dividend date (ex-date)
--- Payment date
e) Types of dividends - Interim, final & special
f) Dividend yield
g) What happens to the stock price when dividend is announced
h) Dividend and taxes
i) How to find out about upcoming dividends?

--------------------------------------------------------------------------

This subtopic will cover the basics of dividends. Look at the quote below on a typical announcement of dividend from a company. The aim of this guide is to enable you to understand the announcement and additionally, on how to get (or avoid) the dividend.

QUOTE
7100 UCHITEC UCHI TECHNOLOGIES BHD

Final Dividend of 6 sen T.E.

Entitlement details: Final Tax Exempt Dividend of 6 sen per share of RM0.20 each for the year ended Dec 31, 2008

Entitlement type : Final dividend
Entitlement Date and time : 30/6/2009 5:00pm
Year Ending/Period Ending/Ended date : 31/12/2008
Ex-date : 26/06/2009
Payment date : 17/07/2009
Stock par value:

A depositor shall qualify for the entitlement in respect of:
- Securities transferred into the Depositor’s securities account before 30/06/2009 4:00pm in respect of ordinary transfers
- Securities bought on KLSE on a cum entitlement basis according to the Rules of KLSE
What is “Dividend”?

Dividends are payments made by a corporation/company to it’s shareholders (i.e. anybody that bought and hold their shares). It comes from a portion of their profits.

When a corporation/company earns a profit, that money can be used to:
1) Re-invest in the companies business (called retained earnings)
2) Paid out as dividends

Most companies retain a portion of their earnings and pay the remainder as a dividend. Obviously, the amount of dividend will vary depending on how much profit the company makes.

Different companies have different dividend policies. For example, companies under REITs (Real-estate investment trust) usually have a policy of giving out 90% of their profits as dividends (Complying with the 90% pay out rule, the REIT company itself is exempted from paying tax!). Other companies might set a different dividend policy e.g. 40% of profits.

Remember that dividends are usually paid when the company make profits. If the company is not making a profit, then no dividends are usually given out.

Differences between “Dividends” and “Interest” (e.g. from FD, fixed deposits)?

For all intents and purposes, both are the same as you’ll get some money from your “Investment”. However, they are actually quite different. Here’s a comparison table between those two:

user posted image

For dividends, it is taxable unless stated as T.E (Tax exempted). For further info, see "Dividend & Taxes"

You will understand more about the difference further in the guide.

Forms of payment for dividend

Note that dividends can be paid not only with cash but with other various forms:
1) Cash dividend
--- In exact amount
--- In percentages
2) Stock or scrip dividends
3) Property dividends or dividends in specie
4) Others

1) Cash dividends

Paid out in the form of cash/cheque
Most common form of payment
May be taxable

There are 2 ways a cash dividend can be declared:
1) Exact amount e.g. 6.5 sen/share
2) In percentage e.g. Final dividend 25%, interim dividend 10%

Exact amount
If you hold 1000 shares and the cash dividend is RM 0.06 per share, you will receive 1000 x 0.06 = RM60 in total

In percentage
When calculating in percentages, you need to multiple the percentage by the total par value of your shares, and NOT the stock price. Note that the par value of a stock does not mean the true value of it. Par value is a fixed number, determined when the stock was issued (and listed on stock certificates), and does not fluctuate even when the price of the stock changes in the stock market.

Say you're holding 1000 shares of the company UCHITEC, which is currently at a price of RM1.20. Even though each share has a value in the stock market, it also has an original price - termed "par value". Say that UCHITEC's shares has a par value of RM 0.20 and it is giving out a final dividend of 25%.

Correct calculation (by using par value)
1000 shares x RM 0.20 x 25% = RM 50

Incorrect calculation (by using stock price)
1000 shares x RM1.20 x 25% = RM 300 blink.gif

How to find out the par value of a stock? Just go to your online trading portal, select a stock and look at it's info. For maybank2u users, you can select the stock, then from the pull-down menu "stocks", select "General info". The par value is listed with many other informations.

Here's an example for the company KINSTEL (my favorite!) with a par value of 0.20 (20 cents)

user posted image

Additional examples
Here are some other examples, prices, dividend and par value are made-up.

SIME (Current price RM7.00)
Dividend : 10 cents
Holdings : 2000 shares

Dividend received would be : 2000 x 10 cents = RM 200

AXIATA (Current price RM2.50)
Dividend : 20 cents
Holdings : 4000 shares

Dividend received would be : 4000 x 20 cents = RM 800

TM (Current price RM 2.80, par value RM 0.50)
Dividend : 10%
Holdings : 7000 shares

Dividend received would be : 7000 x RM 0.50 x 10% = RM350

LIONIND (Current price RM 1.20, par value RM 0.20)
Dividend : 25%
Holdings : 5000 shares

Dividend received would be : 5000 x RM 0.20 x 25% = RM250

In summary, the price of stocks are not relevant when calculating the amount of dividends received.

2) Stock or scrip dividends

Paid out in the form of additional stock shares of the issuing company, or other corporation (e.g. it’s subsidiary corporation).
They are usually issued in proportion to shares owned e.g. 10 extra shares for every 1000 shares owned
One example is the recent OSK dividend, which proposed a dividend of cash and additional shares...... details....

3) Property dividends or dividends in specie (Latin for "in kind")

Paid out in the form of assets from the issuing corporation or other corporation (e.g. it's subsidiary corporation)
Examples.....

4) Other forms

Can be used in structured finance. Financial assets with a known market value can be distributed as dividends
Warrants are sometimes distributed in this way
For large companies with subsidiaries, dividends can take the form of shares in a subsidiary company. A common technique for "spinning off" a company from its parent is to distribute shares in the new company to the old company's shareholders. The new shares can then be traded independently.

Cum dividend/ex-date/payment date

You need to fully understand the terms that are used in order to 'play' the dividend game.

In-dividend date (better known as cum dividend)

Indicated by a "C" beside the name of the listed counter : user posted image

The last day of trading to receive the dividend. It is one trading day before the ex-dividend date, where the stock is said to be "cum dividend" (in other words, the stock that you hold comes with the dividend).
Existing shareholders and anyone who buy and hold the stock on this day (i.e. until the end of that particular trading day e.g. 5:00pm) will receive the dividend. Even if you bought the shares at 4:59pm on the last in-dividend date, you are still entitled as you held the shares until the ex-date.
After this date, the stock becomes ex-dividend

Ex-dividend date (better known as ex-date)

Indicated by an "X" beside the name of the listed counter : user posted image

The date after the dividend is allocated (note the word "allocated" as the dividend is not actually paid to shareholders yet)
Shares bought on this day onwards will no longer come with the dividend
However, shares that you held up to this day can be sold and you will still receive the dividend (as you held the shares past the in-dividend date)

The following illustration will give a better picture:

user posted image


Stock prices on ex-date

The stock price usually decrease on the ex-dividend date by an amount roughly equal to the dividend paid. This reflects the decrease in the company's assets resulting from the declaration of the dividend.
--- For example, when a dividend of $1,000,000 is declared (e.g. 6 sen per share), distributed and paid, the corporation’s cash is reduced by $1,000,000 and its retained earnings (part of stockholders’ equity) is reduced by $1,000,000. Due to the reduction in the corporation's cash/equity, it's stock price is also reduced accordingly (as the company's stock price is a reflection of it's assets (which including it's cash). If the stock price was RM 1.50, it would be RM 1.44 (RM 1.50 - 0.06) after the dividend is allocated.

Dividend : 6 sens
Ex-date : 20/5/2009
In-dividend date share price (19/5/2009): RM 1.50
Ex-dividend date share price (20/5/2009): RM 1.50 - 0.06 = RM 1.44


Payment date

The day when the dividend cheques will actually be mailed to the shareholders of a company or credited to brokerage accounts


Let's stop and review what we have learned. Let's take a look at UCHITEC's announcement as below:

QUOTE
Entitlement Date and time : 30/6/2009 5:00pm
Year Ending/Period Ending/Ended date : 31/12/2008
Ex-date : 26/06/2009
Payment date : 17/07/2009


From this announcement, you'll understand that you can get the dividend by just buying the stock before 5pm on 25/6/2009 and hold it until the next. day. Once the stock goes ex-date, i.e. 26/6/2009, you can sell the stock and still get the dividend.

Types of dividends - Interim, final, special

Interim dividend

Distribution of profits (i.e in the form of dividends) to shareholders before a company's annual earnings have been determined, or at any time between 2 successive AGMs (annual general meetings)
Companies that pay interim dividend try to be reasonably certain that they can afford to pay the dividend (as their financial position is not yet fully known), and reserve the necessary adjustments in the subsequent or year-end dividend payments based on their final financial statement.
Often distributed quarterly or half-yearly
Generally does not need the approval of the AGM
Usually accompanied by the company's interim financial statement

Final dividend

Declared at the end of the financial period when the company's profits and financial health is known
Declared at a company's AGM for any given year
Usually declared before the books are closed and will be paid the following year
Compared to interim dividends, the final dividend usually constitute the largest payout for that particular year

Special dividend

Also referred to as "extra dividend"

A one-off (non-recurring) distribution of company assets (usually in the form of cash), to shareholders.
Generally declared after exceptionally strong company earnings results as a way to distribute the profits directly to shareholders.
Can also occur when a company wishes to make changes to its financial structure or to spin off a subsidiary company to its shareholders.
Usually larger in amount as compared to normal dividends paid out by the company.



Dividend yield (DY)


One way to determine if a stock is worth the investment is to calculate the DY. This is especially useful if you're planning to buy dividend stocks. DY is the ratio that indicates the return on an investment or the amount a company pays stockholders each year in relation to its share price.

Dividend per share / Market price per share

Calculation: Gross dividend per share / market price per share x 100%

Examples :
Total annual dividend given : RM 1.20
Current stock price : RM 15.00

Dividend yield = (RM1.20 / RM 15.00) x 100% = 8%

So, the dividend yield for that particular share/counter is 8%

What happens to the stock price when dividend is announced
When dividend is declared/announced, the stock price for that particular company will appreciate or rise abruptly, especially if the dividend declared is attractive.
From the time of announcement till the time of ex-date, the share price might still go up although at a slower pace
Once ex-date, the share price might gradually fall as investors might sell off the stock as they have already gained from the capital appreciation and the dividend

This does not occur all the time but is probably true for many stocks

So, how might you capitalize or benefit from this "dividend play"?

1) Hold the stock prior to the announcement of the dividend
- some investors buy up the stocks before an anticipated dividend announcement to try to benefit from the possible dividend announcement
- However, the stock price may fall instead if no dividend was declared or the dividend given was a disappointment

2) Buy the stocks once the dividend is declared
- If you buy it early enough, you might still gain from the possible abrupt rise in the stock price

3) If you missed the announcement, you can still buy before the ex-date
- Buying before the ex-date may also prove beneficial as stock prices may still rise as investors wants to have a piece of the dividend
- You probably won't benefit much if you buy near the ex-date

4) Hold the stocks until ex-date so that you receive the dividend (@ hold long-term)
- Remember that you do not have real profit when you get the dividend because the stock price will be reduced accordingly
- You will only gain from the dividend IF the corrected stock price starts to rise to previous pre-dividend stock price
- Just remember that price reduction on ex-date is usually not a problem as good stocks have a tendency to go back to it's original price based on what investor thinks the company is worth.

Dividend and taxes

Please refer to "Part 4 - Taxes and stocks/dividends"


How to find out about upcoming dividends?

There's a few ways you can do that:
1) Companies website
2) Announcement in your trading portal
3) Bursa Malaysia's website - http://www.bursamalaysia.com/website/bm/index.jsp

For Bursa Malaysia's website, just select Listed companies > Entitlements by ex-dates. Download the PDF file and you'll have a summary of upcoming dividends.

user posted image

References :

http://en.wikipedia.org/wiki/Dividend
http://articles.moneycentral.msn.com/Inves...ighReturns.aspx
http://www.investopedia.com/

This post has been edited by kmarc: Jul 16 2009, 12:04 PM
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kmarc
post May 23 2009, 09:18 PM

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Commisions & brokerage fees

Content --------------------------------------

a) Brokerage fee
b) Contract stamp
c) Clearing fee

--------------------------------------

When you do stock trading, either buying or selling shares, you will be subjected to various commissions and fees which includes:

1) Brokerage fee - which depends on a few factors:
--- a) The rates of the bank or brokerage house
--- b) Intraday trading or not (any term for non-intraday trading????)
--- c) Special fee for special customers (???? I think there is such a thing hmm.gif )
2) Contract stamp
3) Clearing fees

Brokerage fee

Different banks or brokerage house will have different rates. It could be:
Bank A - 0.42% or minimum RM12
Bank B - 0.2% or minimum RM8
Bank C - 0.1% or minimum RM8

The rates can change so it is important that you find out the rates from your remisier.

For intraday trading (that means you bought and sold your shares on the same day), you generally get better rates. For example, Maybank charges:
- 0.42% or minimum RM12 for each transaction
- 0.15% or minimum RM8 for intraday transaction (regardless of how many times you bought and sold a particular counter in the same day)

? Special fee

Contract stamp
The amount depends on the total value of shares in each transaction.
<1k - RM1
<2k - RM2
<3k - RM3
<4k - RM4

For example, if you bought 8,000 shares of KINSTEL for RM6,785, the contract stamp fee would be RM7 (because it is <7k)

Clearing fee
Is 0.03% of the total value of shares in each transaction.

For example, if you bought 8,000 shares of KINSTEL for RM6,785, the clearing fee would be:
RM6,785 x 0.03% = RM 2.04

Multiple trades in a day
If you made multiple buys or sells on a particular counter on the same day, you are only charged once for all buy transaction and all sell transaction.

For example, on a particular day, you bought the counter KLK multiple times:
9:45am - Bought KLK 2000 shares
10:30am - Bought KLK 3000 shares
2:30pm - Bought KLK 1 share (partial match because some culprit sold 1 share to you!!! sweat.gif)
3:00pm - Bought KLK 999 shares (to even out the 1 stupid share)

Note that you are not charged for each transaction. At the end of the day, you are charged as follows:

Total shares : 2000 + 3000 + 1 + 999 = 6000 shares bought and the fees are charged only once based on this amount.



Example 1

user posted image


Example 2

user posted image


Example 3

user posted image

This bank has a brokerage fee of 0.42% or minimum RM12.
Note that the brokerage fee, if according to calculation, should be RM1970 x 0.42% = RM8.27
Since the minimum is RM12, the brokerage fee is calculated as minimum RM12 and not RM8.27

Example 4

user posted image

I hope I got the calculations correct. Kindly inform me if there are any accounting fraud.... whistling.gif

This post has been edited by kmarc: Aug 9 2009, 11:06 PM
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kmarc
post May 23 2009, 09:18 PM

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Part 4 - Taxes and stocks/dividends

Content ----------------------------------------------------

a) Taxes and stocks
b) Taxes and dividends
c) REITS and dividends

-----------------------------------------------------------

Taxes and stocks

Great to know that all profits from stock trading is not taxable! rclxms.gif

This means that if you earn RM50,000,000,000 from buying shares due to capital appreciation, you walk away with that much amount. No tax! thumbup.gif

Note : Errrmmmm.... please correct me if I'm wrong.... blush.gif


Taxes and dividends

Basically, any income, whether it is an individual or a company, will be taxed. Previously, profits from companies were taxed using the "Two-tier Imputation system (TTS)". However, since 2008, a new tax system has been implemented, which is called the "Single-tier tax system (STS)". A transition period of 6 years has been provided for implementation of the STS and all companies will move to the single-tier tax system on 1 Jan 2014.

The major difference between these two systems is as follows. For the old TTS, company's profits are taxed twice, one at the company level and once on shareholders who received the dividends. For the new STS, tax on company's profits is a final tax and dividends that are distributed to shareholders are no longer taxable. In other words, under the new STS, the dividends that you receive are not taxable and you do not have to calculate the dividends in you annual income tax assessment.

Note : I'm not going to attempt to explain much about the tax system as it is a whole topic by itself. Will only stress on important practical points. To understand more, please google up on "Two-tier Imputation System (TTS)" and "Single-tier tax system (STS)".

Very good article on single-tier tax system : http://www.micpa.com.my/micpastudent/docum...e1-10112008.pdf


As the period between 2008 and 2014 is the transitional period, some dividends will still be declared under the old system and some under the new one as depicted by the table below:

user posted image


From the table, let's extract some examples:

BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen


Explanation:

BKAWAN - since it is single tier, shareholders who receive the dividend does not have to declare the dividend in their income tax filing.
KLK - same scenario as BKAWAN. Just that KLK should be more specific and state the dividend as " Interim dividend 10 sen Single Tier T.E."
ALLIANZ - as it is not declared under the single-tier tax system, the dividend is taxable to shareholders who receive the dividend.

Additional notes on the term "less tax":

The "less tax" refers to the tax on the company i.e. corporate tax. For 2009, the corporate tax rate is 25%.

There are cases where the dividend is declared in this way:
1) 10 sen dividend less 25% income tax
2) 10% dividend less tax

The calculation for this is easy. You just have to minus 25% from the declared dividend. Say you hold 2000 shares:

1) Dividend declared :

10 sen x 2000 shares = RM200

RM200 x (100%-25%) = RM150

2) Dividend declared :

10% dividend less 25% tax

Par value : 20 cents

10% x 20 cents x 2000 shares = RM40.00

RM40 x (100%-25%) = RM30

REITS and dividends

Before we go further, we need to understand what is REITS first. Let's go to the basics.

REIT

Real estate investment trust (REIT) - companies that buy properties to rent out. Profit from rental. Profits are "distributed" to investors (Just like you renting out your house and collecting rents from the tenants)

Distribution of profits can be quarterly, semi-annually or annually.

DPU

In stocks, dividend (per unit) is the normal term used for the distribution of profits by a company. However, in REITS, the correct term is "Distribution per unit" or DPU. Strictly speaking, DPU are not dividend per se.

If you receive DPUs from REITS, it is usually taxable unless the announcement included the "T.E" at the back (T.E = tax exempted). For example, HEKTAR gave a DPU of 5 cents T.E.

If it is taxable to the investor, the tax is only 10% (termed "withholding tax") and not the normal 25% tax for stock dividends.

For the company who manage the REITS, they are not taxable so long as they distribute at least 90% of profits to investors.

____________________________

Example 1

Hold Axreit shares which is giving a dividend of 2.82 cents:
- 10,000 units
- Dividend per unit : RM 0.0282

Gross DPU received : 10,000 x RM0.0282 = RM282
- Minus 10% witholding tax = RM282 - (RM282 x 10%) = RM282 - RM28.2 = RM253.80

Nett DPU received = RM253.80


Example 2

You hold 13,000 units Qcapita which declares:
- 3.84 sen per unit - Taxable
- 0.06 sen per unit - Tax exempted

Taxable income = 13,000 x 3.84 sen = RM499.20 (that means you will be taxed on this RM499.20 "profit")
10% withholding tax = RM499.20 x 10% = RM49.92 (the amount paid to tax)

Non-taxable income = 13,000 x 0.06 sen = RM7.80 (no tax for this "profit")

So, the "Net payable", which means the amount you actually received is:

RM 499.20 + 7.80 sen - RM49.92 = RM457.08

Remember that:
- the 10% withholding tax cannot be claimed back
- the REIT company is not taxed as long as they distribute at least 90% of their profits

____________________________

Annual income tax assessment

In general, when you do your income tax assessment, you don't have to declare the dividend you get from REITs (as long as they distribut at least 90% of their profits). However, you have to keep the tax vouchers just in case LHDN (Lembaga Hasil Dalam Negeri @ Inland Revenue Board) audits you.


Reference : http://thestar.com.my/news/story.asp?file=...&sec=budget2009

This post has been edited by kmarc: Apr 12 2010, 06:55 AM
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kmarc
post May 23 2009, 09:19 PM

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Warrants - The confusion, the headaches and the frustration

Content ----------------------------------------------------------------

a) The basics of warrants
b) What is warrants?
c) What happens when warrants are issued?
d) Why are warrants issued?
e) Why buy warrants if common stocks can also increase in price?
f) What happens to warrants later on until expiry?
g) How and when to trade warrants?

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If you're lazy to read further and wants to know immediately what a warrant is, just think of warrant as a tool, a small knife to cut big tree (as we LYN people like to say). biggrin.gif Warrant is a high risk but high return investment where you can use relatively less money to get huge gains. Just don't forget that if you cut the big tree the wrong way, you can get flatten when the tree falls on you!!! Just like what can happen to the warrant price on expiry.... fall flat to a price of ZERO!

In summary, warrants means getting the maximum return with the least amount of your capital at risk

Disclaimer : I do not pretend I know about warrants. In fact, before this project, I knew NOTHING about warrants. Whatever facts below are taken from the internet with the references at the end. I just try to organize, summarize and make it as simple to understand as possible. The information is provided free without any charge. If not, I might get sued for copyright infringement/violation, plagiarism and what not! sweat.gif Also, no warrant was sold or exercised during the production of this subtopic. nod.gif

Update : There's an excellent website regarding warrants that recently came out, much better than my guide!!! http://www.nagawarrants.com/home.html

The basics of warrants

In order to understand warrants, we need to go back to the very basics of basics. The explanation will be thorough so that you don't miss any step.

Before reading on, here are the important terms that you need to understand when you deal with warrants:

Common stock
- The normal stocks that is traded in the stock market e.g. PBBANK, MAYBANK, SIME, TM, YTLPOWER, GAMUDA, KINSTEL, etc.
- In relation to warrants, the common stock is also referred to as the "mother share" OR "underlying security"

Exercise a warrant
- you exercise your right to convert the warrant to common stock

Issue price
- the price of the warrant when issued

Exercise or strike price
- the pre-specified price at which the holder of such warrants may exercise the warrant

Expiry date
- the date in which the ability to exercise that right expires.
- All warrants have expiry date
- The expiry date is usually a minimum of 2 - 5 years from the date of issue
- After the expiry date, warrants are worth nothing. Zero.

Leverage -

Intrinsic value of warrant
- the difference between the share price and the warrant's exercise price. If the share price is less than the exercise price then the intrinsic value is zero.

Premium
- The premium is anything paid above the intrinsic value for the warrant. Typically the premium will decrease as the price of the warrant rises and the time to expiration decreases.
The lower the premium, the more attractive the warrant

@ The amount of share price increase required to equal the combined price of warrant and exercise.

Example
Current YTLPOWER common stock price : RM 2.17
Current YTPOWER-WB price : RM1.10
Exercise price : RM1.25
Exercise ratio : 1

Warrant intrinsic value = Stock price - exercise price = RM 2.17 - RM1.25 = RM0.92
Premium = Current price of warrant - intrinsic value = RM1.10 - RM0.92 = RM0.18

Premium in % = Premium / stock market price x 100% = 8.29%

To understand premium better, it just means how much more you are paying to buy the warrant and then immediately convert it to common stock.
Buy YTLPOWER-WB : RM1.10
Exercise your right and convert the warrant to common stock : YTLPOWER-WB + exercise price = RM 1.10 + RM 1.25 = RM 2.35
YTLPOWER price : RM 2.17

So, you're paying RM2.35 rather than RM2.17 to get the common stock. The extra amount you paid is (2.35-2.17) / 2.17 x 100% = 8.29%

Before you crack your head calculating the premium, you can:

1) Use a warrant calculator : http://www.bursawave.com/warrant-calculator/

2) Use the premium formula

Important : The above calculation assumed that the exercise ratio is 1. For every warrant, there is a specific exercise ratio, which needs to be factored in. Example as below.

user posted image


Exercise ratio
- Number of warrants in exchange for one (1) mother share
@ Indicates the number of X warrant related to one share and specifies the amount of the underlying that the owner of a single warrant is entitled to buy or sell.

Each warrant has an exercise ratio. The most common ratio is 1.0. However, there are other ratios that can be any number, but usually below 1.0 e.g. 0.5, 0.25, 0.02, 0.000067, etc.

E.g.
Conversion ratio of 0.5 - each warrant confers the right to buy 0.5 shares or 2 warrants to buy 1 share
Conversion ratio of 0.5567 - 1.7963 warrants to buy 1 share

Example 1
TM-CI warrant price : RM 0.11
TM (mother share) price : RM3.80
Exercise ratio : 0.17 (6 warrants to 1 mother share OR 1 warrant to buy 0.17 mother share)
Exercise price : RM 3.62

If you exercise the warrant immediately, you will pay a high premium.
Warrant price for 1 mother share = RM 0.11 x 6 = RM 0.66
Convert to mother share = RM 0.66 + RM 3.62 = RM 4.28

TM's price is only RM3.80 while you paid RM4.28 when you exercise the warrant to become the mother share. To break even, you need the mother share to be RM4.28 before you exercise the warrant.

Example 2
Tenaga-CL warrant price : RM 0.13
Tenaga (mother share) price : RM 6.30
Exercise ratio : 0.07 (15 warrants per 1 Tenaga shares OR 1 warrant to buy 0.07 mother share)
Exercise price : RM 6.00

If you exercise the warrant immediately, you will pay:
Warrant price for 1 mother share = RM 0.13 x 15 = RM 1.95
Convert to mother share = RM 1.95 + RM 6.00 = RM 7.95

Tenaga's price is only RM6.30 while you paid RM 7.95 when you exercise the warrant to become the mother share. To break even, you need the mother share to be RM 7.95 before you exercise the warrant.

When using the premium formula, the correct formula should be:

user posted image

As for Tenaga-CL, the warrant has an exercise ratio of 15 warrants per Tenaga share, and an
exercise price of RM6. With the warrants closing at 11 sen last Friday, the break even price for
the mother share, after considering the warrants’ exercise ratio and price, comes up to RM7.65.
Calculations reveal that Tenaga-CL was last traded at a 21.4% premium to the mother share
price of RM6.30 on March 20.


What are warrants?
Warrants are certificates or financial instrument that entitle the holder (the investor who bought the warrant) the right, but not the obligation, to buy a specific amount of common stock at a fixed price in the future.

Example
Company's common stock : YTLPOWER
Company's warrant : YTLPOWER-WB (Warrant B)

If you hold some YTLPOWER-WB, you have the right to buy YTLPOWER common stocks at an agreed-upon price in the future

Warrants are usually denoted by additional wordings at the back:
YTLPOWER-WB
TGOFF-WA
TGOFF-WB
OSK-WB

Types of warrants

Warrants can be divided into many categories:
1) Company warrants or Covered (Structured) warrants
2) Call warrant or Put warrant
3) American or European warrant


Company or covered warrants

The typical differences between company warrant and a covered (structured) warrants are as below:

user posted image

QUOTE
Additional info
Company warrants normally have a lower liquidity, and there is no way to compare their prices. This is because the price of a company warrant is mainly determined by the board of directors. Therefore, the warrant price is very likely to deviate from the underlying price. Put another way, company warrants are less transparent and, sometimes, more speculative. In contrast, covered warrants have a good liquidity due to the market making system. Besides, their pricing mechanism is more transparent (statistics such as effective gearing is readily available). Hence, it is possible to track changes in the theoretical prices of covered warrants.

Although the concepts behind company warrants and covered warrants are similar, the two are subject to different levels of risks. Investors should study the relevant information carefully and bear in mind their own risk tolerance in making the decision whether to invest in company warrants or covered warrants.
Source : http://neaven-seo.blogspot.com/2008/01/dif...f-warrants.html
For more regarding Covered (structured) warrants, take a look at OSK's Issued Structured Warrants : http://www.osk188.com/pageW.jsp?name=SW_OSKIssued

Call or put warrant

Call warrant - gives the holder the option to buy
Put warrant - gives the option to sell

Investors buy call warrants when they expect the underlying share prices to increase in the future. On the other hand, investors buy put warrants when they expect the underlying share prices to drop in the future.

Previously, in Malaysia, only "Call Warrants" were allowed to be traded. "Put Warrants" were not allowed, just like short selling. However, KLSE recently has allow for "Put warrants" to be traded.

American or European warrant

Warrants or call warrants can also be subdivided into two categories based on their exercise style - either American or European.

An American warrant - can be exercised at any time up to its maturity date
European warrant - can only be exercised at its maturity date.


What happens when warrants are issued?

Warrants are usually issued by the company itself and sometimes by 3rd party issuers. After they are issued, warrants trade similarly to stocks. However, warrants aren't usually as liquid to trade as the stock itself.

When warrants are issued, there are a lot of information released, which includes these very important info:
1) Issue price
2) Exercise/strike price
3) Premium
4) Expiry date

Example
YTLPOWER common stock price at the time of warrant issue : RM 1.10

YTLPOWER-WB was then issued with the following details
1) Issue price : RM 0.10
2) Exercise price: RM 1.25
3) Premium : 22.7% -------- calculated by [(RM1.25 + RM0.10) - RM1.10] / 1.10 x 100%
4) Expiry date : 11/06/2018


From the above example, when YTLPOWER-WB is issue, you can buy it at RM0.10 per unit. However, remember that warrants are traded similar to stocks. As such, its price can go up on down with time.

If you bought 1000 units and were to immediately exercise the warrant to convert it to become common stocks, you will have to pay a premium of 22.7%, which is definitely not a good idea right?

Which leads us to the next question.


Why are warrants issued?

Warrants are usually issued along a new bond or stock offering to increase the attractiveness of the offering. Warrants also help reduce the financing cost. Bundled bonds and warrants or bundled stock and warrants are call units.

They are "sweeteners" because they're something that the issuer throws into the new offering to make the deal more appealing; however, warrants can also be sold separately on the market. Also frequently referred to as an "equity kicker", i.e. an additional incentive for the buyer of the common stock to invest in the company.

When warrants are originally issued, the warrant's exercise price is set well above the underlying stock's market price. In the above case, YTLPOWER's exercise price was RM1.25 while the underlying stock price (YTLPOWER) was only RM1.10.

Now, why would investors buy an instrument whose price is above the current price of shares of stock that effectively underlie the instrument? Investors who buy a warrant basically believe that the price of the stocks of the company will rise above the warrant price at that specified point in time in the future. If this happens, the warrant-holder then can exercise his/her claim as specified in the warrant.

For any given warrant, the higher the premium, the more expensive the warrant becomes. If an investor pays a premium to buy a warrant, the underlying share must rise by a percentage equal to the premium before the maturity date to break even.

As such, warrants are, in actual fact, a long-term call on the potential price increase of the common stock. You will lose money if you exercise the warrants immediately after you bought them.

Warrant holders have no voting rights and receive no dividends.

Which leads us to the next question.


Why buy warrants if common stocks can also increase in price?

2 main reasons:
1) Cheaper
2) Leverage

Cheaper
Warrants are cheaper as compared to the price of the mothershare

Say you have 10k and consider buying the shares of the company PBBANK. It also has a warrant PBBANK-CH.

PBBANK : RM9.90
PBBANK-CH : RM0.03

With 10k, you could only buy around 1000 shares of PBBANK (RM9.90 x 1000 = RM 9,900) but can buy around 330,000 warrants of PBBANK-CH! (RM0.03 x 330,000 = RM9,900)

Alternatively, you could also buy 1,000 warrants of PBBANK-CH for RM0.03 x 1,000 = RM30 (which leaves you RM9,970 to buy other shares)

Important : It is not as simple as that when making decisions to buy warrants as you have to take into consideration the exercise price and conversion ratio. The above example is to depict the meaning of "cheap" in warrants.

Leverage

Warrants are all about leverage. Leverage measures how much more a warrant will move in percentage against its underlying stock. When you invest in a warrant, you stand to gain from the exposure of the share price movement at only a fraction of its cost. In terms of percentage, a warrant is more sensitive to the market movement compared to its underlying assets. Therefore, by investing in a warrant, it allows you to benefit from unlimited upside at a lower cost. Apart from that, you can free up your capital to invest in other investments. The downside risk of not being able to exercise the warrant is only the loss of the warrant premium.

Leverage is why an investor should be interested in warrants. Warrants provide the investor the potential for incredible upside leverage versus the underlying common stock. As the price of the underlying common stock rises (i.e. in a bull market), the warrant will (in most cases) greatly outperform the common stock.

In many cases, the warrants will reflect the potential of a 2:1 leverage over the common stock, meaning simply, if the common stock increases 100%, the warrant will increase by 200%, thus a leverage of 2:1.

In short, leverage means getting the maximum return with the least amount of your capital at risk.

It is important to note that leverage diminishes as the common stock rises father above the warrant's exercise price. At some high price for the common, the warrant will lose most of its leverage and advance at a rate barely higher than the common.

Example
You have these shares/warrants in hand:

PBBANK = 1,000 shares at RM9.90
PBBANK-CH = 1,000 shares at RM0.03

The price of PBBANK increases by RM2.00 and PBBANK-CH also increases by RM0.03 as it follows the mother share.

PBBANK RM9.90 increase RM2.00 = RM11.90 (increase by around 20%)
PBBANK-CH RM0.03 increase RM0.03 = RM0.06 (increase by around 100%!!!)

From the example, you can see that even though PBBANK-CH only increase by 3 cents, it is 100% gain from it's original price. As compared to PBBANK which increase RM2 but only gain 20% from it's original price.

Now, imagine if you had 33,000 shares of PBBANK-CH!!! drool.gif



What happens to warrants later on until expiry?

In progress

Remember that warrants have an expiry date.

Warrant prices usually start to decline when the expiry date is near.

If the underlying stock is trading below the exercise price on the expiration date, the warrant will be worthless which is why it is recommended that investors focus on warrants that have a remainnig life of at least 2 years.

______

Of course, if the stock price in the future does not go higher than the warrant's price, the right of claim provided by the warrant is not exercised by the investor and is left to expire. In this case, the investor loses by the amount it cost to buy the warrant. The company issuing stock rights or warrants is really not directly affected by the profits or losses made by investors. As far as they are concerned, these instruments provide a means to raise funds for the use of the company. The profits and losses that accrue to the investor refer to investment gains and losses of theinvestor in managing the instruments and do not reflect gains and losses of the company itself.
____

The value of a warrant is determined by two main factors, its intrinsic value and time value. Its intrinsic value is the difference between the current price of the underlying asset and the warrant's exercise price.

A warrant has a limited life span and as such, when you are looking at the time value, as time passes the value will decrease accordingly until it turns zero on expiration. The factors that will positively affect a warrant's time value are the expected volatility of the underlying stock and the warrant's time to maturity.

Where to get information on warrants?

There are various sources where you can find further details about a particular warrant:
1) Bursa Malaysia website
2) Your own trading portal
3) The Edge weekly magazine
4) Your local newspaper (stock section)

Bursa Malaysia website
For bursa Malaysia, you need to go to the website : http://www.bursamalaysia.com/website/bm/index.jsp

From the top menu, select "Market information" > "Market statistics" > "Warrants"

From there, you can either select "Top 20 active warrants", "Call warrants" or "Summary or warrants". After that, download the PDF file.

user posted image

Your own trading portal
For example, if you use Maybank2u, go to the trading portal. Select the drop-down menu >"Search by sector" > "Warrants" > "All sectors".

user posted image


The Edge (Weekly) Magazine

The Edge Magazine will list out ALL the warrants on KLSE with lots of information in every weekly issue. Here's an example :

Attached Image



References:

http://books.google.com.my/books?id=Zf_uMf...result&resnum=4
http://www.safehaven.com/article-4613.htm
http://books.google.com.my/books?id=wLE4vo...esult&resnum=10
http://www.hotstockmarket.com/forums/showthread.php?t=44281
http://www.preciousmetalswarrants.com/whywarrants.html
http://business.inquirer.net/money/advice/...stock_rights%3F
http://www.hashemian.com/financial-markets...arrants-183.htm
http://www.sc.com.my/eng/html/resources/gu...ants_090508.pdf
http://www.numa.com/derivs/ref/calculat/warrant/calc-wtb.htm
http://www.investment-analytics.com/files/...es/Warrants.pdf
http://www.asiaone.com/Business/My%2BMoney...1205-39670.html
https://www.warrants.standardbank.co.za/war...ful_Trading.pdf
http://biz.thestar.com.my/news/story.asp?f...94&sec=business
http://www.investopedia.com/articles/04/021704.asp
http://warrants.cimb.com/WRT/callWarrants.jsp#a7
http://media.dbwarrants.com.hk/EN/binaer_view.asp?BinaerNr=8



QUOTE
Without mentioning any specific names, let’s illustrate why warrants can be very profitable. One large gold company trading on the TSX and the American Exchange has two warrants which trade on the TSX. The most recent warrant issued has an exercise price of C$12.10 and expires on 7-January-2008.

Closing price of the common stock (23-Sep-2005) C$9.30

Closing price of the warrant (23-Sep-2005) C$1.55

Say you were interested in buying 1,000 shares of the common stock which would cost you C$9,300. You could instead purchase 1,000 warrants at C$1.55 for a total cost of C$1,550.

Cost of the common stock (1,000 shares) C$9,300

Cost of the warrants (1,000) (C$1,550)

Your savings C$7,750

Now you control 1,000 shares and have saved a lot of money.

Not only do you save money, if the common stock goes to say C$20 (a return of 115%), the warrant will be worth at least C$7.90 or a total of C$7,900 on your investment of C$1,550, reflecting an incredible return of 410%.

What if, instead of buying 1,000 shares of the common stock you invested the entire amount in the warrants, you could actually purchase 6,000 warrants for the same total cost of C$9,300. Again, if we get a move in the common stock to C$20 (a 115% return), the warrants will be worth at least C$7.90 or a total of C$47,400 (6,000 wts @ C$7.90), for a return of 410%.


This post has been edited by kmarc: Feb 9 2010, 05:13 PM
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post May 23 2009, 09:19 PM

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How and when to trade warrants?

2nd part of warrants, had to split up the post as the previous post was getting too crowded!

QUOTE
You may have been told that investing in warrants is risky; that they are more volatile compared to stocks. However, if you spend some time to learn about them, you will discover that warrants are in fact a good alternative investment vehicle for you to consider. You can make it a part of your investment portfolio and allow yourself room for diversity if you understand it well enough.

Source : http://www.btimes.com.my/Current_News/BTIM...icle/index_html

Here are some tips that I pulled out from the net.

1) Investors should never invest all their investment capital in warrants. Some experts advise not more than 10% of their total investment capital due to the high-risk and high-return nature of warrants

2) As investors in warrants, the objective is to only trade the warrants with no intention of ever exercising them. Remember that warrants are traded freely in the stock market, just like common stocks.

3) If your favorite stock has a warrant trading you should take a serious look to see if they fit your investment criteria (duration of warrant and it's leverage)

4) If you want to invest in warrants, you should first understand how the product works and the risks associated with them. The performance of a warrant is closely linked to the price movement of its underlying assets. As such, if you are expecting an uptrend market and have strong confidence in the underlying shares, then the chances of you reaping rewards from investing in warrants is very high.
However, if the market is experiencing a downward trend and the time to maturity of your warrants is limited, then you should be more cautious in buying them. This is particularly crucial if the current market price of the underlying share is lower than the exercise price of the warrant.

5) Consider buying warrants when they trade below their normal-value price curve and a leverage factor of 2.0 or higher

6) Investors should be disciplined about taking profits and cutting losses. They should monitor their positions closely as warrants tend to move in greater percentage terms than shares.

7) Since warrants can be expected to decline faster than their underlying stocks over the near term, and since long-term they are wasting assets (assets whose value inevitably decreases with time + you don't get dividend), consider them for purchase only when they offer substantial leverage.

8) Read more. Ask experts. Discuss in forums..... It is not always easy to find all the facts on the warrants for some companies and you should always do your homework.

9) A more disciplined way of investing in warrants is to set a time limit for the underlying share to reach your targeted price. If the price does not measure up to your expectations by then, you will need to re-evaluate your position according to your risk/return profile.

10) In instances where the stock market has been bearish and you have no idea whether the market trend is going to reverse anytime soon, then, you may want to go for warrants with a longer time to maturity. A warrant based on an underlying stock that is in good financial health with good business prospect and has at least 3 years to maturity can be an option for you.

If you buy warrants just to get quick money without doing any research, homework or plan, remember that you can lose your money just as quick!

References: All cited in the previous post

This post has been edited by kmarc: Aug 9 2009, 10:49 PM
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post May 23 2009, 09:20 PM

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Rights Issue

Companies and corporations might, on occasion, need more money to expand their businesses. There are many ways in which to raise cash/capital:

1) Rights issue
2) Bonds issue
3) Issue new "Preferred" stocks
4) Sell common stocks
5) Borrowings
6) Using profits

This subtopic will be dealing mainly on "Rights issue" but for completeness sake, a simple explanation will be given for each of the above in the following spoiler.

» Click to show Spoiler - click again to hide... «


Rights issue

A rights issue is one of the way a company can raise money by selling new shares. It is exclusively only for existing shareholders. These shares are usually offered at a discount compared to the market price of the stock.

Some would say that rights issue is an invitation by a company to its existing shareholders to buy additional new shares in the company. Others think of it as a polite way for a company to get cash from you!!!

When you are offered rights issue, you have 3 options:
1) Buy the new shares (rights issue) - Take up your "rights" to buy the new shares
2) Do not take up the offer (also known as allow the rights to lapse)
3) Sell your rights to other investors

We will go into each of the above options later but explanation of some terms is necessary to understand each of the options.

Basics
Let's take a look at this example of Maybank offering rights issue to it's shareholders:
-Maybank current stock price RM 4.82
-Rights issue RM 2.74

This is good, isn't it? Being offered new shares at a lower price of RM 2.74 while the actual stock price is RM4.82? Well, in actual fact, it is not as good or as simple as you think.

To understand how rights issue work, you need to know the following terms. The Maybank's rights issue is taken as an example:

Initial proposal by Maybank:
QUOTE
Proposed renounceable rights issue on the basis of nine (9) ordinary shares of RM1.00 each in Maybank shares ("Rights shares") for every twenty (20) existing ordinary shares of RM1.00 shares each held in Maybank ("Shares")


After confirmation:
QUOTE
Renounceable rights issue of 2,196,516,217 new ordinary shares of RM1.00 each in Maybank ("Rights shares") at an issue price of RM2.74 per rights share, payable in full upon acceptance, on the basis of nine (9) rights shares for every twenty (20) existing ordinary shares of RM1.00 each in Maybank held at 5:00pm on 2 April 2009 ("Rights issue")

Note : The RM1.00 is the par value of Maybank shares. See above for the explanation of "par value".

Rights shares
The new shares offered in the rights issue

Renounceable rights
This means that existing shareholders can trade their rights (renounce their rights to buy the shares) by selling the rights issue to other investors in the open market (i.e. the shares are transferable). After the rights are traded, they are known as "nil-paid rights".

Note : Nil-paid rights are rights which an investor is holding but have not pay up yet to exercise the rights and receive the shares.

If the rights issue was "Non-renounceable" and existing shareholders take up the rights, they would have to keep the rights and would not be able to sell the rights in the open market (to make a profit)


Rights Issue Entitlement

How much of the rights issue you are entitled to buy/subscribe.
Usually quoted as how many new rights issue you get to buy for every existing share held.

For example, Maybank's rights issue was 9-for-20. That means 9 rights share for every 20 shares held.
If you have:
- 20 Maybank shares - you get to buy 9 rights share
- 100 Maybank shares - you get to buy 45 rights share
- 1000 Maybank shares - you get to buy 450 rights share

Example 2
RENOUNCEABLE RIGHTS ISSUE OF 4,691,752,475 NEW ORDINARY SHARES OF RM1.00 EACH IN AXIATA (“AXIATA SHARES”) (“RIGHTS SHARES”), ON THE BASIS OF 5 RIGHTS SHARES FOR EVERY 4 EXISTING AXIATA SHARES HELD BY AXIATA’S ENTITLED SHAREHOLDERS AS AT 5.00 P.M. ON 10 APRIL 2009, AT AN ISSUE PRICE OF RM1.12 PER RIGHTS SHARE (“RIGHTS ISSUE”)

Axiata's rights issue was 5-for-4. That means 5 rights issue for every 4 shares held.
If you have:
4 Axiata shares - you get to buy 5 rights share
1000 Axiata shares - you get to buy 1250 rights shares
5000 Axiata shares - you get to buy 6250 rights shares

Ex-right date & price
The ex-right date is similar to ex-date for stocks (see above on ex-date).

Before the ex-right date, if you buy and hold any of the company's share until that date, you are entitled to the rights. If you buy the company's shares on the ex-right date, you are not entitled to the rights.

From the example above, Maybank's ex-right date would be 3 April 2009.
Any Maybank shares that you buy before the 3 April will entitled you to the rights.
You can buy at 4:59pm on 2nd April 2009 (and hold it) and still be entitled to the rights.
However, if you bought it at 9:00am on 3 April 2009, you have lost the opportunity to buy the rights.

Changes in share price as a result of rights issue
As mentioned above, existing shareholders have the "privilege" rights to buy the rights issue. However, theoretically, there is no additional benefit/profit/privilege from buying the rights issue as a lower subscription price as the stock price will decline when the shares goes ex-right.


Theorectical ex-right price

Choices available to you as a shareholder
As stated above, these are the options available:
1) Buy the new shares (rights issue) - Take up your "rights" to buy the new shares
2) Do not take up the offer (also known as allow the rights to lapse)
3) Sell your rights to other investors


References:
http://www.takeovers.gov.au/content/Displa...m&pageID=&Year=
http://www.investopedia.com/articles/stock...partner=answers
http://www.stock-investment-made-easy.com/rights-issue.html

This post has been edited by kmarc: Jan 8 2010, 02:18 PM
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post May 23 2009, 09:20 PM

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Reserved for future use

Possible future guide
Bonus issue
http://www.rediff.com/getahead/2005/may/19shares.htm

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Reserved

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post May 24 2009, 07:16 AM

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I have posted the "Dividends & stocks" subtopic in post #3. Still lots of things to add in.

If you guys could help me out on the information available, that would be great. Especially the comparison table on dividend vs. interest. Any suggestions would be helpful too. Thx. smile.gif

Note : Once all the subtopics are completed, I wonder whether I should transfer everything to a new thread or is it possible for Cherroy to delete our discussions and clean the thread? hmm.gif

This post has been edited by kmarc: May 24 2009, 07:21 AM
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SKY 1809
post May 24 2009, 07:43 AM

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"companies under REITs (Real-estate investment trust) usually have a policy of giving out 90% of their profits as dividends."

Complying with the 90% pay out rule, the reit company itself is exempted from paying tax ( tax free ). Investors are tax at 10% only upon receiving the Div. Only applicable to reits, and not applicable to other companies. Whether dividend is paid or not.

For sharing what i think only.

Correct me if I am wrong.

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alfredfx
post May 24 2009, 12:38 PM

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you should discuss more about dividend yield and its relative comparison. Too, on the price earning , dividend policy as well as capital structure.
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Jordy
post May 24 2009, 12:53 PM

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kmarc,

Generally this post is almost perfect, just need to amend a bit smile.gif

QUOTE
Ex-dividend date (better known as ex-date)

The date after the dividend is allocated (note the word "allocated" as the dividend is not actually paid to shareholders yet)
Shares bought and sold on this day onwards will no longer come with the dividend
The stock price usually decrease on the ex-dividend date by an amount roughly equal to the dividend paid
This reflects the decrease in the company's assets resulting from the declaration of the dividend.
Please bear in mind that you CAN sell the shares on the ex-date and STILL receive the dividend (selling on ex-date comes with the dividend).

In your diagram, I think you should state that interest received from FD of less than RM 100k is not taxable. Whatever over RM 100k is taxable at 5%.

Also, may I suggest that you explain about franked dividends and its tax rate (still valid until 2012) and single-tier dividends (every company has to abide it after 2012). For franked dividends, investors can STILL claim the additional tax from IRB until 2012 only.
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ckk125
post May 24 2009, 12:53 PM

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also, split share and rights issue?

Im also learning...i guess if there is additional info on this, it would be great, especially for beginners.
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Jordy
post May 24 2009, 12:59 PM

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QUOTE(ckk125 @ May 24 2009, 12:53 PM)
also, split share and rights issue?

Im also learning...i guess if there is additional info on this, it would be great, especially for beginners.
*
ckk125,

Split share is another term for bonus issue (eg if you hold 2000 units of shares in company A and it pays you bonus share of 1:2 ordinary shares held and say its price was RM1.00, then after the ex-date you will be holding to 2000 + 1000 units, while its price will now be RM 1.00 / 3 * 2 = RM 0.67).

Rights issue is NOT dividend. It is the right of a shareholder to purchase the new issues by the company. Those without the company's existing shares cannot purchase the additional rights issues.
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kmarc
post May 24 2009, 01:05 PM

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Thx to all for your valuable information.

My main rig's LAN already kaput. Need to go out and buy a new NIC. doh.gif

Will be back later to update the thread. smile.gif
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simplesmile
post May 24 2009, 01:11 PM

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Can also explain what is
a. 5 sen dividend less 25% income tax
b. 5% dividend less 25% income tax

In (b), the amount is based on the par value of the shares, which could be RM1.00 or RM0.10.
Also would be great if you can explain the "less income tax" part and going forward will be tax exempt. A little history of the imputation tax systems and its change to the single-tier tax systems in ..... i think 2007, or 2008, may help readers to understand.

Your header "In-dividend date (better known as entitlement date)"
Instead of "in-dividend", maybe you want to use "cum-dividend"?
.
.
.
.

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kmarc
post May 24 2009, 04:08 PM

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Just bought a new NIC! rclxms.gif RM25 with no discount. vmad.gif

QUOTE(SKY 1809 @ May 24 2009, 07:43 AM)
"companies under REITs (Real-estate investment trust) usually have a policy of giving out 90% of their profits as dividends."

Complying with the 90% pay out rule,  the reit company itself is exempted from paying  tax ( tax free ). Investors are tax at 10% only upon receiving the Div. Only applicable to reits, and not applicable to other companies. Whether dividend is paid or not.

For sharing what i think only.

Correct me if I am wrong.
*
Updated. Thx!

QUOTE(alfredfx @ May 24 2009, 12:38 PM)
you should discuss more about dividend yield and its relative comparison. Too, on the price earning , dividend policy as well as capital structure.
*
Alamak! So hi-fi leh.... any links for me to read so that I can include that? Will google for it too.... wink.gif

QUOTE(Jordy @ May 24 2009, 12:53 PM)
kmarc,

Generally this post is almost perfect, just need to amend a bit smile.gif
Please bear in mind that you CAN sell the shares on the ex-date and STILL receive the dividend (selling on ex-date comes with the dividend).

In your diagram, I think you should state that interest received from FD of less than RM 100k is not taxable. Whatever over RM 100k is taxable at 5%.

Also, may I suggest that you explain about franked dividends and its tax rate (still valid until 2012) and single-tier dividends (every company has to abide it after 2012). For franked dividends, investors can STILL claim the additional tax from IRB until 2012 only.
*
Will include all the above. Thx.

Aiyaaa.... I don't even know what is franked dividends or single-tier dividends. Will google for more info....

QUOTE(simplesmile @ May 24 2009, 01:11 PM)
Can also explain what is
a. 5 sen dividend less 25% income tax
b. 5% dividend less 25% income tax

In (b), the amount is based on the par value of the shares, which could be RM1.00 or RM0.10.
Also would be great if you can explain the "less income tax" part and going forward will be tax exempt. A little history of the imputation tax systems and its change to the single-tier tax systems in ..... i think 2007, or 2008, may help readers to understand.

Your header "In-dividend date (better known as entitlement date)"
Instead of "in-dividend", maybe you want to use "cum-dividend"?
.
.
.
.
*
That will be the last part of this subtopic "Dividend and taxes".....

Will include the part of "par value too". Need to decide where to put that.

Aiyaaa.... you guys know more that me ler.... "imputation tax system"???? Single-tier tax system???? Me only noob ikan bilis la... blush.gif

Anyway, I still need to read more about what you guys mentioned above. Hope I can complete everything by tonight. smile.gif
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kmarc
post May 24 2009, 09:00 PM

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QUOTE
Entitlement Date and time : 30/6/2009 5:00pm
Year Ending/Period Ending/Ended date : 31/12/2008
Ex-date : 26/06/2009
Payment date : 17/07/2009


Guys, I'm confused with the entitlement date. Example as above. Why is it 2 working days (or is it 3) after the ex-date? rclxub.gif Is it because of T+3? hmm.gif

Made an error..... looks like "cum dividend" is not the same as entitlement date!

This post has been edited by kmarc: May 24 2009, 09:01 PM
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Irzani
post May 24 2009, 10:19 PM

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Regarding the T+3 date .. I call my remisier (I didn't know they are dealer or remisier)

1) Buy on Wednesday. Call my dealer/remisier to ask the force sell date. He tell me that I can sell the stocks before 12 noon at Tuesday.

But isn't that ...

Day

T - Wednesday
T1 - Thursday
T2 - Friday
T3 - Monday
T4 - 12 noon on Tuesday


It's already T+4?


Note : I'm using ITrade

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lklatmy
post May 24 2009, 11:54 PM

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QUOTE(kmarc @ May 24 2009, 04:08 PM)

Aiyaaa.... I don't even know what is franked dividends or single-tier dividends. Will google for more info....
That will be the last part of this subtopic "Dividend and taxes".....



Aiyaaa.... you guys know more that me ler.... "imputation tax system"???? Single-tier tax system???? Me only noob ikan bilis la...  blush.gif

Anyway, I still need to read more about what you guys mentioned above. Hope I can complete everything by tonight.  smile.gif
*
To give some helping hand,you are free to use my postings in my blog.There's some explaination on Single tier tax and imputation system.

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kmarc
post May 25 2009, 11:50 AM

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QUOTE(lklatmy @ May 24 2009, 11:54 PM)
To give some helping hand,you are free to use my postings in my blog.There's some explaination on Single tier tax and imputation system.
*
Thx! I read your blog and don't understand the calculation part. sweat.gif

Anyway, I haven't done the "Dividend & Tax" part yet. Will consult your expertise when I'm doing it. wink.gif


Added on May 25, 2009, 11:51 am
QUOTE(Irzani @ May 24 2009, 10:19 PM)
Regarding the T+3 date .. I call my remisier (I didn't know they are dealer or remisier)

1) Buy on Wednesday. Call my dealer/remisier to ask the force sell date. He tell me that I can sell the stocks before 12 noon at Tuesday.

But isn't that ...

Day

T - Wednesday
T1 - Thursday
T2 - Friday
T3 - Monday
T4 - 12 noon on Tuesday
It's already T+4?
Note : I'm using ITrade
*
Should be Monday 12 noon leh..... maybe he gave you extension? Can you confirm with your remisier why it is not Monday 12 noon? hmm.gif

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aurora97
post May 26 2009, 10:18 AM

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ignore distraction

» Click to show Spoiler - click again to hide... «


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kmarc
post May 26 2009, 06:25 PM

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QUOTE(aurora97 @ May 26 2009, 10:18 AM)
Some articles on warrant.
http://forum.lowyat.net/topic/883462
*
Thx. Not too sure whether want to do a guide on warrant or not.... hmm.gif
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omores
post May 26 2009, 06:44 PM

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QUOTE(kmarc @ May 26 2009, 06:25 PM)
Thx. Not too sure whether want to do a guide on warrant or not....  hmm.gif
*
U can work on that later. Finish one by one first lo. Can u ask some sifu's to help you do up the other parts as well? Can't do this all on your own man. I'm sure they'd be glad to as a lot of people keep asking the same questions to them every day of the week, so this will hopefully reduce the numbers.

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kmarc
post May 26 2009, 08:07 PM

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QUOTE(omores @ May 26 2009, 06:44 PM)
U can work on that later. Finish one by one first lo. Can u ask some sifu's to help you do up the other parts as well? Can't do this all on your own man. I'm sure they'd be glad to as a lot of people keep asking the same questions to them every day of the week, so this will hopefully reduce the numbers.
*
Yeah, have to finish one subtopic before going on to the next one.

Already ask our good forumers to come in a help. smile.gif Just that our sifus busy playing stocks..... cry.gif
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Irzani
post May 27 2009, 04:49 AM

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QUOTE(kmarc @ May 25 2009, 11:50 AM)
Should be Monday 12 noon leh..... maybe he gave you extension? Can you confirm with your remisier why it is not Monday 12 noon?  hmm.gif
*
Suddenly on 10am on Monday, they give me sms to top up the current balance. So, I have to cut loss on that time since no time to go bank. Damn, in the FAQ you should put ask the remisier/dealer to confirm for at least 3-5 times. mad.gif

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kmarc
post May 27 2009, 06:39 AM

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QUOTE(Irzani @ May 27 2009, 04:49 AM)
Suddenly on 10am on Monday, they give me sms to top up the current balance. So, I have to cut loss on that time since no time to go bank. Damn, in the FAQ you should put ask the remisier/dealer to confirm for at least 3-5 times.  mad.gif
*
Got mentioned that you need to ask for extension leh.... however, maybe your remisier gave you the extension but the sms is automatic? hmm.gif

I have highlighted that part for possible future confusion.... smile.gif

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Irzani
post May 27 2009, 07:17 AM

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Not automatic one ... it's from their H/P .. luckily I don't sleep and off my HP on that morning .. sweat.gif
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kmarc
post May 27 2009, 04:56 PM

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QUOTE(Irzani @ May 27 2009, 07:17 AM)
Not automatic one ... it's from their H/P .. luckily I don't sleep and off my HP on that morning ..  sweat.gif
*
I see... you should scold your remisier for giving you wrong info leh.... smile.gif
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kmarc
post Jun 7 2009, 06:44 PM

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Sorry guys. Have been busy this past week. Didn't have time to continue the guide. Will probably be free this weekend.....

This thread is not dead as I plan to finish what I started... just might take some time.... icon_rolleyes.gif
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kmarc
post Jul 7 2009, 03:01 PM

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Finally more free to continue on the guide. I'm stuck at the Dividend & Tax subtopic. Need clarification.

Q1:
In the single-tier tax system, I understand that the tax is imposed at the level of the company. So they would declare something like this (right?):

Dividend : 20 cents (25% less tax)

So, if it is already less tax, it is still taxable in the hands of the shareholders in their annual income tax?

Q2:
Why is there tax-exempted dividends? (T.E)

Q3:
If you look at the list of upcoming dividends, only some will have the phrase "Single tier" e.g. Interim dividend 6 sen single-tier.

Why is that? I thought all is single-tier?

Any help is welcome. Giving me a headache.... rclxub.gif
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cherroy
post Jul 7 2009, 03:38 PM

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QUOTE(kmarc @ Jul 7 2009, 03:01 PM)
Finally more free to continue on the guide. I'm stuck at the Dividend & Tax subtopic. Need clarification.

Q1:
In the single-tier tax system, I understand that the tax is imposed at the level of the company. So they would declare something like this (right?):

Dividend : 20 cents (25% less tax)

So, if it is already less tax, it is still taxable in the hands of the shareholders in their annual income tax?

Q2:
Why is there tax-exempted dividends? (T.E)

Q3:
If you look at the list of upcoming dividends, only some will have the phrase "Single tier" e.g. Interim dividend 6 sen single-tier.

Why is that? I thought all is single-tier?

Any help is welcome. Giving me a headache....  rclxub.gif
*
Q1
Single tier, tax has being incurred at company level based on corporate tax rate which is 25% currently. They will state as single tier

Q2
Dividend can be tax exempted when company utilise the tax credit to offset it.

Q3
Start from 2013, any dividend will be under new single tier. Now we are in transition period of changing from old imputation system to single tier. It depended on individual company situation.

Under old imputation system, low earners will able to claim back the tax or tax differentiate of individual tax bracket.
So single tier is disadvantage to those tax bracket lower than 25%.

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smartly
post Jul 7 2009, 03:41 PM

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QUOTE(kmarc @ Jul 7 2009, 03:01 PM)
Finally more free to continue on the guide. I'm stuck at the Dividend & Tax subtopic. Need clarification.

Q1:
In the single-tier tax system, I understand that the tax is imposed at the level of the company. So they would declare something like this (right?):

Dividend : 20 cents (25% less tax)

So, if it is already less tax, it is still taxable in the hands of the shareholders in their annual income tax?

Q2:
Why is there tax-exempted dividends? (T.E)

Q3:
If you look at the list of upcoming dividends, only some will have the phrase "Single tier" e.g. Interim dividend 6 sen single-tier.

Why is that? I thought all is single-tier?

Any help is welcome. Giving me a headache....  rclxub.gif
*
A1 - You need to do regross while declaring your income tax.
A2 - Not sure. Maybe on company own discretiom.
A3 - The single-tier tax system was introduces in Budget 2008 to replace d imputation sys with effect from year of assessment 2008. Under tis sys, corporate income is taxed at corporate lvl & tis is a final tax. Companies may declare single tier exempt div that wud be exempt from tax in the hands of thier shareholders.
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kmarc
post Jul 7 2009, 03:51 PM

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QUOTE(smartly @ Jul 7 2009, 03:41 PM)
A1 - You need to do regross while declaring your income tax.
A2 - Not sure. Maybe on company own discretiom.
A3 - The single-tier tax system was introduces in Budget 2008 to replace d imputation sys with effect from year of assessment 2008. Under tis sys, corporate income is taxed at corporate lvl & tis is a final tax. Companies may declare single tier exempt div that wud be exempt from tax in the hands of thier shareholders.
*
Ermmm..... I don't understand the term "regross". Can explain a bit aaa? blush.gif

For A3, I thought all companies come under the single-tier tax system. Doesn't all companies nowadays declare single-tier exempted dividends? Or does some companies still follow the old system?

Do you have any good reference on this? I'm sooooo confused.... rclxub.gif

Example :

Final Dividend of one company : 5 sen
Final dividend of another : 5 sen T.E
Final dividend of another : 5 sen single-tier T.E

What does all this mean? rclxub.gif


Added on July 7, 2009, 3:52 pm
QUOTE(cherroy @ Jul 7 2009, 03:38 PM)
Q1
Single tier, tax has being incurred at company level based on corporate tax rate which is 25% currently. They will state as single tier

Q2
Dividend can be tax exempted when company utilise the tax credit to offset it.

Q3
Start from 2013, any dividend will be under new single tier. Now we are in transition period of changing from old imputation system to single tier. It depended on individual company situation.

Under old imputation system, low earners will able to claim back the tax or tax differentiate of individual tax bracket.
So single tier is disadvantage to those tax bracket lower than 25%.
*
I see.... that explains everything. Thx!!! thumbup.gif

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smartly
post Jul 7 2009, 04:13 PM

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QUOTE(kmarc @ Jul 7 2009, 03:51 PM)
Ermmm..... I don't understand the term "regross". Can explain a bit aaa?  blush.gif

For A3, I thought all companies come under the single-tier tax system. Doesn't all companies nowadays declare single-tier exempted dividends? Or does some companies still follow the old system?

Do you have any good reference on this? I'm sooooo confused....  rclxub.gif

Example :

Final Dividend of one company : 5 sen
Final dividend of another : 5 sen T.E
Final dividend of another : 5 sen single-tier T.E

What does all this mean?  rclxub.gif


Added on July 7, 2009, 3:52 pm

I see.... that explains everything. Thx!!!  thumbup.gif
*
The regross thingy....
As cherroy has explained the transitional period from old sys to new sys will happen between 1.1.08 to 31.12.2013...

A "regross" of the div will apply when company fail to deduct tax from YA 1.1.08 to 31.12.2013.
There is a formula to it, please check your income tax return form for detail.

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kmarc
post Jul 7 2009, 06:15 PM

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QUOTE(smartly @ Jul 7 2009, 04:13 PM)
The regross thingy....
As cherroy has explained the transitional period from old sys to new sys will happen between 1.1.08 to 31.12.2013...

A "regross" of the div will apply when company fail to deduct tax from YA 1.1.08 to 31.12.2013.
There is a formula to it, please check your income tax return form for detail.
*
Ok. I'm planning to add a subtopic that covers declaration of dividend in our income tax. Just that I never did that before as my first dividend is in 2009!!! sweat.gif

Anyway, going to put some examples in the guide, as follows :

BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen

If I understand the STS/TTS correctly,
1) BKAWAN - gives out 10 sen, company not taxed and shareholder no need to declare in their income tax
2) KLK - gives out 10 sen, company was taxed 25% but shareholder no need to declare in their income tax
3) ALLIANZ - gives out 2 sen under TTS, company was taxed and shareholder still have to declare in their income tax.

Am I correct in this? hmm.gif

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post Jul 7 2009, 11:37 PM

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QUOTE(kmarc @ Jul 7 2009, 06:15 PM)
BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen

If I understand the STS/TTS correctly,
1) BKAWAN - gives out 10 sen, company not taxed and shareholder no need to declare in their income tax
2) KLK - gives out 10 sen, company was taxed 25% but shareholder no need to declare in their income tax
3) ALLIANZ - gives out 2 sen under TTS, company was taxed and shareholder still have to declare in their income tax.

Am I correct in this?  hmm.gif
*
For 3) need more clarification

Company was taxed, but shareholder can claim back the tax if the shareholder total income is not subjected to tax or claim back the differentiate if the shareholder tax bracket is much lower than the corporate tax rate.
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post Jul 8 2009, 09:45 AM

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QUOTE(kmarc @ Jul 7 2009, 06:15 PM)
Ok. I'm planning to add a subtopic that covers declaration of dividend in our income tax. Just that I never did that before as my first dividend is in 2009!!!  sweat.gif

Anyway, going to put some examples in the guide, as follows :

BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen

If I understand the STS/TTS correctly,
1) BKAWAN - gives out 10 sen, company not taxed and shareholder no need to declare in their income tax
2) KLK - gives out 10 sen, company was taxed 25% but shareholder no need to declare in their income tax
3) ALLIANZ - gives out 2 sen under TTS, company was taxed and shareholder still have to declare in their income tax.

Am I correct in this?  hmm.gif
*
I think all wrong tongue.gif
1. TE just to confuse you, actually taxed to company.
2. company tax not necessary 25%, think that's lower, couple with other tax deductible, can be even lower (or higher for some company).
3. TTS? Company got the tax credit to declare dividend & distribute profit to shareholders, shareholders can claim back excess tax paid based on individual tax rate/ bracket.

But I don't think we need in depth knowledge for this topic, as tax is hard for most & the more you provide will only end up confuse more tongue.gif Just know to claim back whatever should be claim back and pay whatever should be pay will do for most of us.

Also no use study tax in depth unless you are really interested or got great benefit by study that, because tax law change almost every year, what you study now might not be applicable in a year or two, waste brain cells tongue.gif
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lklatmy
post Jul 8 2009, 10:51 AM

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QUOTE(kmarc @ Jul 7 2009, 06:15 PM)


BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen

If I understand the STS/TTS correctly,
1) BKAWAN - gives out 10 sen, company not taxed and shareholder no need to declare in their income tax
2) KLK - gives out 10 sen, company was taxed 25% but shareholder no need to declare in their income tax
3) ALLIANZ - gives out 2 sen under TTS, company was taxed and shareholder still have to declare in their income tax.

Am I correct in this?  hmm.gif
*
1 and 2 same answer,the single tier dividend are of the same category and it's not taxable in the hand of the receipient. No need to include in the income tax return.KLK should be more specific and state the dividend as " Interim dividend 10 sen Single Tier T.E."

3 is taxable in the hand of the receipient,must declare the gross amount and offset the Section 108 credit(ie the tax credit) against the tax payable.If you hold 1000 shares in Allianz,you will receive dividend of RM15 with tax credit of RM5.


I stand to be corrected.
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kmarc
post Jul 8 2009, 08:08 PM

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QUOTE(cherroy @ Jul 7 2009, 11:37 PM)
For 3) need more clarification

Company was taxed, but shareholder can claim back the tax if the shareholder total income is not subjected to tax or claim back the differentiate if the shareholder tax bracket is much lower than the corporate tax rate.
*
I see. Will add this and read more about this.

QUOTE(htt @ Jul 8 2009, 09:45 AM)
I think all wrong tongue.gif
1. TE just to confuse you, actually taxed to company.
2. company tax not necessary 25%, think that's lower, couple with other tax deductible, can be even lower (or higher for some company).
3. TTS? Company got the tax credit to declare dividend & distribute profit to shareholders, shareholders can claim back excess tax paid based on individual tax rate/ bracket.

But I don't think we need in depth knowledge for this topic, as tax is hard for most & the more you provide will only end up confuse more tongue.gif Just know to claim back whatever should be claim back and pay whatever should be pay will do for most of us.

Also no use study tax in depth unless you are really interested or got great benefit by study that, because tax law change almost every year, what you study now might not be applicable in a year or two, waste brain cells tongue.gif
*
Thx for your input. Will make the necessary corrections.

Yeah, I'm not planning to go into the details. Just want to provide a little background and some information so that forumers can understand what it means when they see the dividends declared.

QUOTE(lklatmy @ Jul 8 2009, 10:51 AM)
1 and 2 same answer,the single tier dividend are of the same category and it's not taxable in the hand of the receipient. No need to include in the income tax return.KLK should be more specific and state the dividend as " Interim dividend 10 sen Single Tier T.E."

3 is taxable in the hand of the receipient,must declare the gross amount and offset the Section 108 credit(ie the tax credit) against the tax payable.If you hold 1000 shares in Allianz,you will receive dividend of RM15 with tax credit of RM5.
I stand to be corrected.
*
I see. Thx for the info. I read your blog again and it was very helpful. Need to clarify a few things. Quote from your blog:

QUOTE
When a Company makes profit of RM10 million in a financial year,tax at 27% would cost the company RM2.7m which has to be paid over to Inland Revenue in cash.This 2.7 m paid is known as Section 108 credits.

If this company decides to distribute a gross dividend of 10% less tax to the shareholders, shareholder who holds 1000 shares of RM1 each would receive RM100 less tax 27%,the net amount received is RM73.

This shareholder then declares the gross dividend of RM100 in his Income Tax return as his dividend income.The RM27(known as S108 credit) is then deducted from the tax payable by the shareholder .This whole system where tax paid by the company is imputed to their shareholders is known as the "imputation system".


In your example, the dividend is : 10% less tax

So, 1000 shares of par value RM1 each, we will receive RM73.

My question is:
1) Is the "less tax" now 25%, 26% or 27%? rclxub.gif
2) We only receive RM73, but why declared RM100? Is it because the RM27 was taxed?
3) If our income tax bracket was 13%, then we can claim back RM14 right? How do we claim this back? Is this the same as the "E10) Tolakan cukai seksyen 110 (dividen)" in the income tax form?
4) By looking at the dividend certificate (subsidiary income tax certificate), how do we know whether that dividend is taxable or not?

Basically, what I'm driving at is to understand the whole process and to explain it as simple as possible - from the point of a shareholder receiving dividend to how he file the income tax returns to how to claim back if the tax bracket is lower.

Maybe you can give a better example/explanation? nod.gif Something like your example:

Company declare dividend of 10% less tax
You hold 1000 shares of RM1 each : Receive RM100
But 27% tax so actually receive only RM73
Declare RM100 as dividend during income tax filing
Tax bracket 13% so can claim back 14% (RM14)
Claim is through.....

This post has been edited by kmarc: Jul 8 2009, 11:10 PM
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kmarc
post Jul 14 2009, 11:39 PM

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I'm thinking of challenging the topic of "Warrants". Will start on the topic soon. Hope you guys can help........
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lklatmy
post Jul 15 2009, 02:51 PM

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QUOTE(kmarc @ Jul 8 2009, 08:08 PM)




My question is:
1) Is the "less tax" now 25%, 26% or 27%?  rclxub.gif
2) We only receive RM73, but why declared RM100? Is it because the RM27 was taxed?
3) If our income tax bracket was 13%, then we can claim back RM14 right? How do we claim this back? Is this the same as the "E10) Tolakan cukai seksyen 110 (dividen)" in the income tax form?
4) By looking at the dividend certificate (subsidiary income tax certificate), how do we know whether that dividend is taxable or not?

Basically, what I'm driving at is to understand the whole process and to explain it as simple as possible - from the point of a shareholder receiving dividend to how he file the income tax returns to how to claim back if the tax bracket is lower.

Maybe you can give a better example/explanation?  nod.gif Something like your example:

Company declare dividend of 10% less tax
You hold 1000 shares of RM1 each : Receive RM100
But 27% tax so actually receive only RM73
Declare RM100 as dividend during income tax filing
Tax bracket 13% so can claim back 14% (RM14)
Claim is through.....
*
1.The rate varies according to the basis year,Y/A 2003 to Y/A2006 was 28 %,Y/A 2007 was 27 %,Y/A 2008 was 26 % and Y/A 2009 is 25 %.

2.The RM27 is the tax paid by the company to the IRB.

3.You setoff the RM27 against your tax payable and the unutilised amount will be refunded.

4.I don't use Nominee CDS so I have no idea on the subsidiary income tax certificate.Normal Dividend warrant is quite straight forward and it clearly states whether the dividend is taxed,TE or single tier.


As for the example/explanation,I am kind of lazy and hope other forumers can help you out.

Sorry for the late reply as I 've missed your post.
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kmarc
post Jul 15 2009, 05:04 PM

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QUOTE(lklatmy @ Jul 15 2009, 02:51 PM)
1.The rate varies according to the basis year,Y/A 2003 to Y/A2006 was 28 %,Y/A 2007 was 27 %,Y/A 2008 was 26 % and Y/A 2009 is 25 %.

2.The RM27 is the tax paid by the company to the IRB.

3.You setoff the RM27 against your tax payable and the unutilised amount will be refunded.

4.I don't use Nominee CDS so I have no idea on the subsidiary income tax certificate.Normal Dividend warrant is quite straight forward and it clearly states whether the dividend is taxed,TE or single tier.
As for the example/explanation,I am kind of lazy and hope other forumers can help you out.

Sorry for the late reply as I 've missed your post.
*
Thx for the info. Will update the thread later tonight. smile.gif
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htt
post Jul 15 2009, 05:31 PM

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QUOTE(lklatmy @ Jul 15 2009, 02:51 PM)
1.The rate varies according to the basis year,Y/A 2003 to Y/A2006 was 28 %,Y/A 2007 was 27 %,Y/A 2008 was 26 % and Y/A 2009 is 25 %.

2.The RM27 is the tax paid by the company to the IRB.

3.You setoff the RM27 against your tax payable and the unutilised amount will be refunded.

4.I don't use Nominee CDS so I have no idea on the subsidiary income tax certificate.Normal Dividend warrant is quite straight forward and it clearly states whether the dividend is taxed,TE or single tier.
As for the example/explanation,I am kind of lazy and hope other forumers can help you out.

Sorry for the late reply as I 've missed your post.
*
Good answer rclxms.gif
Something to add.
4. Nominee account dividend voucher might have 2 sections, one section stating tax information, the other stating charges etc, use the tax section for tax purposes.
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kmarc
post Jul 15 2009, 10:55 PM

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QUOTE(htt @ Jul 15 2009, 05:31 PM)
Good answer rclxms.gif
Something to add.
4. Nominee account dividend voucher might have 2 sections, one section stating tax information, the other stating charges etc, use the tax section for tax purposes.
*
Yeah, I have that 2 sections too. Just that I never submitted for income tax before so I don't really know what to do.... sweat.gif
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chunjiet
post Jul 19 2009, 05:57 PM

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Warrant question.....


example in actual figure... hmm.gif

IOICORP = RM4.660

IOICORP-CI = RM0.005
Non-Collateralised American Style
Maturity date 03/08/2009
Exercise price = RM5.50

so hmm.gif 0.005+5.5 >4.66
Means this warrant is "tapau" <---- correct?


IOICORP-CJ = RM0.260
NON-COLLATERALISED AMERICAN-STYLE CASH SETTLED CALL WARRANTS
Maturity date 03/06/2010
Exercise price = RM 2.88

so hmm.gif 0.26+2.88=3.14 < 4.660
Means i can buy the mother at 3.14 + processing fee ?
the convert of mother share can be do it any time or until expire date?
if can convert now those ppl who buy warrant and convert to mother can earn big money ler.....
am i rite? shocking.gif


any pro can answer me?
if really can by just waiting for 2-3 week to convert is worth to try... whistling.gif

This post has been edited by chunjiet: Jul 19 2009, 05:59 PM
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kmarc
post Jul 19 2009, 10:05 PM

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QUOTE(chunjiet @ Jul 19 2009, 05:57 PM)
Warrant question.....
example in actual figure... hmm.gif

IOICORP               = RM4.660

IOICORP-CI          = RM0.005  
Non-Collateralised American Style
Maturity date 03/08/2009
Exercise price        = RM5.50

so hmm.gif  0.005+5.5 >4.66
Means this warrant is "tapau" <---- correct?
IOICORP-CJ          = RM0.260
NON-COLLATERALISED AMERICAN-STYLE CASH SETTLED CALL WARRANTS
Maturity date 03/06/2010
Exercise price        = RM 2.88

so hmm.gif 0.26+2.88=3.14 < 4.660
Means i can buy the mother at 3.14 + processing fee ?
the convert of mother share can be do it any time or until expire date?
if can convert now those ppl who buy warrant and convert to mother can earn big money ler.....
am i rite? shocking.gif
any pro can answer me?
if really can by just waiting for 2-3 week to convert is worth to try... whistling.gif
*
That's one question I wanted to ask too (among other questions). Have been struggling to do the guide about warrant with unfortunately minimal help from our forumers. Sad.... sad.gif (A very big thank you to those who did help out! thumbup.gif Maybe everybody busy making money.... drool.gif )

Anyway, don't forget about the conversion ratio. It doesn't affect the calculation much but it should be factored in. FYI, IOICORP-CI conversion ratio is 0.20 while the IOICORP-CJ is 0.13. wink.gif

I haven't addressed the "conversion ratio" part (and it's formula) in the guide yet. Will do it soon..... smile.gif

This post has been edited by kmarc: Jul 19 2009, 10:06 PM
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cherroy
post Jul 20 2009, 12:25 AM

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QUOTE(chunjiet @ Jul 19 2009, 05:57 PM)
Warrant question.....
example in actual figure... hmm.gif

IOICORP               = RM4.660

IOICORP-CI          = RM0.005  
Non-Collateralised American Style
Maturity date 03/08/2009
Exercise price        = RM5.50

so hmm.gif  0.005+5.5 >4.66
Means this warrant is "tapau" <---- correct?
IOICORP-CJ          = RM0.260
NON-COLLATERALISED AMERICAN-STYLE CASH SETTLED CALL WARRANTS
Maturity date 03/06/2010
Exercise price        = RM 2.88

so hmm.gif 0.26+2.88=3.14 < 4.660
Means i can buy the mother at 3.14 + processing fee ?
the convert of mother share can be do it any time or until expire date?
if can convert now those ppl who buy warrant and convert to mother can earn big money ler.....
am i rite? shocking.gif
any pro can answer me?
if really can by just waiting for 2-3 week to convert is worth to try... whistling.gif
*
For CI, yes, tapau if its average price for settlement below 5.50

CJ
Generally, CW is cash settled, they don't allow you to convert to mothershare, but you can exercise it when it is in money, the extra money between the exercise price and market price will be paid in cash. You forget to take in conversion ratio, some may need 5, 10 or more CW to convert 1 mothershare. Sorry I don't know/check the CJ conversion ratio, but it is easily available info.

This post has been edited by cherroy: Jul 20 2009, 12:26 AM
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kmarc
post Jul 20 2009, 12:49 AM

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QUOTE(cherroy @ Jul 20 2009, 12:25 AM)
For CI, yes, tapau if its average price for settlement below 5.50

CJ
Generally, CW is cash settled, they don't allow you to convert to mothershare, but you can exercise it when it is in money, the extra money between the exercise price and market price will be paid in cash. You forget to take in conversion ratio, some may need 5, 10 or more CW to convert 1 mothershare. Sorry I don't know/check the CJ conversion ratio, but it is easily available info.
*
Cherroy, the IOICORP-CJ's conversion ratio is 0.13.

So, if I understand it correctly, it means that 1 warrant can convert to 0.13 mother share @ 7.69 warrants to convert to 1 mother share? hmm.gif

(The 7.69 is from 1 / 0.13 = 7.69)

This post has been edited by kmarc: Jul 20 2009, 12:49 AM
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skiddtrader
post Jul 20 2009, 01:07 AM

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QUOTE(kmarc @ Jul 20 2009, 12:49 AM)
Cherroy, the IOICORP-CJ's conversion ratio is 0.13.

So, if I understand it correctly, it means that 1 warrant can convert to 0.13 mother share @ 7.69 warrants to convert to 1 mother share?  hmm.gif

(The 7.69 is from 1 / 0.13 = 7.69)
*
0.13 is the rounded multiplier. Should be 0.125 since the ratio is 8:1.

Easier if you quote the conversion ratio in ratio terms like 1:2 or 3:1.

FYI IOICORP-CJ conversion is 8:1 meaning 8 warrants needed to convert 1 mothershare.

So to see if tapau or not;

(warrant price * conversion ratio) + exercise price =/= mother price

(0.26 * 8) + 2.88 = 4.96 ; therefore still have premium over the mother share.


Bursa page for all Call Warrant
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kmarc
post Jul 20 2009, 01:15 AM

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QUOTE(skiddtrader @ Jul 20 2009, 01:07 AM)
0.13 is the rounded multiplier. Should be 0.125 since the ratio is 8:1.

Easier if you quote the conversion ratio in ratio terms like 1:2 or 3:1.

FYI IOICORP-CJ conversion is 8:1 meaning 8 warrants needed to convert 1 mothershare.

So to see if tapau or not;

(warrant price * conversion ratio) + exercise price =/= mother price

(0.26 * 8) + 2.88 = 4.96 ;  therefore still have premium over the mother share.
Bursa page for all Call Warrant
*
I finally understood the conversion ratio. Thx! thumbup.gif

Geee... I didn't even know you can check the warrant info from Bursa Malaysia.... sweat.gif
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chunjiet
post Jul 20 2009, 05:30 PM

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QUOTE(skiddtrader @ Jul 20 2009, 01:07 AM)
0.13 is the rounded multiplier. Should be 0.125 since the ratio is 8:1.

Easier if you quote the conversion ratio in ratio terms like 1:2 or 3:1.

FYI IOICORP-CJ conversion is 8:1 meaning 8 warrants needed to convert 1 mothershare.

So to see if tapau or not;

(warrant price * conversion ratio) + exercise price =/= mother price

(0.26 * 8) + 2.88 = 4.96 ;  therefore still have premium over the mother share.
Bursa page for all Call Warrant
*
CLEAR!!!!!!

means CJ also tapau unless u bought it now (0.26) and the mother raise more then 4.96++ correct? rclxms.gif
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skiddtrader
post Jul 20 2009, 08:22 PM

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QUOTE(chunjiet @ Jul 20 2009, 05:30 PM)
CLEAR!!!!!!

means CJ also tapau unless u bought it now (0.26) and the mother raise more then 4.96++ correct? rclxms.gif
*
Yes. Most call warrants trade with some premium especially those with longer life spans. Paying as little premium or no premium is desirable but not always possible.
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SKY 1809
post Jul 20 2009, 08:29 PM

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QUOTE(kmarc @ Jul 20 2009, 01:15 AM)
I finally understood the conversion ratio. Thx!  thumbup.gif

Geee... I didn't even know you can check the warrant info from Bursa Malaysia....  sweat.gif
*
Do not be trapped by looking at the conversion rate only . There are times on papers they look attractive ( by boosting the mother shares ) to get you to buy warrants to convert.

By the time, " they" push out the warrants , the mother share price falls.


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kmarc
post Jul 23 2009, 07:26 PM

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QUOTE(SKY 1809 @ Jul 20 2009, 08:29 PM)
Do not be trapped by looking at the conversion rate only . There are times on papers they look attractive ( by boosting the mother shares ) to get you to buy warrants to convert.

By the time, " they"  push out the warrants , the mother share price falls.
*
Now that I understand more about warrants, I will only buy them if there is another major recession/depression....... nod.gif

Oopsss, better continue my guide.... sweat.gif
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chin20350
post Jul 29 2009, 11:24 AM

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Margin Question

If i have 100k capital and margin another 50k in a stock.
The price for the stock is RM 1 .

Lets say the stock market are going down and the stock need decrease to what price then i need to sell all my stock to cover the margin??


Wish you guys can understand what i mean >.< Sorry
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htt
post Jul 29 2009, 12:55 PM

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QUOTE(chin20350 @ Jul 29 2009, 11:24 AM)
Margin Question

If i have 100k capital and margin another 50k in a stock.
The price for the stock is RM 1 .

Lets say the stock market are going down and the stock need decrease to what price then i need to sell all my stock to cover the margin??
Wish you guys can understand what i mean >.< Sorry
*
Not all, but have to be enough to maintain the margin.
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jojo777
post Jul 30 2009, 11:52 AM

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Sifu, need your advice on this,

Say I want to buy call warrant of ABC-05 which currently is at USD0.10 and expiry date is May 2009, purchase total of 100 unit,

So cost to me is100 x xUSD0.10 = USD10 x 3.5 = RM35
Plus brokerage fee = RM12
Total cost = RM47

Say after 1 month price increase to USD0.20, if I sell it,
100 x USD0.2 = USD20 x 3.5 = RM70 – RM12 = 58

Is that how it’s calculated? From your tutorial, you mention that there is a target price, how do I see whether the warrant that I buy will reach the target price?

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kmarc
post Jul 30 2009, 09:16 PM

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QUOTE(jojo777 @ Jul 30 2009, 11:52 AM)
Sifu, need your advice on this,

Say I want to buy call warrant of ABC-05 which currently is at USD0.10 and expiry date is May 2009, purchase total of 100 unit,

So cost to me is100 x xUSD0.10 = USD10 x 3.5 = RM35
Plus brokerage fee = RM12
Total cost = RM47

Say after 1 month price increase to USD0.20, if I sell it,
100 x USD0.2 = USD20 x 3.5 = RM70 – RM12 = 58

Is that how it’s calculated? From your tutorial, you mention that there is a target price, how do I see whether the warrant that I buy will reach the target price?
*
That should be correct. However, your example is confusing leh:
1) You can't buy warrant which has already expired!!!
2) Why did you put USD10 and not RM10? As far as I know, the commission for trading on foreign stock market is much much MUCH higher! Like RM200++. Are you planning to trade on US stocks?
3) Don't forget about clearing fee and stamp fees too
4) To see whether the warrant has reach your target price, you need to check it yourself or ask your remisier to monitor the stock price lor...... I'm not too sure about whether your trading portal can inform you about that or not....

This post has been edited by kmarc: Jul 30 2009, 09:18 PM
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jojo777
post Jul 31 2009, 10:57 AM

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thank you sifu...but yesterday when i re-calculate base on the tutorial posted in this forum i found out another info...
Example
Current CITIGRP common stock price : USD2.95 (let's use this as example)
Current CITIGRP-C2 price : USD0.095
Exercise price : USD3.25
Exercise ratio : 50 to 1

For me to convert to common share because i wanted to sell off the warrant:
Warrant price for 1 mother share = USD0.095 x 50 = USD4.75
Convert to mother share = USD4.75 + USD3.25 = USD8

if the above calculation is correct, meaning i will have to wait until the common share reaches USD8 in order for me to break even? pls advice sifu



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kmarc
post Jul 31 2009, 02:03 PM

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QUOTE(jojo777 @ Jul 31 2009, 10:57 AM)
thank you sifu...but yesterday when i re-calculate base on the tutorial posted in this forum i found out another info...
Example
Current CITIGRP common stock price : USD2.95 (let's use this as example)
Current CITIGRP-C2 price : USD0.095
Exercise price : USD3.25
Exercise ratio : 50 to 1

For me to convert to common share because i wanted to sell off the warrant:
Warrant price for 1 mother share = USD0.095 x 50 = USD4.75
Convert to mother share = USD4.75 + USD3.25 = USD8

if the above calculation is correct, meaning i will have to wait until the common share reaches USD8 in order for me to break even? pls advice sifu
*
Aiyoooo... don't call me sifu la... I'm a noob in stocks icon_rolleyes.gif

Yes, if go according to your example, your calculation is correct. You would have to keep until the mother share is USD8 before you can break even (minus the commissions).
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jojo777
post Jul 31 2009, 02:47 PM

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thanks for your advice.... sifu...hehehehe
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! Love Money
post Aug 11 2009, 10:25 PM

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thanks kmarc... learned something about warrant...

icon_idea.gif icon_idea.gif :idea
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kmarc
post Aug 11 2009, 10:35 PM

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QUOTE(! Love Money @ Aug 11 2009, 10:25 PM)
thanks kmarc... learned something about warrant...

icon_idea.gif  icon_idea.gif  :idea
*
No problem. It's not finished yet though. Almost.

Not meant for you to go buy warrants aaa.... tongue.gif
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rstusa
post Aug 14 2009, 12:48 PM

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I got a question here about dividend, can you check my attachment the highlighted area there, is it the tax by govt? Why the tax so high until 25%? And only genting got tax but other company didn't charge for the tax. I thought the listed company already taxed by govt so their dividend to us will exempted from tax.


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htt
post Aug 14 2009, 01:29 PM

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QUOTE(rstusa @ Aug 14 2009, 12:48 PM)
I got a question here about dividend, can you check my attachment the highlighted area there, is it the tax by govt? Why the tax so high until 25%? And only genting got tax but other company didn't charge for the tax. I thought the listed company already taxed by govt so their dividend to us will exempted from tax.
*
Those with tax is good thing, you can claim back some if you are not earning a lot of money.
Refer to other threads also, already discuss over for many times.

This post has been edited by htt: Aug 14 2009, 01:31 PM
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rstusa
post Aug 14 2009, 02:09 PM

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QUOTE(htt @ Aug 14 2009, 02:29 PM)
Those with tax is good thing, you can claim back some if you are not earning a lot of money.
Refer to other threads also, already discuss over for many times.
*
What you mean good thing? Why some stock didn't deduct the tax?
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kmarc
post Aug 14 2009, 03:56 PM

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QUOTE(rstusa @ Aug 14 2009, 02:09 PM)
What you mean good thing? Why some stock didn't deduct the tax?
*
It means that if your tax bracket is 7%, then you can claim back the remaider 18% (25% - 7% = 18%) when you do your income tax filing. That's what I understand... wink.gif

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skiddtrader
post Aug 25 2009, 01:01 PM

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Kmarc, just wondering if you're going to add an example of how PUT warrants are calculated, now that KLCI got PUT warrants by OSK and AMMB.
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kmarc
post Aug 25 2009, 01:22 PM

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QUOTE(skiddtrader @ Aug 25 2009, 01:01 PM)
Kmarc, just wondering if you're going to add an example of how PUT warrants are calculated, now that KLCI got PUT warrants by OSK and AMMB.
*
Ok, will do that later. However, aurora97 found a new Kenanga website about warrants : http://www.nagawarrants.com/naga_wisdom1.html

Really excellent website with nice pictures and graphs. If I had seen that earlier, would not have done the warrant guide.

Anyway, since the warrant guide is almost complete, will complete it and also put the above link on the first line!!!! smile.gif
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cherroy
post Aug 25 2009, 05:29 PM

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QUOTE(rstusa @ Aug 14 2009, 02:09 PM)
What you mean good thing? Why some stock didn't deduct the tax?
*
It is not some stocks didn't deduct the tax. But it has been deducted until you don't know (first tier dividend).

Go throught the first tier and imputation dividend discussion previously to have the full picture of it.

Every profit made is taxed, you cannot run away, unless on some special circumstance that it is tax exempted.

Don't presume the tax voucher doesn't stated how much tax has been deducted, then it is no tax.
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ProGamerCF
post Aug 27 2009, 07:48 PM

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Hi Guys n Gals,

Can i noe what r ur thought on tgoffs-wb? comparing to tgoffs-wa?

WB price at 0.51, WA price at 1.0..

if the mother "will" be doing good as in near future(crude oil expected to touch 85 per barrel), so her son will follow as well(mayb a bit)

so instead of buying WA, is there anything bad move to buy WB?

sorry for my noob question..

can guide me how to see there kind of situation?

thank you very much for any replies.

notworthy.gif CF notworthy.gif
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skiddtrader
post Aug 28 2009, 10:18 PM

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QUOTE(ProGamerCF @ Aug 27 2009, 07:48 PM)
Hi Guys n Gals,

Can i noe what r ur thought on tgoffs-wb? comparing to tgoffs-wa?

WB price at 0.51, WA price at 1.0..

if the mother "will" be doing good as in near future(crude oil expected to touch 85 per barrel), so her son will follow as well(mayb a bit)

so instead of buying WA, is there anything bad move to buy WB?

sorry for my noob question..

can guide me how to see there kind of situation?

thank you very much for any replies.

notworthy.gif CF notworthy.gif
*
Hmmm if I'm not mistaken, WA lasts longer than WB. So naturally it is more attractive as it has a longer lifespan. Meaning it has more premium.

WA conversion price is also lower about 55 sens but WB conversion is higher about RM1 I think.

Short term wise there is no difference as the warrants will track the mother prices 1 for 1, since the ratio is also 1 for 1.

So WB warrants are lower entry prices, but shorter lifespan which is about 4 years.

Where as WA warrants have higher entry prices but last about 7 years.

Lifespan only pays a big part when the market tanks and WA being a longer lifespan warrant might let the holders 'live' longer before expiry aka long term investor.


But since you're planning for short term, it shouldn't matter. Just make sure the counter has sufficient volume every day for you to dispose if you need to. As TGOFF-Ws have very low volume and Qs.

This post has been edited by skiddtrader: Aug 28 2009, 10:21 PM
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ProGamerCF
post Sep 3 2009, 08:52 PM

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QUOTE(skiddtrader @ Aug 28 2009, 11:18 PM)
Hmmm if I'm not mistaken, WA lasts longer than WB. So naturally it is more attractive as it has a longer lifespan. Meaning it has more premium.

WA conversion price is also lower about 55 sens but WB conversion is higher about RM1 I think.

Short term wise there is no difference as the warrants will track the mother prices 1 for 1, since the ratio is also 1 for 1.

So WB warrants are lower entry prices, but shorter lifespan which is about 4 years.

Where as WA warrants have higher entry prices but last about 7 years.

Lifespan only pays a big part when the market tanks and WA being a longer lifespan warrant might let the holders 'live' longer before expiry aka long term investor.
But since you're planning for short term, it shouldn't matter. Just make sure the counter has sufficient volume every day for you to dispose if you need to. As TGOFF-Ws have very low volume and Qs.
*
thx skiddtrader,

much clearer..thank you very much..
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GregPG01
post Sep 8 2009, 05:54 PM

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I read from the first page that if do multiple purchases per day for the same counter, the commission is calculated on the total purchase... Not each time pay the minimum charge?
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cute_boboi
post Sep 8 2009, 06:11 PM

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E.g. Buy 1000 units each time, 5 times a day @RM0.80, 0.90, 1.00, 1.10, 1.20

Average Buy Price = ( 0.8 + 0.9 + 1.0 + 1.1 + 1.2 ) / 5 = RM1.00
Total units bought = 5x1000 = 5000 units

Brokerage: RM21
Contract Stamp: RM5
Clearing Fee: RM1.50

Total Commission: RM27.50

--------------------------------------------------------

If you do the same as above, but in 5 separate days, the commission will be:
(RM)
13.24
13.27
13.30
14.33
14.36

Total Comm: RM68.50

rclxub.gif

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tgrrr
post Sep 9 2009, 09:15 AM

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QUOTE(GregPG01 @ Sep 8 2009, 05:54 PM)
I read from the first page that if do multiple purchases per day for the same counter, the commission is calculated on the total purchase... Not each time pay the minimum charge?
*
I think this depends on the brokerage and your account type.
Per my understanding, ClicksTrader with fixed RM8.88 per trade does not automatically lump all same counter transaction in a trading day together.
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ProGamerCF
post Sep 10 2009, 09:18 PM

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hi all,

may i know, how they set the conversion rate?
based on what?
why some warrant high and some low, even tho same mother?
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debbieyss
post Sep 18 2009, 02:14 PM

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Just a question:

It means any day can be a buying day; any day can also be the T+3 day, right?

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htt
post Sep 18 2009, 04:10 PM

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QUOTE(debbieyss @ Sep 18 2009, 02:14 PM)
Just a question:

It means any day can be a buying day; any day can also be the T+3 day, right?
*
Only day when market trade.
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debbieyss
post Sep 19 2009, 11:16 PM

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Hi, can anyone please tell me if I got my calculation correct?

Buy 15,000 shares of KNM at RM0.70 = RM10,500
Brokerage fee = RM8
Contract Stamp = RM11
Clearing Fee = RM10,500 X 0.03% = RM3.15
Total payable = RM10,522.15

Sell 15,000 shares of KNM at RM0.80 = RM12,000
Brokerage fee = RM8
Contract Stamp = RM12
Clearing Fee = RM12,000 X 0.03% = RM3.60
Total = RM11,976.40 (Profit)

am i getting it correct?

Edited: By the way, I found out that KNM is traded by par value, its par value is 0.25. So, I'm actually done the calculation wrongly. How to purchase shares if it's by par value?

This post has been edited by debbieyss: Sep 19 2009, 11:41 PM
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mazda626
post Sep 19 2009, 11:52 PM

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QUOTE(debbieyss @ Sep 19 2009, 11:16 PM)
Hi, can anyone please tell me if I got my calculation correct?

Buy 15,000 shares of KNM at RM0.70 = RM10,500
Brokerage fee = RM8
Contract Stamp = RM11
Clearing Fee = RM10,500 X 0.03% = RM3.15
Total payable = RM10,522.15

Sell 15,000 shares of KNM at RM0.80 = RM12,000
Brokerage fee = RM8
Contract Stamp = RM12
Clearing Fee = RM12,000 X 0.03% = RM3.60
Total = RM11,976.40 (Profit)

am i getting it correct?

Edited: By the way, I found out that KNM is traded by par value, its par value is 0.25. So, I'm actually done the calculation wrongly. How to purchase shares if it's by par value?
*
Actually based on my OSK acct, this is correct but i DON'T really looking at par value of my counter (others yes..). Since my capital small i go for units shares held. For example : i got Mtronic (bought at 0.055 ; super doper all time rugi, u may consider crap stocks but i got 50 lots x 1000). So i untung 48% & still good amount of money. I don't fancy popular stock. nod.gif

This post has been edited by mazda626: Sep 19 2009, 11:53 PM
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debbieyss
post Sep 19 2009, 11:55 PM

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i see...Nice to know that you earned 50%!

It's ok then. I will wait and see who can help me on this calculation.... *sweat*...
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dannyooi_84
post Sep 19 2009, 11:57 PM

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Need to look at par value? not the stock price ka?
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mazda626
post Sep 19 2009, 11:58 PM

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QUOTE(dannyooi_84 @ Sep 19 2009, 11:57 PM)
Need to look at par value? not the stock price ka?
*
Because that how "value investors" stylo...they look at intrinsic value of stock, not just the price.
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dannyooi_84
post Sep 20 2009, 12:05 AM

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QUOTE(mazda626 @ Sep 19 2009, 11:58 PM)
Because that how "value investors" stylo...they look at intrinsic value of stock, not just the price.
*
Intrinsic value? rclxub.gif

My major is not in business/finance. I'm having a major problem to understand. sigh. Nvrmind I'll start learning and take it day by day. I need to learn all the terms and the zig zag of stock market.

Bloomberg and Google will be my best friend for now. rclxms.gif
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mazda626
post Sep 20 2009, 12:14 AM

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Par Value is Nominal Value. It value of the share price upon initial offering. Some men-on-the street take it as benchmark to where it current price.


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skiddtrader
post Sep 20 2009, 11:34 AM

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QUOTE(debbieyss @ Sep 19 2009, 11:16 PM)
Hi, can anyone please tell me if I got my calculation correct?

Buy 15,000 shares of KNM at RM0.70 = RM10,500
Brokerage fee = RM8
Contract Stamp = RM11
Clearing Fee = RM10,500 X 0.03% = RM3.15
Total payable = RM10,522.15

Sell 15,000 shares of KNM at RM0.80 = RM12,000
Brokerage fee = RM8
Contract Stamp = RM12
Clearing Fee = RM12,000 X 0.03% = RM3.60
Total = RM11,976.40 (Profit)

am i getting it correct?

Edited: By the way, I found out that KNM is traded by par value, its par value is 0.25. So, I'm actually done the calculation wrongly. How to purchase shares if it's by par value?
*
If your broker gives you RM8 flat fee as brokerage fee, then there is nothing wrong with your calculation. Normally brokerage is by a minimum and as the transaction gets higher, it is based on % of transaction.

Like some brokerage in Malaysia charge a minimum of RM40 or 0.6% (whichever is higher) for broker assisted transactions but for online transactions it is only RM12 or 0.42% (whichever is higher).

So like if your brokerage gives a flat rate of RM8 which I doubt, for any amount of transaction, then your calculation is correct. Most have this % brokerage so they can 'untung' more from bigger transactions. Imagine RM8 for a RM1 mil transaction, a bit too generous right? So check what is your broker % brokerage fee and calculate if that is higher than RM8, if it is then it should be the correct fee.

Par value doesn't matter at all. Par value on as a reference of how much a stock has split and also used as a reference for dividend payments. Basically doesn't hold a lot of importance. Par value is not used in transaction costs calculation whatsoever.


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debbieyss
post Sep 20 2009, 11:41 AM

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QUOTE(skiddtrader @ Sep 20 2009, 11:34 AM)
If your broker gives you RM8 flat fee as brokerage fee, then there is nothing wrong with your calculation. Normally brokerage is by a minimum and as the transaction gets higher, it is based on % of transaction.

Like some brokerage in Malaysia charge a minimum of RM40 or 0.6% (whichever is higher) for broker assisted transactions but for online transactions it is only RM12 or 0.42% (whichever is higher). 

So like if your brokerage gives a flat rate of RM8 which I doubt, for any amount of transaction, then your calculation is correct. Most have this % brokerage so they can 'untung' more from bigger transactions. Imagine RM8 for a RM1 mil transaction, a bit too generous right? So check what is your broker % brokerage fee and calculate if that is higher than RM8, if it is then it should be the correct fee.

Par value doesn't matter at all. Par value on as a reference of how much a stock has split and also used as a reference for dividend payments. Basically doesn't hold a lot of importance. Par value is not used in transaction costs calculation whatsoever.
*
Thanks for your help!

The brokerage fee is just an example to complete my calculation. It isn't the actual brokerage fee.

Regarding the par value matter, am i right to say, I got to purchase shares according to its current price, instead of according to its par value?
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skiddtrader
post Sep 20 2009, 02:03 PM

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QUOTE(debbieyss @ Sep 20 2009, 11:41 AM)
Thanks for your help!

The brokerage fee is just an example to complete my calculation. It isn't the actual brokerage fee.

Regarding the par value matter, am i right to say, I got to purchase shares according to its current price, instead of according to its par value?
*
Yup that's right.


All stocks when they are listed are by default listed on a par value of RM1.00. If they split the shares, it'll split the par value accordingly.

A lot of sifu here already suggested that the par value should be removed completely from Bursa. Because there is no need for it and will only confuse people.

I think SG market and USA also no such thing as par value anymore. Not so sure about that though.
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debbieyss
post Sep 20 2009, 02:08 PM

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QUOTE(skiddtrader @ Sep 20 2009, 02:03 PM)
Yup that's right.
All stocks when they are listed are by default listed on a par value of RM1.00. If they split the shares, it'll split the par value accordingly.

A lot of sifu here already suggested that the par value should be removed completely from Bursa. Because there is no need for it and will only confuse people.

I think SG market and USA also no such thing as par value anymore. Not so sure about that though.
*
Thanks skiddtrader!

Noted and completely understood.
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hamster666
post Sep 22 2009, 05:38 PM

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for online stock trading eg, maybank2u. Would I get the annual financial report of the company which stock I bought?
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rstusa
post Sep 22 2009, 05:55 PM

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What is the difference between main stock & warrants?
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skiddtrader
post Sep 22 2009, 08:09 PM

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QUOTE(hamster666 @ Sep 22 2009, 05:38 PM)
for online stock trading eg, maybank2u. Would I get the annual financial report of the company which stock I bought?
*
If you are still holding the stock when the company issues the annual report then yes, you should get a copy of the report.


Added on September 22, 2009, 8:15 pm
QUOTE(rstusa @ Sep 22 2009, 05:55 PM)
What is the difference between main stock & warrants?
*
Please also refer to the 1st page of this thread where the warrant guide is written by kmarc for the benefit of all.

At last a friendly word of advice, always Google before you ask a general question. As most answers can normally be found easily but when the answers you found is confusing, then ask the appropriate question for clarification. Happy learning and good luck!



This post has been edited by skiddtrader: Sep 22 2009, 08:15 PM
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buyou12
post Nov 4 2009, 05:57 PM

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Sorry if this sound repetitive and if so, please delete....

Can you trade shares on Maybank Online with iphone? The share trading application has to run some active X control which I am not sure if the iphone can run it...Just tried it on a demo set it doesn't seem to work...

anyone tried it before? Thanks in advance....
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rstusa
post Nov 4 2009, 06:11 PM

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As i know mobile phone browser not support Active X control, even OS windows mobile Internet Explorer.
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buyou12
post Nov 4 2009, 06:47 PM

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Any phone that supports active X? So I can buy and sell shares over Maybank online on my mobile device?
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myfriend2009
post Nov 14 2009, 10:03 AM

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Hi, I am currently holding an online trading account with a investment bank. My problem is my dealer execute orders late after lunch, say around 2:01pm only, not at 2:00pm, this makes my orders behind, but in the morning the orders will be queue exactly at 8:30am. Do you know any securities or investment banks that can execute the orders fast especially in the afternoon. I will make sure I can key in the orders earliest. Please help
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post Nov 27 2009, 10:10 PM

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Does anybody know where i can download a stock market stimulator?
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alanlai12345
post Dec 1 2009, 03:06 PM

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hi guys, what does the GN3 companies means? rclxub.gif
may any sifu here helps to explain?

Below is some GN3 company :
MEMS TECHNOLOGY BERHAD *
TAMCO CORPORATE HOLDINGS BERHAD *
CONNECTCOUNTY HOLDINGS BERHAD *
VIZTEL SOLUTIONS BERHAD *
LITESPEED EDUCATION TECHNOLOGIES BERHAD *
MANGOTONE GROUP BERHAD
HDM-CARLAW CORPORATION BERHAD
* Companies that triggered any of the criteria pursuant to Guidance Note 3 of the MESDAQ Market Listing Requirements of Bursa Malaysia Securities Berhad which came into effect on 8 May 2006.

what will cause a company listed as GN3 company and will it affect the company?
anyone have the full detail on this requirement?

hope to get reply from you guys soon ~ notworthy.gif
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skiddtrader
post Dec 1 2009, 03:52 PM

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QUOTE(alanlai12345 @ Dec 1 2009, 03:06 PM)
hi guys, what does the GN3 companies means? rclxub.gif
may any sifu here helps to explain? 

Below is some GN3 company :
MEMS TECHNOLOGY BERHAD *
TAMCO CORPORATE HOLDINGS BERHAD *
CONNECTCOUNTY HOLDINGS BERHAD *
VIZTEL SOLUTIONS BERHAD *
LITESPEED EDUCATION TECHNOLOGIES BERHAD *
MANGOTONE GROUP BERHAD
HDM-CARLAW CORPORATION BERHAD
* Companies that triggered any of the criteria pursuant to Guidance Note 3 of the MESDAQ Market Listing Requirements of Bursa Malaysia Securities Berhad which came into effect on 8 May 2006.

what will cause a company listed as GN3 company and will it affect the company?
anyone have the full detail on this requirement?

hope to get reply from you guys soon ~  notworthy.gif
*
Here is the KLSE link to all Guidance notes from 1 to 20.


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alanlai12345
post Dec 1 2009, 04:03 PM

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QUOTE(skiddtrader @ Dec 1 2009, 03:52 PM)
Here is the KLSE link to all Guidance notes from 1 to 20.
*
rclxms.gif tq bro ~ !

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post Dec 19 2009, 02:57 AM

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hi, i am wondering. what does it means and how 'the price ll drops after giving out the dividends'? Is due to the investors re-calculate the 'reasonable' price to be traded after the payout?

Thanks for answering. Appreciate than smile.gif
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kmarc
post Dec 19 2009, 01:02 PM

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QUOTE(tsytsy @ Dec 19 2009, 02:57 AM)
hi, i am wondering. what does it means and how 'the price ll drops after giving out the dividends'? Is due to the investors re-calculate the 'reasonable' price to be traded after the payout?

Thanks for answering. Appreciate than smile.gif
*
The cash dividend comes from the company's own pocket. As the stock price reflects on the company's value (and that value is lower because the company gave out cash in the form of dividends), the price of the stock will reduce an equivalent amount.

So, if the stock price is RM1.40 per share and the company gave out cash dividend of 6 cents per share, the price will automatically reduce to RM1.40 - RM0.06 = RM 1.34. That is automatically done on ex-date. smile.gif
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mopster
post Dec 31 2009, 02:15 PM

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Found this article in Yesterday's TheStar.. Suitable for beginners imo...

What to look out for in a prospectus
» Click to show Spoiler - click again to hide... «


This post has been edited by mopster: Dec 31 2009, 02:18 PM
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mouming88
post Jan 20 2010, 10:21 PM

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Can someone please explain what is the effect of cash dividend on call warrant's price, exercise price and conversion ratio?
Does cash dividend has any effect on them?
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mopster
post Jan 20 2010, 10:43 PM

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QUOTE(mouming88 @ Jan 20 2010, 10:21 PM)
Can someone please explain what is the effect of cash dividend on call warrant's price, exercise price and conversion ratio?
Does cash dividend has any effect on them?
*
from what i know:
there is no effect... after cash dividend ex-date.. the mothershare's price will be adjusted, thus the call warrant's premium will increase by a little...

it will not have any effect on Call Warrant's Price, Exercise Price and Conversion Ratio...
If it is a share bonus/rights issue then the warrants will be adjusted accordingly..

Plz correct me if i'm wrong or not accurate... notworthy.gif
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cherroy
post Jan 21 2010, 03:49 PM

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QUOTE(mopster @ Jan 20 2010, 10:43 PM)
from what i know:
there is no effect... after cash dividend ex-date.. the mothershare's price will be adjusted, thus the call warrant's premium will increase by a little...

it will not have any effect on Call Warrant's Price, Exercise Price and Conversion Ratio...
If it is a share bonus/rights issue then the warrants will be adjusted accordingly..

Plz correct me if i'm wrong or not accurate...  notworthy.gif
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Yup, dividend is 'toxic' to CW and WA.
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Hamilton
post Jan 23 2010, 12:43 PM

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Hi all, I'm currently learning about stocks and the market as much as possible before actually putting my money in it.

How do I view the companies in a specific industry? For example, I would like to view all the stocks for the metals industry. Is there any website which I could do that? Or do I have to do it the hard way by searching on the web?

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myfriend2009
post Jan 26 2010, 12:04 AM

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What happen to LEWEKO? The price decrease everyday.
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newgain
post Feb 5 2010, 10:38 PM

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I have question on rights issue ex-date (example: 8 Feb) and entitlement date (example: 10 Feb).

If i have the stock until the ex-date, does it mean I already can sell it on ex-date and will get the right issues?

Or I will need to hold it until the entitlement date (10 Feb) to get the rights issues?

A bit confused after reading the FAQ on ex-date in the post.

Thanks.


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kmarc
post Feb 7 2010, 09:53 AM

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QUOTE(newgain @ Feb 5 2010, 10:38 PM)
I have question on rights issue ex-date (example: 8 Feb) and entitlement date (example: 10 Feb).

If i have the stock until the ex-date, does it mean I already can sell it on ex-date and will get the right issues?

Or I will need to hold it until the entitlement date (10 Feb) to get the rights issues?

A bit confused after reading the FAQ on ex-date  in the post.

Thanks.
*
To get the rights issue, you just have to hold it until ex-date, in this case, hold it until 8th of february. wink.gif
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myfriend2009
post Feb 9 2010, 11:35 PM

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Submitting Merchant Bank : AFFIN INVESTMENT BANK BERHAD
Company Name : FRONTKEN CORPORATION BERHAD
Stock Name : FRONTKN
Date Announced : 27/01/2010

EX-date : 09/02/2010
Entitlement date : 11/02/2010
Entitlement time : 05:00:00 PM
Entitlement subject : Rights Issue
Entitlement description : ("FCB" OR "COMPANY")

RENOUNCEABLE RIGHTS ISSUE OF UP TO 288,973,760 NEW ORDINARY SHARES OF RM0.10 EACH IN FRONTKEN CORPORATION BERHAD ("FCB") (“FCB SHARES”) (“RIGHTS SHARES”) TOGETHER WITH UP TO 288,973,760 FREE NEW DETACHABLE WARRANTS (“WARRANTS”) ON THE BASIS OF TWO (2) RIGHTS SHARES TOGETHER WITH TWO (2) WARRANTS FOR EVERY FIVE (5) EXISTING FCB SHARES HELD AT 5.00 P.M. ON 11 FEBRUARY 2010

Period of interest payment : to
Financial Year End :
Share transfer book & register of members will be : to closed from (both dates inclusive) for the purpose of determining the entitlements
Registrar's name ,address, telephone no : Tricor Investor Services Sdn Bhd (formerly known as Tenaga Koperat Sdn Bhd)
Level 17, The Gardens North Tower
Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
Tel: 03-2264 3883

Payment date :

a.
Securities transferred into the Depositor's Securities Account before 4:00 pm in respect of transfers
: 11/02/2010

b.
Securities deposited into the Depositor's Securities Account before 12:30 pm in respect of securities exempted from mandatory deposit
:
c. Securities bought on the Exchange on a cum entitlement basis according to the Rules of the Exchange.

Number of new shares/securities issued (units) (If applicable)
:
Entitlement indicator : Ratio
Ratio : 2 : 5
Rights Issues/Offer Price : 0.11


Does this mean that if I buy 5 frontken shares I will get free 2 warrants? Or do I still have to pay for warrants too?

Please help as I want to buy this mother share
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sohkeong
post Feb 21 2010, 05:47 PM

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Goodday all sifus,

may i know which website or software that i can see the full summary of financial result for the company?

if can , better with open to see the historical EPS ,PE ,DY n etc...
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skiddtrader
post Feb 21 2010, 06:32 PM

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QUOTE(sohkeong @ Feb 21 2010, 05:47 PM)
Goodday all sifus,

may i know which website or software that i can see the full summary of financial result for the company?

if can , better with open to see the historical EPS ,PE ,DY n etc...
*
If you register with any brokers with online interface, normally their software or website provide some form of company data. Depends on how much details that your need.


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sohkeong
post Feb 21 2010, 08:44 PM

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QUOTE(skiddtrader @ Feb 21 2010, 06:32 PM)
If you register with any brokers with online interface, normally their software or website provide some form of company data. Depends on how much details that your need.
*
currently i''m using HLebroking.. Yes, they provide this data but not quarterly... but it is yearly... if you know any source that can provide data that shows quarterly pls let share out yea~!
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skiddtrader
post Feb 22 2010, 10:04 AM

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QUOTE(sohkeong @ Feb 21 2010, 08:44 PM)
currently i''m using HLebroking.. Yes, they provide this data but not quarterly... but it is yearly... if you know any source that can provide data that shows quarterly pls let share out yea~!
*
I believe RHB has this, I'm not so sure. OSK only shows the latest 4 quarters results, the rest are compiled to yearly.

If you want to do it manually, you can search for the quarterly results up to 10 years back from Bursa website and update it in a personal Excel file or something.
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sohkeong
post Feb 25 2010, 12:42 AM

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QUOTE(skiddtrader @ Feb 22 2010, 10:04 AM)
I believe RHB has this, I'm not so sure. OSK only shows the latest 4 quarters results, the rest are compiled to yearly.

If you want to do it manually, you can search for the quarterly results up to 10 years back from Bursa website and update it in a personal Excel file or something.
*
wah...nvm la.. >.<
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robhinhood
post Mar 2 2010, 01:15 AM

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Hi Everyone,

HAI-O is planning bonus issue and then share split, share price is approximately RM10.

If I buy 10 lots (10,000 units):
10,000X RM10=RM100,000

After bonus issue (1:5), I get:
10,000/5=2000 (bonus units)
Total units is 12,000

After share split (2:1), I get:
12,000 X 2 = 24,000

What is the estimated share price for HAI-O after the bonus and share split?
I don't think it's going around RM10, is there a way to calculate the new price?
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skiddtrader
post Mar 2 2010, 04:37 AM

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QUOTE(robhinhood @ Mar 2 2010, 01:15 AM)
Hi Everyone,

HAI-O is planning bonus issue and then share split, share price is approximately RM10.

If I buy 10 lots (10,000 units):
10,000X RM10=RM100,000

After bonus issue (1:5), I get:
10,000/5=2000 (bonus units)
Total units is 12,000

After share split (2:1), I get:
12,000 X 2 = 24,000

What is the estimated share price for HAI-O after the bonus and share split?
I don't think it's going around RM10, is there a way to calculate the new price?
*
If the share price maintains at RM10 prior to split and bonus issue;

RM100000/12000 shares = RM8.33 per share

RM8.33 / 2 = RM4.16 per share (estimated price)
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robhinhood
post Mar 2 2010, 01:39 PM

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Thanks for the info...
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jasonkwk
post Mar 3 2010, 12:07 PM

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is bonus issue same like dividend, just that bonus issue is not paid with hard cash?
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skiddtrader
post Mar 3 2010, 04:19 PM

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QUOTE(jasonkwk @ Mar 3 2010, 12:07 PM)
is bonus issue same like dividend, just that bonus issue is not paid with hard cash?
*
No it is completely different. Technically, bonus issue is just a term they use to issue more shares and diluting the EPS without any gain. A lot of people read "bonus" and thinks they are getting something extra and buy more shares, but it is the same like share split without dividing the par value.

For example, a company has 100 shares and gives out a 2 for 1 bonus share. Meaning the total amount of shares from 100 will increase to 300, because for every 1 share the company gives 2 more.

But the earnings per share is the same, so meaning a RM1000 profit will be shared among 300 shares instead of 100 shares. If you own 1 share and get RM10 for every shares, you're still going to get RM10 for every 3 shares you own after the bonus issue. There is no difference.

If the share in the market is RM6, after bonus it will become RM2.

A lot of people think bonus issue is free money but in actual fact there is no change. Bonus shares is more for creating more shares to for future share exercises like rights issue, share splits etc. Also bonus share can reduce the entry price for some shares, allowing more people to buy the share.

Cash dividend and share dividend however is the actual way of paying your investors as a reward, one with cash and the other with more share. Cash dividends let you decide what to do with the money, share dividend they re-invest the money back to their share.

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mopster
post Mar 22 2010, 01:18 PM

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QUOTE(kmarc @ Jul 7 2009, 06:15 PM)
Ok. I'm planning to add a subtopic that covers declaration of dividend in our income tax. Just that I never did that before as my first dividend is in 2009!!!  sweat.gif

Anyway, going to put some examples in the guide, as follows :

BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen

Am I correct in this?  hmm.gif
*
Further to this example,
when KLK declares a Interim dividend 10sen Single Tier..

does it mean my divvy cheque will be nett 10sen and not 10sen-tax ? plz enlighten.. notworthy.gif

so in another way i can treat SingleTier and TaxExempt dividends the same ? as in the amount they declare is the amount we get, no need to consider anymore taxes.
(i'm aware that in actual fact they are totally different things)

This post has been edited by mopster: Mar 22 2010, 01:22 PM
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darkknight81
post Mar 22 2010, 01:55 PM

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QUOTE(mopster @ Mar 22 2010, 02:18 PM)
Further to this example,
when KLK declares a Interim dividend 10sen Single Tier..

does it mean my divvy cheque will be nett 10sen and not 10sen-tax ? plz enlighten..  notworthy.gif

so in another way i can treat SingleTier and TaxExempt dividends the same ? as in the amount they declare is the amount we get, no need to consider anymore taxes.
(i'm aware that in actual fact they are totally different things)
*
Single tier = tax exempted dividend.
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tsytsy
post Apr 11 2010, 01:28 AM

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may i know what is gn3 & pn17 companies ?
thanks.
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aurora97
post Apr 11 2010, 02:19 AM

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QUOTE(tsytsy @ Apr 11 2010, 01:28 AM)
may i know what is gn3 & pn17 companies ?
thanks.
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GN 3 and PN 17 has the same criteria and requirements (further details can be found on bursa website under listing requirements)

Only difference is GN 3 is for Ace Market counters and PN 17 for main market.

Most common reasons why companies are labeled GN 3 or PN 17 becoz they are unable (for whatever reason) to pay their debt.


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perfect10
post Apr 12 2010, 01:44 PM

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not sure if someone posted, but i could not find,

the brokerage fees is per contract would means?? when I buy, I get charged (1 contract) and when i sell , I get charge also??

total = 2 contract??
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leongal
post Apr 13 2010, 04:22 PM

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-sorrie, posted wrongly -

This post has been edited by leongal: Apr 13 2010, 04:35 PM
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skiddtrader
post Apr 13 2010, 04:25 PM

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QUOTE(perfect10 @ Apr 12 2010, 01:44 PM)
not sure if someone posted, but i could not find,

the brokerage fees is per contract would means?? when I buy, I get charged (1 contract) and when i sell , I get charge also??

total = 2 contract??
*
Actually should be brokerage charge per transaction. When you Buy and Sell 3 different kind of shares the same day, you get charged for all 3 Buy as well as Sell transactions.
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sledgy04
post Apr 14 2010, 04:15 PM

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hi...i have 1 problems

i have bought DBE for 0.20 @30000 share and my remiser sold it all at 0.25.the problemm is there is some miscomunicstion and i have sold additional 18000 share @ 0.27at the end of trading session . do I have to pay the penalty and if so how much . Or it is brokerage system fault that allow oversold situation like that .TQ. Sifu i urgently need someone help to explain it

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skiddtrader
post Apr 14 2010, 05:16 PM

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QUOTE(sledgy04 @ Apr 14 2010, 04:15 PM)
hi...i have 1 problems

i have bought DBE for 0.20 @30000 share and my remiser sold it all at 0.25.the problemm is there is some miscomunicstion and i have sold additional 18000 share @ 0.27at the end of trading session . do I have to pay the penalty and if so how much . Or it is brokerage system fault that allow oversold situation like that .TQ. Sifu i urgently need someone help to explain it
*
If you over sold, then you are considered short selling which is illegal. You have to cover back those extra that you sold and I believe there is some sort of fine for it. Your remisier should have more details for it and you should contact him/her on what you should do.

This post has been edited by skiddtrader: Apr 14 2010, 05:16 PM
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sledgy04
post Apr 14 2010, 09:51 PM

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QUOTE(skiddtrader @ Apr 14 2010, 05:16 PM)
If you over sold, then you are considered short selling which is illegal. You have to cover back those extra that you sold and I believe there is some sort of fine for it. Your remisier should have more details for it and you should contact him/her on what you should do.
*

thanks..

he told me something about lets hope dbe stocks drop at T + 2 . 5 cent fine will be added @ T + 2 to each share oversold. then they will deduct it with 0.25. i will have to pay the difference. so in short , lets hope dbe drop more cm. hmmh...hmmm rclxub.gif

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cherroy
post Apr 15 2010, 12:45 AM

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QUOTE(skiddtrader @ Apr 14 2010, 05:16 PM)
If you over sold, then you are considered short selling which is illegal. You have to cover back those extra that you sold and I believe there is some sort of fine for it. Your remisier should have more details for it and you should contact him/her on what you should do.
*
QUOTE(sledgy04 @ Apr 14 2010, 09:51 PM)
thanks..

he told me something about lets hope dbe stocks drop at T + 2 . 5 cent fine will be added @ T + 2 to each share oversold. then they will deduct it with 0.25. i will have to pay the difference. so in short , lets hope dbe drop more cm.  hmmh...hmmm rclxub.gif
*
Any short-sell stock, at T+2, remisier or investment house will do "buying-in" on that day afternoon, which is 10 tick above the market close price of T+1. The share will be delivered immediately under 'buying in' order.
In ordinary transaction, share actually only being transfer after T+2.

So it means for above case, 5 cents will be added.
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lonewolf
post Apr 15 2010, 09:46 AM

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hey guys..

i got some shares on SUCCESS, and they are giving restricted offer of 1 SEB share of 15 at the price on RM0.85

so let say i have 2000 unit of success, then i will be given 2000/15 = 133 unit of SEB to purchase at RM0.85.

but there is another counter that pops up in my portfolio as SUCCESS-OS with 133 unit at RM0.005.

so what does the OS does?
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cherroy
post Apr 15 2010, 04:04 PM

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QUOTE(lonewolf @ Apr 15 2010, 09:46 AM)
hey guys..

i got some shares on SUCCESS, and they are giving restricted offer of 1 SEB share of 15 at the price on RM0.85

so let say i have 2000 unit of success, then i will be given  2000/15 = 133 unit of SEB to purchase at RM0.85.

but there is another counter that pops up in my portfolio as SUCCESS-OS with 133 unit at RM0.005.

so what does the OS does?
*
The OS is the right, aka the form/right you are entitled to purchase SEB at 0.85.

Which OS is a platform you can sell off your right if you don't want to subscribe the SEB.
It will be traded around 2 week time only, then the OS is ceased.
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Polaris
post May 4 2010, 11:55 PM

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QUOTE
This description.. "It also operates as an investment holding company" is listed a lot in various Malaysian companies in addition to their principal activity, what does it mean when it comes to the stock filtering process?


When this is included in a company's description, how do I decipher it?
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cherroy
post May 5 2010, 12:20 AM

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QUOTE(Polaris @ May 4 2010, 11:55 PM)
When this is included in a company's description, how do I decipher it?
*
What do you mean by that?

A lot of company actually has mixed bag of business and investment.
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Muliku
post May 5 2010, 02:35 PM

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Cherroy,
Just curious if there is a website or application where I can check the volatility of a particular stock? thanks
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qingweibuaya
post May 9 2010, 07:19 PM

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can sum1 tell me wat is private placement , i google it but i dun reli understand ... thx
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skiddtrader
post May 9 2010, 09:20 PM

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QUOTE(qingweibuaya @ May 9 2010, 07:19 PM)
can sum1 tell me wat is private placement , i google it but i dun reli understand ... thx
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From Google search and Wikipedia.

"Private placement (or non-public offering) is a funding round of securities which are sold without an initial public offering, usually to a small number of chosen private investors."

Meaning a public listed company decides to issue some new shares normally no more than 10% of total shares privately to institutional or strategic investors instead of to the public.
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cherroy
post May 9 2010, 09:22 PM

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QUOTE(Muliku @ May 5 2010, 02:35 PM)
Cherroy,
Just curious if there is a website or application where I can check the volatility of a particular stock? thanks
*
Just look at the beta of the stocks which generally got published.

But I don't know which website which provide it for free.
Normally paid services got all such kind of info.


QUOTE(qingweibuaya @ May 9 2010, 07:19 PM)
can sum1 tell me wat is private placement , i google it but i dun reli understand ... thx
*
Private placement is similar to right issue.
Just instead offer to all existing shareholders in right issue, private placement offers to selective investors, which generally in big block for instituitional investors.
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de.crystal
post May 20 2010, 10:33 PM

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hi i am under TA., and the brokerage fee is RM40 for normal transaction
is it expensive?
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cherroy
post May 21 2010, 12:08 AM

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QUOTE(de.crystal @ May 20 2010, 10:33 PM)
hi i am under TA., and the brokerage fee is RM40 for normal transaction
is it expensive?
*
Non-online transaction is RM40 which is the min brokerage amount announced by gov during budget years ago.
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AllenMass
post May 28 2010, 02:16 PM

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Definitely good discussion. I really appreciated. Thanks
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darkknight81
post Jun 7 2010, 10:06 AM

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I want to understand more about MARGIN ACCOUNT.

As what i understand CIMB margin account is BLR - 2%

So if let say if market downturns. I can leverage up to buy dividend stocks with good yield around 8%. Sounds not bad to me.

Correct me if wrong. Thank you.


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cherroy
post Jun 7 2010, 10:48 AM

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QUOTE(darkknight81 @ Jun 7 2010, 10:06 AM)
I want to understand more about MARGIN ACCOUNT.

As what i understand CIMB margin account is BLR - 2%

So if let say if market downturns. I can leverage up to buy dividend stocks with good yield around 8%. Sounds not bad to me.

Correct me if wrong. Thank you.
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The always fear is the underlying stock price going down, which being margin call.
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darkknight81
post Jun 7 2010, 01:38 PM

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QUOTE(cherroy @ Jun 7 2010, 11:48 AM)
The always fear is the underlying stock price going down, which being margin call.
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Er. not really know what is margin call. Should be some sort like force sell if the stock price drops within certain percentage right?
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cherroy
post Jun 7 2010, 01:51 PM

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QUOTE(darkknight81 @ Jun 7 2010, 01:38 PM)
Er. not really know what is margin call. Should be some sort like force sell if the stock price drops within certain percentage right?
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For eg.

You have ABC stock use as collateral for the margin at Rm1.00, which give you 90% margin aka you can borrow RM0.90 or you have used the Rm0.90 to buy xyz stock.

But ABC stock now drop to Rm0.80
RM0.80 x 90% = RM0.72

Either you top up the margin call, aka put cash in the account the differentiate 0.90-0.72 = RM0.18
or face the consequences to force sell the xyz stock.
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darkknight81
post Jun 7 2010, 01:56 PM

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QUOTE(cherroy @ Jun 7 2010, 02:51 PM)
For eg.

You have ABC stock use as collateral for the margin at Rm1.00, which give you 90% margin aka you can borrow RM0.90 or you have used the Rm0.90 to buy xyz stock.

But ABC stock now drop to Rm0.80
RM0.80 x 90% = RM0.72

Either you top up the margin call, aka put cash in the account the differentiate 0.90-0.72 = RM0.18
or face the consequences to force sell the xyz stock.
*
Ic. CIMB gave me RM 200K collateral margin. So that means if i only use RM 100k OF BORROWINGS. It gives me more margin right?

Take for example,

ABC stocks dropped from RM 16.00 to RM 12.00. So i use my margin account to buy 100 LOTS which is RM 120K. Since my collateral margin are RM 200K. So I ONLY USE RM 120K out of RM 200K. Let say ABC stocks dropped to RM 8.00 which worth only RM 80K. So that means i have to make RM 40K payment?

This post has been edited by darkknight81: Jun 7 2010, 02:07 PM
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cherroy
post Jun 7 2010, 02:25 PM

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QUOTE(darkknight81 @ Jun 7 2010, 01:56 PM)
Ic. CIMB gave me RM 200K collateral margin. So that means if i only use RM 100k OF BORROWINGS. It gives me more margin right?

Take for example,

ABC stocks dropped from RM 16.00 to RM 12.00. So i use my margin account to buy 100 LOTS which is RM 120K. Since my collateral margin are RM 200K. So I ONLY USE RM 120K out of RM 200K. Let say ABC stocks dropped to RM 8.00 which worth only RM 80K. So that means i have to make RM 40K payment?
*
As long as you don't max out your margin, then there won't be margin call or force sell.

That's why we see some fierce selling when some stocks limit down or drop severely time, as brokerage need to force sell those stocks in the margin account to meet the margin call.

Collateral margin condition can vary from broker house and individual specific issue as well.

Margin call is to protect them (brokerage house) as whenever value of stocks sold cannot repay your existing borrowing
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darkknight81
post Jun 7 2010, 02:31 PM

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QUOTE(cherroy @ Jun 7 2010, 03:25 PM)
As long as you don't max out your margin, then there won't be margin call or force sell.

That's why we see some fierce selling when some stocks limit down or drop severely time, as brokerage need to force sell those stocks in the margin account to meet the margin call.

Collateral margin condition can vary from broker house and individual specific issue as well.

Margin call is to protect them (brokerage house) as whenever value of stocks sold cannot repay your existing borrowing
*
Ok. It sounds to be a good tools for leverage especially those dividend counters which can provide at least 8% dividend yield and above as long as you don over max your margin account should be fine already with BLR - 2% which is around net interest of 4% only. Don you agree Cherroy Sifu?
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cherroy
post Jun 7 2010, 02:41 PM

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QUOTE(darkknight81 @ Jun 7 2010, 02:31 PM)
Ok. It sounds to be a good tools for leverage especially those dividend counters which can provide at least 8% dividend yield and above as long as you don over max your margin account should be fine already with BLR - 2% which is around net interest of 4% only. Don you agree Cherroy Sifu?
*
You need to see the market condition as well.

If market is under bearish tone and expected to be prolong, it is not a good ideal as well.
It is a good leverage tool when market is deep down and expect to rebound soon.

Some roughly timing is ver important for the leverage to be successful.

Also, bare in mind, broker house can cut the margin given when market condition is not favourable time.
While some stocks may be out of margin account consideration, if the stocks fundamental deteoriate.

You won't get net 8%, after deduct tax issue.
so, roughly realistic about 6%
BLR now 6.05% -2 = 4%

So you are leverage to gain 2% out of it, without consideration of stock price movement.

But we know stock price swing more than 2% easily.

So the most important aspect is to look for the stock entry price, which is the most important factor for the leverage to be successful.


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darkknight81
post Jun 7 2010, 03:00 PM

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QUOTE(cherroy @ Jun 7 2010, 03:41 PM)
You need to see the market condition as well.

If market is under bearish tone and expected to be prolong, it is not a good ideal as well.
It is a good leverage tool when market is deep down and expect to rebound soon.

Some roughly timing is ver important for the leverage to be successful.

Also, bare in mind, broker house can cut the margin given when market condition is not favourable time.
While some stocks may be out of margin account consideration, if the stocks fundamental deteoriate.

You won't get net 8%, after deduct tax issue.
so, roughly realistic about 6%
BLR now 6.05% -2 = 4%

So you are leverage to gain 2% out of it, without consideration of stock price movement.

But we know stock price swing more than 2% easily.

So the most important aspect is to look for the stock entry price, which is the most important factor for the leverage to be successful.
*
Yes. Entry price determine the sucess of marginal account. I will invest every cents i receive from my dividend to buy stocks which provide me yield more than 6% at the moment at least it is better than savings in FD. That means i don want to keep cash. Whereas, when market crash only then i will use margin account to buy dividend stocks at great discount with 8 % yield and above.

I think this should be quite save. Take for example i have annual dividend of RM 25K. Let say i took up margin acccount of 100K during market crash i can easily pay off my debts within 4 years. Taking into considerations the extra dividend i can receive from margin account.

Thanks again Cherroy Sifu for your explanation.
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cherroy
post Jun 7 2010, 03:30 PM

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QUOTE(darkknight81 @ Jun 7 2010, 03:00 PM)
Yes. Entry price determine the sucess of marginal account. I will invest every cents i receive from my dividend to buy stocks which provide me yield more than 6% at the moment at least it is better than savings in FD. That means i don want to keep cash. Whereas, when market crash only then i will use margin account to buy dividend stocks at great discount with 8 % yield and above.

I think this should be quite save. Take for example i have annual dividend of RM 25K. Let say i took up margin acccount of 100K during market crash i can easily pay off my debts within 4 years. Taking into considerations the extra dividend i can receive from margin account.

Thanks again Cherroy Sifu for your explanation.
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The most important is to invest in "right' stock over the long term one.

Also, steady income from your core job/business to support your daily expenses, potential beef up your capital.
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qingweibuaya
post Jun 16 2010, 02:23 PM

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Q : i would like to know what is [additional listing announcement] , and how will it affect the counter ? thx in advance , newbie here
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teehk_tee
post Jun 17 2010, 09:13 PM

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QUOTE(Muliku @ May 5 2010, 02:35 PM)
Cherroy,
Just curious if there is a website or application where I can check the volatility of a particular stock? thanks
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if you watch technical indicators, Average True Range ( ATR) is a rough measure of stock volatility.
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Polaris
post Jul 15 2010, 06:07 AM

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When entering a trade, there's a fee charged by the broker, but when exiting is there another fee as well?

If I exit the trade in two or three parts instead of all at once. I'm using Hong Leong.
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cherroy
post Jul 15 2010, 03:43 PM

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QUOTE(Polaris @ Jul 15 2010, 06:07 AM)
When entering a trade, there's a fee charged by the broker, but when exiting is there another fee as well?

If I exit the trade in two or three parts instead of all at once. I'm using Hong Leong.
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Yes.

If the trade is within the same stock and done in same days, it will lump sum it together and treat it as 1 trade.
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Polaris
post Jul 18 2010, 01:25 PM

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What is the meaning of 'non compliance with public shareholding spread' and its implications on a stock's price?

In this case LOH&LOH


Added on July 21, 2010, 4:45 am1. Hong Leong seems to be using T+2, i.e. payment must be made before 12am on day "3".

2. If I have say RM15,000 in my share a/c and a total of RM14,000 is currently tied up in shares with RM1,000 balance, can I still enter contra trades that exceed the RM1,000?

This post has been edited by Polaris: Jul 21 2010, 04:45 AM
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PikachuPikachu
post Jul 26 2010, 02:10 PM

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dear friends,

thanks for the informative info..

i would like to ask a bit about right issue.. after i read through the 1st page.. i noticed this..

Choices available to you as a shareholder
As stated above, these are the options available:

1) Buy the new shares (rights issue) - Take up your "rights" to buy the new shares
2) Do not take up the offer (also known as allow the rights to lapse)
3) Sell your rights to other investors

Let's say company A giving rights issue, i don't have to buy it but sell it directly??

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??

If i am using online trading, how am i gonna buy the right issue??

hope to hear from u guys soon.. TQ!
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cherroy
post Jul 26 2010, 02:33 PM

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QUOTE(PikachuPikachu @ Jul 26 2010, 02:10 PM)
Let's say company A giving rights issue, i don't have to buy it but sell it directly??

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??

If i am using online trading, how am i gonna buy the right issue??

hope to hear from u guys soon.. TQ!
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Yes
Yes
They will send you the right allotment letter/form to you to fill in.
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smartly
post Jul 26 2010, 02:42 PM

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QUOTE(PikachuPikachu @ Jul 26 2010, 02:10 PM)
dear friends,

thanks for the informative info..

i would like to ask a bit about right issue.. after i read through the 1st page.. i noticed this..

Choices available to you as a shareholder
As stated above, these are the options available:

1) Buy the new shares (rights issue) - Take up your "rights" to buy the new shares
2) Do not take up the offer (also known as allow the rights to lapse)
3) Sell your rights to other investors

Let's say company A giving rights issue, i don't have to buy it but sell it directly??

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??

If i am using online trading, how am i gonna buy the right issue??

hope to hear from u guys soon.. TQ!
*
Let's say company A giving rights issue, i don't have to buy it but sell it directly??
You must first have the mother share to entitle the RI. Yes, you can sell it directly once the RI is alloted to you.

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??
Yes.

If i am using online trading, how am i gonna buy the right issue??
Assuming you don't have mother share, then buy straight from the online when RI go listing, then you will receive form to exercise your right.

This post has been edited by smartly: Jul 26 2010, 02:50 PM
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PikachuPikachu
post Jul 26 2010, 03:00 PM

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QUOTE(cherroy @ Jul 26 2010, 02:33 PM)
Yes
Yes
They will send you the right allotment letter/form to you to fill in.
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QUOTE(smartly @ Jul 26 2010, 02:42 PM)
Let's say company A giving rights issue, i don't have to buy it but sell it directly??
You must first have the mother share to entitle the RI. Yes, you can sell it directly once the RI is alloted to you.

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??
Yes.

If i am using online trading, how am i gonna buy the right issue??
Assuming you don't have mother share, then buy straight from the online when RI go listing, then you will receive form to exercise your right.
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thanks for the prompt reply..! notworthy.gif
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shanelai
post Aug 9 2010, 05:37 PM

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hi all, im new to stock market and i would like to ask few question.
I had open a trading account and CDS with a broker. Do I need to deposit a sum of money into the broker acc. in order to trade? Since i just open an account and there are no credit inside my trading account. What can i do in order to trade?
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ante5k
post Aug 9 2010, 05:39 PM

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QUOTE(shanelai @ Aug 9 2010, 05:37 PM)
hi all, im new to stock market and i would like to ask few question.
I had open a trading account and CDS with a broker. Do I need to deposit a sum of money into the broker acc. in order to trade? Since i just open an account and there are no credit inside my trading account. What can i do in order to trade?
*
for cash upfront account (majority of accounts are), you will need to deposit in money before you can buy.
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shanelai
post Aug 9 2010, 05:51 PM

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Will my broker inform me the detail and procedures the fund to deposit to?
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Kcee
post Aug 9 2010, 10:27 PM

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QUOTE(shanelai @ Aug 9 2010, 05:37 PM)
hi all, im new to stock market and i would like to ask few question.
I had open a trading account and CDS with a broker. Do I need to deposit a sum of money into the broker acc. in order to trade? Since i just open an account and there are no credit inside my trading account. What can i do in order to trade?
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QUOTE(shanelai @ Aug 9 2010, 05:51 PM)
Will my broker inform me the detail and procedures the fund to deposit to?
*
Dear Shanelai,
For the questions that you've asked, you can actually browse Jupiter Online's website and click on the FAQ section
to find out the answers. Most of the details related to account are stated there. Just make sure you follow the steps
mentioned for the deposit of $, and you're ready to trade.
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leongal
post Aug 11 2010, 10:01 AM

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made the first step; opened a jupiter account; now, i will try to learn further tongue.gif
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motolola
post Aug 12 2010, 01:07 AM

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QUOTE(leongal @ Aug 11 2010, 10:01 AM)
made the first step; opened a jupiter account; now, i will try to learn further  tongue.gif
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one step a day, one day become stock goddess rclxms.gif

just some tips, those analyst reports from investment banks, don't just take their BUY or SELL recommendation blindly as sell-side analysts (those working at investment banks like jupiter, osk etc) as they often face interest conflicts at work

This post has been edited by motolola: Aug 12 2010, 01:32 AM
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tplus1
post Aug 16 2010, 08:21 PM


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joining the osk campus challenge.... XD

start trading tmr!

any advice guys?

its an 1 month competition... wooot..... after reading the stock exchange guide for few month... it is finally on!
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leongal
post Aug 17 2010, 12:35 PM

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QUOTE(motolola @ Aug 12 2010, 01:07 AM)
one step a day, one day become stock goddess rclxms.gif

just some tips, those analyst reports from investment banks, don't just take their BUY or SELL recommendation blindly as sell-side analysts (those working at investment banks like jupiter, osk etc) as they often face interest conflicts at work
*
rclxub.gif still confused, think nit to attend the monthly class, at least once....
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Valentineday
post Aug 17 2010, 03:46 PM

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hi..anyway to know the company full name? cause i search it in bursa malaysia normally it search by code name like TMCLIFE or no.0101 ... but no company full name appear...thx
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leongal
post Aug 19 2010, 11:59 AM

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QUOTE(Valentineday @ Aug 17 2010, 03:46 PM)
hi..anyway to know the company full name? cause i search it in bursa malaysia normally it search by code name like TMCLIFE or no.0101 ... but no company full name appear...thx
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TMC Life Sciences Berhad

try google search
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Valentineday
post Aug 19 2010, 12:29 PM

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QUOTE(leongal @ Aug 19 2010, 11:59 AM)
TMC Life Sciences Berhad

try google search
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oo..thx but i mean other company as well....izit any website that translate the code name and no to full company name? so i can know what business they doing...
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leongal
post Aug 20 2010, 11:43 AM

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QUOTE(Valentineday @ Aug 19 2010, 12:29 PM)
oo..thx but i mean other company as well....izit any website that translate the code name and no to full company name? so i can know what business they doing...
*

maybe you want to get the booklet/ magazine - "Share Investment"; i think it is published and updated monthly smile.gif
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leong85
post Aug 20 2010, 02:56 PM

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i wanna ask,
if i sold some share and buy some share on the same day,
the sold value is greater den the buy value,
do i need to settle my payment first or it will auto deduct from my sold value?
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cherroy
post Aug 20 2010, 05:52 PM

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QUOTE(leong85 @ Aug 20 2010, 02:56 PM)
i wanna ask,
if i sold some share and buy some share on the same day,
the sold value is greater den the buy value,
do i need to settle my payment first or it will auto deduct from my sold value?
*
It depends on your instruction as well.

It can be offset directly and you don't need make a payment, which is a normal practice if you don't do a payment.
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se7enteenGuy
post Aug 30 2010, 09:45 AM

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From the 1st page quote
"The last day of trading to receive the dividend. It is one trading day before the ex-dividend date, where the stock is said to be "cum dividend" (in other words, the stock that you hold comes with the dividend).
Existing shareholders and anyone who buy and hold the stock on this day (i.e. until the end of that particular trading day e.g. 5:00pm) will receive the dividend. Even if you bought the shares at 4:59pm on the last in-dividend date, you are still entitled as you held the shares until the ex-date.
After this date, the stock becomes ex-dividend"


Contradicting advice.

How come this counter APM encountering a drop in price.
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kmarc
post Sep 2 2010, 12:16 AM

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QUOTE(se7enteenGuy @ Aug 30 2010, 09:45 AM)
From the 1st page quote
"The last day of trading to receive the dividend. It is one trading day before the ex-dividend date, where the stock is said to be "cum dividend" (in other words, the stock that you hold comes with the dividend).
Existing shareholders and anyone who buy and hold the stock on this day (i.e. until the end of that particular trading day e.g. 5:00pm) will receive the dividend. Even if you bought the shares at 4:59pm on the last in-dividend date, you are still entitled as you held the shares until the ex-date.
After this date, the stock becomes ex-dividend"
Contradicting advice.

*
So sorry. Haven't come to this thread for some time now cause I'm out of the stock market at the moment. What's the contradicting advice? Kindly point it out and I'll make the necessary corrections. Thx. smile.gif
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phangan
post Sep 2 2010, 12:52 AM

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rclxms.gif

good guide... thanks!
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t5t
post Sep 4 2010, 06:10 PM

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Hi there! Can anyone please explain the following announcement to me?

" 9261 GADANG GADANG HOLDINGS BHD
GADANG - NOTICE OF RIGHTS ENTITLEMENT

LISTING'S CIRCULAR NO. L/Q : 58170 OF 2010
RENOUNCEABLE TWO-CALL RIGHTS ISSUE OF UP TO 78,677,194 NEW ORDINARY SHARES OF
RM1.00 EACH (SHARES) IN GADANG (RIGHTS SHARES) ON THE BASIS OF TWO (2)
RIGHTS SHARES FOR EVERY THREE (3) EXISTING SHARES IN GADANG (GADANG SHARES)
TOGETHER WITH UP TO 19,669,299 FREE DETACHABLE WARRANTS (WARRANTS) ON THE
BASIS OF ONE (1) WARRANT FOR EVERY FOUR (4) RIGHTS SHARES HELD IN GADANG AT AN
ISSUE PRICE OF RM1.00 PER RIGHTS SHARE, OF WHICH THE FIRST CALL OF RM0.65 IS
PAYABLE IN CASH ON APPLICATION AND THE SECOND CALL OF RM0.35 IS TO BE
CAPITALISED FROM GADANGS SHARE PREMIUM AND RETAINED PROFITS ACCOUNTS (RIGHTS
ISSUE).
Kindly be advised of the following :
1) The Rights commence of trading : [ 7 September 2010 ]
2) The Date of Despatch of the Prospectus and Provisional Allotment Letter of
Offer :
[ 8 September 2010 ]
3) The last day and time for Acceptance, Renunciation and Payment :
[ 23 September 2010 @ 5:00pm ]
4) The Rights cease quotation : [ 15 September 2010 ]
The Stock Short Name, Number and ISIN Code [ GADANG-OR, 9261OR and MYL9261OR001] respectively"

Your help is much appreciated. Thank you.
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smartly
post Sep 4 2010, 07:45 PM

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QUOTE(t5t @ Sep 4 2010, 06:10 PM)
Hi there! Can anyone please explain the following announcement to me?

"  9261    GADANG    GADANG HOLDINGS BHD 
GADANG - NOTICE OF RIGHTS ENTITLEMENT 

LISTING'S CIRCULAR NO. L/Q :  58170 OF  2010
RENOUNCEABLE TWO-CALL RIGHTS ISSUE OF UP TO 78,677,194 NEW ORDINARY SHARES OF
RM1.00 EACH (SHARES) IN GADANG (RIGHTS SHARES) ON THE BASIS OF TWO (2)
RIGHTS SHARES FOR EVERY THREE (3) EXISTING SHARES IN GADANG (GADANG SHARES)
TOGETHER WITH UP TO 19,669,299 FREE DETACHABLE WARRANTS (WARRANTS) ON THE
BASIS OF ONE (1) WARRANT FOR EVERY FOUR (4) RIGHTS SHARES HELD IN GADANG AT AN
ISSUE PRICE OF RM1.00 PER RIGHTS SHARE, OF WHICH THE FIRST CALL OF RM0.65 IS
PAYABLE IN CASH ON APPLICATION AND THE SECOND CALL OF RM0.35 IS TO BE
CAPITALISED FROM GADANGS SHARE PREMIUM AND RETAINED PROFITS ACCOUNTS (RIGHTS
ISSUE).
Kindly be advised of the following :
1)  The Rights commence of trading : [ 7 September 2010 ]
2)  The Date of Despatch of the Prospectus and Provisional Allotment Letter of
Offer :
      [ 8 September 2010 ]
3)  The last day and time for Acceptance, Renunciation and Payment :
      [ 23 September 2010 @ 5:00pm ]
4)  The Rights cease quotation : [ 15 September 2010 ]
The Stock Short Name, Number and ISIN Code [ GADANG-OR, 9261OR and MYL9261OR001] respectively"

Your help is much appreciated. Thank you.
*
in short, if u own 3000units gadang, you will get 2000units RI and free 500units warrant.
2000units RI got to pay RM0.65 for each 1000units if u wish to subscribe the right. total will be 0.65 x 2.

formula :-
3000 : 2000 : 500
6000 : 4000 : 1000
;
;
;

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t5t
post Sep 5 2010, 12:47 AM

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QUOTE(smartly @ Sep 4 2010, 07:45 PM)
in short, if u own 3000units gadang, you will get 2000units RI and free 500units warrant.
2000units RI got to pay RM0.65 for each 1000units if u wish to subscribe the right. total will be 0.65 x 2.

formula :-
3000 : 2000 : 500
6000 : 4000 : 1000
;
;
;
*
Thanks smartly! I am new to stock markets. However, I have some questions:

1) I have already bought some Gadang shares online. In your opinion, buying the rights is a good decision or bad decision? How does it affect the stock price? I would incur more loss/profit by buying the rights or not buying the rights? Please advise.

2) How do I buy the rights now?

Thanks!
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smartly
post Sep 7 2010, 11:55 AM

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QUOTE(t5t @ Sep 5 2010, 12:47 AM)
Thanks smartly! I am new to stock markets. However, I have some questions:

1) I have already bought some Gadang shares online. In your opinion, buying the rights is a good decision or bad decision? How does it affect the stock price? I would incur more loss/profit by buying the rights or not buying the rights? Please advise.

2) How do I buy the rights now?

Thanks!
*
i did not go in detail, judging on surface, gadang is a profit company so far.
think it is okay to subscribe to right but u will subject to price adjustment.
you may suffer more loses for start, if the forecast earnings is good when price recover
you will tend to gain more with more units on hand.
i m saying just on general statement, nothing is sure in stock mkt.
you get free warrant as consolation, hopefully this can cover some price adjustment downward.

you will get a form to fill up when subscribing to right shares. contact your remisier for details.
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randytankt
post Oct 6 2010, 10:39 PM

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Guys, pls explain

-what is gearing ratio for warrants, i.e. gearing times, effective gearing?
and how can i calculate and determine them?

-what is Delta Gamma Vega Theta 7D for? volatility? can explain how can i use this figures?

thanks

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