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%.

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.

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

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.

Yup, dividend is 'toxic' to CW and WA.

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.

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.

What do you mean by that?

A lot of company actually has mixed bag of business and investment.

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.


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.

Non-online transaction is RM40 which is the min brokerage amount announced by gov during budget years ago.

The always fear is the underlying stock price going down, which being margin call.

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.

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

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.

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.

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.

Yes
Yes
They will send you the right allotment letter/form to you to fill in.

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.

Don't quite understand what you are asking...

0.45

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