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

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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?

This post has been edited by debbieyss: Sep 18 2009, 02:14 PM
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
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*...
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?
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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