i am surprised u don't ask yr broker or remisier of the inv bank these impt questions but choose to ask here....?


there are certain things that may be diff from broker to broker depending on yr specific acc and bank.

Different broker can have different procedure on the trust account.

But generally, if there is a trust account to start with, whatever sale and purchase done, which will add/deduct through the trust account.

Standard procedure for not settling the payment after T+3 is force sell at T+4, and the discrepancy (if make a loss) will be charged based on daily interest while if there is surplus (make a profit), the extra money will remit to you.

Invest in stocks because stocks performs very well over the very long term. You just need to be patient.

dear sifus, I now hav a direct cds account so how to apply for a company's ipo? thanks!

IPOs are usually applied using banks' online services, such as Maybank2u or CIMB Clicks.

lets say i using hle broking, how do i apply for it? i did check on maybank too but dis came out >>


"There are currently no IPO listings for Internet share application"

Which company you're trying to apply?

Just wan to see wat company ipo is available haha, but i jus found out isit becos now no company listed cos the last wan
was Ikhmas Jaya group today close right?

Hi, i am a newbie in the stock market. Is anyone using maybank2u online stocks? How many days does it take for the money to be debited from your bank account? I bought a stock 2 days ago. I can see the stock in "my holdings" but the money in my bank account has not yet been debited. just wondering whether this is expected or am i doing it wrongly.

Why suddenly green?

You need to wait; T+3 day for the money credit out- bank dont do losse money business.

TQ

Hi guys,

Do you know any brokers that provide services to buy into the Oslo Stock exchange?

Really interested in a few companies there that have amazing ROE/PE/Yield.

Thanks!

My 2 ecnts.

Sometimes one has to be extra careful when the figures are amazing.

Too good to be true?

Confirm that they are consistent, no smart accounting involved, etc.

All the best!

Hi guys, need more help. Can I check if my understanding of call warrants is correct?

Let's say I bought 5000 shares of a call warrant at RM0.20. Expiring in 31 July 2015. The exercise price RM2, Ratio 5:1.

Current market price of share is RM 3. Current price of call warrant is RM0.25.
Assuming that the share price remains at RM3 during the expiry date :

1) If i wait till the expiry date, the amount of money I will receive is :
- RM3-2/5 = RM0.20 per share.
- That means I will receive RM 0.20 x 5000 = RM1000
- Which means I gain nothing

2) If the share price goes up to RM3.50 during the expiry date, I will receive :
- RM3.50-2.00/5 = RM 0.30 per share
- That means I will receive RM0.30 x 5000 = RM1500
- Which means I gain 50% (RM500)


3) If I choose to sell my call warrant now, the money I will receive back is :
- RM 0.25 x 5000 = RM1250


4) If the share price goes down to RM 1.50, that means I lose all my capital?

5) I understand that the call warrants in Bursa Malaysia are structured warrants, i.e not issued by the company, but issued by the banks.
- Normal call warrant : I can exercise the warrant and purchase the shares at a specific price.
- Structured call warrant : I don't get to own the shares. I only purchase the warrant. And at the expiry date, I earn money or I lose everything.


6) If the company's current share price is much higher than the call warrant's exercise price, wouldn't it make sense to buy the call warrant?


7) What are the different codes used for call warrants? Any links for me to read up further?


Sorry for the long post. Appreciate any of your input. Thank you very much

1) Call warrants issued by market maker cannot be exercised. Hence, just use the current market price times to number of shares for cash settlement amount. Assuming current call warrant price is RM0.25, you will receive; RM0.25 x 5000 = RM1,250.

2) Refer to answer no. 1

3) Yes, you're right

4) No. Refer to answer no. 1. It all depends on the current share price of the call warrant.

5) Maybe you're confused. Call warrants is a type of structured warrants. The other type of structured warrant is put warrant. They all cannot be exercised and can be found in http://www.bursamalaysia.com/market/listed...#/?category=all

The type of warrants that can be exercised is company warrants. Prefix for company warrants are -W. For instance, INARI-WA.

6) It depends. However, if the value/premium is negative when [Mother share price - (call warrant price + exercise price)], there is potential gains. Also, the value or premium of the call warrant tends to dwindle to zero when maturity approaches.

7) Prefix for call warrants are -C. For example, INARI-CB.

Some links for basic reading are https://www.osk188.com/page.jsp?name=faq_un...anding_warrants and http://www.rhbgroup.com/products-and-servi...tment/warrants/.

Alternatively, you can attend those seminars offered by your stockbroker about warrants trading or just ring up your dealer/remisier and ask them all your questions.

i see.. thanks! But what is this "ratio" thing in the call warrants then? I thought it is used for the calculations on the cash settlement amount.

The conversion ratio is used to calculate the gearing, premium or discount and cash settlement. All the formulas can be found in http://1-million-dollar-blog.com/how-to-ca...-call-warrants/

Thanks dreamer09 Last questions :
1) To get the cash settlement, i need to sell my warrant before it expires? If the warrant expires, it will be worthless?
2) if i were to buy a company warrant, prefix -W can I convert it to mother shares upon expiry? can I do it with maybank2u online stocks?
3) i see that some company warrants have a ratio e.g. 1 warrant : 1 ordinary share of RM0.50 each. What does that "1 ordinary share of RM 0.50" mean?

Thank you for bearing with my noob questions

1) You can either sell it in the open market like any normal shares or hold it until expires to get a cheque, which the amount equals to the formula in the above blog's link.

2)Yes, you can convert it anytime prior to maturity. Any stockbroker including maybank2u online stocks have that service. Just ring up your remisier or dealer any they will guide you through the procedures.

3) RM0.50 is the par value of the company. Take example of SCIENTEX's latest dividend announcement at http://www.bursamalaysia.com/market/listed...cements/4786001

Single Tier Interim Dividend of 18%
Par value = RM0.50

If you were to hold 1 lot or 100 SCIENTEX shares, the dividend formula will be;
Dividend = number of shares x dividend announced x par value
= 100 x 18% x RM0.50
= RM0.09