Hi there. This is my second day since I start to touch up with stock exchange. I have several questions, which I couldn't find the answer from google.

1. Why a corporation with subsidaries, the subsidary company has higher stock price than the parent company itself? For example Berjaya.

2. How come DiGi price is so much higher than Maxis while the company size is smaller?

3. What does volumn means?


Thanks for your help.

Share price is not the ultimate figure that determine which company is large or smaller.
It is the market capitalisation that determine which one is bigger. Also company share price is influenced by the number of shares issued. The more number of shares issued, the lower the price might be.

Market cap of a company = number of shares issued x share price.

Volume means transaction done in the stock market.

I see. Another question just discovered. What is DiGi-CA and DiGi-CB?

Edited: Minimum how many shares we must purchase to entertain the agent? 1 lot = 1000 shares?

This post has been edited by leekweehui: Dec 28 2007, 03:02 PM

Call-warrant issued by third party.

Which means it is not a share from the company itself? I googled "Call-warrant", but I don't really understand what it is.

Define: Call warrant - "A contract entitling the buyer to buy a fixed quantity of the underlying asset at a stated exercise price."

Dude, you need to learn one by one if you are newbie in this area. Can google around the KLSE FAQ as well as other site faq to have more understanding.
We are glad to help out.

Yes, basically warrant or call-warrant are not shares, it is just a 'rights' to buy its mothershare at a specific price at a specific time frame.

I thought it is not difficult. But I think I had the basic background on how this game works. Thanks for your patience cherroy. I would suggest you to create a pinned thread that explain how this market is running, to educate people like me before they confident enough.

Actually all are quite simple, just sometimes people need some experience in it so that it makes more easier to understand.
It is a daunting task for me to create a FAQ, it needs plenty of time to do it. Also there are aleady lots of FAQ at respective website, don't need to do a redundant work. I still have a job to do everyday mah. Please bare with me.

Welcome to the board

ppl rarely read on FAQ, they like to ASK, instead of READ (i am one of them, either)

any questions or doubts about stock market, here is actually quite a nice & comfortable place to ask

p/s: ohyah, stock market requires hands on experience, ppl hard to describe or tell. you can always start by playing virtually (without involving any pennies), get a piece of paper, role yourself as a remisier & investor, that's how you virtually practise)

Exactly, panasonic88. FAQ sometimes does not answer my question. I prefer ask people rather than search for the answer. XD

but warrants can be traded like shares... jz like we can buy n sell shares in klse.. right???

after the time frame, then how to change it to the mothershare ???
i m new to stock investment...

This post has been edited by 12bDreamChaser: Jan 2 2008, 12:29 AM

depends on wat type of warranty u buying(American or Europe type)
if those tat can convert
u need to c the exercise price

Why don't ask more question Mr Lee?

every member is welcome to raise any questions regarding stock market

simple story
u wanna buy karipap (stock) next year
but next year u think karipap price increase from 30sen to 40sen or more
so u make contract (warrant) with that seller to buy karipap at
30sen (exercise price) in year 2009 (expiry date)
the contract price is 5 sen each (warrant price)
1 contract for 1 karipap (conversion ratio)

so next year...
karipap price increase to 50sen.
but with the contract...you pay 35 sen only (contract+karipap)
if u sell that karipap to others..u profit 15 sen (30 percent)

but..

instead of selling the karipap..u sell the contract
normally contract price will increase to 20 sen coz the karipap price increase to 50 sen (20 sen..coz 20+30=50sen karipap current price)
u buy the contract at 5 sen..and u sell at 20 sen (300 percent profit)

see..the return is very big..but the risk is bigger too..
if the karipap price fell to 20sen
ur contract is worthless
coz if u use the contract u will be paying 35sen (around 80 percent more)

okeh tak cerita hehe

This post has been edited by greddym3: Jan 16 2008, 01:42 AM

That was such a brilliant way to explain it! good one...

erm... so what is the difference between warrant and option ah??

i quite blurr now......

Option - A financial derivative which represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (excercise date).

Warrant - A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.

The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months.

From www.investopedia.com

Good luck, and have fun trading!

and my another question is for those who can read chinese word...

what is 自報價股?? i cannot find the definition to this as chinese word hard to search in google and i don't know its english word...

any difference with the shares listed in KLSE....

Actually the Chinese word or translation is not exactly mean by English term. Locally it is just mean Mesdaq.
The origin of this 自報價股 is come from Nasdaq which stand for National Association of Securities Dealers Automated Quotations.

You need to know how market trade or exhange in the old day system (through human manual matching etc) to know why Nasdaq is born.