i am a teenage and i see the newspaper advertisement "bursa Malaysia". I'm curiosity to know actually what is

that...i have finding some of the information but still got some question..so, can anybody answer my question? I

need yours help...

1. How those company define the amount of share to sell to public?
2. When those company sell the share, how their company earn the profit, what those profit called?
3. If the particular share is loss, so who will be the victim? The particular company OR the person who buy those
share?
4. When the share is losing what should those buyers do?
5. Why the share will gain and loss? What affected it?

1. It's defined by how much the company actually needs at that time... company shares are usually provided to the public (well... most of the case) whenever a company needs additional capital to do something... Let's say if Lego's want to make new game, but don't have enough money in their banks to make it, they'll go through a crazy process to create shares that they can offer to the public... How many shares? depends on how much money they need (if they need RM10000, they might offer 1000 shares at RM10 per share)... Mind you, this is extremely simplified lol...

2. They don't earn a profit from the share... When shares are bought by the public, the money goes to the company, which then they'll use to do whatever they feel like doing with it. (i.e you buy a RM10 ABC company share, you get a cert stating you have a share with ABC company, ABC company will get that RM10 from you)

3. If shares begin to lose it's value, the person who bought the shares are the so-called 'victims'... But don't call victims lar, make the companies in the stock market sound so evil lol.... This is because you paid the RM10 in the first place mar... If the company get your RM10, but didn't do anything with it, and the share's value begins to drop to like RM1... They'll still have your RM10 in their pockets, but now your share is only worth RM1 when you sell it...

4. LOL.... If I can tell you what to do when something like this happens I'd be too busy with high-power clients to bother bout LYN lol.... It's really up to the buyer... if he thinks it has chance to rise, then the buyer can keep the share lor.... If not, better quickly sell before you start to owe the big ear holes alot of money lol....

5. This is another thing that if I can tell you, I'll be like some supergod... Many things will affect shares. See 2 years ago when there was the talk about Wii.. Nintendo stocks went up quite abit.. Then there's Apple and it's many 'i' products... Many things affect stock prices, and the why is mostly because of the company is currently in a good condition.. If Nintendo suddenly finds out that nobody is buying their Wii, or alot of reviewers are giving Wii very very low scores, and nobody likes the Wii.. then Nintendo stocks are sure to drop by abit as well... Do a research on E.T the extra-terrestrial Atari videogame lol...


Well.... those are really simple (and thus, rather inaccurate) explanations... You want more? Go take up financing lol.... One of the best waste of time in my entire life

This post has been edited by Valagras: Feb 25 2008, 09:28 AM

What is a share's lot size ?

minimum lot is 100 share/lot

Hi,


How many lot can be consider one share of genting or maybank ?


do u mean by just 100 share/lot ? i'm a junior.

Thank You.

Why most of your example based on games' company...lol.

Yes.
Minimum order is 1 lot ( 100 share)
For example, let say Genting is RM 7.50/share ,so your minimum order will be 1 lot and it will cause u RM750 ( 100* RM7.50 ).

Hi sunny86,

i don't think so. u r right with the 100 share (100*7.50) = 750

I mean for one genting share. it split the share already. i think moderator can answer it. right ?

How about maybank? how many lot should i buy just to have ONE share of maybank = RM 9.15 ?

hope someone can give me answer.

Thank You.

The share split doesn't affect the minimum lot.

Share split affect the Par value of the share only.
Eg.
Genting shares was a 50 cents Par value stock aka when they initial issue the share, it is 50 cents par value. (50 cents paid up capital in it).

After so many years of company growth with more and more profit being generated, the share price become Rm40. Since Rm40 seems expensive for retailers, company decided to make it 'smaller' so it splits the 50 cents par value stock into 5 x 10 cents par value stock, so if you have 100 shares of Genting previous, it become 500 shares, and stock price become Rm8.00. (40/5)

So now you are buying a 10 cents par value stock, at Rm6.80, so with min standard purchase lot of 100 = 100 x 6.80 = 680.


This post has been edited by cherroy: Mar 1 2008, 09:38 AM

Hey man, what is share split? can tell me in detail?

you are misunderstood.
You cannot buy ONE share , your minimum order must be 100 share ( = 1 lot)

share split have nothing to do with minimum purchase, it only increase the number of share and par value.

Hi Sunny86

As you know that i'm a greenhorn in this area.
You misunderstood what i'm trying to say?

I want to know how many lot should i purchase in order to get maybank share of 9.15 ? The share doesn't split like other. Example "Genting"

You need to buy 100 share = 1 lot just to get 7.50. Am i right ? But the genting stock is 37.50.

Do you get it? How about maybank ?


Thank You.

I think you are the one mis-understanding it. You don't need bother about stock split or whatever, the standard minimum trading lot is x100 shares = 1 lot. So if Genting is 6.80/share then it is 6.80 x 100 = 680.

Same with Maybank, 9.15 x 100 = 915.

That's the minimum amount with standard trading lot you can get.

Hi,


Opps....if that is the case. Someone gives me wrong information already. They told me 1 lot equal to 1000 shares.

So now the correct information is 100 share equal to 1 lot. Ok,then i get the information.



Thank You. Sorry for the misunderstanding.

For standard, 100 unit = 1 lot. 1000 unit is for last time? Many definitions in the market... lol

Yeah '1000 shares = 1 lot' is old school already. A lot of old timers and remisiers still use this term though instead of the new '100 shares = 1 lot'. So it's best not to say '1 lot' or '10 lot', instead say 1000 shares or 10000 shares. Easier to understand and no confusion whatsoever.

I always heard those uncle aunty measured shares volume they bought in terms of "pieces". They told me 1 piece of RM1 share=RM1000, eg. you buy a share at price of RM3.20, you have to pay the stock exchange the sum of RM3200. Are they using the so-called 1000 shares=1 lot? Does it mean last time we have to pay RM3200 in order to buy a minimum of RM3.20 share, but today we can pay lesser, that is RM320 to buy a minimum of RM3.20 share?

Newbie here. Always willing to learn and listen