What is CA in the stock market? Understanding the important warning signs for investors

Why You Need to Know About CA and Stock Suffixes

When you access a typical stock trading app, you may often see two-letter abbreviations attached to stock names, such as CA, XD, T1, H, SP, etc. However, many people may not know what these symbols mean and why they are important for your investment decisions.

Misunderstanding these symbols could lead to unprofitable transactions or, worse, missing out on benefits that are rightfully yours. This article will provide a comprehensive explanation of these abbreviations so you can understand and utilize them to your full advantage.

What Does CA Stand for?

CA stands for Corporate Action, which means “Company Action.” This symbol appears when a stock is about to experience a significant event within the next 7 days.

When you see CA attached to a stock name, you can click to view details about the event, when it will occur, and how it might affect your rights. Stock suffixes related to CA can be divided into 3 main groups based on the meaning and nature of the event.

Group 1: X - “Excluding” (Not Entitled)

This group of symbols starts with X, which stands for “Excluding,” meaning that if you buy the stock during this period, you will not receive certain rights that the company is about to grant.

XD - Excluding Dividend (Not Entitled to Dividends)

XD indicates that you will not receive the current dividend. To receive dividends, you must buy the stock before the XD date appears. Even purchasing just one day before the XD date grants entitlement.

Customer Questions

• Q: How long do I need to hold the stock to get dividends?
  A: There is no minimum holding period; just buy before the XD date.

• Q: Are dividend rates the same regardless of when I buy?
  A: Yes, dividend rates are the same regardless of when you purchase.

XM - Excluding Meetings (Not Entitled to Shareholder Meeting Rights)

If you buy the stock when XM appears, you will not have the right to attend the shareholder meeting, where important company decisions are made.

( XW, XS, XR - Rights to subscribe for subsidiary and new shares

• XW )Excluding Warrant###: Not entitled to purchase warrant shares, which are convertible into parent shares.
• XS (Excluding Short-term Warrant): Not entitled to subscribe for short-term warrant shares.
• XR (Excluding Rights): Not entitled to subscribe for new shares (capital increase shares) issued to raise funds for business expansion.

( XT, XI, XP, XA, XE, XN, XB - Other Rights

• XT )Excluding Transferable Subscription Right###: Not entitled to transferable rights to subscribe for additional capital shares.
• XI (Excluding Interest): Not entitled to interest.
• XP (Excluding Principal): Not entitled to the principal amount announced for repayment.
• XA (Excluding All): Not entitled to any rights announced by the company.
• XE (Excluding Exercise): No rights to convert securities into shares.
• XN (Excluding Capital Return): Not entitled to capital reduction refunds. @E0; Capital reduction adjusts the company’s capital to appropriate levels, especially when there are accumulated losses.(
• XB )Excluding Other Benefits(: Not entitled to rights to subscribe for preferred shares and other types of new shares.

Group 2: T - Trading Alert Levels

This group of suffixes starts with T, appearing when a stock’s price increases rapidly due to intense speculation. The stock exchange implements measures to limit such surges, divided into 3 levels.

) T1 - Trading Alert Level 1

This stock can only be bought with a Cash Balance account (regular cash account). This measure is effective for 3 weeks after the exchange announces it.

T2 - Trading Alert Level 2

If the stock remains under T1 criteria for no more than 1 month, it escalates to T2. It must be bought with a Cash Balance account and cannot be used as collateral in any account. It lasts for 3 weeks.

( T3 - Trading Alert Level 3

The highest warning level. If the stock remains under T2 criteria continuously, it becomes T3. In addition to T2 restrictions, short selling is also prohibited. This means that when you sell the stock, the buying power will not be immediately restored but will do so the next day, preventing multiple trades within the same day.

Cash Balance accounts are suitable for beginner investors because they can only invest up to the amount of money they have, making it easier to control the trading limit.

Group 3: Warning Symbols for Investors

This group of symbols serves to alert investors to exercise caution.

) H - Trading Halt ###Temporary trading suspension for 1 session###

The stock temporarily halts trading, often due to leaked news that the company has not yet officially announced to the stock exchange. ###Trading sessions are divided into morning and afternoon(

) SP - Trading Suspension (Trading halted for more than 1 session)

Trading is suspended for over one session, similar to H, including cases where the company does not submit financial statements.

NP and NR - Market Reporting

• NP (Notice Pending): The company has items to report to the stock exchange but has not yet submitted.
• NR ###Notice Received(: The company has submitted clarifications.

) NC - Non-Compliance (Failure to comply with conditions)

The company risks being delisted due to prolonged severe losses or failure to submit financial statements on time. It has 1 year to resolve the issues.

ST - Stabilization (Price stabilization)

This symbol appears when the company is stabilizing its stock price, typically through “Greenshoe” issuance, where more shares are issued than planned to support the price, for the first 30 days.

C - Caution (Warning)

Indicates that the company has problems and high financial risk. Investors should avoid investing in this stock for now. Example conditions include:

Financial Aspects

• Shareholders’ equity less than 50% of paid-up capital
• Court petitions for rehabilitation or bankruptcy accepted

Financial Statements

• Auditor’s opinion is unqualified or limited
• SEC orders financial statement corrections

Business Nature

• The company is a Cash Company ###selling almost all assets(

Summary: Why Understanding CA and Other Symbols Matters

Understanding the meaning of CA and these stock suffixes is a fundamental step for investors, especially if you want to avoid losing rights or buying high-risk stocks.

When you see CA at the end of a stock name, you can click to view details immediately. The information will be in abbreviations, but once you understand them, everything becomes a simple Q&A telling you what is about to happen and how it might affect your rights.

Stock investment requires knowledge and caution to ensure your decisions are based on solid ground.