A Share is a portion of ownership in a company. A movement of share prices depends on a company's performance as well as market conditions.
What is the reward of stock investing?
There are many types of rewards to be received from securities investing e.g. capital gain, dividend, rights offering etc. Basically the rewards will increase whenever the company does well and its share price goes up. Internal and external factors will contribute to the volatility of share prices as well.
What is the risk of stock investing ?
Share prices are unpredictable. Many factors such as the performance of the company, of the whole industry, or even of the overall economic climate may affect the price of shares. Always keep in mind that we can reduce the risks involved by studying the past and the forecast of company performance, considering the securities analysts' opinions, industry trend, as well as follow up different types of information that are disclosed.
Should I contact SET directly to buy/sell stocks listed on the Exchange?
You can open the traditional or Internet trading portfolios with companies licensed to deal in securities, with brokers or sub brokers. However, only member firms (brokers) are authorized by SET to buy or sell stocks listed at the Exchange.
Why should I trade securities through the SET's member firm?
Because investors can be assured of the company's facilities, qualified marketing officers, and other services. SET is also responsible for the company's transparency and fairness. Should a member firm fail to comply with the Exchange's regulations, SET has the right to punish the member firm. Also, to be Set's member firm, a company has to be granted a license from the SEC to operate the securities business. It will be screened finally by the Exchange. Once it becomes Set's member firm, it has to conform to Set's rules and regulations.
What does the "XR" sign mean?
This is one of Set's supervisory signs. XR stands for Excluding Rights. It indicates that the buyer of a stock carrying an XR sign will not be entitled to receive any recently offered rights. SET also uses the following supervisory signs:
The "SP" sign stands for SUSPENSION. SET will post an SP sign to stop trading in a listed stock temporarily for one or more trading sessions for the following reasons:
If a listed company does not comply with Set's regulations on information disclosure, the SP sign will replace the Notice Pending "NP" sign.
If a listed company does not adhere to Set's disclosure regulations, or if its share price changes for unknown reasons and the firm fails to provide an adequate explanation.
If a listed company fails to submit the required financial statements within five business days of the posting of the NP sign.
If a listed company fails to submit the required financial statements promptly on two consecutive occasions and still does not do so on the third occasion trading will be suspended in that stock.
If a listed company is waiting to be delisted or to resume operations and does not submit the required rehabilitation plan within the specified period of time.
Is the quality of the mai-listed companies different from those listed on the SET?
mai-listed companies are of equal quality to those listed on the SET. They are only smaller in size. The criteria that the mai utilizes for companies wishing to list on the stock market are qualitatively equivalent to the criteria utilized by the SET. These are, for example, the company’s financial statements must comply with the generally accepted accounting practices (GAAP) standards and be audited by SEC-approved auditors. The company also to needs have a good internal control system, good corporate governance and a transparent disclosure policy according to the established guidelines.
Only the quantitative criteria are different from the SET's. The mai-listed companies are allowed to have less paid-up capital, fewer minor shareholders, and a shortertrack record.
Are there any measures either by the mai or the government to stimulate the liquidity of the market?
Both the government and mai have used various measures to increase the number of listed companies on the mai. Having more companies listed means having more products to attract investors' interest in the stock market, which will eventually contribute to the liquidity of mai.
Proactive marketing strategy: mai set up the Marketing Issuer unit to persuade potential issuers to raise capital through the mai, including providing ongoing advisory services to companies interested in listing on the mai. Furthermore, mai also runs advertisements and conducts public relations through the media to generate better awareness so the public increase their investment in mai stocks.
Alliance network: mai has cooperated with many organizations to build up a network to identify a broad base of companies that have potential for listing on mai. The participating organizations include the Thailand Board of Trade, Federation of Thailand Industries, Small- and Medium-sized Enterprises Promotion Office, Small Industrial Financial Corporation, Export and Import Bank of Thailand,Small and Medium Enterprise Development Bank of Thailand, etc. Moreover, mai constantly organizes various activities to promote awareness and understanding of the capital market among targeted businesses, to increase the level of interest among them in listing on the mai in the future.
Does mai have mai index?
Yes, there is a separate stock index for mai, separate from that of the SET. Nevertheless, the indice are calculated in the same manner, i.e., based on the overall volume of stocks traded, but using September 2, 2002 as the base date for the mai Index.
What should an investor who trades in SET-listed stocks do if he/she wishes to trade in mai-listed stocks?
An investor may trade in mai-listed stocks through the same securities company.
Are the capital gains realized from mai-listed stock trading subjected to income taxes?
Investors in mai-listed stocks enjoy the same privileges as those who invest in SET-listed stocks; that is individual investors are tax-exempted on their capital gains upon selling their stocks.