Equities

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Equity Instruments are issued by a company in order to raise capital for the enterprise. A shareholder equity instrument, for example stock, will represent an ownership interest in the venture, as well as well a claim on part of the corporation's assets and earnings. Certain types of equity instruments entitle the shareholder to vote and participate in major decisions at shareholder meetings. Shareholders also have the opportunity to receive dividends; however, the company issuing the equity instrument is not obligated to pay dividends, which are subject to the company's profitability and any terms agreed upon.
 

Investors can trade equities on both the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (mai).  Whether a company is listed and traded on SET or mai depends on its size and other criteria.  (For details about being listed on SET and mai, please see http://www.set.or.th) 

Common Stock - Common stock is a security that represents ownership in a public company. Shareholders of common stock can vote in proportion to their holdings for the board of directors and on company policy. Shareholders are also entitled to dividends, if any, as well as capital gains, and possibly subscription rights to purchase additional shares at a discounted price.

Preferred Stock - Preferred stock, like common stock, is an equity instrument by which shareholders participate in ownership of a public company. However, preferred stockholders have a greater claim on a company's assets and earnings than common shareholders. In case of a company’s insolvency, the preferred stock shareholders will be entitled to be paid off from company funds before any payment is made to common stock shareholders. Preferred stock shareholders are also first in line for dividend payments, which are sometimes guaranteed.

Warrants - A warrant is an equity instrument that gives the holder the right to purchase an underlying asset at an exercise price, in a certain quantity depending on a set ratio, and by a predetermined future date. Companies will often include warrants as part of a new-issue offering to entice investors into buying the new security.

Unit Trust - A unit trust is a security issued by an investment management company to raise capital through a mutual fund by allocating money in the fund to invest in financial markets in accordance with the fund's prospectus. Unit holders participate in fund ownership and are entitled to receive dividends from accrued profits.

Non-Voting Depositary Receipt - An NVDR is an equity instrument issued by Thai NVDR Co., Ltd. to represent a Thai company’s publicly traded securities. NVDR’s allow foreign investors to invest in Thai securities when foreign ownership restrictions under Thai law might prevent them from otherwise doing so. By investing in NVDRs, investors are entitled to the same benefits such as dividends as those who invest in a company's common stock. However, NVDR shareholders have no voting rights within a company.

Depositary Receipt  - A DR is an equity instrument issued by Siam DR Co., Ltd. Underlying assets for DR's may be common stock, debentures, or convertible debentures. Investors holding a DR are entitled to the same benefits as a listed company’s shareholders in all respects.