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1.
What is a share ?
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.
2. 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.
3. 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.
4. What is the
Foreign Board and what are the benefits it offers ?
The
Foreign Board was set up in 1987 to serve as an alternative
board for foreign investors who seek ownership of the
securities they invest in and to register such shares
under their own names. Foreigners can either invest
in Set's Main Board and register under nominee names
(usually their brokers) or invest in the Foreign Board
and register the securities under their own names. Foreigners
who register shares under their own names will receive
all the benefits offered by the company directly e.g.
rights offerings, dividend etc. On the other hand, all
such benefits will be processed through the account
of their nominee if they choose to invest on the Main
Board. Securities traded on the Foreign Board are reserved
for foreign ownership according to the foreign ownership
limits set forth in the Articles of Association of each
listed company. In addition, there are no floor or ceiling
limits on the Foreign Board so share prices are more
free to respond to the demand and supply situation.
5. Why do stock
prices on the Foreign Board differ from stock prices
on the Main Board ?
Stock
prices on the Foreign Board are different from stock
prices on the Main Board because of foreign ownership
limits. These limit sometimes cause demand to exceed
supply for some securities listed on the Foreign Board.
6. What does
the "SP" sign mean ?
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:
1. |
If a listed company does not comply with Set's
regulations on information disclosure, the SP sign
will replace the Notice Pending "NP" sign.
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2. |
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. |
3. |
If a listed company fails to submit the required
financial statements within five business days of
the posting of the NP sign. |
4. |
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.
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5. |
1. 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. |
7. 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: XD (excludes dividend), XI (excludes interest),
XM (excludes meetings), and XA (excludes all privileges).
8. How do I calculate
The SET Index ?
The SET Index is a market capitalization weighted price
index calculated from all common stocks listed on SET
(the Main Board only). The basic formula is as follows:
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| SET50 INDEX = |
CMV
x 100 |
 |
BMV |
|
|
CMV = Current
Market Value of all common stocks |
BMV = Base
Market Value of all common stocks |
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SET has been calculating the SET Index since April
30, 1975 when the Index equaled 100 points. |
9. What is the
calculation method of Market Capitalization ?
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|
n |
|
Mi Qi |
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i = 1 |
i
= |
Each Issue of Securities |
n = |
Number of Listed Securities
|
Mi = |
Market Price of Each Securities
|
Qi = |
Number of Listed Shares of each
Securities |
10. What is
SET50 Index and why was it introduced ?
The
initial idea for introducing SET50 Index is to establish
an appropriate underlying index in order to accommodate
the issuance of index futures and index options.
This index, calculated from a small number of listed
common stock, will be constructed and composed of listed
securities that can represent the majority of the total
market capitalization and total market turnover of SET.
Moreover, this index should be able to move along with
the existing SET index. A preliminary study indicates
that market capitalization and turnover of the top 50
listed stocks ranked by their market capitalization
can represent the majority of the total market since
increasing the number of stocks to the top 100 changes
the proportion of total market capitalization and total
market turnover by a relatively small amount. Therefore,
it is proposed that the new index should comprise 50
listed common stocks with high market capitalization
and high liquidity and is to be called the "SET
50 Index". The new SET 50 Index should not only
be able to move along with the existing SET Index, but
also be used as a benchmark to measure the performance
of fund managers investing in the Thai stock market.
11. How do I
calculate the SET 50 Index?
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| SET50 INDEX = |
CMV
x 100 |
|
BMV |
|
|
CMV = Current
Market Value of all common stocks |
BMV = Base
Market Value of all common stocks |
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The SET has been calculating the SET 50 Index since August
16, 1995 when the Index equaled 100 points.
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