Stock Basic
Securities: refer to stocks, bonds or derivatives.
Stock: is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Why do corporations issue stocks?
When a company issues stock, it raises money that it can use to expand its business such as building a new factory or buying more advanced equipment, etc.
It is a cheaper way for a company to raise funds compared to bank loans which demand interest and need to be paid back.
Why do people invest in stocks?
- Become a shareholder: When you buy a stock, you become a partial owner of a company. You have the right to vote on matters of corporate policy and board elections.
- Source of Revenue: Each stock entitles the owner to some amount of dividend the corporation decides to pay.
- Diversification: Stock is a good way to diversify your investment portfolio.
- Tax Incentives: No withholding tax on dividends for residents (locals and foreigners) & 50% tax reduction for non-residents, no tax on capital gains, and no stamp duty tax levied on trading.
- Affordable & Liquid: Stocks are traded in small pieces that are affordable to anyone. They can be sold in the market and converted into cash quickly.
- Growth Potential: Some listed companies become very successful, and market prices of their stock surge higher. The owners can sell those stocks at a good profit.
- Higher Return: Stock investments usually provide higher returns compared to other investment options.
Trading Rules
- Limit order: The order where the bid order price is the maximum offer price and the ask order price is the minimum.
Example: A bid limit order of 40,000KHR may be traded at 40,000KHR or lower, and an ask limit order of 40,000KHR may be traded at 40,000KHR or higher. - Market Order: The order to immediately buy or sell a stock at the best price. However, it is not allowed for liquidity-providing activities and the first trading of initially listed securities. The market order can have two affixed conditions: Fill or Kill (FOK) and Fill and Kill (FAK). They can only be used during the multiple-price auction and only when an order is available on the opposite side.
- Negotiated Order: The order to buy or sell a security through the Negotiated Trading Method (NTM). It secures investors to trade in a single large transaction and provides order and trade confidentiality during trading hours.
The order are matched in the CSX’s trading system according to the determined auction principle Price Priority and Time Priority.
Note: An order placed on CSX is valid until the end of the trading hours.
Daily Price Limit
(+-) 10% of base price
Trading Currency
khmer Riel
Good Faith Deposit
100%
Trading Before Settlement
Equity Securities Only
After you complete a trade (on T+0 day), the securities or payments will be officially settled and transferred to your account on T+2 day. However, for equity Securities, CSX allows you to use those resources to sell or buy new securities on the same day (T+0) without having to wait until you officially receive it.
Trading Schedule
The market opens to receive buy/sell orders from 08:00 am and closes at 03:00 pm, the execution matching of buy and sell starts from 09:00 am to 02:50 pm, and at 3:00 pm once again before closing the market.
Trading Days
Trading days shall be from Monday to Friday except for public holidays.
Settlement Date (T+2)
The date by which the trade must be settled. The “T+2” represents the number of business days after the transaction date.