Investment & Financial Terms

Bonus Issue
- An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout.

Rights Issue
- Issuing rights to a company's existing shareholders to buy a proportional number of additional securities at a given price (usually at a discount) within a fixed period.

Option
- A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).

Call options
- Give the option to buy at certain price, so the buyer would want the stock to go up.

Put options
- Give the option to sell at a certain price, so the buyer would want the stock to go down.

Warrants
- A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.

Bond
A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.

Window Dressing
A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.

Swing trading
A style of trading that attempts to capture gains in a stock within one to four days. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks, but rather in their price trends and patterns.

Trend trading
A trading strategy that attempts to capture gains through the analysis of an asset's momentum in a particular direction. The trend trader enters into a long position (buy) when a stock is trending upward (successively higher highs). Conversely, a short position (sales) is taken when the stock is in a down trend (successively lower highs).

Position trading
A trading strategy that holds a position for the long term (from months to years). Long-term traders are not concerned with short-term fluctuations because they believe that their long-term investment horizons will smooth these out.

Intrinsic Value
The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.

Fair Value
The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies

Listing Requirements

8.03 Cash Companies - PN16
A listed issuer whose assets on a consolidated basis, consist of 70% or more of cash or short term investments, or a combination of both (“Cash Criterion”) must immediately notify the Exchange of its condition in writing. The Exchange will determine whether such listed issuer should be considered a Cash Company. A listed issuer considered as a Cash Company by the Exchange will be notified by the Exchange.

8.04 Financial condition and level of operations - PN17 Criteria & Obligations of PN17 Companies
A listed issuer whose shareholders’ funds are less than 25% of their total paid-up capital; receivers have been appointed to take control of the companies’ assets; the winding-up of some of their subsidiaries and associated companies; the auditors have expressed adverse opinions on the companies; default in loan interest and principal repayments; the companies have suspended or ceased their operations; and companies do not have any significant businesses or operations.

8.02 Compliance with shareholding spread requirement - PN19 Public Shareholding Spread
A listed issuer must ensure that at least 25% of its total listed shares (excluding treasury shares) are in the hands of public shareholders.