1) Investing Basics

Why Invest In Stocks?

Investing is making your money work for you by getting your money to generate more money.
Investing in stocks has consistently proven to be one of the most profitable forms of investment
available.

The benefits include:

 Immediate Buy/Sell so you can sell part of your investment any time. Very low transaction cost.
 The freedom to work at your own place, at your pace in your own time.
 Easy monitoring - log in to the market from anywhere in the world.
 Being able to maximise returns whilst spreading your risk.
 A predictable form of investment if you know what you're doing.
 Putting you in control and freeing you of fund management fees.
 Considerable tax advantages.

Things to watch out for:

 The market can be a volatile place.

 You must acquire knowledge of what you are doing.
 You must monitor your investments.
 You must learn the discipline to enter and exit the market on entry and exit signals.

Can Ordinary People Profit from the Stock Market?

Many people say things like "I'd love to get into the stock market" or "If I had more money, I'd
invest in stocks". Many people also believe that to make a profit from the stock market you
either need to be rich already, be a full-time investment trader or be a financial whiz.

Not necessarily so.

Let's take a look at three different scenarios of ordinary people in the stock market to see how
they fared. This will let us view how the process works, the different approaches, and how
returns are generated.

Scenario 1
John works in a manufacturing plant earning RM33,000 a year. After rent, living and personal
expenses, John has managed to save RM1,500 over the past 6 months that he wants to invest
in the stock market. John buys 1,600 shares in ABC Mining at RM0.90 per share (RM1,440). He
also pays RM32.95 brokerage fees for buying the shares. In total, John has invested
RM1,472.95.

Six months later John decides to sell his shares. He has kept an eye on the performance of
ABC Mining and they have risen to RM1.19 a share. John sells his shares for RM1,904. He also
pays RM32.95 brokerage fees for selling his shares, leaving him with RM1,871.05. That is a
profit of RM398.10.

RM398.10 may not sound a lot, but remember John only invested RM1,472.95 for 6 months, so
he won't make a huge return. Nevertheless, John made a 27% profit which is far better than he
would have made by putting the money into his savings account.

Scenario 2

May and Chong both work full-time in professional jobs. Together, they earn RM120,000 per
year. After mortgage repayments, living and personal expenses May and Chong have managed
to put away RM5,000 that they want to now invest in the stock market. They buy 1,500 shares in
AAA Steel at RM1.48 a share (RM2,220) and 1,500 shares in XY Manufacturing at RM1.33 a
share (RM1,995). They also pay RM65.90 brokerage fees for the two transactions. Their total
outlay is RM4,280.90.

Over the next 12 months AAA Steel shares have risen to RM2.60 a share and XY
Manufacturing shares have moved to only RM1.38 a share. May and Chong sell their shares for
a total of RM5970. They pay their broker RM65.90 and are left with RM5904.10. Their initial
investment was RM4,280.90. So, they make a profit of RM1,623.20.

Scenario 3

Aminah is retired, owns her own home and earns a comfortable income from several long term
investments. Aminah would like to invest RM15,000 that she has set aside for buying shares.

Aminah selects a portfolio of 5 companies and aims to invest around RM3,000 in each. Aminah
buys 3,333 shares in ABC Mining at RM0.90 a share (an investment of RM2,999.70). She also
buys 2,027 shares in AAA Steel at RM1.48 a share (RM2,999.96) and 2,255 shares in XY
Manufacturing at RM1.33 a share (RM2,999.15). To complete her portfolio, Aminah buys a
further 2,912 shares in MM Multimedia at RM1.03 a share (RM2,999.36) and 3,000 shares in
BB Furniture at RM1.00 a share (RM3,000). Aminah also pays RM164.75 brokerage fees for
buying the shares. In total, Aminah has invested RM1,5162.92.

12 months later Aminah sells her shares. Four of the shares have increased in value but BB
Furniture has dropped to RM0.95 a share. ABC Mining rose to RM1.19 a share returning
RM3,966.27. AAA Steel rose to RM2.60 a share returning RM5,270.20. XY Manufacturing rose
to RM1.38 a share returning RM3,111.90. MM Multimedia rose to RM1.09 a share returning
RM3,174.08. BB Furniture dropped to RM0.95 a share returning RM2,850. In total, Aminah's
shares returned RM18,372.45 less RM164.75 for brokerage. This gives a total of RM18207.70,
earning a profit of RM3,044.78.

Understanding The Stock Market

The stock market is where the shares in companies are bought and sold, providing companies
options to access capital, and investors opportunities to own a share of the company and enjoy
potential gains from the company's future performance.

The stock market offers people the ability to generate a separate income stream apart from their
daily jobs, or income streams which are superior to those from traditional savings deposits. But
before you even think about buying and selling shares, you must know the fundamentals of the
stock market and of trading.

First time investors can become confused because of the terminology that is used to describe
various market functions. These don't take long to learn. Click here for your basic share trading
terms. Incidentally, one common confusion is over the terms 'stocks' and 'shares'. Actually, they
both mean the same thing and can be used interchangeably.

The Role of Bursa Malaysia

You can only invest in stocks through a stock exchange, an organized marketplace where
stocks are bought and sold under strict rules, regulations and guidelines. The Malaysian stock
exchange is called Bursa Malaysia. Bursa Malaysia has over 900 listed companies offering a
wide range of investment choices to local and global investors. Companies are either listed on
Bursa Malaysia Securities Main Market or ACE Market.

Raising Capital on the Stock Market

The Stock Market was created by companies wishing to raise capital for their business. When
someone says they have a listed company they mean listed on Bursa Malaysia. All companies
need cash to take advantage of growth opportunities. Many start-up companies however find
themselves short of capital to fund expansion. One way to acquire this cash is to publicly float
the company. This involves selling part of the company to private individual and institutional
investors who are then able to freely exchange these stocks on an open market. Purchasing
stocks in a company that is listed on the stock market is done through an Initial Public Offering
or IPO.

Once an IPO has been issued, you can contact the company (phone, fax or email) for a copy of
the Prospectus and complete the application to apply for an allocation of shares. Or you can
wait until the company is floated and buy shares on the open market. Besides Bursa Malaysia,
stock brokers will also have information regarding Initial Public Offerings.
 Companies that are already listed can also raise additional money on the stock market by
offering existing stockholders the opportunity to buy more stocks in the company. For example,
a listed company wanting to raise additional capital might issue one new share at 5sen each for
every three shares an existing investor owns.

When you buy shares, you are buying a share in that company and so you own a percentage of
that company. When the company makes a profit, you share in that profit in the form of a
dividend. Typically, the number of shares that have been issued multiplied by the share price
gives us how much a company is worth.

The Role Of A Broker

To buy or sell shares on Bursa Malaysia, you need to use a registered broker who is a member
of Bursa Malaysia. You cannot deal directly with Bursa Malaysia as only brokers have direct
access to the market.

 A broker acts as your agent - much like a real estate agent that sells your house.
 He/she earns a commission on the value of shares you trade - just like a real estate agent earns
commission on buying and selling houses for people.
 A broker can also be involved in the listing of a new company by underwriting the float and
marketing the float to their group of clients.

There are many brokers to choose from

ALLIANCE INVESTMENT 076-004 Alor Setar Branch Tel: 04 - 731 7088 / 731 8270
BANK BHD 2nd Floor, Wisma PKNK, Fax: 04 - 731 8428
Jalan Sultan Badlishah,
05000, Alor Setar
Kedah Darul Aman

RHB INVESTMENT BANK 087-021 Alor Setar Branch Tel: 04 - 7209 888
BHD 214-A, 214-B, 215-A dan 215-B Fax: 04 - 7209 878
Medan Putra
Jalan Putra
05150, Alor Setar
Kedah Darul Aman

UOB KAY HIAN SECURITIES
(M) SDN BHD
078-007 Alor Setar Branch Tel: 04 - 732 2111
Lot 4, 5 & 5A Fax: 04 - 732 2777
1st Floor EMUM 55 Website: www.utrade.com.my
No. 55, Jalan Gangsa
Kawasan Perusahaan Mergong 2
Seberang Jalan Putra
5150, Alor Setar
Kedah Darul Aman
Reading Market Reports
As a stock trader, you will begin to pay more interest to the business section of your local
newspaper. Most feature a section that deals with Stock Market prices at close of the previous
day. In this section, you will come across the following descriptions:

Year's High the highest price for a particular stock for the year.

Year's Low the lowest price for a particular stock for the year.

Stock Code a unique numbering system to identify a particular stock.

Stock Counter the stocks listed on Bursa Malaysia.

Cls'ng (Closing) the closing price for a particular stock for that particular trading day.

+/- the symbol for the increase or decrease in the stock price for that particular day.

+/-% the symbol for the percentage increase or decrease in the stock price.

Lots Traded stocks are normally traded in board lots of 100 units; lots traded will tell you the
number of lots traded on a particular day.

Day's High the highest price for a stock in that trading day.

Day's Low the lowest price for a stock in that particular day.

Div Yield a dividend yield is a method of valuing stocks; it is calculated as

Cash Dividend per Stock

= Dividend Yield
Market Stock Price

P/E the information obtained from this will enable you to make a performance
Ratio(Price/Earnings comparison of a company with that of the industry, and from one period to
Ratio) another. The formula is:

Current Market Price

= P/E Ratio
Earnings Per Stock

Earning per stock amount of a company's earnings attributable to each ordinary stock of that
company.

M Cap(Market this shows the total value of a listed company's stocks based on the current
Capitalisation)
 market price; calculated as:

Stock's Market Price x Number of Stocks Issued

NTA per Stock this indicates the value of assets backing the stock of a company; calculated by:

Net assets of a company

Number of ordinary stocks in it

Reading the stock market performance section of the newspaper is an easy thing to do. You just
need to do it a few times until you begin to feel comfortable with it.

Understanding Indices
A stock market index is a single number calculated from the prices of many different stocks.
Index is also called indices when you talk about more than one of them. Indices are used as
benchmarks of stock performance for portfolios like mutual funds.

Some investment funds (index funds) manage their portfolio so that their performance mirrors
(tracking) the performance of a stock market index or a sector of the stock market.

For example, when you hear that the Consumer Price Index (CPI) for say, January to December
2005 increased by 3.0% to 109.1 compared with that of 105.9 in the same period last year. This
tells you that the change in retail prices paid by households for goods and services increased in
that period. CPI is designed to provide a broad measure of changes in retail prices.

An index is a tool which enables investors to measure the performance of a group of stocks
from a defined market. It can form a benchmark for active or passively managed portfolios
covering the particular market. Being part of an index is also a status symbol for the constituent
companies and trading of constituent shares obviously supports the share price. Indices also
allow the creation of investment products that give investors exposure to markets or groups of
stocks which can help in markets where there are barriers to investment.

Stock market indices may be classed in many ways. A broad-base index represents the
performance of a whole stock market— and reflects how investors feel about the economy. The
most regularly quoted market indices are broad-base indices comprised of the stocks of large
companies listed on a nation's largest stock exchanges, such as the American Dow Jones
Industrial Average and S&P 500 Index, the British FTSE 100, the French CAC 40, the German
DAX and the Japanese Nikkei 225.

The Use of Indices

Stock indices have developed in the last twenty years to become much more than economic
indicators (market barometer) and with growing developments in financial markets, more
technical functions of indices have been brought to the forefront.
Stock indices are used by investors and fund managers as one of the many tools to evaluate
the performance of a stock market The application of indices is now much wider including the
use of indices as benchmarks for investor portfolio comparisons and as underlying components
of financial products, for example Exchange Traded Funds (ETFs) and derivatives.

Bursa Malaysia Indices

The existing Bursa Malaysia indices are calculated using the market capitalisation weighted
method.

Market capitalisation means the total value of a listed companies shares based on the current
market price. Therefore the bigger companies are given higher weightage compared to the
smaller companies.

Understanding FTSE
The FTSE Bursa Malaysia Index Series

Bursa Malaysia Bhd and FTSE Group joined forces in 2005 to launch the FTSE Bursa Malaysia
Index Series, a suite of tradable and benchmark indices. The FTSE Bursa Malaysia Index
Series is designed to represent the performance of companies, providing investors with a
comprehensive and complementary set of indices, which measure the performance of the major
capital and industry segments of the Malaysian and regional market.

FTSE adopts international index construction standards which are transparent. Stocks will have
to pass FTSE's basic requirements to be included into the index. The index design basics are
as follows:-

i. Investable

All stocks are free float weighted to accurately represent the stocks available for
investment. Strategic shareholdings such as by Directors and Founding Families,
Government, Cross Holdings by related companies and Holdings subject to lock-in
clauses will be excluded from free float screening.

ii. Tradable

All stocks are liquidity screened to ensure stock availability and ease of trading.

iii. Transparent

A clear and predictable set of Ground Rules provides transparency and enables easy
understanding and anticipation of the management of the index series.

Today, the family tree comprises of:

1. FTSE Bursa Malaysia KLCI Index

2. FTSE Bursa Malaysia EMAS Index
 3. FTSE Bursa Malaysia Mid 70 Index
4. FTSE Bursa Malaysia Top 100 Index
5. FTSE Bursa Malaysia Small Cap Index
6. FTSE Bursa Malaysia Fledgling Index
7. FTSE Bursa Malaysia EMAS Shariah Index
8. FTSE Bursa Malaysia Hijrah Shariah Index
9. FTSE Bursa Malaysia ACE Index
10. FTSE Bursa Malaysia Palm Oil Plantation Index
11. FTSE Bursa Malaysia Asian Palm Oil Plantation Index (USD)
12. FTSE Bursa Malaysia Asian Palm Oil Plantation Index (MYR)

FTSE Bursa Malaysia KLCI

Bursa Malaysia's Strategic Objective

Bursa Malaysia is committed towards extending the Malaysian capital market's global reach by
offering competitive services and infrastructure through adoption of internationally accepted
standards which are globally relevant.

As part of Bursa Malaysia's strategic initiative, the Kuala Lumpur Composite Index (KLCI) was
enhanced to ensure that it remains robust in measuring the national economy with growing
linkage to the global economy. Bursa Malaysia together with FTSE, its index partner, have
integrated the KLCI with internationally accepted index calculation methodology to provide a
more investable, tradable and transparently managed index.

The enhanced KLCI, whilst remaining representative of the Malaysian stock market, provides a
platform for a wider range of investable and appealing opportunities.

The KLCI is now known as the FTSE Bursa Malaysia KLCI and the enhancements were
implemented on Monday, 6 July 2009.

Selection of FTSE Bursa Malaysia KLCI Constituents

The FTSE Bursa Malaysia KLCI comprises the largest 30 companies listed on the Main Board
by full market capitalisation that meet the eligibility requirements of the FTSE Bursa Malaysia
Ground Rules.
 The two main eligibility requirements stated in the FTSE Bursa Malaysia Ground Rules are the
free float and liquidity requirements as indicated below :-

 Free Float
Each company is required to have a minimum free float of 15%. The free float excludes
restricted shareholding like cross holdings, significant long term holdings by founders, their
families and/or directors, restricted employee share schemes, government holdings and
portfolio investments subject to a lock in clause, for the duration of that clause. A free float factor
is applied to the market capitalisation of each company in accordance with the banding
specified in the FTSE Bursa Malaysia Ground Rules. The factor is used to determine the
attribution of the company's market activities in the index.

 Liquidity
A liquidity screen is applied to ensure the company's stocks are liquid enough to be traded. The
method is based on the calculation of the stock's median daily trading per month.

Calculation and Review of the FTSE Bursa Malaysia KLCI

FTSE uses the real time and closing prices sourced from Bursa Malaysia to calculate the FTSE
Bursa Malaysia KLCI. Calculation is based on a value weighted formula and adjusted by a free
float factor. The FTSE Bursa Malaysia KLCI values are calculated and disseminated on a real
time basis every 15 seconds.

The FTSE Bursa Malaysia KLCI is reviewed by the FTSE Bursa Malaysia Index Advisory
Committee on a semi-annual basis in June and December. Full market capitalisation data as at
the last trading day of May and November is used for the review. Any constituent changes will
be implemented after close of business on the 3rd Friday in June and December.

Please refer to the FTSE Bursa Malaysia Ground Rules for further information about the
eligibility, calculation and review criteria.

Variation to the Kuala Lumpur Composite Index Futures (FKLI) and Kuala Lumpur
Composite Index Options (OKLI) Contract Specification

Arising from the transition of KLCI to FTSE Bursa Malaysia KLCI on the Implementation Date,
kindly take notice that the contract specifications for FKLI and OKLI contracts (which are
currently stipulated in Schedule 6 and 7 respectively of the Rules of Bursa Malaysia Derivatives
Berhad ("Rules of Bursa Derivatives")) that are created in the trading months as stated in the
table below will be varied with effect from 1 February 2009 in the manner set out in paragraphs
(i) and (ii) below

Trading Contract Contract Underlying Index

Month Type Month

a Feb 2009 - 2nd Quarter Sept 2009 The trading of the contracts will be based on KLCI from 1
 Trading Contract Contract Underlying Index
Month Type Month

Apr 2009 Feb 2009 until 3 Jul 2009, and subsequently based on
FTSE Bursa Malaysia KLCI till expiry.

b May 2009 1st Quarter Sept 2009 The trading of the contracts will be based on KLCI until 3
2nd Quarter Dec 2009 Jul 2009, and subsequently based on FTSE Bursa
Malaysia KLCI till expiry.

c Jun 2009 Next Month Jul 2009 The trading of the contracts will be based on KLCI until 3
1st Quarter Sept 2009 Jul 2009, and subsequently based on FTSE Bursa
2nd Quarter Dec 2009 Malaysia KLCI till expiry.

d Jul 2009 Spot Month Jul 2009 The trading of the contracts will be based on KLCI until 3
Next Month Aug 2009 Jul 2009, and subsequently based on FTSE Bursa
1st Quarter Sep 2009 Malaysia KLCI till expiry.
2nd Quarter Dec 2009

i. the 'UNDERLYING STOCK INDEX' as stipulated in Schedule 6 for FKLI and as

stipulated in Schedule 7 for OKLI is changed to read as follows.

'Kuala Lumpur Composite Index (from 1 February 2009 until 3 July 2009) FTSE Bursa
Malaysia KLCI (from 6 July 2009 onwards)'

ii. to add 'ATTRIBUTION CLAUSE' as follows.

'The FTSE Bursa Malaysia KLCI Index is calculated by FTSE International Limited
("FTSE").

All intellectual property rights in the FTSE BURSA MALAYSIA KLCI vests in FTSE and
Bursa Malaysia Berhad ("BURSA MALAYSIA"). "FTSE®", "FT-SE®" and "Footsie®" are
trade marks of the London Stock Exchange Plc (the "LSE") and The Financial Times
Limited ("FT") and are used by FTSE under licence. "BURSA MALAYSIA", "Kuala
Lumpur Composite Index" and "KLCI" are trade marks of BURSA MALAYSIA.

FTSE nor BURSA MALAYSIA nor LSE nor FT makes any warranty or representation
whatsoever, expressly or impliedly, either as to the results to be obtained from the use of
the FTSE Bursa Malaysia KLCI and/or the figure at which the FTSE Bursa Malaysia
KLCI stands at any particular time on any particular day or otherwise.'

This Attribution Clause is added for the use of FTSE Bursa Malaysia KLCI as the underlying
index for FKLI and OKLI by FTSE and its partners.

Strengths of the FTSE Bursa Malaysia KLCI

1. The KLCI is known as FTSE Bursa Malaysia KLCI to provide global relevance,
recognition and reach.
 2. A market barometer made up of primary market movers will more aptly define market
activities while remaining representative of the Malaysian stock market.

3. The FTSE Bursa Malaysia index calculation methodology emphasises free float and
liquidity screens for a clearer representation of the market.

4. A smaller basket of 30 stocks makes it easier to manage and more appealing for the
creation of Index Linked products to promote market liquidity.

5. Increasing the frequency of index calculation from every 60 seconds to every 15

seconds tracks the market pulse closely and more efficiently.

6. The continuity of the KLCI index value preserves the historical movements of the
Malaysian stock market.

KLCI Milestones

The barometer of the Malaysian stock market was the Industrial Index which was launched on 2
January 1970. Its constituents comprised of 30 industrial stocks and the base year was 1970.
By 1985, the Industrial Index was considered to be no longer reflective of the stock market. The
Exchange and industry representatives agreed that the stock market needed an index that was
reflective of the market performance, sensitive to investors' expectations, indicative of
Government policy changes and responsive to structural changes in the economy. This index is
what we now know as the KLSE Composite Index or KLCI.

4 Apr The KLCI was launched as an open ended index with a total of 83 companies and
1986 calculated three times a day. Trading volume criteria was 250 lots per annum.

30 Jan Calculation frequency was increased to every 15 minutes.

1990

29 May Trading volume criteria was increased to 1,000 lots per annum.
1992

18 Apr Number of constituents was increased to and fixed at 100 to accommodate the listing of
1995 stock index futures. Computation frequency was increased to every 60 seconds

19 Mar Enhancement to the objectives to better track the economy

1998

25 May Discontinued the practice of adjusting index base for dividends

2005

6 Jul Now known as FTSE Bursa Malaysia KLCI and adopts the FTSE Bursa Malaysia Index
2009 calculation methodology

9 Jun Enchancement to the liquidity screening rule to further align the index to global standards.
2011
Overview
Bursa Malaysia and FTSE Group joined forces on 26 June 2006 to launch the market data.

The market data is designed to represent the performance of companies, providing investors
with a comprehensive and complementary set of indices, which measure the performance of the
major capital and industry segments of the Malaysian and regional market.

All Malaysian companies listed on the Bursa Malaysia Main Market and ACE Market are eligible
for inclusion, subject to meeting FTSE's international standards of free float, liquidity and
investability. The FTSE Bursa Malaysia index methodology allows investors to do cross border
analysis and comparison while a set of Ground Rules provides transparency to the
management of the index series.

The index series covers all stock sizes within the market and provides the investors with a better
tool to benchmark their investments. The indices are also suitable for the creation of investment
products such as ETFs, derivatives, structured products and index tracking funds.
 Getting A Stock Price
The stock price is the market price of a stock. Using the Bursa Malaysia website you can view
the price for any listed stock.

Getting a Price

It's good practice to explore the market news wherever you can find it. Many of the terms will be
alien to you at this stage but familiarising yourself is all part of the learning process.

There are many places you can find market news, for example:

 The financial section of the daily newspapers

 Bursa Malaysia Website.
 Your broker website may have an up-to-date list of stock prices
 Your telephone company may be able to send you market updates via your mobile phone

It is best to explore your options and find services that best suit you.

Types Of Stocks
What types of stocks are there?

Ordinary Stocks
When purchasing an ordinary stock, you own a share of the company. This entitles you to
receive profits from the operations of the company in the form of dividends. At the annual
general meeting (also referred to as an AGM), you have voting rights. Ordinary stocks are what
you will start to trade in and most traders never venture beyond this.

There are, however, other types of securities and these are:

Preferential Stocks
A preference stock is different from an ordinary stock. Preference stockholders receive
dividends before dividends on ordinary stocks are announced. If the company is wound up,
preference stockholders rank above ordinary stockholders in the distribution of assets.
Preference stocks can often have a fixed dividend rate.

Bonus Issue
This is a free issue of stocks to the stockholders based on the number of stocks already owned.

Rights Issue
A rights issue can be granted to stockholders to buy stocks in the company, often below market
price.

Derivatives
There are also securities you can trade on the market that derive their price from the parent
stocks. There are two types - Options and Warrants - and these are collectively known as
Derivatives.

There are two parties involved in an options contract, the writer or seller and the taker or buyer.
The writer writes the option and has the obligation of accepting or delivering the stocks. The
takers have the right, but not the obligation, to buy or sell the stocks.

There are many advantages of options trading, the least of which is leverage. An option can be
bought and sold for a fraction of the stock price, giving an effective higher return (or loss) on
investment for a stock price move.

Warrants
Warrants, like options, derive their price from the parent security. Warrants though are issued by
banks and other financial institutions and are classified based on whether they have an
investment or trading purpose.

Warrants may be issued over securities, a portfolio of securities, a stock price index, currency or
commodities.

Buying and Selling Stocks

The thought of buying and selling stocks can seem daunting for a beginner but it is quite simple
and will grow on you quite quickly once you have some practice. One essential thing to know is
that you must go through a broker to buy and sell stocks, only a licensed broker can deal
directly with the stock market.

Engaging a Broker

Aside from making the purchases, a broker can also advise you on your purchases. However,
you should not depend on them for market knowledge, you must do your own research to
succeed in the market.

Buying and Selling Online

Online brokers generally take less commission than other brokers, making online trading a more
profitable alternative. Online trading does not come with expert advice but does normally come
with live market updates so you can keep track of your purchases online and become an expert
yourself.
 Application for an Initial Public Offering
There are two methods which you can apply for an IPO:

 Through application forms at issuing houses, stockbroking companies and financial institutions.
 And sometimes through an Electronic Share Application (ESA) that allows applications via
ATMs.

Refer to the chart below for a further understanding on how to apply for shares.
 Before investing, ensure that:

 You know your risk profile.

 You have sufficient additional funds.
 The necessity of the additional funds has been considered.

When To Buy And Sell

One of the benefits of investing in the stock market is that you can do it after trading hours.
Bursa Malaysia is open from 9am to 12.30pm, then again from 2.30pm to 5pm but you can do
research and place orders outside these hours.

So, let's say you go to work all day and only have the evenings and weekends free. In the
evenings you will review what happened to the market that day and decide how to trade the
next day. If you miss a few nights during the week, you can do your analysis on the weekend.

There are two ways to place a buy or sell order:

At Market Orders
You can only make 'at market' orders during trading hours. If you do your research after trading
hours then you would put an order through with your broker as soon as the market opens the
next day. The purchase will then be made 'At Market' price, which may be different from the
price you found during your research the night before.

At Limit Orders
The advantage of 'At Limit' orders is that you set the maximum price you will buy or the
minimum price you will sell the share for. So, if you have done your research that evening and
decided that the most you want to pay for the share is RM 1.20 then you place an 'At Limit'
order for 100 shares at RM1.20. If your broker can get the shares for RM1.20 they will buy them
for you. If not, they won't make the trade.

This practice is quite good if you want to control the amount you are investing. The other
advantage of buying 'At Limit' is that you can place a buy/sell order outside market hours.
Therefore, your share trading business needs do not interfere with your daytime job.
 2) The Golden Rules

Start With A Financial Plan

Trading stocks should be treated as a business venture - it will require time, knowledge and
money to succeed. Your Financial Plan represents your roadmap to success.

Decide Your Financial Objectives.

If you are a 60 year old looking for cash flow to fund your impending retirement, your priority
would be to generate an income stream rather than large asset value growth.

If you are a 25 year old who wants to begin to invest, capital growth would be the priority, rather
than income stream.

Your financial objectives will determine whether you trade liquid shares or not.

Decide Your Risk Level.

Decide on your risk level and the types of investments you can afford to make will be set.
Remember, the higher the return you want to achieve, the higher the risk.

Low Risk Level

I am not very comfortable with risk and will invest in fixed interest/capital guaranteed securities
(government bonds, bank term deposits).

Medium Risk Level

I can take on a moderate amount of risk (blue chip Industrial and Banking and Finance sector
shares).

High Risk Level

I am comfortable with risk. I am seeking a high return and prepared to evaluate companies early
in their growth phase (recently listed resource companies).
How Do You Fund Your Investments?

For most of us, we do not have immediate access to a large pool of ready savings. Using the
equity you have in a property to fund your share portfolio is a common approach.

EPF savings is also an effective vehicle for providing funds for investing and the majority of
Malaysians have access to these funds.

Most major banks and insurance groups offer margin loan facilities. This is where you start a
portfolio with savings and then use this portfolio as security to borrow further funds to buy more
shares.

In most instances, the problem is not acquiring funds to start a portfolio, it is having the
knowledge to invest with confidence.

Employ Risk Management Strategies

With any investment, be it stock trading, real estate or business, it is important that you
understand what the risks are and how to minimise your exposure to these risks. This process is
known as 'Risk Management'.

The Three Elements Of Risk Management

Spread Your Risk: Don't Put All Your Eggs In One Basket

Spreading you risk is as simple as not putting all your eggs in the one basket. This is called
diversifying your portfolio.

Spread your capital so there is never more than 20% in a single stock.

Don't however take this to extremes and over-diversify by investing in too many stocks at once.
You cannot expect to outperform the market if your portfolio closely matches the market. A rule
of thumb is to limit your portfolio to between 5 and 10stocks.

Plan Your Exit: What Is An Acceptable Risk?

Amateur traders buy a stock and their focus is to hope it increases in price. If it goes down, they
continue to hold in the hope the price will recover. When a professional buys a stock they
recognise that success is a probability, not a certainty. At the time of entering the trade they
establish an Early Exit price. If the stock falls past this point the good investor will immediately
exit and never run the risk of making a large loss.

Maintaining your capital is fundamental to successful trading. If you invest in a stock and make
a large loss, then it is impossible to consistently profit from the stock market. Having incurred a
large loss, you must now make a large profit just to break even. The key to successful trading is
keeping your losses small.
Stop The Loss: Don't Drive Without A Seatbelt

The second must sell signal is a Stop Loss. Just tracks the highest price reached by the share
since purchase. If the share falls by more than 10% from this price, it is time to sell. We suggest
10% - you can change this depending on your trading style. Too small a percentage and it will
get you out too early. Make the percentage too large and you give back too much of your profits
before exiting. Start with a 10% fall and see what you feel comfortable with.

Always Trade With The Trend

Trends are the cornerstone of trading. If a share price is rising, we can make money by buying
that share. If the share price is falling, we need to look for other opportunities. It does not make
sense to buy a falling share. Our aim is always simple – find a share in an uptrend and take a
large chunk from the middle of the trend.

Overall Market Strength

It is important to look at how the overall market is doing. This can be gauged by looking at the
top 500 shares, otherwise known as All Ordinaries. If All Ordinaries go up, it is because stocks
in the top 500 have risen and the market is in an uptrend.

There are over 900 companies listed on the Bursa Malaysia that you can invest in. To examine
each one individually would take a great deal of time. Instead, you trade with the trend and find
the strong sectors in the market.

Strength of an Industry Sector

What is a Sector?

A sector is a group of companies involved in the same industry. For example, mining companies
are grouped together in the Materials sector while banking companies are in the Finance sector.
Entire sectors are generally affected by economic conditions so entire sectors tend to trend in
the same directions. Trends do not have hard and fast rules, individual stocks within these
sectors will perform at different levels.

Strength of Shares in a Sector

Although the general rule of novice investors is to buy on an uptrend, there are people who buy
during a downtrend as a strategy. This is a process of buying more shares as the price falls, so
the average cost of the share is reduced with every purchase. This kind of bargain hunting is a
riskier strategy, as the stock price may never recover. The second downside is that the price
may fall and then stabilize, meaning the investor may have to wait for a while before recovering
losses or making a profit. In this scenario, capital that could be used for profitable trading would
be lying idle.

Resistance to this type of trading is not new. One of the greatest traders of the last century,
Jesse Livermore wrote, "Experience has proven to me that the real money made in speculating
has been commitments in a stock showing a profit right from the start."
By now you should understand that trading with the trend is critical to success. Also, our
objective is never to buy at the bottom or sell at the top of a trend. We simply want to take a
large chunk out of the middle. Let the trend be your friend.

Don’t Buy And Hold

The Malaysian stock market is one of the strongest and sometimes most dynamic markets in
the world.

While the market has always recovered from falls, the same cannot be said for individual
companies. Even during a booming market, some companies can suffer significant losses.

Trade only on an uptrend and sell the poor performers, this will make it impossible to experience
a large loss. This is the secret to outperforming the market and achieving a consistently superior
return.

Undertake some research on the Bursa Malaysia or in a local investment paper. List three
shares that have showed decreased performance recently and three shares that have showed
increased performance recently.

Trade Only Liquid Stocks

Look at the column called Lots Done in your market report. This is the amount of stocks that
were traded on the day. If you multiply this by the price of the stock, you can see how much
money actually changed hands on that day. If this amount is high, then the stock is very liquid,
meaning it is easy to buy and more importantly, easy to sell. The last thing you want once
you've bought a stock is to be stuck with it because you can't find a buyer.

For example, if a company has traded 100,000 stocks today and the closing price was RM2.42,
we can estimate that RM242,000 worth of that stock changed hands today.

For example:

Innovics' last price was RM 0.30 and Lots Done were 1000. This means that an average of RM
3,000 worth of stock changed hands today. In other words, Innovics is only trading an average
of RM3,000 of shares each day.

Now, you own RM10,000 worth of Innovonics and you want to sell. If you enter your sell order
on the market, you will inject 3 days worth of turnover onto the market. There will not be enough
buyers for you to immediately sell the stock at your chosen exit price.

To ensure you invest in liquid shares, only trade stocks that show a daily turnover of at least ten
times what you are planning to invest. If you are investing RM10,000 in a stock, look for an
average daily turnover minimum of RM 100,000.
Develop Your Own Trading Plan
Trading is about probabilities, not certainties. A Trading Plan establishes a series of steps that
ensure a higher probability of success.
 The Plan will set certain guidelines for:

 What stocks to buy

 When to buy
 When to sell

The Structure of Your Trading Plan

A Strong Market:

Before deciding what to buy, first establish if the market is in a positive phase. If the KL
Composite Market has been negative over recent weeks (or longer), it is not a good time to
enter the market. If the majority of stocks are going down or sideways, the probability of you
buying a share that is going to rise in the immediate future is slim.

A Strong Sector:

Having waited until the market is in a growth phase, determine if there are any sectors showing
strong growth in the past few weeks. These are the sectors that have stocks performing well
and are increasing in price.

Examine stocks in these strong sectors and determine those that are on an uptrend, meaning
the price of the stock has been steadily going up for at least 3 months.

These stocks will qualify as having potential for ongoing growth as they are generating positive
market sentiment. If they have adequate liquidity on top of that, you could add any of these to
your portfolio knowing that you could exit quickly at any point in time.

Exit Strategy:

Having selected shares to include in your portfolio you must then have an Exit Strategy in the
event that these shares show signs of reversing. Simply set an Early Exit price to ensure that
the stocks you buy never generate losses.

This is a simple description of a Trading Plan. It holds the basics for selecting stocks that have a
good probability of increasing in price and risk management to protect your capital. These three
ingredients are the key to success in stock trading.
 Account Opening

 What is a Central Depository System?

The CDS acts as a means of representing ownership and movement of securities. CDS account
holders enjoy the conveniences if obtaining electronic securities transfer and trade settlement.

 Who may open a CDS account?

The CDS account may be opened by:

a. An individual who has reached the age of eighteen (18) years as of the application date.
b. A corporation within the context of Section 4 of the Companies Act 1965.
c. Any corporate body that is incorporated within Malaysia and is by notice, published in
the Gazette, declared as a public authority or an instrument or agency of the
Government of Malaysia or of any Malaysian State.
d. A society under any written law relating to co-operative societies.
e. A trustee or trust corporation duly constituted under any written law.
f. Any society registered under the Societies Act 1966.
g. Statutory bodies incorporated under an Act of Parliament.

In general, a CDS account can only be opened if the persons are opening it either as a
beneficial owner or as an Authorised Nominee.

 Why do I need to open a CDS account?

You need to open a CDs account to buy and/or sell shares, and to carry out other CDS
transactions on all equity and non equity counters (i.e. bonds, loan sticks, warrants, etc.) which
have been prescribed into the CDS.

 How do I open a CDS account?

You can open a CDS account with any Authorised Depository Agents (ADAs). All stockbroking
companies in Malaysia are currently ADAs.

If you are an individual investor, you may go to an ADA of your choice and:

a. Complete the Opening of Account form and two (2) Specimen Signature Cards.
b. For Malaysians, submit the documents together with two (2) certified true copies of your
Malaysian National Registration Identity Card (NRIC). As for foreigners, you need to pay
the Account Opening fee and submit two (2) certified true copies of your passport.

If you are a corporate investor, you are required to:

a. Complete the Opening of Account form and two (2) Specimen Signature Cards.
b. Submit the above documents with two (2) copies of all necessary supporting documents
(e.g. Certificate of Incorporation, Board Resolution, etc) together with the Account
Opening fee.
 Your ADA will then open the CDS account and give you your CDS account number. Bursa
Malaysia Depository Sdn Bhd will send you an account opening confirmation notice by ordinary
mail.

 When do I need to formalize an account?

 If you had applied for Initial Public Offering without a CDS account prior to December
2003 and was successful in your application, Bursa Malaysia Depository Sdn Bhd would
have opened a CDS account on your behalf with the broker of your choice.
 Bursa Malaysia Depository would have informed you of the account and the need for
you to formalise the opening of the account by submitting the relevant documents and by
paying the Account Opening fee. The account cannot be utilised until all these
formalities are complied with.

 How do I open a CDS account if I cannot be present in person?

Pursuant to Rule 25.01 (1A) of the Rules of Bursa Malaysia Depository, it is mandatory for an
individual to be present in person before the ADA if he intends to open or formalise a securities
account. In the event that he is unable to do so, the ADA may be pursuant to Rule 5.02A (2)
expressly waive the requirement to be present in person. The ADA may instead permit the
investor to submit the relevant account opening form (available at all ADAs) and present his
documents for verification in front of any of the following people who are also required to
witness or certify the supporting documents:
a. Dealer's representative
b. Authorised Officer of an ADA
c. Authorised Officer of an Exempt Dealer
d. Authorised Officer of a Malaysian Embassy/High Commission Consulate
e. Notary Public (in the absence of a Notary Public in applicant's country, the authorized
officers of a licensed stockbroking company or the lawyers* of that country may be
allowed to verify)
f. Others as approved by Bursa Malaysia Depository

 Can I open more than one CDS account?

An individual investor is allowed to open only one (1) CDS account with each ADA. However, a
corporate investor may open multiple accounts with the same ADA.

 Can a permanent resident of Malaysia apply for a CDS account?

Yes, they may. You may refer to Q2 for more information.
 Updating Account Particulars

 How do I change my particulars?

 You may change your personal particulars (name, investor type, registered address, etc)
and also your account particulars (correspondence address, account qualifier and
telephone number).
 All you need to do is complete the Application for Updating of Account Particulars form,
and hand it over to your ADA who will then do the rest.

 What should I do if I wish to update my signature?

Whether you are an individual investor or a corporate body, you are required to submit an
official letter expressing your intention of updating the signature to your respective ADA.

Individual investors who wish to do so must be present before the ADA, bringing along the
letter officially expressing the intention of updating the signature.

The letter should contain the following:

a. The CDS account number

b. The "old" and the "new" signature
c. The "new" signature's effective date of use

For a corporate investor, a letter duly signed by the person appointed to operate the account
pursuant to Board Resolution of the company or a new Board Resolution on the update, is to be
submitted.

 Why is the notice on a successful update or particulars in a CDS account sent to both the
correspondence and the registered addresses?
Bursa Malaysia Depository sends such Notice to both the registered and correspondence
addresses when both the addresses differ. This is one of the security measures built in the CDS
to protect any unauthorised updates and also to protect the interest of the account holder.

Closing of Account

 How do I close my CDS account?

An account may only be closed if there are no outstanding transactions/balances remaining in
that account. You can complete and submit the Application for Closing of Account form or write
a letter to your ADA, stating your request to close the CDS account.

CDS Account Statements

 When do I receive the CDS statement of account?

You will receive a monthly statement of account in respect of the preceding month which has an
entry in the CDS account. However, when there are no entries but there are shares in your CDS
account, Bursa Depository shall issue the statement in the month of June and December.
 What is a statement cycle?
 A statement cycle is a period which is pre-determined by the system with the purpose of
generating the statement of account.
 Depositors' statement of account cycles are assigned to either the 7th, 14th or 21st of
each month. ADAs' principle and nominee accounts are assigned to the 28th of each
month.

 Why are the shares I recently bought not reflected in my latest statement of account?
If the settlement date falls after the date of your statement cycle, the transaction will be reflected
in your next statement of account.

 How do I request for a backdated copy of my statement of account?

 You may request for a copy from your ADA if the date of the statement is less than one
(1) year from the date of retrieval. The ADA may charge you for this service.
 If the date of the statement goes back to more than one (1) year from the date of
retrieval, you must request it from Bursa Depository by way if letter. Charges are
applicable

 What are the possible reasons for failure to receive the statement of account?
It may be due to the following circumstances:

a. When investors' correspondence address is not updated with his ADA

b. When the CDS account is not yet formalized
c. When there has been no debit or credit entry into the CDS account, during that particular
month

Transfers

 How limited is my request to initiate a transfer?

Effective 1st September 1998, any transfer requests must be within the approved reasons of
transfer prescribed by Bursa Malaysia Depository.

 Can I initiate a transfer of a counter which is suspended from trading?

Yes, you can, provided it falls within the approved reasons.

 What are the changes done to the transfer process by Bursa Malaysia Depository on 30th
December 2002?
The changes are as follows:

a. Introduction of new Transfer of Securities Request form which incorporates more user-
friendly features and also a declaration clause.
b. The cut-off time for depositors to lodge their transfer related documents with their
respective ADA/ADM has been extended form 12.00pm to 3.00pm.
 c. The previous ten (10) approved reasons have been reclassified to two (2) broad
categories.

i. No Change in Beneficial Ownership

This category of approved reason for transfer caters for transfers that result in no
change in the beneficial ownership of securities. Under this category of approved
reasons for transfer, the name of the beneficial owner is transparent and identical
at both the securities accounts of the transferor and transferee, thus no
supporting document is required.

ii. Change in Beneficial Ownership

This category of approved reason for transfer covers scenarios such as transfers
pursuant to General Offer, transfers between family members, transfers arising
from pledging of securities, transfers involving Government Authorities and
transfers that require prior approval from Bursa Malaysia Depository. Except for
transfers involving Government Authorities, the rest of the approved reasons in
this category would require supporting documents.

 Can I still use the old transfer form to initiate transfer of securities request?
No. It is mandatory for all transfer of securities request executed by the transferor after 30th
December 2002, to include the declaration clause that is pre-printed on the new transfer request
form.

 In relation to transfers between family members' CDS accounts, what are the scenarios or
relationships allowed by Bursa Malaysia Depository?
Bursa Malaysia Depository only allows transfers between the transferor (the person who
initiates the transfer) and transferee (the person who receives the transferred securities), who
are immediate family members. Here are the following relationships allowed:
a. Parents
b. Children/Adopted children
c. Spouse
d. Brothers
e. Sisters
f. Grandparents
g. Grandchildren

Individual depositors are also able to transfer securities from their CDS accounts held directly in
the name of the individual depositor or nominee accounts held by an Authorised Nominee
(where the individual depositors are indicated as beneficial owners) to CDS accounts held
directly in the name of their family members. They will be required to enclose the relevant
supporting documents when initiating such transfers.

However, transferring of securities from the depositors' Pledged Securities Accounts directly to
their family members' CDS accounts are not permitted.
 However, transferring of securities from the depositors' Pledged Securities Accounts directly to
their family members' CDS accounts are not permitted.

 When will the transfer of securities be reflected in the CDS account?

Once the transferor submits the completed Transfer of Securities Request form to his ADA, the
ADA concerned will verify all the documentation to ensure that they are in order and then enter
the relevant information into the CDS. Upon successful execution of the transfer request in the
CDS, the transferor's CDS account will be debited and the transferee's CDS account will be
credited immediately.

Account Balance Inquiry

 Can I still obtain my account balance if I do not wish to pay for an ad-hoc statement?
Yes, you can by completing a Balance Inquiry Request form available at your ADA. You will be
given your latest CDS account balance without the transaction details.

 Can my dealer's representative have access to my account balance?

IN accordance with the Rules of Bursa Malaysia Depository, you can authorise your dealer's
representative to inquire your CDS account balance for a specific period or indefinitely, unless
revoked earlier by you.

 Can I inquire my stock balance from my stockbroking company via telephone?

In the interest of protecting the confidentiality and security of your CDS account, you are not
encouraged to verify your stock balance with the ADA via telephone. Instead you are required to
complete and submit a Balance Inquiry Request form to your ADA, where your signature or
those of your authorised signatories will be verified.

Corporate Action

 Can I use an authorised nominee account to apply for an IPO?

No. These authorised nominee accounts are opened by the ADA's nominee company and is
effectively owned and operated by the ADA on behalf of its client. If you are an individual IPO
applicant, you must use your own individual CDS account. Margin accounts are also not allowed
to be used when applying for an IPO.

 How is my entitlement from a corporate action determined?

 Whenever a corporate action is announced by the relevant issuer, Bursa Malaysia
Depository will provide the Record of Depositors (ROD) as of the lodgment date of the
corporate action to the Issuer or the Share Registrar of the Company. The ROD contains
information on the CDS account holders and the number of shares to their credit as at
the lodgment date.
 Based on this information, the issuer will determine the entitlement of each of its
shareholder and instruct Bursa Malaysia Depository to credit the relevant CDS accounts
with the appropriate number of shares.
 When will my CDS account be credited with securities arising from corporate actions, i.e. Rights
Issue, Bonus Issue, etc?
These securities will be credited into your CDS account on the eve of the listing of the
underlying securities on the Stock Exchange or on any other date as instructed by the relevant
authorities.

 Can I request for the underlying securities due to myself, arising from a corporate action
exercise to be issued in the form of certificates?
No. Under Section 38 of Securities Industry (Central Depositories) Act 1991 (Amendment 1998),
securities due to you as a result of any corporate exercise will be credited into your CDS
account. There will be no issuance of physical certificates.

Dormant Account

 What is a dormant account?

An account is designated as dormant when there is nil balance in the account and there has not
been any debit or credit entry in the depositor's account in the 36 months after the date of nil
balance.

 Why does Bursa Malaysia Depository designate an account as dormant?

Bursa Malaysia Depository is continuously striving to enhance the security of your CDS account.
Designating relevant accounts as dormant will restrict unauthorised transactions.

 What is the effect of my account being dormant?

Once your account is designated as dormant, you will not be able to use that account to perform
any kind of CDS transactions under the Rules of Bursa Malaysia Depository. However, you may
use your dormant account in your application for Initial Public Offering (IPOs) and corporate
actions. You will not receive any Statement of Account until your account is reactivated.

 Can my dormant account still be used to apply for IPOs or corporate actions?
Yes, you may use your dormant account to apply for IPOs. The same also applies for corporate
actions. However, the status of your account will remain as dormant until you reactivate it.

 Will I be notified before my CDS account is designated as dormant?

Yes, one month prior to the designation of an account to dormant status, Bursa Malaysia
Depository will issue a notice to inform you.

 When I receive the notice, what steps may I take to prevent my account from being dormant?
To ensure that your account remains active and is not designated as dormant, you may perform
any CDS transaction which involves any debit or credit book entries in your account, prior to the
effective date of dormancy.
 Will I be notified again once my CDS account has been designated as dormant?
No, Bursa Malaysia Depository will only be sending a one-time notice to you one (1) month prior
to the effective date of dormancy.

 If my CDS account is dormant, can I still request to update my particulars?

Yes, you may update your particulars in your CDS account by completing the Application for
updating of Account Particulars form and by submitting it to the ADA where your account is
maintained.

 How do I reactivate my dormant account?

To reactivate your account, you are required to submit a written request or the completed
Application for Reactivation of CDS Account form with supporting documents (if any) to the ADA
where your dormant account is maintained.

 Must I be present before the ADA to reactivate my dormant account?

No, you don't have to be present.

Inactive Accounts

 What is an inactive account?

An account is said to be inactive when there are deposited securities in the account but with no
debit or credit entries in the depositor's account for at least 36 consecutive months from the
date of the last entry made.

 Why does Bursa Malaysia Depository designate an account as 'inactive'?

Bursa Malaysia Depository is continuously striving to enhance the security of your CDS account.
Designating relevant accounts as inactive will restrict unauthorised transactions.

 What is the effect of my account being inactive?

Once your account has been designated as inactive, you may continue to perform all forms of
CDS transactions which are available to the depositors except for outward transfers and trade
activities.

 What will happen to the securities held in my CDS account after it is designated as 'inactive'?
Your securities will still remain in your CDS account after your account is designated as inactive.

 Can I still use my inactive account to apply for IPOs or corporate actions?
Yes, you may use your inactive account to apply for IPOs. The same also applies for corporate
actions. However, the status of your account will remain unchanged.
 Will I receive any statement of account after my CDS account is deemed inactive?
Yes, Bursa Malaysia Depository will continue to send the Statement of Account on a half-yearly
basis after your account is designated as inactive.

 Will I receive entitlements such as Dividends or Bonus Issues after my CDS account has been
designated as 'inactive'?
Yes, if you are eligible to receive any entitlement, the entitled securities will be credited into your
inactive account.

 Will I be notified before my CDS account is designated as 'inactive'?

Yes, one month prior to the designation of an account to an inactive status, Bursa Malaysia
Depository will issue a notice to inform you of the same.

 When I receive the notice, what steps may I take to prevent my account from being deemed
inactive?
The designation of an account to an inactive status is to provide added security and protection
to long-term investors. However, if you wish for your account to remain active, it will, if there are
debit or credit entries in your account, prior to the date of inactivation stated in the notice sent to
you.

 Will I be notified again once my CDS account has been designated as ' inactive'?
No, Bursa Malaysia Depository will only be sending a one-time notice to you one month prior to
the date of inactivation. Nevertheless, the half-yearly Statement of Account sent by Bursa
Malaysia Depository will indicate the status of your account as 'inactive'.

 If my CDS account is deemed inactive, can I still request to update my particulars?

Yes, you may update your particulars in your CDS account by completing the Application for
Updating of Account Particulars form and submitting it to your ADA where your inactive account
is maintained.

 How do I reactivate my account?

To reactivate your account, you are required to submit a written request or the completed
Application for Reactivation of CDS Account form to the ADA where your inactive account is
maintained.

 Must I be present before the ADA to reactivate my account?

No, you don not need be present.

 How long does it take to reactivate my inactive account?

Your inactive account will be reactivated within two (2) market days from the date of application.
 Will there be a fee for reactivation?
No, there will be no fee imposed.

 Will I be notified after my CDS account has been reactivated?

Yes, after your CDS account has been successfully reactivated, Bursa Malaysia Depository will
send you a notice to inform you.

Withdrawal

 Are there any exceptions to the prohibitions of withdrawals, since its inception on 1st September
1998?
A depositor shall not withdraw deposited securities from the Central Depository safe except in
the following circumstances:

a. To facilitate share buy back

b. To facilitate conversion of debt securities
c. To facilitate company restructuring processes
d. To facilitate rectification of errors
e. When a corporate body is removed from the official list of a stock exchange
f. In any other circumstances determined by the Central Depository from time to time, after
consultation with the Securities Commission

Electronic Share Application (ESA)

 What is Electronic Share Application (ESA)?

 Electronic Share Application (ESA) is a facility that allows for application of Initial Public
Offering (IPO) through an Automated Teller Machine (ATM) of the participating financial
institutions. This facility is provided by both the MIDF Corporate & Consultancy Services
Sdn Bhd (MIDFCCS) and the Issuing Houses (IH), i.e. Malaysian Issuing House Sdn
Bhd.
 In a nutshell, ESA is a mode of applying for IPOs in a paperless manner.

 Which financial institutions provide the ESA facility?

It is provided by financial institutions which have formulated the handling of IPO processes with
the Issuing House. IN the context of ESA, these financial institutions are commonly known as
Participating Financial Institutions (PFI), which are:

a. Affin Bank Berhad

b. Ambank (M) Berhad
c. CIMB Bank Berhad
d. HSBC Bank Malaysia Berhad
e. Malayan Banking Berhad
f. Public Bank Berhad
 g. RHB Bank Berhad
h. Standard Charted Bank Malaysia Berhad (selected branches)

 What are the pre-requisites for an IPO applicant using ESA?

All you need is:

a. A banking account and a valid ATM card with the PFI

b. A CDS account directly under the name of the applicant, which is opened with any of
Bursa Malaysia Depository's Authorised Depository Agent (i.e. stockbroking companies)

 What are the conditions governing the ESA operations?

The respective PFI will set out the procedures and instructions on the usage of the ESA facility.
Similarly, the ESA Terms and Conditions can be found in the prospectus issued by the IPO
Offeror.

 How do I use the ESA facility?

Each PFI may have different procedures in using the ESA facility through its ATM. Therefore,
you are advised to check with the relevant PFI for detailed procedures in using ESA facility for
an IPO application.

 How does the ESA facility function during an IPO?

In brief, the IPO applicant will apply for a specific IPO by entering the appropriate details via the
PFI's ATM. Once the details been entered successfully, the applicant's banking account will be
debited for the appropriate amount accordingly. The PFI will then collate all the ESA
applications of its account holders and forward them to the relevant Issuing House for
processing and balloting.

 What will happen in the event of a successful IPO application via ESA?
Upon completion of the balloting process, the CDS account of the successful applicant will be
credited with the appropriate amount of shares allotted. The applicant will also receive a Notice
of Allotment from the IH confirming the quantity of shares to be credited into his CDS account.

 What will happen in the event of an unsuccessful IPO application via ESA?
Upon completion of the balloting process, the IH will issue an instruction to the relevant PFI on
all its account holders' unsuccessful applications. The PFI upon receiving this instruction from
the IH will credit the appropriate amount back into the banking account of the unsuccessful
applicant.

Note: The above FAQ on ESA facility is only intended to provide IPO applicants with a brief
overview on the ESA facility. The procedures and guidelines governing the operations of ESA facility
may vary from one PFI to another. If in doubt, applicants are encouraged to seek necessary
clarification on the usage of the ESA facility directly from the respective PFI or Issuing House.
 Transmission of Title

 Who is authorised to liaise with Bursa Malaysia Depository with regards to the CDS account(s)
of a deceased depositor?
Bursa Malaysia Depository can only liaise with the following personal representatives in terms of
balance enquiry, closing of accounts, and transfer of securities:

a. Beneficiary named in the Distribution Order

b. Executor/Administrator appointed pursuant to Grant of Representation

 Can the CDS account of a deceased depositor be suspended if wanted to?

Yes, the next of kin of the deceased depositor may suspend the CDS account by carrying out
the following procedures:

a. Notifying the Bursa Malaysia Depository in writing, of the death of the depositor

b. Submitting the following documents to Bursa Malaysia Depository:

i. A duly executed Suspension/Release of Suspension of Securities Request form

ii. A certified true copy of the deceased's death certificate
iii. A certified true copy of the next of kin's NRIC
iv. A certified true copy of marriage certificate/birth certificate of the next of kin to
prove the relationship with the deceased

The form must be executed before a Notary Public/Advocate & Solicitor/any of the CDS officers
of the ADA in Malaysia. The above mentioned documents must also be certified true by the
same witness who witnesses the execution of the said form.

 What is the procedure for transferring securities in the case of a deceased depositor?
Procedures are as follows:

a. Upon the extraction of the Grant of Representation (GOP), Letter of Administration (LA)
or the Distribution Order, transfer of securities from the deceased depositor's account
may be performed by the executor/administrator appointed pursuant to the GOP or the
beneficiary named in the Distribution Order, who must be personally present before an
officer of Bursa Malaysia Depository to execute the relevant transfer form.

Please note that the GOP/LA obtained from other countries have to be duly resealed in
the High Court of Malaysia.

b. Submit the following documents to Bursa Malaysia Depository for verification:

i. Certified true copy of the death certificate

ii. Original or certified true copies of the GOP/LA/Distribution Order
iii. Original or certified true copies of NRIC of the executor/administrator or
beneficiary named in the Distribution Order
 c. Pay the RM10transfer fee and RM50 processing fee

 What if the executor/administrator/beneficiary cannot be present at Bursa Malaysia Depository?

In the event that the executor / administrator / beneficiary is unable to be present at Bursa
Malaysia Depository, they may write to Bursa Malaysia Depository for a waiver of their presence
at Bursa Malaysia Depository and state the name of the ADA where they wish to execute the
relevant form. Documents as per Q3 must also be submitted together with the said letter.

 What if the executor/administrator/beneficiary resides outside of Malaysia?

In the event that the executor / administrator / beneficiary reside outside of Malaysia, they may
write to Bursa Malaysia Depository for a waiver of their presence at Bursa Malaysia Depository.
Documents as per Q3 must also be submitted together with the said letter. Bursa Malaysia
Depository will then send them the relevant form for their execution before a Notary Public.

Delisted Securities

For Depositors

 What happens to the delisted securities in my CDS account?

Delisted securities in your CDS account will continue to be deposited with Bursa Malaysia
Depository Sdn Bhd.

 Can I keep delisted securities in my CDS account?

Yes, you can.

 What are the advantages of keeping delisted securities in my CDS account?

Your securities are kept securely by Bursa Malaysia Depository thus avoiding the need for
handling physical scrip and the possibility of misplacing them. Apart from that, you will also
continue to enjoy all the CDS facilities extended by Bursa Malaysia Depository to its account
holders.

 Will I incur any fees if I maintain delisted securities in my CDS account?

Presently, you are not subject to any fees for maintaining delisted securities in your CDS
account.

 Am I allowed to trade the delisted securities on the stock exchange?

No, you are not allowed to trade securities which have been delisted from the Stock Exchange.

 Will the delisted securities in my CDS account still be reflected in the CDS statement of account?
Yes, it will.
 Will I continue receiving my CDS statement of account if it contains only delisted securities?
Yes, you will continue to receive the CDS statement of account every half yearly.

 Is the inactive account status applicable to CDS accounts holding only delisted securities?
Yes, a CDS account holding only delisted securities will be designated as inactive if there are no
CDS activities for 36 consecutive months.

 Am I allowed to transfer delisted securities?

Yes, you may transfer your delisted securities to another CDS account by submitting the duly
completed Transfer of Securities Request Form (FTF010) to your Authorised Depository Agent
(ADA), where your CDS account holding your delisted securities is maintained.

 Will the transfer of delisted securities be subject to Bursa Malaysia Depository's approved
reasons for transfer?
No, the approved reasons for transfer are only applicable to listed securities. Delisted securities
are not subject to this requirement.

 Am I allowed to withdraw delisted securities from my CDS account?

Yes, you can.

 How do I withdraw delisted securities?

To withdraw, you need to do the following:

a. Complete and submit the Securities Withdrawal Request form (FWT010)

b. Complete the Form of Transfer of Securities (Form 32A) with sufficient stamp duty
affixed
c. Submit the duly completed FWT010, Form 32A and the appropriate withdrawal fee to the
ADA which maintains your CDS account holding for further processing.

 Where can I obtain the FWT010 Form and Form 32A?

You can obtain both forms from your ADA.

 How much does it cost to withdraw delisted securities?

Currently the withdrawal fee is RM15 per 1000 securities or part thereof. In addition, there is a
stamp duty charge for executing Form 32A. The stamp duty will be charged according to the
prescribed rate in the Stamp Act 1949.

 Will I be entitled to any corporate action announced by the delisted company in future?
Your entitlement as a shareholder will be decided by the Issuer.
 What will happen to delisted securities that are pledged to the bank?
This will depend on your arrangements with the bank. Therefore, you should seek their advice
on this matter.

 What will happen to my unclaimed securities if Jabatan Akauntan Negara approves my claim
after the delisting date?
Bursa Malaysia Depository will follow the relevant directive from the regulators on this matter.

For Issuers

 Can we request for the Record of Depositors (ROD)?

Yes, you can. Bursa Malaysia Depository will continue producing the ROD upon receiving a
formal request from either the Issuer or Share Registrar. This is subject to the requester paying
the appropriate ROD fees.

 Will we incur any fees if we maintain our company's securities in the CDS?
The current practice will continue to remain.
 3)Market Terminology
Allotment

The allocation of new securities to an applicant for a new issue.

Annual General Meeting

Mandatory yearly meeting of a company for the purposes of receiving the directors'
report and statement of accounts for the year, declaring a dividend, electing directors
and auditors and determining the auditors' remuneration.

Annual Report & Accounts

A document to be forwarded to shareholders by the directors of a company on an annual

basis which contains, amongst others, the annual audited accounts of the company.

Arbitrage

Buying on one exchange and selling on another at virtually the same moment to take
advantage of a price variation in a company's shares listed on the two exchanges.

Articles of Association

The documents of a company that govern the management and administration of that
company.

Asset Backing

A handy yardstick for shareholders. It is the net assets of a company (assets less
liabilities) divided by the number of shares.

At Discretion

An instruction given by a client to his broker, for the broker to buy or sell a stock at his
(the broker's) discretion.

At Limit

An order placed which sets a limit on either the lowest or highest price, for which a share
is bought or sold.

At Market (also At Best)

An instruction to buy or sell at market price. Allows the broker/dealer complete freedom
of action. Should be treated with caution and used only when a share must be sold.

Authorised
 Order entry, modification, and cancellation are generally authorised for the instrument.

Authorised Capital

The nominal amount of capital that a limited company is permitted to raise under the
capital clause in its Memorandum of Association.

Averaging

Buying more of the same shares, generally on a falling market, to lower the average cost
per share. (Can also average up, thereby raising the average cost per share).

Balance Sheet

A company's year-end statement of assets and liabilities.

Bear Market

A stock market in which sellers dominate, resulting in generally falling prices.

Blue Chips

The shares of a company known to make profits in good and bad times. As there is a
low risk of capital loss, the dividend and earnings yield are proportionately low.

Bond

A document recording a loan and specifying the date of maturity and the rate of interest
to be paid.

Bonus Issue

Distribution of capital funds (usually from a revaluation of assets or a share premium

reserve) to shareholders in the form of shares for which payment is not required.

Bourse

A French term for stock exchange, grain exchange or exchange dealing in commodities.

Broker (Stockbroker)

An agent, authorised to buy and sell shares on behalf of a client.

Brokerage

A fee charged for the broker's services. Also called commission.

Bull Market

A stock market in which buyers dominate and where prices are on a rising trend.
Buying-In

Buying-in means the buying effected by the Exchange, according to the rules of the
Exchange, of securities which a seller has failed to deliver on the day fixed for delivery.

Calls

An instalment called up by a company on contributing or partly paid shares. A legal

liability for shareholders of other than a "No Liability" company.

Capital Gain/ Loss

Profit/loss made on the sale of a capital asset.

Closing Price

The price of a share or security at the end of a day's stock market trading.

Closing Session

 The closing price will be the last know traded price

 Last opportunity to close position at a fixed price
 In the event of no TCP during the period, the closing price will be the last know traded
price

Class of Shares

A document recording a loan and specifying the date of maturity and the rate of interest
to be paid.

Commission

A fee charged for the broker's services. Also called brokerage.

Companies Act 1965

The Act of Parliament that governs companies.

Company

A separate legal entity, incorporated under the Companies Act 1965, carrying on a
business or trade. A company may be private or public, limited by shares or unlimited, or
limited by guarantee.

Contract Note

Document sent by brokers to clients of a purchase or sale of shares. It confirms the

transaction, giving details of price, brokerage, stamp duty and clearing fee.

Continuous Matching
 Continuous Matching is an order matching process according to price, time, then priority,
without human intervention. After receiving buy or sell orders, Bursa Trade queues the
orders and arranges them according to a price-then-time priority. This means orders are
first grouped according to price, with the best price taking precedence. Then, within each
price group, orders are arranged according to time. Continuous matching procedures
only operate during the regular trading sessions. Bursa Trade continuously matches the
first buy and sell orders in the queue, and at the same time, confirms each executed
transaction.

Cum

A prefix meaning "with". A share quoted "cum-dividend" means the buyer is entitled to a
dividend currently attaching to it, similarly with cum-rights and cum-bonus.

Debenture

A fixed interest security which has a maturity date and a specified rate of interest. The
assets of the borrowing company are charged against the debenture issue; details of the
charge are included in a Debenture Deed drawn up to protect the debenture holder.

Debt / Equity Ratio

The relationship between a company's borrowing and its shareholders' capital funds.

Direct Business

In relation to the KLSE, any share transactions effected outside the Exchange, including:

 crossing, that is transaction between two stockbroking companies; or

 "married" transaction between two clients within a stockbroking company.

Discount

The amount by which the price of a share is quoted below its paid-up value.

Dissolution

The winding up of a company by way of compulsory liquidation or voluntary liquidation.

Dividend Cover

The number of items a company's annual dividend could be paid out of current earnings.

Dividend Yield

The amount of a company's annual dividend expressed as a percentage of the current

price of the share of that company.

Earnings Per Share

 The amount of a company's annual profits or earning attributable to each ordinary share
of that company.

Equity

Another name for the ordinary shares of a company.

Ex

Prefix meaning "without", the opposite to "cum". The purchaser is not entitled to
dividends, bonus shares or rights previously attached to the share.

Face Value

The actual paid-up value of a share. Seldom the same as the market value.

Float

Term given to the commencement or listing of a new company on the stock market.

Forbidden

Order, entry, modification and cancellation are forbidden for the instrument Auto
forbidden is activated when an instrument expires at the end of a particular contract
month.

Gilt Edged

A term usually associated with government or semi-government securities, more

generally used on British markets.

Growth Stocks

Shares of companies with good prospects for increasing profits and capital size. Likely to
bring shareholders future capital gains through a share price rise, high dividends, share
bonuses or rights issues.

Indices

In relation to a stock exchange, calculations made on an index number basis to indicate

the movements in the general level of prices of securities listed on that stock exchange.

Initial Public Offering (IPO)

An initial public offering (IPO) occurs when a company first sells common shares to
investors in the public. Generally, the company offers primary shares this way, although
sometimes, secondary shares are also sold as IPOs. For a company to offer IPOs, they
need to hire a corporate lawyer as well as an investment banker to underwrite the offer.
The actual sale of the shares is generally offered by the stock exchange or by regulators.
 When the company starts to offer IPOs, they are usually required to reveal financial
information about the company so that investors can make an informed decision.

Insider Trading/ Dealing

Insider trading or dealing is the purchase or sale of a company's securities effected by or

on behalf of a person with knowledge of relevant but non-public material information
regarding that company. The insider is in a position to make massive gains by selling or
buying securities before information that might affect the price of the company's
securities (price-sensitive information) is made public.

Insider trading is an offence under the Companies Act 1965 and the Securities Industry
Act 1983.

Instrument

A tradeble asset or negotiable item such as a security, commodity, derivative or index, or

any item that underlies a derivative. An instrument is a means by which something of
value is transferred, held or accomplished.

Issued Share Capital

The total number of shares issued by a company.

Limit Order

To avoid buying or selling a stock at a price higher or lower than what is wanted, it's best
to place a limit order rather than a market order. A limit order is an order to buy or sell an
instrument at a specific price. A buy limit order can only be executed at the limit price or
lower, and a sell limit order can only be executed at the limit price or higher. When a
market order is placed, the price at which an order will be filled can't be controlled. For
example, if you want to buy a "hot" stock that was initially offered at RM9, but don't want
to end up paying more than RM11.70 for the stock, you can place a limit order to buy the
stock at any price up to RM11.70. By entering a limit order rather than a market order,
you will not be caught buying the stock at RM11.70 and then suffering immediate losses
if the stock drops later in the day or the weeks ahead. A limit order may never be
executed because the market price may quickly surpass the investor's limit before the
order can be filled. Using a limit order also protects the investor from buying a stock at
too high a price. Some firms may charge more for executing a limit order than a market
order.

Liquidation

The winding up of a company, which may either be compulsory or voluntary.

Liquidity of The Market

The state of affairs in a stock market in which it is generally easy to convert securities
into cash and vice versa, without causing a movement in prices.
Loan Stock

A security issued by a company in respect of a loan made by investors.

Manipulations
The act of transacting in the securities of a company that will have or is likely to have the
effect of raising or lowering or maintaining the price of the company's securities on a
stock market, with the intention of inducing other persons to purchase or subscribe for
the company's securities. Such acts are illegal under the Securities Industry Act 1983.
Market Capitalization
The total value of a listed company's shares based on current market price.
Market Order
A market order is an order to buy or sell a stock at the current market price. Unless
otherwise specified, a broker will enter an order as a market order. The advantage of a
market order is that it is almost always guaranteed that the order will be executed (as
long as there are willing buyers and sellers). Depending on a firm's commission structure,
a market order may also be less expensive than a limit order.
Marketable Parcel
Shares traded on a stock exchange as set in multiples based on share price.
Market Bids
A scale on which trading bids, through a stock exchange, are based.
Memorandum of Association
The document of a company that lays down its name, registered office, objectives, share
capital and the liability of its members in the event of winding up.
Merger
In general terms, the amalgamation of two business enterprises into a new entity.

Negotiated Commission

The amount of fee to be paid to a stockbroker as agreed upon between client and
stockbroker and not subject to a scale stipulated by the stock exchange concerned.

Nominee Company

A company formed by a stockbroking company, bank or other institution for the purpose
of holding shares on behalf of the beneficial owners of the shares.

Odd Lots

This is an amount of shares that is smaller than the usual unit of trading; specifically, a
quantity of less than 100 shares of stock in a transaction or a trade that is not divisible by
100.

Odd Lot Market

 The Odd Lot market refers to the trading of shares that are less than 100 shares of stock
Partial matching is allowed Order are matched based on price time priority Price limit
follow normal market

Offer for Sale

One way in which the shares of a company are offered to the public, normally through an
issuing house.

Official List

In respect of the Kuala Lumpur Stock Exchange, the list of all securities which have
been admitted for quotation in accordance with the Exchange's Listing Requirements.

Open

Order entry, modification, cancellation and order execution are allowed for the
instrument assuming the group state permits.

Opening and Continuous Trading

 Orders are matched real-time based on price-time priority

 Opening price and quantity of orders matched are broadcast
 After the Opening Auction, system automatically moves to continuous trading phase
 Matched Trades can be continuously viewed from any front-end system
 5 best price limits are displayed

Option

Right to take up or sell shares at an agreed price at or before a specified future date.
Prefixed with terms of "call" or "put".

Order Book

Order Book is an 'electronic book' that shows the demand for the shares of the company
at various prices on a real time basis.

Paid-Up Capital

The amount of a company's authorised capital which has been subscribed by

shareholders.

Par Value

The nominal price of a share, loan stock or debenture.

Pari Passu
 In relation to a statement that newly issued shares rank pari passu with all existing
shares, such newly issued share rank equally in every respect with all the other shares
of the same class previously issued.

Portfolio

A selection of securities held by an investor.

Premium

The amount by which a share is quoted above its paid-up value.

Pre-Closing

 Starts immediately after end of continuous trading phase

 Orders are accepted and automatically updated in order book WITHOUT giving rise to
trades
 Theoretical Closing Price (TCP) based on orders entered, is dynamically calculated

Pre-Opening

 Enter, modify or delete orders

 No order matching is done
 Theoretical Opening Price (TOP) based on orders entered is dynamically calculated, and
the last TOP calculated before opening time is set as the natural opening price
 Order in order book is broadcasted

Price Discovery

The process by which price is determined by negotiation in a free market. Basically, any
asset purchased by an investor can be considered a financial instrument. Stock and
corporate bonds are equally considered investing instruments as they can all be bought
and sold as things that hold and produce value. Instruments can be debt or equity,
representing a share of liability (a future repayment of debt) or ownership.

Price Earnings Ratio

The relationship between the price of a share and the earnings of the company
attributable to that share, the result being expressed as the current share price divided
by the latest available figure of earnings per share.

Private Company

A company in which the number of its members is restricted to 50.

Privatisation

The Government's exercise of the transfer to private ownership companies or public

enterprises owned by the Government.
Prospectus

The document to be issued by a company intending to make an issue of shares to the

public.

Proxy

One who is given written authority to vote for and on behalf of a shareholder at a
meeting of the company.

Receiver

An official appointed to wind up the affairs of a company.

Registrar

The official or corporation responsible for maintaining a company's share register.

Registrar of Companies

The public official appointed to administer the Companies Act 1965 and the Securities
Industry Act 1983.

Remisier

An agent of a stockbroking company who brings business to that company in return for a
share of the brokerage or commission.

Renunciation

The action of a shareholder in not taking up new shares attached as a right to the share
he currently holds by renouncing such a right.

Reserves

Order entry, modification, and cancellation are permitted for the securities. The current
trading status for the securities is automatically changed to 'Reserved' when the
following occurs:Market order cannot be fully executed, potential match price is outside
static threshold during pre-opening, and Market-on-Opening has no counterpart.

Rights

Companies raise additional capital by offering to existing shareholders the rights to

subscribe for new shares, at a price usually below the current market price. These rights,
while current, attract a price of their own and can be traded on any stock exchange.

Score

The acronym for "System on Computerised Order Routing and Execution", the
automated trading system of the Kuala Lumpur Stock Exchange.
Scrip

Share certificate.

Securities

The generic term for any instrument traded on a stock exchange.

Securities Industry Act 1983

The Act of Parliament governing the business of dealing in securities, stock exchanges
and related matters in Malaysia.

Securities Commission

Established by the Ministry of Finance to streamline the activities relating to equity and
futures markets.

Securities Commission Act 1993

The Act of Parliament under which the Securities Commission was established on 1
March 1993.

Securities Industry (Central Depositories) Act 1991

The Act of Parliament which governs the activities relating to the Central Depository.

Share

In relation to a company, a security representing a portion of the holder's capital in that

company.

There are basically two types of shares, namely ordinary shares and preference shares.

Ordinary shares give holders the rights of ownership of the company, such as the right to
share in the profits of the company by way of dividend, the right to vote in general
meeting and to elect and dismiss directors.

Preference Shares have a preferential position over ordinary shares, in regard to the
payment of dividends and the division of the company's assets. Some preference shares
may have a cumulative entitlement in that dividends not paid can be carried forward and
must be paid prior to an ordinary dividend payment or distribution on liquidation. Some
preference shares are "participating" with ordinary shares in all dividend above a set rate,
in addition to their own preferential dividend rate.

Other preference shares are redeemable at a certain date.

Share Split
 When a company reduces the paid or face value of its shares, and issues further shares
in the same proportion i.e. 100,000 RM 2 ordinary shares would be split into 200,000 RM
1 ordinary shares.

Short Selling

The action of a person selling shares which he does not own at the time of selling.

Stag

One who applies for a new security with the intention of selling it at the first available
opportunity.

Stockbroker

An agent who buys and sells shares on behalf of his clients and is paid brokerage or
commission for his services.

Stock Exchange

An organisation providing the market-place or facility for the buying and selling of stocks
and shares.

Trading At Last (TAL)

Orders at TAL will only be entered and matched at the Closing Price. Only Limit orders
are allowed and the system will reject any Market Orders.

Theoretical Closing Price (TCP)

Price at which an instrument would trade if it stops trading at the moment the price is
calculated. TOP is calculated on a real-time basis in Pre-Closing/Closing Phase.

Theoretical Opening Price (TOP)

Price at which an instrument would trade if it opens at the moment the price is calculated.
TOP is calculated on a real-time basis in Pre-Opening Phase.

Trustee Security

A security which meets the requirements of legislation relating to the use of funds by
trustees.

Underwriter
An organisation, normally a merchant bank or a broking firm, that guarantees a minimum
level of subscription to a share or debt issue. If public subscriptions fail to reach the
minimum level, the underwriter takes up the shortfall. Underwriters often have sub-
underwriters to share the risk.
Unsecured Note
A fixed interest security with a maturity date and specified rate of interest.
Unlike a debenture, it is not secured by a charge over the issuing company's assets.
Unsecured note holders rank ahead of shareholders in the event of the company's
liquidation.

Winding Up

The voluntary or compulsory liquidation of a company.

Glossary of Exchange Traded Bonds and Sukuk (ETBS)

Coupon

The interest amount the ETBS holder will receive above the principal amount. It is
generally expressed as a percentage of the principal value.

Coupon Frequency

The frequency with which coupon payments are made to ETBS holders.

ETBS Holder

The owner of a bond or sukuk asset.

Guarantor

The government, commercial or holding company that will act as a guarantor for the
ETBS issuer in case of a default.

Issuer

A company or government organisation that issues bonds/sukuk to investors in order to

raise funds for its operations, expansion or other needs.

Maturity Date

The date when the ETBS issuer pays the principal amount to the holder. It is also known
as redemption date.

Principal

The amount borrowed by the issuer or the amount lent by investors. Typically, this is the
value returned to the ETBS holder upon maturity. It is also known as nominal value, par
value, redemption value or maturity value of a bond.
T

Trustee

A financial organisation that has been given fiduciary powers to ensure obligation of the
bond contract is met between the ETBS issuer and the ETBS holder. They act in the
interest of the ETBS holder.

Abbreviations
ADA

Authorized Depository Agent

ADM

Authorised Direct Members

AGM

Annual General Meeting

ASB

Amanah Saham Bumiputera

ASN

Amanah Saham Nasional

AWAS

Advanced Warning and Surveilance System

BLR

Base Lending Rate

BNM

Bank Negara Malaysia

BSE

Bumiputera Stock Exchange

CADI

Cumulative Advance / Decline Indicator

CARDS

Certificates for Amortizing Revolving Debts

CDS

Central Depository System

CIC

Capital Issue Committee

CLOB

Central Limit Order Book

EAFE INDEX

The Europe, Australasia & Far East Index

ECOS

Electronic Client Ordering System

EDMS

Electronic Documents Management System

EPF

Employees Provident Fund

EPS

Earning Per Share

ESOS

Employees Share Option Scheme

FDSS

Fixed Delivery and Settlement System

FIC

Foreign Investment Committee

GDP

Gross Domestic Product

GNP

Gross National Product

IBFF

Inter-Broker Fidelity Fund

IBS

Islamic Brokerage System

ICULS

Irredeemable Convertible Unsecured Loan Stock

ICUN

Irredeemable Convertible Unsecured Notes

IPC

Infrastructure Project Companies

IPO

Initial Public Offering

IPP

Independent Power Producer

ISIN

International Securities Identification Number

ISO

International Standard Organisation

ITC

Investment Tax Credit

KLCCH

Kuala Lumpur Commodities Clearing House

KLCE

Kuala Lumpur Commodity Exchange

KLIBOR

Kuala Lumpur Interbank Offered Rate

KLOFFE

Kuala Lumpur Options and Financial Futures Exchange

KLSE

Kuala Lumpur Stock Exchange

KLSE CI

KLSE Composite Index

Labuan IOFC

Labuan International Offshore Financial Centre

LIBID

London Interbank Bid Rate

LIBOR

London Interbank Offered Rate

LIFFE

London International Financial Futures Exchange

LO

Licensing Officer

LOSR

Location of Share Registrars

LSE

London Stock Exchange

M&A

Memorandum & Articles of Association

MARC

Malaysian Rating Corporation Berhad

MBO

Management Buy Out

MCD

Malaysian Central Depository

MESDAQ

Malaysian Exchange of Securities Dealing and Automated Quotations

MGS

Malaysian Government Securities

MIDF

Malaysian Industrial Development Finance

MIDFCCS

MIDF Consultancy and Corporate Services Sdn Bhd

MIER

Malaysian Institute of Economic Research

MIH

Malaysian Issuing House

MLR

Minimum Lending Rate

MME

Malaysia Monetary Exchange

MTDC

Malaysian Technology Development Corporation

NASDAQ

National Association of Securities Dealers Automatic Quotation

NOI

Net Operating Income

NYSE

New York Stock Exchange

OTC

Over The Counter

PDS

Private Debt Services

RAM

Rating Agency of Malaysia

RIIAM

Research Institute of Investment Analysis Malaysia

ROC

Registrar of Companies

RULS

Redeemable Unsecured Loan Stock

SBL

Securities Borrowing and Lending

SC

Securities Commission

SCANS

Securities Clearing Automated Network Services

SCORE

System on Computerised Order Routing and Execution

SDR

Special Drawing Rights

SIA

Securities Industry Act

SMI

Small and Medium Industry

SRR

Statutory Reserve Requirement

TSR
Transferable Susbcription Rights

WEBS

World Equity Benchmark Shares

WINSCORE

Broker Front -End System