Stock suffixes XN and other characters that traders need to know

When entering a trading application, you may see strange characters attached after stock names, such as XN, XD, XM, T1, T2 or H. These characters are not just natural symbols but important indicators that signify a special event related to the stock. This article will explain what these characters mean so you can make informed investment decisions.

Category 1: X-Group Characters - Rights Exclusion Signals

Characters starting with X derive from the word “Excluding” (meaning) that shareholders will not receive certain rights when purchasing stocks during periods when these characters appear.

XD - Loss of Dividend Rights

XD stands for Excluding Dividend. If you buy a stock when the XD mark appears, you will not receive dividends for that period. However, if you hold the stock until the next XD appears, you will be eligible for dividends again.

Essential Question: How long must I hold the stock to receive dividends?

• You can buy up to the day before XD is announced; you will still receive dividends. For example, buy on day 1, and if XD is announced on day 2, you still get dividends.
• Regardless of when you buy before the XD date, the dividend rate remains the same.

XM - Excluding Shareholders’ Meeting

XM stands for Excluding Meetings. Buyers of stocks with XM are excluded from participating in shareholders’ meetings, which are meetings where investors have voting rights on important company matters.

XW, XS, XR, XT - Rights to Purchase Subsidiary Shares

• XW (Excluding Warrant): No rights to purchase warrants, which are convertible securities into common stock.
• XS (Excluding Short-term Warrant): Loss of rights to subscribe for short-term warrants.
• XR (Excluding Rights): No rights to subscribe for new shares, usually for capital increase.
• XT (Excluding Transferable Subscription Rights): Excludes transferable rights to subscribe for additional capital shares.

XI, XP - Other Benefits

• XI (Excluding Interest): No interest paid for that period.
• XP (Excluding Principal): No principal repayment received.

XA - Excluding All Rights

XA stands for Excluding All. Buyers of these stocks will not receive any rights announced by the company. You should check the details to see what the company is planning to announce.

XE - Excluding Conversion Rights

XE stands for Excluding Exercise. Holders cannot convert these securities into underlying shares.

XN - Excluding Capital Return

XN stands for Excluding Capital Return. If you buy stocks with XN, you will not be entitled to receive a capital reduction refund. Capital reduction is a way to optimize capital structure, especially for companies with long-term accumulated losses, helping to reduce accounting burdens.

XB - Other Special Rights

XB stands for Excluding Other Benefit. Buyers during the XB period will not have rights to subscribe for preferred shares, common shares allocated to preferred shareholders, or securities of affiliated companies.

Category 2: T-Group Characters - Trading Warning Levels

The T characters appear when a stock’s price rises sharply, with high speculation. The stock exchange implements protective measures by categorizing these stocks into different levels.

T1 - First Warning Level

T1 stands for Trading Alert Level 1. Stocks with T1 must be purchased using a Cash Balance account (a regular cash account) only. This mark remains for 3 weeks from the date the stock exchange announces it.

T2 - Second Warning Level

T2 stands for Trading Alert Level 2. If a stock with T1 remains on the Trading Alert List after one month, it will be upgraded to T2. In addition to only being tradable via Cash Balance, it cannot be used as collateral. This mark stays for 3 weeks.

T3 - Third Warning Level

T3 stands for Trading Alert Level 3. If a stock remains on T2 for another month, it will be upgraded to T3. In this level, in addition to T2 restrictions, netting (settlement) is prohibited, meaning that when you sell the stock, the buying power will not be immediately restored but will be available the next day. This measure helps prevent frequent intra-day trading.

What is a Cash Balance account? It is suitable for beginner investors. You can only buy stocks up to the amount of money in your account. It’s a good way to limit your investment size.

Category 3: Risk Warning Symbols

These symbols serve as signals for investors to exercise caution when making investment decisions.

H - Short Temporary Trading Halt

H stands for Trading Halt. The stock temporarily stops trading for a short period (only for 1 trading session). Usually caused by leaked rumors that the company has not yet officially announced to the stock exchange.

SP - Longer Trading Suspension

SP stands for Trading Suspension. The stock is halted for more than one session. Similar reasons as H but more severe, such as unconfirmed news or the company not submitting financial statements.

NP and NR - Pending Notices

• NP (Notice Pending): The company has important information to report but has not yet submitted it.
• NR (Notice Received): The stock exchange has received the report from the company.

NC - Non-Compliance

NC stands for Non-Compliance. The company is at risk of delisting due to long-term losses or failure to submit financial statements. The company has 1 year to rectify, such as submitting pending documents.

ST - Price Stabilization

ST stands for Stabilization. The company is implementing measures to stabilize the stock price, often during a new IPO, using a “Greenshoe” method, where additional shares are issued to prevent the price from falling within the first 30 days.

C - High Risk Warning

C stands for Caution. The company faces financial or operational problems. This is a warning for investors to avoid the stock before further issues. The company is marked with C when:

Financial issues:

• Shareholders’ equity less than 50% of paid-up capital.
• Court approval for reorganization or bankruptcy.
• Regulatory orders to correct financial position or avoid expansion.

Financial statement issues:

• Auditors disclaim opinions due to scope limitations.
• SEC orders to amend financial statements or conduct special audits.

Business issues:

• The company becomes a “Cash Company,” selling most assets and holding only cash or securities.

Summary: Why is it important to understand these characters?

These symbols, especially XN and others, are critical signals indicating that a special event is occurring with the stock, from rights loss to risk warnings. Understanding these characters helps you make smarter investment decisions and avoid unnecessary losses. Whenever you see these symbols, stop and review the details before trading.