วันอาทิตย์ที่ ๑๖ ธันวาคม พ.ศ. ๒๕๕๐
วันเสาร์ที่ ๑๕ ธันวาคม พ.ศ. ๒๕๕๐
Business Management
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.
A business might invest with the goal of making profit. These are called marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee 's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.
A business might invest with the goal of making profit. These are called marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee 's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.
Types of investments
Types of investments
The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.
Returns on investments will follow the risk-return spectrum.
The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.
Returns on investments will follow the risk-return spectrum.
วันเสาร์ที่ ๒๔ พฤศจิกายน พ.ศ. ๒๕๕๐
Sufficiency Economy
Sufficiency Economy is a philosophy bestowed by His majesty the King to his subjects through royal remarks on many occasions over the past three decades .
The philosophy provides guidance on appropriate conduct covering numerous aspects of life. After the economic crisis in 1997, His Majesty reiterated and expaanded on the
"Sufficiency Economy"in remark made in December 1997 The philophy points the way for recovery that will lead to a more resilient and sustainable economy,better able to meet the challenges arising from globalization and other changes.
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Philosophy of the '' Sufficiency Economy
suffciency Economy is aphilosophy that stressec the middle path as an overridng principle for appropriate conduct by the populace at all levels. This applies to conduct starting from the level of the families. communities. as well as the level of nation in developmen and administraion so as tomodernize in line with the forces of globalization. Suffciency Economy means moderation, reasonableness, need of
selfimmunity for sufficient protecion from impact arising fron internal andexternal changes.To achieve this, an application of knowledge with due consideraion and produce is essential. In particular great care is needed in the utilization of theories and methodologies for planning and implementaion in every step At the same time, it is essential to strenghen the moral fibre of nation. so that everyone. businessmen at all levels. adheres first and integrity. In addition. a way of life based on patience , perseverance, diligence, wisdom, and prudence is indispensable to create balance and be able to cope appropriately with critical challenges arising from extensive and rapid socioeconomic , environmental, and rapid socioeconomic, environmental, and cultural changes in the world
วันอาทิตย์ที่ ๑๑ พฤศจิกายน พ.ศ. ๒๕๕๐
Tips/Usefui Info
What you should know...
Although managed funds offer the prospect of higher returns over the longer term, in the short term they are subject to market volatility which means that your investment can go up as well as down.
Private Fund Investment Portfolio
Achieve your investment goals and aspirations and gain the maximum returns with an acceptable level of risk.
With Bangkok Bank Private Fund and our professional fund management team, you can be confident that your funds are securely managed. You can even choose your investment portfolio by yourself to ensure that your funds are properly managed according to your objectives. Also, you may consult with our investment planners or fund managers on your investment at all times.Examples of Private Fund Investment Portfolio:
Government Bond Portfolio
Financial Institution Portfolio
Fixed Income Portfolio
Balanced Portfolio
High Growth Portfolio
Flexible PortfolioFind out which investment portfolio suits you by taking the Investor Profile Questionnaire.
*Fund investments have certain risks so investors should study all information before making a decision.
วันเสาร์ที่ ๒๗ ตุลาคม พ.ศ. ๒๕๕๐
Investment
Types of investment
The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.
Returns on investments will follow the risk-return spectrum.
Business Management
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.
A business might invest with the goal of making profit. These are called marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee 's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.
Economics
In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.
Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).
Investment is often modeled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.
Finance
In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.
Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.
Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.
Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.
Personal finance
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.
In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.
[edit]
Real estate
In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.
[edit]
Residential Real Estate
The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.
[edit] Commercial Real Estate
Commercial real estate is the owning of a small building or large warehouse a company rents from so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.
วันอังคารที่ ๒๓ ตุลาคม พ.ศ. ๒๕๕๐
Types of investment
The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.
Returns on investments will follow the risk-return spectrum.
Business Management
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.
A business might invest with the goal of making profit. These are called marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee 's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.
[edit] Economics
In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.
Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).
Investment is often modeled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.
[edit] Finance
In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.
Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.
Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.
Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.
[edit] Personal finance
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.
In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.
[edit] Real estate
In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.
[edit] Residential Real Estate
The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.
[edit] Commercial Real Estate
Commercial real estate is the owning of a small building or large warehouse a company rents from so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.
Returns on investments will follow the risk-return spectrum.
Business Management
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.
A business might invest with the goal of making profit. These are called marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee 's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.
[edit] Economics
In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.
Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).
Investment is often modeled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.
[edit] Finance
In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.
Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.
Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.
Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.
[edit] Personal finance
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.
In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.
[edit] Real estate
In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.
[edit] Residential Real Estate
The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.
[edit] Commercial Real Estate
Commercial real estate is the owning of a small building or large warehouse a company rents from so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.
วันเสาร์ที่ ๒ มิถุนายน พ.ศ. ๒๕๕๐
Who can invest in Corporate Debentures in the case of private placements?
Debentures may only be transferred to an investor who fall within one or more of the following categories:
1. Commercial banks
2.Finance companies
3. Securities companies, for the purpose of holding as their own assets or for management of aprivate fund or for the management of an investment project which is incorporated under the Act on the Undertaking of Finance Business, Securities Business and Credit foncier business.
4. Credit foncier companies.
5. Insurance companies.
6. Juristic persons incorporated under a specific law which are not the juristic person under (9).
7. Bank of Thailand.
8. International financial institutions.
9. Government agencies and State enterprises under the laws on budgetary procedure.
10.Financial Institution Development Fund
11. Pension funds.
12. Provident funds.
13. Mutual funds.
14. Juristic persons whose total assets according to the current audited financial statements for the last accounting period are worth half a billion baht or more.
15. Juristic persons whose shareholders are persons described in (1) - (14), among them holding shares in aggregate more than 75 per cent of all voting share.
16. Investors who have no domicile in Thailand and bring in investment capital abroad having investment advisors to supervise or manage the investment for them; and
17. Each investor other than the persons described in (1) - (16) who purchases the Debentures having the value of 10,000 Bt or more (the value of such Debentures shall be calculated from the offering price).
http://www.bangkokbank.com/Bangkok+Bank/Business+Services/Business+Banking/Investments/Institutional+Investors/default.htm
1. Commercial banks
2.Finance companies
3. Securities companies, for the purpose of holding as their own assets or for management of aprivate fund or for the management of an investment project which is incorporated under the Act on the Undertaking of Finance Business, Securities Business and Credit foncier business.
4. Credit foncier companies.
5. Insurance companies.
6. Juristic persons incorporated under a specific law which are not the juristic person under (9).
7. Bank of Thailand.
8. International financial institutions.
9. Government agencies and State enterprises under the laws on budgetary procedure.
10.Financial Institution Development Fund
11. Pension funds.
12. Provident funds.
13. Mutual funds.
14. Juristic persons whose total assets according to the current audited financial statements for the last accounting period are worth half a billion baht or more.
15. Juristic persons whose shareholders are persons described in (1) - (14), among them holding shares in aggregate more than 75 per cent of all voting share.
16. Investors who have no domicile in Thailand and bring in investment capital abroad having investment advisors to supervise or manage the investment for them; and
17. Each investor other than the persons described in (1) - (16) who purchases the Debentures having the value of 10,000 Bt or more (the value of such Debentures shall be calculated from the offering price).
http://www.bangkokbank.com/Bangkok+Bank/Business+Services/Business+Banking/Investments/Institutional+Investors/default.htm
วันอาทิตย์ที่ ๒๗ พฤษภาคม พ.ศ. ๒๕๕๐
Bonds as an Investment
A Better Return on Your Money
You can maximize the return on your liquid assets by investing in bonds on the primary or secondary market through Bangkok Bank. You can buy and sell government or corporate bonds at our branches.
Bonds issued in Thailand can be divided into two major components: government and corporate debt securities. The market is dominated by government debt securities, which currently account for approximately 85% of the total market.
Government Debt Securities
1) Government Bonds
Government bonds are medium to long-term debt instruments issued by the Ministry of Finance. They consist of three types; investment bonds (IB) loan bonds (LB) and saving bonds (SB). IB have not been issued since 1991 and there are only a few issues remaining. LB capture the bulk of the market as they are used to finance the budget deficit. SB are issued to provide households with an alternative source of savings.
2) State Enterprise Bonds (SOE)
These are medium to long-term debt instruments issued by state owned enterprises. Most of them are guaranteed by the Ministry of Finance (MOF).
Corporate Debt Securities
Corporate debenture issues tend to be extremely popular and often sell out within a few days. Recent debentures underwritten by Bangkok Bank have been Khanom Electricity Generating (KEGCO), Siam Cement (SCC), Charoen Pokphand Foods (CPF) and Vinythai (VNT).
The minimum investment for corporate debentures for an individual, depends on whether it is a public offering (P/O) or private placement (P/P) For a public offering, the minimum investment can be as little as one unit (1,000 or 10,000 Baht). For a private placement the minimum investment is 10 million Baht.
FX Market Outlook
FX Market Outlook
[BY : Jatupat Aroonsiri]
On Friday, the Thai baht opened at 34.57/59 THB/USD, the same as yesterday’s (24/05/07) closing level at 34.58/59 THB/USD. The dollar rose against the euro after data showed U.S. new home sales in April grew at their fastest pace in 14 years, bolstering the view that the Federal Reserve may not have to cut interest rates this year. In addition, Yestarday's U.S. data showed that U.S. durable goods orders, a leading indicator of capital spending, rose less than expected in April but the previous month's reading was revised up sharply. The yen edged up to 120.90 JPY/USD, pulling away from a three-month low against the dollar, after data showed Japan's core consumer prices fell at a slower pace in April and kept the Bank of Japan on track to raise rates in coming months. BOJ Governor Toshihiko Fukui has said the central bank could raise rates even if inflation is still in negative territory as long as the long-term outlook for prices to rise remains in place The euro fell to 1.3421 EUR/USD, near a six-week low of the previous session as the U.S. data came out better than expected. At 9.00 a.m., the Thai Baht was trading at 34.58/59THB/USD.
THB Bonds Market Outlook
[BY : Piyanart Tutanathorn]
May 24, the total trading value increased from THB 31 to 80 Bln. Outright transactions accounted for 65% of total trading and amounted to THB 52 Bln, approximately 73% higher than the previous day. At the auction, the 30-billion baht worth of 14-day Bank of Thailand bonds were undersold, with about half alloted and the bid to cover ratio fell to 0.93 times the amount on offer from 1.34 times at the previous auction 2 days ago. The average accepted yield rose to 3.48336% from 3.24977% at the previous auction. As for the Bangkok Mass Transit Authority's bonds auction, 6 and 8-year issues, the accepted coupon rates were 3.4968% and 3.6468% respectively. At the end of the day, government bond yields were up by 2-10 bps.
Understand Trading Procedure
Opening an Account
An investor wishing to trade securities needs to contact a broker or a sub-broker in order to open a trading account. Each broker or sub-broker has his own criteria for considering opening an account for the clients, with the difference in details. In principle, however, the standard are the same: considering the client's financial status and creditability, by using documents indicating their valuable assets, income, or the position of the client or the guarantor as the criteria for approving the client's credit amount. Moreover, the broker has to study the information about the client, in order to get to know enough about him/ her, i.e. his/ her investment goals, investment knowledge and perception about investing in the securities and levels of risk acceptance, and other personal information, i.e. age, education background, debt burden. All information about the client serves as the broker's crucial base for giving the client the most appropriate advice.
Types of Trading Accounts
The broker will allow the client to open only one type of trading accounts and only one client is allowed for one account. Basically, there are two types of trading accounts:
A Cash Accoun t is an account for the client who wishes to make full cash payment for the securities he/ she has purchased. The broker will determine the maximum cash limit to buy or sell shares appropriate for the client's according to his/her financial status and his/her ability of debt payment. The Clearing and Settlement must be done within 3 days after the purchase of the securities.
A Margin Account (Credit Balance Account) is an account for the client who wishes to trade securities on credit or by selling short. Before short selling, the broker will determine the amount of cash the client needs to put as margin, which is not less than the Initial Margin Rate prescribed by the SET (the value of the shore selling securities X Initial Margin Rate). This amount of money will be put in the client's Credit Balance Account. When the client sends his/her buying orders, the broker will deduct the amount from his/her account. If the value of the securities he/ she wishes to purchase exceeds the amount of cash held at the broker, the broker will lend him/ her the amount pending. In case of selling short, the client needs to borrow from the broker the securities for the Clearing and Settlement. The broker will take the cash that the client has in his/her account and the commission from securities trading as the collateral in the Clearing and Settlement. The client's ability to margin purchase or short sell is called "Purchasing Power". The level of purchasing power will depend on the amount of cash the client has put as margin. The client cannot, however, purchase or sell short in the amount exceeding the limit determined by the broker.
The margin system is complicated as the loan amount can be either increased or decreased all the time, perhaps dramatically according to the situation of the market and the prices movement. If you are considering investing with margin, you should first study its complicated regulations, especially in case the market price has decreased, as the broker might ask you for more collateral. The broker can also force you to sell the stocks in your account. The loss from this type of investment is somewhat severe.
Documentation
To open an account, you'll need a signed copy each of these documents:
Your ID card, or alien ID/ passport if you're a foreigner.
Residence registration form.
Tax ID card.
Bank statement or a passbook savings account having been active for a minimum of six months.
The marketing officer will request your personal details:
Financial status and size of investment.
Investment objective, short-term/ long-term? What form of return do you want?
How much risk are you willing to take? Do you want to take up rights issues?
He'll also talk to you about the nature of securities investment, and the pros and cons of
different types of securities to get some idea of your knowledge and your
investment approach.
Then he'll ask you to complete an application form. When your application is approved, you'll be informed of your account number or your customer code for making buying and selling orders, order change, cancellation, settlement, or any dealing with your broker. Your code should be kept confidential to prevent potential abuses.
At this point, you have got everything you need to know in order to open a trading account. Still, it's advisable to be familiar with your broker. Let's take a look at Who are brokers? to read about its key roles and what makes a good broker.
Understand Trading Procedure
Trading Trading Procedure - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Trading System Trading Hours Trading Units Price Spread Floor & Ceiling Limits Trading Boards Types of Order Off-Hours Trading Circuit Breaker Trading Signs Opening and closing Price Calculation Property Fund Call Market Downloaded Document
Trading System
This section describes the SET's trading facilities, details on trading rules, and information on Internet trading.
Fully Computerized Trading System
The SET has operated fully computerized trading since April 1991, through the "Automated System for the Stock Exchange of Thailand", or ASSET, which enables trading to be efficient, equitable and fluid. In this trading system, two principal methods of trading are available: Automatic Order Matching (AOM) and Put-Through transactions (PT).
Two Trading Methods
Automatic Order Matching (AOM) Trading
AOM trading performs the order matching process according to price, then time, priority, without human intervention. After brokerage houses electronically send buy or sell orders from their offices to the SET mainframe computer, the ASSET system 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. In terms of the matching process, there are two methods: continuous order matching and call market method.
Continuous Order Matching procedures operate during the regular trading sessions. The ASSET continuously matches the first buy and sell orders in the queue, and at the same time, confirms each executed transaction via the member's (broker's) terminal.
The Call market matching is utilized in calculating the opening and closing prices of a security at the opening and closing of the trading hours. This method allows brokers to enter their orders to be queued for matching at a specified time at a single price that generates the greatest trading volumes for that particular stock. Automatic Order Matching (AOM) Trading
Put Through (PT) Trading
The ASSET also allows brokers to advertise their buy or sell interests by announcing bid or offer prices. Members may then deal directly with each other, either on behalf of their clients or for themselves. Prices may be adjusted during the negotiation; hence, the effective executed price may not be the same as that advertised and may not follow the price spread rules. After concluding negotiations, dealers must send details of the result(s) to the ASSET for recording purposes
Trading System
This section describes the SET's trading facilities, details on trading rules, and information on Internet trading.
Fully Computerized Trading System
The SET has operated fully computerized trading since April 1991, through the "Automated System for the Stock Exchange of Thailand", or ASSET, which enables trading to be efficient, equitable and fluid. In this trading system, two principal methods of trading are available: Automatic Order Matching (AOM) and Put-Through transactions (PT).
Two Trading Methods
Automatic Order Matching (AOM) Trading
AOM trading performs the order matching process according to price, then time, priority, without human intervention. After brokerage houses electronically send buy or sell orders from their offices to the SET mainframe computer, the ASSET system 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. In terms of the matching process, there are two methods: continuous order matching and call market method.
Continuous Order Matching procedures operate during the regular trading sessions. The ASSET continuously matches the first buy and sell orders in the queue, and at the same time, confirms each executed transaction via the member's (broker's) terminal.
The Call market matching is utilized in calculating the opening and closing prices of a security at the opening and closing of the trading hours. This method allows brokers to enter their orders to be queued for matching at a specified time at a single price that generates the greatest trading volumes for that particular stock. Automatic Order Matching (AOM) Trading
Put Through (PT) Trading
The ASSET also allows brokers to advertise their buy or sell interests by announcing bid or offer prices. Members may then deal directly with each other, either on behalf of their clients or for themselves. Prices may be adjusted during the negotiation; hence, the effective executed price may not be the same as that advertised and may not follow the price spread rules. After concluding negotiations, dealers must send details of the result(s) to the ASSET for recording purposes
วันเสาร์ที่ ๒๖ พฤษภาคม พ.ศ. ๒๕๕๐
Bond
Bond is a financial instrument issued by government or government enterprise. The issuer is "debtor". The investor is "creditor". The purpose is to gather the investment from public.
Conditions:
Service available for both primary market and secondary market
- Primary Market: The bank as a seller presents the bond to the primary investor for the government or the government enterprise who issues the bond according to the set price and the coupon rate of the bond.
- Secondary Market: The bank buys and sells the bond used to be sold in the primary market before. Therefore, there are two sides of secondary market.
- Bank sells the bond in secondary market to customer.
- Bank buys the bond from customer in case of the customer require to sell the unmaturity bond.
Nowadays, the bank sells and buys many types of bond in secondary market
- Government bond such as LB03OA, LB033A, LB053A, LB65DA and LB05OA
- Government enterprise bond such as ETA 063 B, PTT 057 A and PTT 087 C
- Other type of bonds customers are interested in or other types of bonds that customers have invested in and want to sell before maturity, please contact the bank to request rate of return and the price for selling and buying.
Advantages:
- Steady income investment, the investor can forecast cash flow of financial document and can invest according to financial plan.
- Lowest risk because the issuer is government or government enterprise.
Benefits :
The investor will receive the benefits as follow:
- Coupon rate specified by the issuer. The issuer will pay to the investor through out the bond period There are 2 types
1. Fixed rate: specific rate for example 5, 6, 7%
2. Floating Rate: the floating rate follows the reference rate for example MLR, saving interest rate
- Capital gain or loss, it can happen in the case the investor sells the bond before maturity. The gain or loss occurs from the difference between the selling and buying price.
- In secondary market investment, even though the investor receives the interest from the issuer for the coupon rate, the money that the investor paid for the bond might not be equal to the face value. The rate of return for investing in the secondary market equals to yield to maturity or YTM. It is calculated from the date of purchase to the maturity.
Investment Conditions:
• Primary Market
- Minimum investment of 500,000 to 1 Million Baht up
- Selling period, within the set period or each type of bond.
- Pricing, in general, the price stated on the bond (Par Value)
• Secondary Market
- Minimum investment of 1,000 units
- Selling period is after the primary market is closed
- The price is not the same as the price stated on the bond (Par Value)
Personal Fund Management
Personal Fund Management
Personal fund management is the service that helps managing the fund for interested investors utilising the Bank's experienced fund management team. The policy of investment and investment goal of the investor will be considered under the acceptable risk by the investor.
Who is who in this service ?
1. Investor / customer as a user
2. Bank as a fund management company managing the fund for the investor / customer
3. Custodian holds the customer's asset to prevent benefit conflict. The custodian must be authorized by S.E.C. The asset of the customers must be segregated from the asset of the custodian.
4. S.E.C. supervises of the fund management company.
Conditions:
1. Minimum investment
- Person or group (2-9 persons): 10 Million Baht
- Juristic person: 20 Million Baht
2. Investment period: 1 year or longer
3. Sign a contract appointing the bank to be personal fund manager and appointing a custodian.
4. During the contract period, the investor can increase or decrease the investment fund or cancel the contract (according to the conditions in the contract)
Type of Investments:
There are 3 main policies for investment
1. Fixed Income Fund Policy
2. Equity Fund Policy
3. Mixed Fund Policy
- Balance Fund Policy
- Flexible Fund Policy
Risk :
Risk of investment depends on the investment policy of each fund. Equity Fund Policy is riskier than Fixed Income Fund Policy. Therefore Personal Fund Investment has risk that associates with the return. The performance in the past does not guarantee the performance in the future.
Tax :
Regular tax rate must be paid according to the status of the investor and the type of the investment.
วันพุธที่ ๒๓ พฤษภาคม พ.ศ. ๒๕๕๐
Investments
Overview
Mutual Fund
Citibank is currently the mutual fund's selling agent of reputable asset management companies which have undergone through Citibank’s rigorous fund/ Fund house selection procedures. Offering more than 20 funds with different investment policies, ranging from local equity mutual funds, fixed income funds, retirement mutual funds, long-term equity fund, to foreign investment funds, we are pleased to provide you with investment advice consistent with your risk profile. Also, we have our own proprietary analysis tool to help assess your financial needs before your making an investment decision. By investing with us, we therefore can assure you in making the most out of your investment portfolio
RSP- Simply invest with small amount in quality mutual funds by using our new service
What is Regular Saving Plan: RSP?
Introducing a new service from Citibank to make it easier for you to invest regularly in mutual funds. Regular Saving Plan or RSP is a disciplined way of regularly investing equal amount of money over a period of time in order to even out the market's ups and downs. Thus, you can enjoy a lower average cost of your investment units than that in a lump-sum investment. Applying for RSP is fuss-free arrangement. Your desired monthly contribution towards a selected fund will be deducted from your designated Citibank Savings or Checking account. With Citibank's powerful analytical tool, we can help identify your financial goal and corresponding risk tolerance level to derive the most appropriate financial and investment strategy for you. In this way, you can use RSP to help you meet your financial goals more effectively.
RSP is suitable for you if you
Want to avoid "chasing the market" and invest at the "wrong" times, buy high, sell low
Have limited investment knowledge and experience
Want to enjoy the expertise of professional fund managers
Want to benefit from Dollar Cost Averaging strategy
Do not want to invest large amount at any one time
Let’s try the below program to see the tax saving benefit of investing in RMF or LTF. Then you know how much you should invest into the fund per month by RSP and also get the advantage of dollar cost averaging strategy.
Mutual Fund
Citibank is currently the mutual fund's selling agent of reputable asset management companies which have undergone through Citibank’s rigorous fund/ Fund house selection procedures. Offering more than 20 funds with different investment policies, ranging from local equity mutual funds, fixed income funds, retirement mutual funds, long-term equity fund, to foreign investment funds, we are pleased to provide you with investment advice consistent with your risk profile. Also, we have our own proprietary analysis tool to help assess your financial needs before your making an investment decision. By investing with us, we therefore can assure you in making the most out of your investment portfolio
RSP- Simply invest with small amount in quality mutual funds by using our new service
What is Regular Saving Plan: RSP?
Introducing a new service from Citibank to make it easier for you to invest regularly in mutual funds. Regular Saving Plan or RSP is a disciplined way of regularly investing equal amount of money over a period of time in order to even out the market's ups and downs. Thus, you can enjoy a lower average cost of your investment units than that in a lump-sum investment. Applying for RSP is fuss-free arrangement. Your desired monthly contribution towards a selected fund will be deducted from your designated Citibank Savings or Checking account. With Citibank's powerful analytical tool, we can help identify your financial goal and corresponding risk tolerance level to derive the most appropriate financial and investment strategy for you. In this way, you can use RSP to help you meet your financial goals more effectively.
RSP is suitable for you if you
Want to avoid "chasing the market" and invest at the "wrong" times, buy high, sell low
Have limited investment knowledge and experience
Want to enjoy the expertise of professional fund managers
Want to benefit from Dollar Cost Averaging strategy
Do not want to invest large amount at any one time
Let’s try the below program to see the tax saving benefit of investing in RMF or LTF. Then you know how much you should invest into the fund per month by RSP and also get the advantage of dollar cost averaging strategy.
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