Types of Securities Traded in Bursa Malaysia

What is security’s definition? According to wikipedia definition, “ it is a negotiable instrument representing financial value”

It categorized into:-

a) Share Capital – Ordinary shares –  i) consumer

                                                         ii) industries

                                                         iii) trading / services

                                                         iv) construction

                                                         v) finance

                                                         vi) hotel

                                                        vii) property

                                                        viii) plantation

                                                         ix) mining

b) Fixed Income Securities – 

i) Preference shares (have preferential position on dividend payment & division of company’s assets over ordinary shares.

ii) Non-convertible loan stocks – 1) secure – debenture -  2) unsecured

iii) Convertible loan stocks (loan provided by investors with fixed interest rate)

c) Others – 

i) Warrants / TSR (these are rights but no obligations given to holders to subscribe for new ordinary shares).

ii) Call warrants (these are rights but not obligations to buy a fixed number of shares at a specified price within limited time period.

 iii) Property Trust (REITS, only invests its funds an landed properties)

iv) Closed-end Funds (invests only in shares and price is determined by market forces and net asset value.

v) Electronic Traded Funds (ETF) (tracks an index, will not be fund manager to repurchase the ETF)

These are basic forms of securities categories of securities we can found in Bursa Malaysia.