Types of Stocks in Bursa Malaysia

Do you think all stocks listed in Bursa Malaysia is the same? Then you are wrong.
There is kinds of Stocks in Bursa Malaysia that offer you different kinds of investment tools according to different kinds of investment strategy and target.

Here, we will brieftly tell you about Types of Stocks that you can trade in Bursa Malaysia. We will explain more in specific later.

A. General Shares / Company Stocks

Normal company that list in Bursa Malaysia. They have to full fill the public listing requirement. Once you own the stocks, you are one of the owner in the company.

These stocks devide into 11 industrial:

1. Consumer Products
2. Industrial Products
3. Construction
4. Trading / Service
5. Technology
6. Infrastructure
7. Finance
8. Hotel
9. Properties
10. Plantation
11. Mining

B. REIT (Real Estate Investment Trust)

This is a fund on Real Estate (Buildings). This fund hire a management team to manage on the buildings, rent out the building and collect rental. The earning of rental payment will convert to dividend and pay off to the fund owner (share holders).

C. Closed End Fund

This is exactly same as mutual fund. Normal mutual fund can only buy and sell to the Trustee (Bank). The buying and selling price is fixed; and is represent the NAV of the fund. And the dividend they pay will be deduct from the NAV.

For Closed End Fund, you can trade in Bursa Malaysia. The price is depends on the market (buyer and seller). It can be higher or lower then the real NAV. It will give dividend in term basis, but it won't deduct from your primary stock price. It depends on the market movement.

D. Warrants

This is a Fixed Condition Trade Agreement. The warrants must come with the mother share. Warrant give you an option to buy back the mother share by adding certain amount of value.

E. Bond and Loan

This is the loan from the company. The company will pay you interest as agreed in the bond. The agreement upon bond can be different. It can be a fixed price upon maturity, convert to mother share with a secondary condition, payment according to mother shares and many more.

You will need to read on the agreement on the Bond Loan when you purchase this shares.

F. Exchange Traded Fund

This is trade againts the index. This fund operate as the index value. The NAV will move according to the index value. When you buy this stocks, you cna imagine you are buying the whole industry; or all shares that include in the index.

Note: All kinds of stock is trade in Bursa Malaysia. Price will be depends on the market. But the nature of stocks will act differently. We will discuss all kinds of stocks in details.