FAQ

The securities market is a market where stocks and bonds are bought and sold. Securities market has played a significant role in the development of Cambodia’s economy. Also, investors have more choices to diversify their investment portfolios for uplifting their returns operationally and financially.

Stock is a type of equity securities representing the ownership in a corporation and a claim on the part of its assets and earnings depending on the proportion of shares a person holds.

Bond is a type of debt securities representing an amount of money that an investor lends to an issuer, a corporation, a state-owned enterprise, or government. The investor shall receive interest from the issuer periodically and the whole principal back at maturity.

Stock trading offers investors various advantages as follows:

• Investment opportunity and return,
• Affordability for small investors,
• Tax incentives,
• Diversified investment and additional return, etc.

Stock trading consists of risks that may affect the stock prices to decrease or to be highly volatile. We can classify those risks into three main categories as follows:

• The systematic risk or market risk is the uncertainty happening to the entire market which cannot be diversified away, such as economic risk, inflation risk, political risk, interest rate risk, etc.
• Unsystematic risk is the uncertainty happening to a specific company or industry, which can be reduced through diversification. Such risks can be company insolvency risk, internal accounting fraud, insider trading activity, etc.
• Liquidity risk refers to the risk that the buyers and sellers cannot find one another on a timely basis to trade at a fair price due to lack of liquidity in its given market.

To trade on CSX, investors shall require a securities trading account or an activated CSX trading account.