SET App
Settrade App
Financial Instruments
| Type | Description | Increase capital for the company | Increase the liquidity of securities | Employee compensation options | Reduce excess liquidity of shares | Remove accumulated loss |
| Newly Issued Ordinary Shares | Issuance of new ordinary shares to raise funds as needed by the company in addition to those already raised through an IPO. |  | | |||
| Warrant | Issuance of warrants to gradually raise funds to meet the need for future capital (to delay the impact from dilution effect) and increase the opportunity to expand new investor base | | | |||
| General Mandate | Another fund-raising option within a specified scope by obtaining prior shareholder approval and authorizing the Board of Directors to issue and allot newly issued shares as appropriate. | | | |||
| Stock Dividend | Dividends payment in a form of newly issued shares through a capital increase to existing shareholders in proportion to their shareholding, while also allowing the company to maintain its liquidity | | | |||
| Transferable Subscription Right (TSR) | A financial instrument that allows shareholders to sell their rights to purchase newly issued shares in the stock exchange. The holder of TSR is entitled to subscribe the newly issued shares which enables the company to complete fundraising in accordance with its desired purpose | | | |||
| Debenture & Convertible Debenture | Long-term fundraising tools other than the issuance of ordinary shares where the company (as debtor) must pay a return to the shareholders (as creditors) in a form of interest according to the specified period and rate prescribed for shareholders (as creditors). | | ||||
| Par Change | Par change can be done through (1) stock splits, which increases stock liquidity by increasing the number of shares (resulting in a lower share price), or (2) reverse stock splits, which stabilizes the share price by decreasing the number of shares (resulting in higher share price) | Split Par | ||||
| Employee Joint Investment (EJIP) | An employer-employee joint investment program where employees purchase the company's existing shares traded on the stock exchange in regular instalments , using the Dollar Cost Average principle | | ||||
| Employee Stock Option Program (ESOP) | An offer of securities in the form of shares, warrants, or convertible debentures to directors or employees | | ||||
| Treasury Stock | A share repurchase project that helps manage the company's liquidity when the share price does not reflect its fair value | | ||||
| Capital Reduction | A reduction in paid-up capital (either by lowering the par value or reducing the number of shares) to improve capital management efficiency and allow companies with accumulated losses to be able to pay future dividends more quicklys | |
