Securities Law - Chapter 4

The Vietnam Stock Exchange and its subsidiaries organize and operate trading systems for both listed and unlisted securities.

Listing: To make securities eligible to the listing requirements for trading on the Stock Exchange’s system.
Securities Listing: An activity that is performed, inspected, and approved by the Stock Exchange for issuers whose securities are eligible for trading on the exchange system.

Facilitates Capital Mobilization: Enhances the ability of listed organizations to raise capital.
Public Promotion: Provides a platform for listed organizations to introduce and promote themselves to the public.
Liquidity Improvement: Increases the liquidity of the securities.
Government Oversight: Enables the State to better control and manage the stock market.

Compliance Requirements: Must adhere to a full information disclosure regime and face stricter supervision.
Costs: Incur annual listing fees, audit fees, information disclosure fees, and document preparation fees related to the listing process.
Trading Restrictions: Stock trading by key shareholders is restricted.

Initial Listing: The process allowing an issuing organization’s securities to be registered for trading for the first time after meeting listing standards.
Additional Listing: Refers to the listing of an additional type of stock to increase capital or for purposes like mergers or payment of dividends.
Change of Listing: Occurs when a listed company changes the name, volume, par value, or total value of its listed securities.
Re-listing: The act of re-listing securities that were delisted for not meeting maintenance standards.
Full Listing: Involves listing all shares that have been issued to the public on a domestic or foreign exchange.
Partial Listing: Listing only a portion of the total securities issued, while the rest remain unlisted.

Primary Market: A market for new securities issued for the first time.
Secondary Market: A market for securities that have already been issued and are trading between investors.
Classification by Organization and Transaction Method:
- Centralized Market: Organized trading where all trades happen in one location.
- Decentralized Market (OTC market): Trading occurs directly between two parties without a centralized exchange.

A trading order is an instruction from an investor to a securities company to execute a buy or sell transaction on their behalf.

Limit Order: An order specifying a limit price for a transaction.
- Example: An investor places a limit order to buy 1,000 ACB stocks at 20,000 VND/stock.
Market Order: An order to buy or sell at the best available market price.
At the Opening (ATO) Order: Buy or sell order valid only during the periodic matching session that determines the opening price.
At the Closing (ATC) Order: Buy or sell order valid only during the periodic matching session that determines the closing price.

Definition: The limit on stock price fluctuation prescribed for a trading day, represented as a percentage ratio compared to a reference price.
Ceiling Price: The highest price allowed, calculated as:
$ext{Ceiling Price} = ext{Reference Price} imes (1 + ext{Fluctuation Limit})$
Floor Price: The lowest price allowed, calculated as:
$ext{Floor Price} = ext{Reference Price} imes (1 - ext{Fluctuation Limit})$

Price Priority: Buy orders with higher prices and sell orders with lower prices are prioritized.
Time Priority: Among orders with the same price, the one entered first receives priority.

The matching price must indicate the highest trading volume.
If multiple prices achieve this, the price close to the most recent transaction price is selected.
If still a tie, the highest price is chosen.

Best price orders have priority for execution.
If multiple orders at the same price are present, the order entered first will be executed first.
Orders may be executed fully or partially, in multiples of the trading unit.

Step 1: Open an account with an authorized securities company.
Step 2: Place buy and sell orders through physical order tickets or electronic data.
Step 3: Securities company checks the feasibility of orders and submits them to the stock exchange's trading system.
Step 4: On successful transaction confirmation (after T+n days), funds will be deducted from the investor's account for buy orders, and the corresponding securities added to their account, and vice versa for sell orders.