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( 28/11/1996: established State Securities Commission of Vietnam

( 10/07/1998: established Hanoi (HASTC) and Ho Chi Minh Ctiy (HOSTC)

Securities Trading Center

( 11/05/2007 transferred the Ho Chi Minh City Securities Trading Center to

Hochiminh Stock Exchange (HOSE)

( 1/2009: changed HASTC to Hanoi Stock Exchange (HNX)

( 286 companies listed on HOSE

276 companies listed on NHX

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å Principal trading: buying and selling for the trader's own profit
or loss. In this case, the principal is the owner of the shares.

å Agency trading: buying and selling by an agent, usually a

stock broker, on behalf of a client
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  Execution-only: the broker will only carry out the client's

instructions to buy or sell.

  Advisory dealing: the broker advises the client on which

shares to buy and sell, but leaves the final decision to the
investor.

  iscretionary dealing: the stockbroker makes all dealing

decisions on the client's behalf.
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  Investors: People who really sell & buy in the capital market
  2 types: åindividual investors
å institutional investors

* IN IVI
AL INVESTORS:

  omestic investors : Vietnameses who can buy shares of join stocks with
the unlimited quantities
  International investors: the foreign people who join in investment
activities in VN

->have to buy shares by VN

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Characteristics:
  More than 95% investors in Vietnamese capital market
  Lack of knowledge about the market
  e affected by other ones
  Small investment capital
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asic mistakes:

  Trying keep the shares while they are downing

  uying the familiar & famous shares
  A lots of buying & selling activities
  Not diversified ->risks
  uying shares base on rumor
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efinition:
  The person responsible for implementing a fund's investing strategy and
managing its portfolio trading activities.
  A fund can be managed by one person, by two people as co-managers
and by a team of three or more people.
  und managers are paid a fee for their work, which is a percentage of the
fund's average assets under management.
Vietnam:
  Prudential fund management
  Alpha capital: the first fund manager in VN signs Principle of Responsible
Investment(15/7/09)
  Viet ragon und Management
  Manu life- und management company('

 

 


 

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V

Also called junior equity or common stock)
  Definition: Securities representing equity ownership in a corporation,
providing voting rights and entitling the holder to a share of the company's
success through dividends and/or capital appreciation.
V



 
 
  Ownership
  Voting privileges
  Right to dividends
  Right to information
  Pre-emptive right
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m !(Also called preferred stock)
Definition:
Capital stock which provides a specific dividend that is paid before any
dividends are paid to common stock holders, and which takes precedence
over common stock in the event of a liquidation.
m  

  
  Ownership
  Nonvoting
  ividends
  Adjustable rate
  Cumulative or non-cumulative
  Convertible
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V m Ê" ! # 
Ê" !

a bond issued by a corporation. They A bond issued by a national

have nominal value returned to the government denominated in the
investor on a stated future date country¶s own currency

are issued by companies as a way of are issued to help finance all of the
raising money to invest in their costs involved in operating the
business government

have to pay taxes on the interest don¶t have to pay taxes

earned

are generally higher risk bonds are basically risk free

have a higher rate of return have lower rate of return
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  Companies that issue corporate bonds:
± Vietnam Oil and Gas Group
± GER
CO (Vietnam General Rubber Corporation)
± VINASHIN
± Song a Corporation
± EVN Telecom
± LILAMA
± Vietnam Steel Corporation
± VINACONEX
± VNECO (Vietnam Electricity Construction Joint Stock Corporation)
± Vilexim (Vietnam Import-Export and Co-operation Investment Joint Stock
Company)
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Definition:
Investment funds are normally divided into units and the amount of
contribution will determine the number of units within the account. The net
value of the underlying assets (allowing for any charges) and any
accumulated income is reflected in the price of the units.
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V

 
  existing as computerized codes rather than physical documents
  easy to purchase and sell at any time convenient for you
  allows to reduce the risk involved in investments
  already a relatively small amount of money can offer access to a larger
institutional investors' markets
  easy to monitor the development of a fund investment
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PRIVATE
PLACEMENT ! 
Sale of securities (especially bonds)
to a relatively small number of select investors.


: % &

2   elow standard of public placement Insurance companies,
METHODS   Small mobilized capital Pension funds, Investment
OF   Relationships maintenance banks, Mutual funds, etc.
ISSUEING   Staff motivation
  
IPO % 
m'   
PUBLIC PLACEMENT

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SPO 

m'   
Sale of securities to the general public (both big and small
investors). They are listed in the exchange market.




  Large mobilized capital
  Company promotion
  Copartner finding
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‘

Ê!! m V

4Charter capital: > 5 billions VN ' Choosing underwriters

4usiness continuity (Preparing a registration statement
4Total value of issuing )Submit statement to Securities and
4Experienced managers Exchange Commission(SEC)
4Reasonable company¶s structure * eclare issuance
4
nderwriters¶ help +Set price and sell out securities
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Ô DERWR‘‘

! 


nderwriters help issuers with financial consultancy and securities distribution.

nderwriters earn underwriting fee or certain percentage on mobilized capital.

$   
:
Ä  
    underwriters commit to buy all securities
Ä 
'   underwriters buy the rest of securities
Ä "
   underwriters are agencies for companies¶ securities
Ä 

    underwriters sell a certain amount of securities,
or not the whole issuance is cancelled
Ä
 
,   : underwriters sell to maximum level of securities, if
below minimum level, the issuance is cancelled
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  Lich su phat trien´ http://www.ssc.gov.vn/portal/page/portal/ubck/gthieu

  V!
-V  ./0http://www.hnx.vn/
  HOCHIMINH STOCK EXCHANGE
ESTALISHMENT & EVELOPMENT´ http://www.hsx.vn/
  The ond Issuance Process´, accessing day 7th April 2010,
http://www.chefa.com/applying/the_bond_issuance_process
  V

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  Tư vҩn bҧo lãnh phát hành´, accessing day: 5th April 2010,
http://www.nsi.com.vn/Issuance
nderwriting.aspx