Page 48 - Introduction To Investment Management

For example, you decide to buy 5,000 units of share ABC at RM3.00 per share, your Total
Buy Settlement is RM15,124.50.

Value of Shares = RM3.00 x 5000 units = RM15,000
Brokerage Fees = 0.70% x RM15,000 = RM105
Clearing Fee = 0.03% x RM15,000 = RM4.50
Stamp Duty = (RM15,000/RM1,000) x RM1 = RM15.00
Buy Settlement = RM15,000 + RM105 + RM4.50 + RM15 = RM15,124.50

Let say, after 3 months, share ABC reached RM4.00 per share and you decide to sell,
then, your Total Sell Settlement will be RM

Value of Shares = RM4.00 x 5000 units = RM20,000
Brokerage Fees = 0.70% x RM20,000 = RM140
Clearing Fee = 0.03% x RM20,000 = RM6
Stamp Duty = (RM20,000/RM1,000) x RM1 = RM20
Sell Settlement = RM20,000 - RM140 - RM6 - RM20 = RM19,834.00

Based on the above example, your total net profit for holding the stock is (Sell Value –
Buy Value) RM 4,709.50.

2.6.2 Types of Orders

Investors can place their order to buy shares in several methods such as Limit Order,

Market Order or Stop Loss Order.
i- Limit Order- To be executed at the entered price or better. For example, if a

trader placed a limit order with a price of 1.50, the order would only get filled
at 1.50 or better. Limit orders are used when you want to make sure that you

get a suitable price at the value that you have stated.

A limit order is an order to buy (or sell) at a specified price or better.
▪ A buy limit order (a limit order to buy) can only be executed at the

specified limit price or lower.

▪ Conversely, a sell limit order (a limit order to sell) will be executed at the
specified limit price or higher.

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