Trading of Blue Chip shares in decimals possible next year
SEOUL, Sep 14 (Korea Bizwire) – Starting next year, retail investors will be able to buy blue-chip stocks costing tens of thousands of won per share in decimal places, not only from foreign but also domestic stock exchanges.
The Financial Services Commission (FSC), the country’s main financial regulator, has announced that it has designated decimal point trading for domestic stocks as an innovative financial service and will establish an infrastructure to enable such trading for trading companies. securities who can request it from next month.
Decimal trading refers to a change in the basic unit of stock trading of a stock to the division of a stock into several parts for trading.
For example, investors will be able to buy shares of shares of LG Household & Health Care Ltd., a large cosmetics company that are currently listed at over one million won per share, for as little as 3,000 to 5,000. won (US $ 2.56- 4.26).
Decimal point trading for foreign stocks was named as an innovative financial service in 2019 and Shinhan Investment Corp. and Korea Investment & Securities Co. published related services.
The size of decimal point transactions carried out by the two securities firms stood at US $ 1.02 billion at the end of June, above the level expected by the financial regulator.
“Interest in the decimal point redemption service has increased in the domestic market,” said the FSC.
“We have decided to consider the review of related legislation while operating the service on a trial basis for a certain period of time based on the opinions presented by related industries.”
The decimal point redemption system is based on trust. For example, if investors buy a specific stock in decimal places, the brokerage making the purchase on their behalf should buy the remainder of the stock.
JS Shin ([email protected])