Calculation of the Compensation Amount

Scenario 1 - Securities trading I

Mr. Chan's securities portfolio:

 
 Securities Name 
Quantity of 
Securiities 
Purchase prices 
(HKD) 
Total 
(HKD) 
 Red Company
2,400 
$125.00 
$300,000 
 Yellow Company
30,000 
$6.50 
$195,000 
 Blue Company
3,000 
$60.00 
$180,000 
 Cost of investment $675,000 



Suppose ABC Brokerage Firm defaults on 2/1/202X, then the closing prices of the securities on the default date are used to calculate the compensation amount:

 
 Securities Name 
Quantity of 
Securiities 
Closing Prices on 
2/1/202X (HKD) 
Total 
(HKD) 
 Red Company
2,400 
$115.00 
$276,000 
 Yellow Company
30,000 
$5.50 
$165,000 
 Blue Company
3,000 
$65.00 
$195,000 
 Value of investment $636,000 



Mr. Chan receives a compensation amount of HK$500,000

The maximum amount of compensation per claimant is HK$500,000, even if the value of securities on the default date exceeds the limit.