CAPITAL MARKET Flashcards
finals
Financial Markets are classified into
MONEY MARKET
CAPITAL MARKET
refers to the market where regular activities of buying, selling and issuance of shares of publicly held companies take place.
STOCK MARKET
Debt securities such as ____ are Interest bearing IOUs.
BONDS
is a marketplace or the infrastructure that facilitates equity trading.
STOCK EXCHANGE
Through the offices of member firms located everywhere, oven In the provinces, stocks are available to millions of people.
MOST ACCESSIBLE MARKET
Transactions and price data are available through newspapers, radio, television and Information networks.
PUBLIC VIEW
Acts as agent or middleman between the investor and other buyers/sellers. As an
Intermediary, the stockbroker executes orders for clients, purchasing or selling the stock on the stock exchange. Licensed by the SEC to trade in securities.
STOCKBROKER
When shares are purchased and transferred from the seller to the buyer, the transaction should be recorded in the stock books of every listed company which record the complete shareholdings of each stockholder of the company.
TRANSFER AGENT
All stockbrokers will make payments to and receive payments for purchases and
sales they have made for their clients
CLEARING HOUSE
meeting place for people, corporations and institutions that either need money or have money to lend or invest.
FINANCIAL MARKET
When a corporation uses the financial markets to raise new funds, the sale of securities is said to be made in the _____ by way of a new issue.
PRIMARY MARKET
What financial markets do. ________ - firms often require funds to build new facilities,
replace machinery or expand their business in other ways. Shares, bonds and other types of financial instruments make this possible.
RAISE CAPITAL
After the securities are sold to the public, they can be traded in the
SECONDARY MARKET
Investors will get the company shares which they can expect to hold for their preferred duration, in anticipation of rising in share price and any potential income in the form of ______ payments.
DIVIDEND
It is a security usually purchased for participation in the profits and control of
ownership and management of the company. The stockholder exercises control through voting rights during annual or special stockholders’ meetings, but can only claim rights to the company’s assets and earnings when preferred shareholders are already paid in full.
COMMON STOCK
It is a security whereby the holder has a higher claim on the assets and
earnings of the company.
PREFFERED STOCK
These are stocks that can be exclusively traded by Filipino investors.
CLASS A
includes companies or firms that control or manage partial or complete interest in
another company or other companies. Usually, these companies do not produce goods or services itself; rather, its purpose is to own shares of other companies.
HOLDING FIRMS SECTOR
are shares of those companies with good dividend payment history due to steady profits. Since they are stable, income stocks generally have a lower level of volatility.
INCOME STOCKS
Is a fixed basket of thirty (30) common stocks of listed companies, carefully
selected to represent the general movement of the stock market. In other words, it is the benchmark measuring the performance of the Philippine stock market.
PSEI
Types of stockbrokers:
Online
- - those who assign a licensed salesman to handle your account and to take your orders via a written instruction or a phone call.
TRADITIONAL
is a wholly owned subsidiary of the Exchange. It was established to ensure the orderly settlement of equity trades executed at the PSE. Responsible for establishing the cash and securities liabilities and entitlements of its clearing members.
SCCP
HOW TO GROW YOUR MONEY IN THE STOCK MARKET
- CAPITAL APPRECIATION
- THROUGH DIVIDENDS
STOCKS ACCORDING TO CHARACTERISTICS
- BLUE CHIP STOCKS
- INCOME STOCKS
- GROWTH STOCKS
- DEFENSIVE STOCKS
- CYCLICAL STOCKS
- SPECULATIVE STOCKS
11 STOCKS LISTED IN THE PSE AND THEIR STOCK SYMBOLS
ALI - AYALA LAND INC.
BDO - BDO UNIBANK INC.
SMPH - SM PRIME HOLDINGS
GLO - GLOBE TELECOM INC.
JFC - JOLLIBEE FOOD CORP.
SM- SM CORPORATION
BPI - BANK OF THE PHILIPPINES ISLANDS
ALLDY- ALLDAY MARTS INC.
ABS - ABS-CBN CORPORATION
AC - AYALA CORPORATION
BC - BENGUET CORPORATION
STEPS ON HOW TO INVEST IN THE STOCK MARKET
1 Choose your STOCKBROKER.
2 Open a TRADING ACCOUNT
3 Discuss with your stockbroker the stocks you wish to BUY or SELL
4 Give ORDERS to the stockbrokers
5 Get the CONFIRMATION RECEIPT
6 Deliver/Pay before SETTLEMENT DATE
7 Receive PAYMENT.
8 MONITOR AND KEEP TRACK OF YOUR INVESTMENT
BASIC INFORMATION DO I NEED TO PROVIDE MY STOCKBROKER WHEN POSTING ORDER?
1 NAME OF THE LISTED COMPANY
2 SYMBOL
3 PRICE
4 NUMBER OF SHARES
FEES CHARGE FOR EXECUTING TRADES
COMMISSION .25%
VAT 12%
PSE TRANS FEE .005%
SCCP .01%
SALES TAX 0.006
