LESSON 1 Flashcards
The ROOTS OF THE MODERN PHILIPPINE CAPITAL MARKET can be traced back to the late 19th century during Spanish colonial rule. At this time, the Manila Stock Exchange was established in 1895, making it one of the OLDEST STOCK EXCHANGE IN ASIA
Colonial Era (Late 19% Century - Early 20th Century):
SAW THE DEVELOPMENT OF FINANCIAL INSTITUTIONS and regulations. The Philippine Stock Exchange (PSE) was officially founded in 1927, replacing the OLD MANILA STOCK EXCHANGE. It started with 15 listed companies and struggled through economic challenges during this period.
American Period (1898-1946)
After World War II and gaining independence from the United States in 1946, the Philippine government made efforts to strengthen the country’s economic infrastructure. These institutions PLAYED VITAL ROLES in shaping the capital markets.
Post-World War II and Independence (1946-1960s)
The regime of Ferdinand Marcos witnessed significant political turmoil and economic instability. Capital markets were impacted as a result of this instability. There was a LACK OF TRANSPARENCY AND TRUST in the markets, and many investors turned to foreign markets
Marcos Era (1970s-1980s)
After the ousting of Ferdinand Marcos in 1986, the Philippines EMBARKED ON A PATH OF POLITICAL AND ECONOMIC REFORMS. The capital markets went through a period of LIBERATION AND MODERNIZATION during this time.
Post-Marcos Period (1980s-1990s)
The Philippines was NOT IMMUNE TO THE ASIAN FINANCIAL CRISIS. The crisis exposed vulnerabilities in the country’s financial system, leading to a period of economic recession and market volatility
The 1997 Asian Financial Crisis
The 21st CENTURY HAS BEEN SIGNIFICANT DEVELOPMENT in the Philippine capital markets. The PSE has experienced growth in market capitalization, trading volume, and the number of listed companies.
The 2000s and Beyond
In recent years, the Philippines has continued to implement REFORMS TO ENHANCE ITS CAPITAL MARKETS. This includes the introduction of new financial products, such as exchange-traded funds (ETFs) and real estate investment trusts (REITs).
Recent Reforms
The Philippines has INCREASINGLY INTEGRATED ITS CAPITAL MARKETS WITH THE GLOBAL financial system. This includes initiatives like the inclusion of Philippine stocks in global indices and the liberalization of foreign ownership restrictions in various sectors.
Global Integration
Like many other countries, the Philippines has witnessed the IMPACT OF TECHNOLOGICAL ADVANCEMENT ON ITS CAPITAL MARKETS. The advent of online trading platforms and the use of digital technology have made it easier for investors to participate in the market.
Technological Advancements
