M1 - PSE Part 1

Question 1

Ways to Post and Order

Answer 1

1. Over the phone
2. Online
3. Face-to-face (walk-in)

Question 2

3 risks involved in posting an order using over-the-phone:

Answer 2

✔ Your order not being received on TIME
✔ inaccurate
✔ not received at all

Question 3

This trading allows faster posting of orders and settlement at a lower commission rate:

Answer 3

Online trading

Question 4

Online trading allows faster posting of orders and settlement at a _______.

Answer 4

Lower commission rate

Question 5

Stocks, in filipino are called ___, which means to join or partake.

Answer 5

Sapi

Question 6

How do you make your money grow in stocks?

Answer 6

1. Capital Appreciation
2. Through dividend declaration by the company

Question 7

How to start investing in stocks?

Answer 7

1. Choose your stockbroker
2. Open a TRADING account with your chosen stockbroker
3. Discuss with your broker 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

Question 8

How do you call the gain from stock price appreciation?

Answer 8

Book value gain

Question 9

An increase in the market price of stock:

Answer 9

Capital appreciation

Question 10

If the company does not perform as expected, may the stock price go above your purchase price?

Answer 10

False - below

Question 11

Additional shares given to shareholders at no cost:

Answer 11

Stock dividends

Question 12

Illustration: A company declares a dividend of 25 cents per share, a SH with 10,000 shares will receive what type of dividends?

Answer 12

Cash dividends

Question 13

Who is the financial agent that will help you make your invested money grow?

Answer 13

Stockbrokers

Question 14

2 classes of stockbrokers?

Answer 14

Traditional and Online

Question 15

Brokers who assign a licensed salesman to handle your account and take your orders via written account or through a phone call?

Answer 15

Traditional brokers

Question 16

Brokers whose interactions with customers are through the internet?

Answer 16

Online brokers

Question 17

4 Requirements when opening a TRADING ACCOUNT:

Answer 17

1. CAIF Customer Account Information Form
2. 2 valid ID cards
3. Specimen signature cards
4. Proof of billing

Question 18

Types of Stock Trading Orders

Answer 18

A Buy order and;
a sell order (single order)

depends on the motive of seller when looking at which type of order it is referring to