Midterm Topics - Part 3 Flashcards
Smallest measurable unit of ownership of a company.
Stocks
Reasons why companies list their shares in the market
(1) Share capital - expansion and widen fund sources
(2) Monetize Investments of early investors
(3) Branding for the company
Organized venue where broker buy and sell shares of companies.
Stock market
A systematic and centralized marketplace where common stocks of listed businesses are traded.
Stock market
Assess correct valuation of shares and establishes public market.
Underwriter
Person who buys or sells stocks, bonds, commodities, for a fee or what is called a “commission”
Broker
Lowest price that a seller will accept when selling a stock
Ask
Highest price that a buyer is willing to pay for a stock
Bid
Declining market condition
Bearish
Market valuation believed to be increasing
Bullish
The first sale or offering of a stock by a company to the public, rather than just being owned by private or insider investors.
Initial Public Offering
An investors bid to buy or sell a certain amount of stock or options contracts.
Order
Philippine sectorsin the stock market
(1) Financial
(2) Industrial
(3) Services
(4) Holdings
(5) Property
(6) Mining and Oil
Facilities for Trading
- Over the counter
- Online
Disadvantages of Investing in Stock Market
(1) Volatility
(2) May loose your capital
(3) Long term nature
(4) Liquidity
(5) Management concerns