Midterm Topics - Part 3 Flashcards

1
Q

Smallest measurable unit of ownership of a company.

A

Stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Reasons why companies list their shares in the market

A

(1) Share capital - expansion and widen fund sources

(2) Monetize Investments of early investors

(3) Branding for the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Organized venue where broker buy and sell shares of companies.

A

Stock market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A systematic and centralized marketplace where common stocks of listed businesses are traded.

A

Stock market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Assess correct valuation of shares and establishes public market.

A

Underwriter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Person who buys or sells stocks, bonds, commodities, for a fee or what is called a “commission”

A

Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Lowest price that a seller will accept when selling a stock

A

Ask

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Highest price that a buyer is willing to pay for a stock

A

Bid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Declining market condition

A

Bearish

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Market valuation believed to be increasing

A

Bullish

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The first sale or offering of a stock by a company to the public, rather than just being owned by private or insider investors.

A

Initial Public Offering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An investors bid to buy or sell a certain amount of stock or options contracts.

A

Order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Philippine sectorsin the stock market

A

(1) Financial
(2) Industrial
(3) Services
(4) Holdings
(5) Property
(6) Mining and Oil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Facilities for Trading

A
  • Over the counter
  • Online
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Disadvantages of Investing in Stock Market

A

(1) Volatility
(2) May loose your capital
(3) Long term nature
(4) Liquidity
(5) Management concerns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Forecasting of future financial price movements based on examination of past price movements.

A

Technical analysis

17
Q

Five Trading and Handling Fees

A

(1) Commission
(2) Vat
(3) PSE transaction fee
(4) Securities clearing corporation of Philippine fees
(5) Sales tax

18
Q

Normally 1/4 of 1% or 0.25% of the gross trade amount or a minimum change of Php 20 per transaction whiver is higher.

A

Commission

19
Q

12% of commission

A

Vat

20
Q

.005% of gross trade amount

A

PSE transaction fee

21
Q

0.01% of gross trade amount

A

Securities clearing corporation of the Philippine fees

22
Q

of shares x 0.006 (applicable to seller)

A

Sales tax

23
Q

Market trends

A
  • Ghost month
  • End of the year rally
  • Spillover effect
  • Earning Seasons
  • Friday profit taking
  • Long weekend sluggishness