Trading Process Flashcards
Trading Process
- Choose your stockbroker
- Open a trading account
- Discuss with your stockbrokers the stock you wish to BUY or SELL
- Give orders to the stockbrokers
- Get the confirmation receipt
- Deliver/Pay before the Settlement Date
- Receive the Payment
Company will require you to fill out ________
Customer Account Information Form
Requirements in opening Trading Account
2 Valid IDs
Specimen signature cards
Proof of billing
2 ways to order stocks
- A telephone call or sending SMS
- Directly online via internet
QTY
Number of shares, divisible by 10
Higher the _____, lower the ______
price, board lot
Time you wanted to queue the order
Term
Bid Price: ______; _________: Sell
Buy, Ask Price
2 ways to make your money grow
- Increase in stock price or capital appreciation
- Dividends declared by the company
Ways to post an order
Over-the-Phone
Online
Face-to-Face
Buying or selling of stocks without a specified price, or immediately at the prevailing market price when the order is executed
Market Order
With a specified price known as the limit price
Limit Order
Accepted only during pre-open and pre-close periods
Market on opening/closing order
order entered for immediate execution at the best price with whatever volume is available and the remaining quantity will be queued as a limit order
Market-to-Limit Price
triggered when a specified price limit is reached
Stop Order
2 kinds of stop order
- Stop Loss Order
- Stop Limit Order
Valid until the end of the trading the day
Day Order
Valid until cancelled by the trader
Good Till Cancelled
Valid until the date specified
Good Till Date
Valid for seven (7) Calendar Days
Good Till Week
Valid for 360 Calendar Days
Sliding Validity
Execute-and-Eliminate order is valid upon execution
Fill-and-Kill
Order Type
- Market Order
- Limit Order
- Market an opening/closing order
- Market-to-Limit Price
- Stop Order
Order Validity Types
- Day Order
- Good Till Cancelled
- Good Till Date
- Good Till Week
- Sliding Validity
- Fill-and-Kill
organized marketplace/ facility that brings buyers and sellers together and facilitates the sale and purchase of stocks
Stock Exchange
who owns shares of stock of a publicly listed company
Investors
licensed by SEC. An agent between a buyer and seller of stocks in the market.
Stockbrokers
2 types of stockbroker
- Traditional
- Online
Shares of stock are traded. Qualified with the requirement of the PSE
Listed Companies (issuers)
Security Clearing Corporation of the Philippines. To ensure the orderly settlement of equity traders executed at the PSE
Clearing House
custodian of listed shares of stocks
Depositor (Philippine Depository and Trust Corp)
accept deposits of funds for payment
Settlement Banks
provide the issuer or the listed company with a list of holders of its securities
Transfer Agent (Official Keeper)
For traditional stockbrokers, settlement of all transactions, either buying or selling is usually done after __________from the transaction date or ___. This means that the buyer must pay for the costs of the transaction to his stockbroker within _____________________ the trade was done. Similarly, the seller will receive the proceeds of the sale from the stockbroker after the ______________________.
three (3) trading days, T+3, three (3) trading days after, third day from the transaction date
For online stockbrokers, settlement of all transactions is done on the _____________. To buy shares of stock, you will need to fund your account prior to any purchase. In the same manner, the proceeds of your sale will be credited to your account ________________________from the transaction date.
transaction date, not later than three (3) working days
stock symbol of the listed company
NAME
Opening price of the stock for the day
OPEN
Displays the highest buying price
BID
lowest selling price
ASK
Highest price traded for the period
HIGH
Lowest price traded for the period
Closing price of the trading day
CLOSE
Last traded price
L/T
Total number of stocks transacted
VOL
