stock investing 101

8/3/2019 Stock Investing 101

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Jay G. Peaflor, CSS

Head, Market Education Dept., PSE Certified Securities Specialist (CSS) Faculty, San Beda College & Centro Escolar University Co-Author, Building Wealth with Stocks

Director and Former Chair, PSE Employees Cooperative Radio Host, DZAR 1026 Business Agenda


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WHATS A STOCK?

www.pse.com.ph

EQUITIES

SHARES

STOCKSISSUES


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www.pse.com.ph

EQUITIES

SHARES

ISSUES

Ownership interest in acompany

WHATS A STOCK?

A stock represents a

claim on the company'sassets and earnings

50% return

in 1 day ispossible!


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www.pse.com.ph

Example, if a companyissued 100 shares ofstocks and an investor

owns 10 share, then heowns 10% of thatcompany

A GOOD FORM OF

INVESTMENT

An asset or item that ispurchased with thehope that it willgenerate income orappreciate in the future.


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WAYS TO MAKE MONEY FROMSTOCKS

DIVIDENDS

CAPITAL GAINS


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www.pse.com.ph

source: PSE

Stock 22-Jun-03 22-Jun-07 22-Jun-10

ABS-CBN 20.50 31.50 38

AC 139.26 471.69 317.00

ALI 4.48 18.25 13.5

BPI 25.80 58.62 45.5

BDO 18.75 71.00 44.00

GLOBE 538.16 1,213.07 875

JFC 17.20 54.06 68.5

MER 8.73 90.45 190

PLDT 484.08 2456.91 2395

URC 4.22 19.00 28.00

CAPITAL APPRECIATION


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source: PSE

SYM TYPE VALUE

EX-DIV RECORD DATE

DATE DATE PAYABLE

SECB CASH P0.25 per share(regular) 21-May-10 26-May-10 22-Jun-10

MBT CASH P0.60 per share 22-Mar-10 25-Mar-10 15-Apr-10

PSB CASH P2.75 per share 12-May-10 17-May-10 31-May-10

PSB CASH P0.15 per share 26-Mar-10 31-Mar-10 16-Apr-10

HLCM CASH P0.40 per share 31-May-10 03-Jun-10 25-Jun-10

UBP CASH P2.20 per share 05-May-10 11-May-10 04-Jun-10

MFC CASH CAD 0.13 per share 13-May-10 18-May-10 21-Jun-10

SLF CASH CAD 0.36 per common share 21-May-10 26-May-10 30-Jun-10

ABS CASH P1.11 per share 26-Mar-10 31-Mar-10 29-Apr-10

ICT CASH P0.40 per share 27-Apr-10 30-Apr-10 20-May-10

URC CASH P0.94 per share 30-Apr-10 05-May-10 20-May-10

TEL CASH P76.00 per share (regular) 12-Mar-10 17-Mar-10 20-Apr-10

TEL CASH P65.00 per share (special) 12-Mar-10 17-Mar-10 20-Apr-10

AC CASH P2.00 per share (regular) 17-Jun-10 22-Jun-10 16-July-10

DIVIDENDS


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CRITERIA OF A SOUND

INVESTMENT Returns

Safety Liquidity

Beats Inflation

Tax Advantage

Minimum Investment


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RISK-REWARDCONCEPT

Return shouldcompensate forbearing this risk

The higher the risk,the more you should

receive for holdingthe investment, andthe lower the risk,

the less you shouldreceive

Stocks

RISKS & REWARDS


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REASONS TO GET INTO STOCKS

An opportunity to make gains through stock &cash dividends

An opportunity to gain through capital appreciation A way to diversify your portfolio

An opportunity to help the capital market and the economyat length


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www.pse.com.ph

TYPES AND CLASSES OF

STOCKS

Preferred and Common

Class A and B


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www.pse.com.ph

FORMS OF STOCKS

BLUECHIP

INCOME

GROWTH

SPECULATIVE

DEFENSIVE

CYCLICAL

SEASONAL


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HOW MUCH DO I NEED TOBECOME A STOCK MARKET

INVESTOR?


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FOR A LOW AS P10,OOO.OO OR THE COST OF NEW MOBILE

HANDSET, YOU CAN BE PART-OWNER OF THE CONPANY THAT

YOUVE ALWAYS WANTED.


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PRICETICK SIZE orFluctuations

Minimum Shares

From To

0.0001 0.0099 0.0001 1,000,000

0.0100 0.0490 0.0010 100,000

0.0500 0.2490 0.0010 10,000

0.2500 0.4950 0.0050 10,000

0.5000 4.9900 0.0100 1,000

5.0000 9.9900 0.0100 100

10.0000 19.9800 0.0200 100

20.0000 49.9500 0.0500 100

50.0000 99.9500 0.0500 10

100.0000 199.9000 0.1000 10

200.0000 499.8000 0.2000 10500.0000 999.5000 0.5000 10

1000.0000 1999.0000 1.0000 5

2000.0000 4998.0000 2.0000 5

5000.0000 UP 5.0000 5

MINIMUM INVESTMENTS


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www.pse.com.ph

Select your stockbroker

Open an account

Discuss which stocks to buy/sell

Give orders to the broker Get the confirmation receipt

Deliver/pay before settlementdate

Receive payment

INVESTMENT PROCEDURES


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T h r u P h o n e

W a l k - I n

Investor Broker

I n t e r n e t

ORDER PLACEMENT


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www.pse.com.ph

NAME CERTIFICATESTRADING W/ SCRIP

STREET CERTIFICATES

SCRIPLESS TRADING

STOCK CERTIFICATES


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www.pse.com.ph

CHARGES

Brokers Commission (BC) - minimum of

0.25/maximum of 1.5% + 12 VAT

Clearing Fee of .0001

PSE Transaction Fee (1/200 of 1% of value of stocks

Stock Transaction Tax (1/2 of 1% of value of stocks)

BUY SELL


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www.pse.com.ph

2,000 shares x P 5.00 = P10,000.00Add:

Brokers Commission (1.5% + 12% VAT) 165.00Clearing Fee of .0001 (P10,000 x .0001) 1.00PSE Transaction Fee (1/200 of 1% of value

of stocks) .50_____________

Total cost of transactions P 10,166.50==========

SAMPLE COMPUTATION(BUYING)

CHARGES


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www.pse.com.ph

SAMPLE COMPUTATION

(SELLING)

2000 shares x P 6.00 = P12,000.00Less:

Brokers Commission (1.5% + 12% VAT) 198.00Clearing Fee of .0001 (P12,000 x .0001) 1.20PSE Transaction Fee (1/200 of 1% value

of stocks) .60*Stock transaction tax (P12,000 x 0.005%) 60.00**Cancellation Fee P20 + 10% VAT 22.00

___________Net amount to be received P 11,718.20

==========*Sales tax is already a final tax. No more capital gains.**If certificated

CHARGES


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The Law of Demand and

Supply

What push demand for stock

to go up?

STOCK PRICE FLUCTUATIONS


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www.pse.com.ph

FACTORS WHICH MAY AFFECT

STOCK PRICES

COMPANY (Profitability, Expansion, Governance)

ECONOMY (GNP, Inflation, Interest, ExR) INDUSTRY (Regulation, Competition)

EXTERNAL (US Economy, Dow)

POLITICAL


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www.pse.com.ph

STOCK MARKET QUOTES

OPEN

CLOSE

52-WK HIGH AND LOW

VOLUME

VALUE TURNOVER

GAINERS

LOSERS

NET FOREIGN BUY/SELL


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www.pse.com.ph

THE ELECTRONIC BOARDNAME BID ASK HIGH LOW L/T VOL

ABS 13.00 13.50 13.25 13.25 13.25 82,000

AC 295.00 297.50 297.50 292.50 295.00 67,160

JFC 34.50 35.00 35.50 34.00 35.00 279,700

TEL 1535.00 1540.00 1555.00 1540.00 1540.00 4,810,000

SMPH 212.00 213.00 212.00 212.00 212.00 51,370

SMC 65.00 65.50 65.50 65.00 65.50 18,000


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GUIDELINES IN INVESTING IN THE STOCK MARKET

Buy stocks when the market is bullish or when stock prices go up as aresult of growing economy and rising corporate earnings.

Look for new leads and fresh information about the listed companies.News about them will move their prices up or down.

Unburden yourself with trading-related stress and tension by ditchingspeculative stocks. Pick stocks with solid fundamentals.

Employ fundamental and technical analyses to know what stocks to buyand when to trade those stocks.

Choose a good broker and consult them all the time!

Hearsays about stocks must be verified first before making them as abasis of your buying and selling decisions.

Invest only your disposable income.

Put an end to procrastination. Invest and win in the stock market now!


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THE QUALITIES OF A GOOD STOCK BROKERAGE COMPANY

1.It should be in good standing with the PSE and SEC. A good broker has a clean recordof operations. It strictly adheres to the rules and regulations of the PSE and the SEC.

2.A good broker boasts a portfolio of satisfied clients.

3.A good broker provides its clients with free research services and free consultations.

4.A good broker provides accurate and reliable information to its clients. A good brokerprovides stock picks and trading recommendations, which are results of scientificresearch and analysis.

5.A good broker is always accessible. A good broker is always available forconsultations.

6.A good broker responds quickly to the customers requests and instructions.


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THE QUALITIES OF A GOOD STOCK BROKERAGE COMPANY

7. A good broker promptly settles customers claims.

8. A good broker offers reasonable brokers commission.

9. A good broker is equipped with broad and advance communication and tradingfacilities.

10. A good broker should have the following important units within their organization; aresearch department and a customer service department.

11. A good broker is run and manage by competent and qualified professionals.

12. A good broker is transparent. It allows its customers access to its books and financial

records.


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www.pse.com.ph

SOURCES OF STOCK MARKET INFO

BROADSHEETS


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www.pse.com.ph


TV NEWS, BUSINESS SEGMENT


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www.pse.com.ph


SMS/WAP SERVICES

pse quotes

pse market

pse index

pse gainers

pse losers

pse actives

pse corporate disclosures

Dial 211 Dial 2333


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www.pse.com.ph


ELECTRONIC BILLBOARDS


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www.pse.com.ph


ELECTRONIC BILLBOARDS


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www.pse.com.ph

Manila Stock ExchangeAug. 8, 1927

PSE HISTORY


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www.pse.com.ph

Makati Stock ExchangeMay 27, 1963

PSE HISTORY


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The MSE and MKSE unified in

December 23, 1992 to become the

PHILIPPINE STOCK EXCHANGEthe nations only organized stock exchangeto conduct trading of shares of stocks and

other investment instruments using uniformrules and regulations

www.pse.com.ph

PSE HISTORY


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www.pse.com.ph

For Efficiency, Orderliness, Fairness, Integrity and Transparency

THE PSE


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www.pse.com.ph

Demutualized Publicly Listed Self Regulatory Organization

250 Listed Companies Php 4-5 Billion
http://lexlibris/Public/Market%20Education/AVP-med.wmvhttp://lexlibris/Public/Market%20Education/AVP-med.wmv


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Thank you for investing your time with us!

INVEST NOW!!!!

$

$$

$$ $

$


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Visit the PSE website:

THANK YOU.

Jay PeaflorMarket Education Department

E-mail Ad.:[email protected]. No.: 6887537/09326068740

www.pse.com.ph

stock investing 101

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