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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?
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EQUITIES
SHARES
STOCKSISSUES
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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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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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TYPES AND CLASSES OF
STOCKS
Preferred and Common
Class A and B
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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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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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NAME CERTIFICATESTRADING W/ SCRIP
STREET CERTIFICATES
SCRIPLESS TRADING
STOCK CERTIFICATES
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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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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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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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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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STOCK MARKET QUOTES
OPEN
CLOSE
52-WK HIGH AND LOW
VOLUME
VALUE TURNOVER
GAINERS
LOSERS
NET FOREIGN BUY/SELL
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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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SOURCES OF STOCK MARKET INFO
BROADSHEETS
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SOURCES OF STOCK MARKET INFO
TV NEWS, BUSINESS SEGMENT
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SOURCES OF STOCK MARKET INFO
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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SOURCES OF STOCK MARKET INFO
ELECTRONIC BILLBOARDS
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SOURCES OF STOCK MARKET INFO
ELECTRONIC BILLBOARDS
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Manila Stock ExchangeAug. 8, 1927
PSE HISTORY
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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
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PSE HISTORY
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For Efficiency, Orderliness, Fairness, Integrity and Transparency
THE PSE
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Demutualized Publicly Listed Self Regulatory Organization
250 Listed Companies Php 4-5 Billion
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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