Christian Lloyd B.

Ogabang BSAIS – IA21

MTh – 10:30 a.m. – 12:00 nn.
Research the following:
1. What is a bond?
 Bonds, or fixed income investments, are essentially loans from an investor to a company or
government. Bond investors receive periodic payments based on the interest rate at which
the bond was sold. A bond could be thought of as an I.O.U. between the bank and borrower
that incorporates the details of the credit or loan and its installments. Bonds are utilized by
organizations, districts, states, and sovereign governments to finance projects and
operations. Owners of bonds are debt holders, or creditors, of the guarantor. It is also
common for bonds to be repurchased by the borrower if interest rates decline, or if the
borrower’s credit has improved, and it can reissue new bonds at a lower cost.

2. What bonds are present in the Philippines and where to buy them?
 Most banks in the Philippines offer different fixed salary items like Retail Treasury Bonds, T-
Bills, Fixed Rate Treasury Notes (FXTNs), Dollar Sovereign Bonds, and Dollar Corporate
Bonds, among others.
 Some of the more popular banks known to offer bonds and other fixed-income products
include:
a)Security Bank
b)BDO
c) BPI
d)Unionbank
e)PNB
f) Metrobank
g)RCBC
h)Landbank
i) Bank of Commerce
j) China Bank
k) Development Bank of the Philippines (DBP)
3. What are the average interest rates prevailing for these bonds in the Philippines?

4. The government is planning on issuing Prize Bonds in the country? What are its features and which
country/countries are currently issuing those? How and where to buy them if ever issue?
 Under the planned prize bond offering, De Leon said the Treasury will sell the securities at
multiples of P500. She said each investment would carry quarterly coupon payments, as
well as a chance to win cash prizes during quarterly draws.
 Treasury bills auction that the prize bonds would be sold through state-run lenders
Development Bank of the Philippines and Land Bank of the Philippines as well as private
 banks. With the prize bonds likely set up and government spending yet to hit max throttle,
the Treasury can stand to defer the issuance of a large estimated retail treasury bonds. Also,
you can buy prize bonds at the designated branches of commercial banks.

5. Do you think Filipinos will be attracted to invest in prize bonds? Why or Why not?
 Yes, because some Filipinos nowadays always think of money on how they could increase
their wages, Filipino investors can have a big impact on the prize bonds because prize bonds
are a one of a kind type of investment. As opposed to paying interest, Prize Bonds offers
clients the opportunity to win prizes every week. These securities or bonds are planned for
empowering the habit for putting cash aside in a country with among the least saving rate in
Asia. It's also a route for the government to go to Filipinos' rising wages to verify financing
for arranged record spending on streets, rails and ports.

6. What is a stock?
 A stock is a type of security that demonstrates the holder has proportionate proprietorship
in the giving company. Corporation’s issues stock to raise assets to work their organizations.
Stocks are purchased and sold overwhelmingly on stock trades, however there can be
private deals also, and they are the establishment of about each portfolio.
 Stocks are issued by companies to raise capital, settled up or share, so as to develop the
business or attempt new investments. There are significant distinctions between whether
someone purchases shares directly from the company when it issues them (in the primary
market) or from another investor (on the optional market). At the point when the company
issues shares, it does as such as a return of cash.

7. How to invest in stocks? How to earn from them?

 Owning stock gives you the right to vote in shareholder meetings, receive dividends (which
are the company’s profits) if and when they are distributed, and it gives you the right to sell
your shares to somebody else. Stocks can collect cash dividends and can share in the
proportional growth of the underlying per share. There are ways to earn money on stocks,
first is when a company pays portion of its profits to you as a shareholder in the form of
dividends. Secondly, is when a stock you own appreciates its value.

8. What is initial public offering?

 Public share issuance allows a company to raise capital from public investors. The transition
from a private to a public company can be an important time for private investors to fully
realize gains from their investment as it typically includes share premiums for current private
investors.
 IPOs have been known for uptrends and downtrends in issuance. Individual sectors also
experience uptrends and downtrends in issuance due to innovation and various other
economic factors.
9. What is the role of the Philippine Stock Exchange in helping individuals and entities to buy and sell
stocks in the country?
 Generally, The Philippine Stock Exchange (PSE) is a private non-profit and non-stock
organization created to provide and maintain a fair, efficient, transparent and orderly market
for the purchase and sale of securities such as stocks, warrants, bonds, options and others.
 The PSE plays a vital role in the financing of productive enterprises that use the funds for
growth and expansion of new jobs. It is therefore essential to the growth of the Philippine
economy. Furthermore, the PSE facilitates the selling and buying of the issued stocks and
warrants. It provides a suitable market for the trading of securities to individuals and
organizations seeking to invest their saving or excess funds through the purchase of
securities.
10. Given the current economic and political situation in the country, do you think it is good to invest in
stocks? Why or Why not?
 For me, it is good to invest stocks in today’s economic and political situations because
basically when you invest in a stock market it depends on the situation on how the stocks of
that certain company is doing. Sometimes there investors who invest stocks in some
company’s or corporations with a bad economic and political situation in the country.
Because of the reason that there are some corporations that could handle a bad or critical
condition on the economy of the country. In conclusion, and to my own opinion, being an
investor of stocks should have the complete information or must be updated to any economic
and political situations so that you can gain money.