MITCH T.

MINGLANA
BSA 301

EQUITY FINANCING - INVESTOR'S POINT OF VIEW

Activity:

1. Chose three companies to invest your virtual money.

The three companies I chose to invest my virtual money are:

(1) PSE: SMC- San Miguel Corporation,
(2) PSE: SECB- Security Bank Corporation, and last is the
(3) PSE: SPM- Seafront Resources Corporation.

2. By 10:00 a.m., April 20, 2021 consume all funds by buying stocks of these
companies.
3. By noon, take a screenshot of your portfolio.

Screenshot taken: April 20, 2021 at 12:00 noon.

4. Explain why you choose the three companies (100 words).

I chose these three companies namely: PSE: SMC- San Miguel Corporation,
PSE: SECB- Security Bank Corporation, and PSE: SPM- Seafront Resources
Corporation, because they are somewhat well known here in the Philippines and
they had a solid history of growth. Not only they are well known, but their stock
prices are my basis also why I chose them. San Miguel Corporation, Security
Bank Corporation and Seafront Resources Corporation are one of the country’s
largest and most profitable and diversified companies- this pushed me to
virtually invest my funds because they are profitable and thus expecting good
return on my investment.

5. Write your observation on how the prices fluctuate between the time you
bought the stocks and the time the screenshot was taken (200 words).

I purchased the stocks at 10am, checked it back at 12noon and I noticed that
the prices fluctuate a little for each of the three companies. San Miguel
Corporation’s stock price fluctuates from P117 to 116.80, the price decreased
by P0.2. While for the Security Bank Corporation- from P115.60 to P115.80,
its price increased by P0.2. And the Seafront Resources Corporation, stock
prices remain the same. I bought it for P2.46 per share and still the same when
I checked back my portfolio.

I noticed that San Miguel Corporation and Security Bank Corporation

fluctuates their stock prices because of the market forces. This means that stock
prices will suddenly change because of the supply and demand. The stock price
moves up when there are more people want to buy a stock (demand) than sell it
(supply). Just like what I’ve noticed in Security Bank Corporation that their
stock price suddenly increased because there were more people wanted to buy
the stock during that time. Contrarily, the price would fall if more people
wanted to sell a stock rather than buying it, so in this case the supply would be
greater than the demand that is why the prices would decrease.
6. Upload your screenshot and answer here of your portfolio on April 20 and 23,
2021.

Screenshot taken: April 20, 2021 at 12:00 noon.

Screenshot taken: April 23, 2021 at 12:00 noon.