WORK PLAN

• GREETINGS
• ATTENDANCE CHECKING
• REMINDERS
• INVESTAGRAM ACCOUNTS
• CEO FORUM
• BUSINESS PLAN

•DISCUSSION OF RCMS-SGEN STOCK TRADING

CHALLENGE/GUIDELINES AND MECHANICS
•DISCUSSION OF THE INTRODUCTION TO INVESTMENTS
•GROUPING FOR BUSINESS PLAN
•GROUP UPDATE ABOUT THE PROGRESS OF THE BUSINESS
PLAN
 • TAKE A SCREEN SHOT OF YOUR PROFILE IN
INVESTAGRAM & PORTFOLIO
• PLACE THE SCREEN SHOTS IN A LETTER SIZE
DOCUMENT AND SAVE IT AS PDF FILE
• FILE NAME: GRADE AND
SECTION_Name_INVESTAGRAM ACCOUNT
• SEND IT TO THE ASSIGNED FOLDER IN THE
GOOGLE DRIVE
• DUE ON NEXT MEETING
 • BUSINESS 10 PT CEO
FORUM 2021 REFLECTIVE
PAPER
• TEMPLATE WILL BE SENT
ON TUESDAY RIGHT
AFTER THE CEO FORUM
EVENT
• DUE ON FRIDAY,
JANUARY 15, 2021
Introduction to Investments
Essential of Investments in the Philippine Capital Market 2nd Edition (Santos, 2011)
REBUILD Doubts
TRUST
Do you know how many Filipinos are
currently investing in stocks?

106,512,074
total population in PH

Only 868,810
invest in the PH Stock Market

0.8% of the population

Source: https://www.pinoymoneytalk.com/pse-stock-
market-investor-profile-report/
Stocks can be very rewarding…

PSEi (Jan 2017 – Jan 2018)

30% gain
within 1 year
…but very damaging as well

PSEi (Jan 2018 – July 2018)

30% loss within

half a year
What will you learn in this class?

• Learn basics and terminology of stock

investing and financial markets

• Introduce various strategies for investing

Class Activities
• News presentation - present weekly news relating to
stock market

• Virtual Stock Trading

• Actively trade and monitor virtual stock in live markets
• Paper will be assigned to discuss portfolio and experience

• Real Money Stock Trading (as a class) through the

Capital Market Learning Center
 Who is an INVESTOR?

• Individual willing to sacrifice present wants

to achieve a higher level of consumption in
the future
What is the GOAL of an investor?
• Something that is owned and has monetary
value
 ASSETS

• Physical Assets – tangible,

income-generating assets used
to produce goods and services

• Financial Assets – intangible,

represents claims against the
income generated by real
assets
 Other Differences

Real Assets Financial Assets

Liquidity Ease and Can be easily
speed in bought and sold
selling and through phone,
buying is not broker, internet
true
Holding period Long period Years, months,
days, even seconds
Information Limited Readily available
available and more abundant
THE PHILIPPINE FINANCIAL
MARKET
 Financial Market
• It is where suppliers and users of funds meet to
finance their needs and satisfy their objectives
Financial
Intermediation
For Suppliers, Process For Users,
Funds become Funds become
financial assets financial liabilities

Suppliers (lenders) Users (borrowers)

Individuals, businesses, Individuals, businesses,

government that have government willing to
available capital and pay a fee for the use of
willing to lend their capital to support their
capital for a fee financing needs
Illustrate the financial intermediation process

• Apollo is an aspiring
entrepreneur who wants to
put up an e-commerce
company. However, he needs
P500,000 to put up the
business. He decided to get a
loan from Bank O to fund his
business. He is expected to
pay the borrowed amount
plus the interest charge at
15% after two years.
The Philippine Financial System

• Bangko Sentral of the Philippines (BSP)

• Responsible for implementing monetary policy and
regulation of the banking system
• Insurance Commission (IC)
• Supervises the operations of insurance companies
• Securities and Exchange Commission
(SEC)
• Works with BSP and IC in supervising and regulating
activities of the financial institutions in the country
Types of Institutions
• Banking Institutions
• Universal banks
• Commercial Banks
• Thrift banks
• Rural banks
• Specialized government banks
• Non-bank Financial Intermediaries
• Investment houses
• Financing companies
• Securities dealers/brokers
• Investment Companies
• Insurance Companies
• Lending Investors
• Pawnshops
• Government Non-bank Financial Institutions
• Venture Capital Corporations
• Non-bank Thrift Institutions – Mutual Building and Loan Associations,
Non Stock Savings and Loans
Getting to Know the Financial
Institutions
The Philippine Financial Markets

• Where exchange of assets in the financial

system happens

1.Money Market
2.Capital Market
3.Foreign Exchange Market
4.Derivatives Market
Money Market

• Segment of financial market which deals

with short term maturities of financial
contracts – less than 1 year
• Fixed income debt instruments
• Examples
• T-bills (issued by the Bureau of Treasury) – matures in less
than 360 days
• Commercial papers (issued by private companies e.g San
Miguel Corporation)
Who are the major investors of
money market?
• SSS
• GSIS
• HDMF
• Mutual funds
• Retail investors
Capital Market

• Segment of the financial market with

dealings in maturities beyond 1 year
• Can be subdivided into the type of market
(primary vs secondary) and form of financial
instruments (debt vs equity)
• Examples:

• Treasury bonds (issued by Bureau of Treasury, BSP, Govt

Corporation) – matures in 2 – 30 years
• Long term commercial papers
• Corporate bonds of private companies
 Capital Market

Primary Market Secondary Market

Investors buy securities Investors trade securities

directly from the among themselves
company issuing them
through IPO
Primary Market
Issuing Initial Public
Firm Offering
- First time a
Lead company’s
Underwriter stocks is
offered to the
public for
Investment Investment purchase
Banker A Banker B

Investors Investors Investors

Secondary Market

• Where actual trading of shares between

buyers and sellers happen
• PSE or over the counter market (OTC)
Who are the major investors of
capital market?
• BSP
• SSS
• GSIS
• HDMF
• Mutual funds
• Banks
• Insurance companies
• Retail investors
• The Philippine Stock Exchange provides an
active trading platform in the Philippine
equities market
 • BUSINESS PLAN
PREPARATION
• BUSINESS PLAN
PRESENTATION IS ON
JANUARY 25-29, 2021
• WILL SEND YOU THE
SCHEDULE PER GROUP