LYCEUM-NORTHWESTERN UNIVERSITY

Dagupan City, Pangasinan

COLLEGE OF BUSINESS EDUCATION

Study Guide 4
Stock Exchange

I. Overview
This chapter discusses stock exchanges. It also explains the primary market and secondary
market. It also enumerates stock exchanges. It also identifies the trading system.

II. Module Learning Outcomes

After completing this study guide, you will be able to:

1. Determine the regulatory body of stock exchange in the Philippines.
2. Enumerate the functions of stock exchanges.
3. Explain the organization, membership, and management of stock exchanges.
4. Discuss the process of listing securities.
5. Understand the trading system in stock exchange.

III. Key Concepts

1. Concept of stock exchange.

2. Functions of stock exchange.
3. Organization, membership, and management of stock exchange
4. Listing of securities

IV. Content / Lectures / Readings / Learning Resources

1. Read the main reference uploaded in Google Classroom..

2. Participate in a synchronous discussion via Google Meet. Please see the link which is
posted in the Google Classroom. Due date: August 30, 2021 at 12:00PM.

The following are guide questions which will guide you as you read your main reference book
and watch the video:
a. What is a stock exchange?
b. What is investment? Is investment different from speculation?
c. In the stock market, can you differentiate the investor from the speculator?
d. What are the five different aspects of investment?
e. What are the various forms of investment alternatives?
f. What are the investors’ objectives in investing his funds in the market?
g. What are the advantages of placing money in the bank deposits?
h. How do common stocks differ from preference stocks?

3. Lectures

What is a stock exchange?

The stock exchanges were once physical market places where the agents of buyers and sellers
operated through the auction process.

Function of stock exchanges

It is essential for the smooth functioning of the private sector corporate economy.

Listing of securities
Listing is the process of including the securities of a company in the official list of the stock
exchange for the purpose of trading.

Trading system in stock exchange

Buyers and sellers do not directly meet and interact with each other for making their trades.

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Types of orders
1. Market order
2. Limit order

Types of speculators
1. Bear
2. Bull
3. Lame duck
4. Stag

V. Learning Activities

Forum Guidelines / Instructions

1. Join a class and input the class code: . Strictly follow the university format in creating an
email account and classroom name which are as follows:
(lastname.firstname.middleinitial@gmail.com and last name, first name, middle initial) e.g.
geller.monica.e@gmail.com and Geller, Monica E.
2. Familiarize yourself with the platforms that the instructor utilizes in tests of knowledge and
application (e.g. TestMoz, ClassMarker, Quizziz, and Google Forms).
3. Follow the instructions posted in Google Classroom to take the test. Failure to take the test
within the time schedule for the class without a valid excuse (e.g. medical reasons, internet, or
electricity concerns) would result to an absence and a mark of ‘0’.
4. Do not forget to snip your results and attach the screenshot prior to submission. This is to
emphasize transparency and avoid fraudulent claims of finished and submitted tests.

Learning Activity 1:

1. Group with 2 or 3 of your classmates.

2. Prepare a powerpoint presentation on the stated topic. Do not forget to cite your resources
by placing the material you have referenced from (book or website).
3. Upload your output in the Google Classroom.
4. Follow the format: (Topic: Stock Exchange by Juana Dela Cruz, Gabriela Silang, & Jose
Rizal ; Submission Date: January 1, 2021)

Learning Activity 2:

1. Participate in the online discussion entitled “Stock Exchange” in Google Classroom by

sharing your insights and learning (class code: ).
2. Analyze a case study and answer the specific requirements which will be posted in Google
Classroom on September 1, 2021, 11:00AM-12:00PM.

Learning Activity 3 (Optional Task):

1. Prepare a report on Philippine Stock Exchange.

2. The report should include history, operations, functions, and limitations.
3. Discuss its significance to the economic activity of the country.

VI. Assessment / Evaluation

1. Learning Activity 1: Preliminary assessment of the lessons through online powerpoint

presentation and discussion by the assigned reporters. Due date: August 30, 2021, 12:00PM.
2. Learning Activity 2: Review and finalize the assigned case study. Due date: September 1,
2021, 12:00PM.
3. Learning Activity 3: Utilize the internet in conducting a research on Philippine Stock
Exchange. Reports are downloadable and accessible without any payment. Follow the detailed
instruction that is to be posted by the instructor on Google Classroom. Due Date: September
10, 2021, 5:00PM. Note: This is an optional task that can be done by a student. The rubrics for
this activity may utilize that from assessment #1.

Rubrics for Assessment #1

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Task Description: Students will work together in assigned teams to create a video project that
details a specific aspect of the course. The presentation should include appropriate
photographs, video, music, graphs, and other visual aids. The final output should be uploaded
in Google Classroom.

Activity Exemplary Proficient Partially Proficient Incomplete

Concept 15 - 20 points 10 - 14 points 5 - 9 points 0 - 4 points
Has a clear picture Has a fairly clear Has brainstormed Little effort has
of what they are picture of what their concepts, but been spent on
trying to explain. they are trying to no clear focus has brainstorming and
Adequate explain. Adequate emerged. Goals of refining a concept.
discussion of what discussion of what the final output Unclear on the
they have they have learned. have not been goals and how the
learned . His/her His/her work clearly defined. project objectives
work contributed resulted to will be met.
to the output of the discrepancy to the
group. output of the
group.
Content or 15 - 20 points 10 - 14 points 5 - 9 points 0 - 4 points
Organization The content Information is The content does The content lacks
includes a clear presented as a not present a a central theme,
statement of connected theme clearly stated clear point of view,
purpose or theme with accurate, theme, is vague, and logical
and is creative, current supporting and some of the sequence of
compelling and information that supporting topics. Much of the
clearly written. A contributes to information does supporting
rich variety of understanding the not seem to fit the information is
supporting output’s main idea. main output or irrelevant to the
information in the Details are logical appears overall output. The
video contributes and persuasive disconnected viewer is unsure
to the information is topics with no what the message
understanding of effectively used. unifying main idea. is because there is
the output/s main The content Few citations and little persuasive
idea. Topics are includes a clear facts are included. information and
presented in a point of view with only one or two
logical order. a progression of facts about the
Sources are ideas and topic are
properly cited. supporting articulated.
information. Information is
Sources are incorrect, out of
properly cited. date, or
incomplete. No
citations are
included.
Teamwork 12 - 15 points 8 - 11 points 4 - 7 points 0 - 3 points
Students hadStudents had Only a couple of Meetings were not
discussions discussions meetings were held and/or some
regularly. All
regularly. Most of held. Most of the of the team
students on the the students on students on the members did not
team contributed the team team contributed contribute at all to
to the discussion contributed to the at some level, but the project.
and were part of discussion and a majority of the
the final output. were part of the work was done by
final output. one or two.
Timeliness 12 - 15 points 8 - 11 points 4 - 7 points 0 - 3 points
All deadlines were Most deadlines Many deadlines Deadlines were
met. were met. Those were not met, regularly missed,
that were late did resulting in some having a
not have impact on the significant impact
significant impact finished output. on the finished
on the finished output.
output.
Source: (lambenglishmontana.wikispaces.com/file/view/RubricVideo.doc)

Rubrics for Assessment #2

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Task Description: The student will analyze a case on the stated topic. He or she answers the
requirements of the case by integrating the concepts into a coherent idea or thought. The
output is to be encoded in a format that is specified by the instructor. Please see Google
Classroom for further instructions. Note: Your output is tested for plagiarizing.

Legend: Exceptional (5) ; Meets Expectations (4) ; Needs Improvement (3) ; Below Standards (2)
Category Exceptional Meets Expectations Needs Improvement Below Standards
Focus/Completeness Addresses the case Addresses the case in Addresses the case Distorts or neglects
clearly, originally, and away that is very clear, clearly, but may aspects of the case.
responds effectively to fairly original, and respond to some Indicates confusion
all aspects of the task. responds effectively to aspects of the task about the topic or
all aspects of the task. more effectively. May neglects important
slight some aspects of aspects of the task.
the task.
Concept Application / Answers to each Answers to most Answers to some Most answers to
Evidence section of the case sections of the case sections of the case sections of the case
study are tied to at study are tied to at study are tied to at study are not tied to at
least one concept, least one concept, least one concept, least one concept,
process, or theory and process, or theory and process, or theory and process, or theory and
supported by evidence. supported by evidence. supported by evidence. supported by evidence.
This support may be This support may be This support may be Evidence includes
drawn from the drawn from the drawn from the facts, statistics,
textbook and/or textbook and/or textbook and/or other examples, or real life
sources of the highest sources of the highest quality sources. experiences. Little
academic or journalistic academic or journalistic Evidence includes evidence may be drawn
quality. Evidence quality. Evidence facts, statistics, from quality academic
includes facts, includes facts, examples, or real life or journalistic sources.
statistics, examples, or statistics, examples, or experiences. Answers Most evidence is drawn
real life experiences. real life experiences. should include quality from encyclopedia or
Exemplary answers Answers should include sources in dictionary sources,
incorporate multiple quality sources in parenthetical notations websites that lack
quality sources in parenthetical notations that support some editorial control, or
parenthetical notations that support most answers. other low quality
that support each answers. sources.
answer.
Analysis All of the concepts, Most of the concepts, Some of the concepts, Concepts, theories,
theories, processes, theories, processes, theories, processes, processes, evidence,
evidence, and evidence, and evidence, and and examples are not
examples are specific examples are specific examples have explained well.
and explanations are and explanations are explanations that show Competing arguments
given that show how given that show how how they support the may be implied or
they support the they support the author's position. briefly mentioned and
author’s position. The author's position. Competing arguments their presentation may
assignment Competing arguments may be implied or be slightly imbalanced.
summarizes the major are presented in an briefly mentioned and If competing arguments
competing arguments, unbiased manner. their presentation may are mentioned, they
opposing positions, or be slightly imbalanced. may be set up as
biases. Strengths and "straw men" or may be
weaknesses of various drawn from sources
arguments are that are unreliable or
summarized in an biased.
unbiased manner.
Mechanics Author makes no errors Author makes 1-2 Author makes 3-4 Author makes 5-6
in grammar spelling errors in grammar or errors in grammar or errors in grammar or
that distract the reader spelling that distract the spelling that distract the spelling. Many
from the content. All reader from the reader from the sentences are not well
sentences are well- content. Most content. Most -constructed or varied.
constructed with varied sentences are well- sentences are well- The writing style lapses
structure. The writing constructed and there constructed, but there into excessive use of
style is professional, is some varied is no variation is first or second person,
avoids passive voice as sentence structure in structure. The writing frequently utilizes
much as possible, and the assignment. The style may lapse into passive voice where a
primarily utilizes a third writing style is use of first or second more direct sentence
person perspective, professional, avoids person, utilizes passive structure is possible, or
except where awkward passive voice as much voice where a more employs styles that
or appropriate to do as possible, and direct sentence veer from the
otherwise. primarily utilizes a third structure is possible, or professional such as
person perspective. employs styles that editorial or creative
veer from the writing tones.
professional such as
editorial or creative
writing tones
Organization Sequence is clear and The assignment is The assignment may Ideas are illogically
effective. Plan utilizes adequately organized have a reasonable sequenced. Student
headings properly, and developed, "flow", but reader may may employ headings
according to APA generally supporting be confused about the inconsistenly and
standards, to separate ideas with reasons and direction of the sporadically or not at
sections of the examples. Plan utilizes assignment due to poor all. There may be no
assignment. headings to separate sequencing. Student introduction or it may
Paragraphs support the sections of the makes an effort to be unsatisfactory.
arguments in a logical assignment. The employ headings to There is no conclusion
manner and each student follows the organize the or the conclusion does
paragraph contains a outline provided in the assignment, but does not adequately

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 topic sentence and assignment. Thenot apply them summarize the position
supporting information introduction is fairly consistently. The taken.
that ties logically to the focused and attempts introduction is a bit
topic of the sentence. to justify the
scattered, but may
The introduction is importance of the
generate some initial
focused and very argument. Theinterest. It may not
effectively justifies the conclusion provides a attempt to explain the
argument and explains good summary. importance or
its importance. The relevance of the issue.
conclusion provides an The conclusion
excellent summary. provides a limited
summary.
https://espire.stmary.edu/ICS/icsfs/Case_Study_Rubric.pdf?target=b3f1aecc-6d4e-4a2f-91f0-67ae358b165d

VII. Module Summary

 Financial investment is the allocation of funds to assets and securities after considering
their return and risk features.
 Investor plans for a long horizon after considering the fundamental factors and assumes
moderate risk.
 Speculators are interested in short term gains and their buying and selling are based on the
market price movement.
 The main objectives of rational investors are maximizing returns and minimizing risk. Safety
of the principal, tradability, and liquidity are his or her subsidiary objectives.
 The investor should have knowledge about the economy, the company, and the market
structure. Equity shares have the right to receive dividend and residual claim.
 Investment alternatives are many in number. They are negotiable financial securities and
non-negotiable financial investments.
 Gold and silver are the real asset form of investment. The appreciation of gold prices is
rather very low in the past few years.
 Real estate is a lucrative form of investment with high capital appreciation.

VIII. References

 http://ndl.ethernet.edu.et/bitstream/123456789/78319/1/Investment%20Analysis%20and
%20Portfolio%20Management.pdf
 https://backup.pondiuni.edu.in/sites/default/files/investment%26portfolio-260214.pdf

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