MONDRIAAN AURA COLLEGE

MATHEMATICS IN THE MODERN WORLD

BUY STOCKS
IN THE
PHILIPPINES
PRESENTED BY: RACHELLE ANNE N. CHUA

BS PSYCHOLOGY - 1


POINTS TO TALK ABOUT

Stocks

Types of stocks inthe Philippines

How to invest in the stock market

Requirements to invest in stock market

Warrants

rights of stock holders

STOCKS
A stock is a form of security

that indicates the holder has

proportionate ownership in the

125

issuing corporation.

Corporations issue (sell) stock

100
to raise funds to operate their

businesses. There are two

75
main types of stock: common

and preferred.

Stocks are bought and sold 50

predominantly on stock

exchanges, though there can

25

be private sales as well, and

they are the foundation of

0
Item 1 Item 2 Item 3 Item 4
nearly every portfolio.
TYPES OF
STOCKS IN
THE
PHILIPPINES
Preferred stocks
common stocks
cumulative preferred stocks
Convertible preferred stocks
PREFERRED STOCKS

Preferred stockholders have a higher claim on distributions (e.g. dividends) than common

stockholders.

Preferred stockholders usually have no or limited, voting rights in corporate governance.

In the event of a liquidation, preferred stockholders' claim on assets is greater than common

stockholders but less than bondholders.

Preferred stock has characteristics of both bonds and common stock which enhances its

appeal to certain investors.

COMMON STOCKS

Common stock is a security that represents ownership in a corporation.

In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and

preferred stockholders are paid.

There are different varieties of stocks traded in the market. For example, value stocks are stocks that are

lower in price in relation to their fundamentals. Growth stocks are companies that tend to increase in value

due to growing earnings.

Investors should diversify their portfolio by putting money into different securities based on their appetite for

risk.
 CUMULATIVE PREFERRED STOCKS

Cumulative preferred stock is a type of preference share that has a provision that mandates

a company must pay all dividends, including those that were missed previously, to cumulative

preferred shareholders.

This class of shareholders is to be paid ahead of other classes of preferred stock

shareholders and ahead of common stock shareholders.

Cumulative preferred stock contrasts with non-cumulative preferred stock, in which no

omitted or unpaid dividends are issued; if there are no dividends in a particular quarter or

year, the shareholders simply miss out.

CONVERTIBLE PREFERRED STOCKS

Convertible preferred stock is a type of preferred share that pays a dividend and can be

converted into common stock at a fixed conversion ratio after a specified time.

Convertible preferred stock is a type of hybrid security that has features of both debt and

equity, arising from the dividend payment and conversion option, respectively.

Once the common share trades above the conversion price, it may be worthwhile for the

preferred shareholders to convert their preferred stock to common shares.

After preferred shareholders convert their shares, they give up their rights as a preferred

shareholder and become a common shareholder.

HOW TO STEP BY STEP:

1. Choose your broker

INVEST IN 2. Online (COL Financial, First Metro, and Phil Stocks)

3. Traditional (Use a licensed broker or salesman to handle account)

THE
4. Open your stock market brokerage account

5. Fund your account

STOCK
6. Place your order: buy or sell, via online or phone call to your

stockbroker

MARKET
7. Monitor or track your investments

REQUIREMENT:

1. Valid ID or Government issued ID.

2. Choose a stockbroker

3. Open a brokerage account

4. Place your order with your broker

5. Settle your transaction

 table 1
board lot table

The minimum amount of money needed to invest in

the stock market depends on the minimum amount of
shares to be traded for the stock. This minimum
amount will be determined by the prevailing market
price of a particular stock. For each stock the minimum
amount of shares to be traded is fixed and depends on
the price range of the stock, as shown in the table
below (otherwise known as the Board Lot Table). To
determine the minimum amount of shares, the
investor takes the market price of the wanted stock,
looks for the price range in the table below reads the
minimum amount of shares in the same row
 It’s the benchmark measuring the

performance of the Philippine Stock

Market. The PSEi is made up of the top
30 listed companies, chosen to
represent the general movement of the
stock market. Companies are ranked
Formerly known as
CitisecOnline, COL Financial is
an easy-to-use trading platform
for investors to buy and sell
shares in the Philippine Stock
A broker isan individual or firm
that acts as an intermediary
between an investor and a
securities exchange

based on their full market

Exchange (PSE).

capitalisation. Apart from the PSEi and

STOCK BROKER
the All Shares Index, the other six

indices that make up the Philippine C O L FINANCIAL

Stock Exchange are sector indices

based on a company’s main source of

revenue.

PHILIPPINE STOCK EXCHANGE INDEX



WARRANTS

REPRESENTS THE RIGHT TO

PURCHASE A COMPANY'S STOCK

AT A SPECIFIC PRICE AND AT A

SPECIFIC DATE
 RIGHTS OF STOCK
HOLDERS
OWNERSHIP IN A
THE RIGHT
VOTING PORTION OF THE ENTITLEMENT

COMPANY TO
POWER ON TO
TRANSFER
MAJOR DIVIDENDS
As the assets
OWNERSHIP
ISSUES
generates profits,
whenever

and as the profits The right to

represents the dividends are

are reinvested in transfer

right to declared,

additional assets, ownership

purchase a common

shareholders see a means

company's shareholders

return as the value shareholders

stock at a are entitled to

of their shares are allowed to

specific price receive their

increases as stock trade their stock

and at a share

prices rise. on an exchange

specific date
 Areas of Concern

DIFFICULTY OPPORTUNITY TO THE RIGHT TO SUE RETENTION

INSPECT FOR WRONGFUL

CORPORATE BOOKS ACTS

Presentations Presentations
AND RECORDS.
are tools that are tools that
Suing a company
can be used as Shareholders have can be used as
typically takes
lectures. the right to examine lectures.
the form of a

basic documents
shareholder

such as company
class-action

bylaws and minutes

lawsuit.

of board meetings.
THAT IS ALL,
THANK YOU.