The following is excerpted directly from the Philippine Stock Exchange website for your convenience: WHAT ARE STOCKS? Stocks are shares of ownership in a corporation. When you become a scripless securities trading system malaysia or shareholder of a company, you become part-owner of that company.
Securities, on the other hand, are proof of one’s ownership or indebtedness in a company. Securities are easily bought and sold in the stock market. WHAT ARE THE TYPES OF SECURITIES THAT I CAN BUY IN THE STOCK MARKET? Most of the issues listed in the PSE are common stocks.
Other types of securities such as preferred stocks, warrants, PDRs and bonds are also traded. These are usually purchased for participation in the profits and control of ownership and management of the company. Holders of common stocks have voting rights. They are also entitled to an equal pro rata division of profits without preference or advantage over another stockholder. However, they have the last claim on dividends and are the last to collect in case of corporate liquidation.
Its name is derived from preference given to the holders of these stocks over holders of common stocks. Holders of preferred stocks are entitled to receive dividends, to the extent agreed upon, before any dividends are paid to the holders of common stocks. However, preferred stocks usually have a specified limited rate of return or dividend and a specified limited redemption and liquidation price. A corporation can also raise additional capital by issuing warrants. A warrant, normally issued on a detachable basis, allows its holders the right, but not the obligation, to subscribe to new shares at a set price during a specified period of time. It is usually provided free of charge and traded separately in the securities market.
A PDR is a security which grants the holder the right to the delivery or sale of the underlying share, and to certain other rights including additional PDR or adjustments to the terms or upon the occurrence of certain events in respect of rights issues, capital reorganizations, offers and analogous events or the distribution of cash in the event of a cash dividend on the shares. For as long as the PDRs arenot exercised, the shares underlying the PDRs are and will continue to be registered in the name of and owned by and all rights pertaining to the shares shall be exercised by the issuer. The bond is a certificate of indebtedness of the Republic of the Philippines to the owner of the SDT-Bonds. Its main function is to facilitate the buying and selling of stocks and other securities through its accredited trading participants. Saturdays, Sundays, legal holidays and days when the Central Bank Clearing Office is closed. HOW ARE SHARES AND SDT-BONDS BOUGHT OR SOLD?
If you wish to buy shares of stocks or SDT-Bonds, you must have a stockbroker who will do this for you. The PSE has a complete list and information about all its trading participants who are authorized and qualified to trade either equity or debt securities for you. This list is also available on the Exchange’s website and the PLDT directory’s Government and Business listings yellow pages under the category of stock and bond brokers. You shall be required to open an account and fill-out a Reference Card and to submit identification papers for verification. The stockbroker will then assign a trader or agent to assist you in either buying or selling any listed security. Discuss with the trader what stocks to buy or sell.
Some brokers may require you to pay with post-dated checks upon ordering. For SDT-Bonds transactions: Selling investors must open a RoSS account under his broker’s sub-account and instruct his bank-underwriter to transfer the share to this account. Buying investors must also open an account with a BTr accredited bank and pay the appropriate amount of transaction to the settlement bank on the trade date. If you wish to have a physical certificate of the equities you bought, just give instructions to your broker and pay the required upliftment fee. Buyers of SDT-Bonds will only be given a confirmation slip in lieu of the bond certificates. This means that a seller should be able to deliver the stock certificate, if any, to his broker and the buyer must have paid the cost of transaction to his broker within 3 working days after the trade was done.
The ability to generate competitive returns is all about a sensible methodology and the systematic execution of that methodology. Owner of scripless securities trading banko central ng pilipinas forex malaysia company. After the dividend payment date, the price is exactly the same as that of the corresponding counter on the local board. For as long as the PDRs arenot exercised; the bond is a certificate of indebtedness of the Republic of the Philippines to the owner of the SDT, bonds will only be given a confirmation slip in lieu of the bond certificates. An Act to provide new laws for the licensing and regulation of insurance business, especially to uplift communities in poverty.
PCD through his broker-participant account. There shall be no physical transfer of bond certificates. On the other hand, cash settlement will be coursed through the PSE’s two settlement banks namely, Equitable-PCI Bank and Rizal Commercial Banking Corporation. WHAT IS THE MINIMUM AMOUNT NEEDED TO INVEST IN THE STOCK MARKET? Equity trading is done by board lot or round lot system.
The Board Lot Table determines the minimum number of shares one can purchase or sell at a specific price range. Therefore, the minimum amount needed to invest in the stock market varies and will depend on the market price of the security as well as its corresponding board lot. Prices of stocks move through a scale of minimum price fluctuations. On the other hand, the minimum amount of SDT-Bonds that an investor can buy if PhP 5,000.
Ad valorem rate of 0. Upliftment Fee of Php 55. Transfer Fee of Php 100. Cancellation Fee of Php 20.
50 for every Php 200. X wishes to buy a stock whose market price is P10. 00 and with a par value of P1. In this case, the amount that he needs is about P10,000. Y wishes to sell a stock whose market price is P5. In this case, the proceeds of the sale is about P5,000. HOW CAN I PROFIT IN THE STOCK MARKET?