The document provides background information on the Philippine Stock Exchange (PSE) and discusses its roles and significance. The PSE is a private non-profit organization that provides a fair, efficient, and transparent market for trading stocks, bonds, and other securities. It brings together companies raising capital and facilitates buying and selling of issued stocks. The PSE is crucial to financing enterprise growth and the Philippine economy. It also ensures disclosure of information by listed companies and comprehensive market data access.

2. PHILIPPINE
STOCK
EXCHANGE

3. MAJOR STOCK EXCHANGES
ECONOMY STOCK EXCHANGE
US & EUROPE NYSE
US & EUROPE (NORTH) NASDAQ
JAPAN TOKYO STOCK EXCHANGE
UNITED KINGDOM LONDON STOCK EXCHANGE
EUROPE EURONEXT
CHINA SHANGHAI STOCK EXCHANGE
HONG KONG HONGKONG STOCK EXCHANGE
CANADA TORONTO STOCK EXCHANGE
BRAZIL BM&F BOVESPA

4. ECONOMY STOCK EXCHANGE
AUSTRALIA AUSTRALIAN SECURITIES EXCHANGE
GERMANY DEUTSCHE BORSE
SWITZERLAND SIX SWISS EXCHANGE
CHINA SHENZHEN STOCK EXCHANGE
SPAIN BME SPANISH EXCHANGES
INDIA BOMBAY STOCK EXCHANGE
SOUTH KOREA KOREA EXCHANGE
PHILIPPINES PHILIPPINE STOCK EXCHNGE
RUSSIA MICEX – RTS

5. BACKGROUND
• The Philippine Stock Exchange, Inc.
("PSE" or the "Exchange") is a private
non-profit and non-stock organization
created to provide and ensures a fair,
efficient, transparent and orderly market for
the purchase and sale of securities such as
stocks, warrants, bonds, options and
others. (Knowing the Philippine Stock
Exchange, 1999)

6. BACKGROUND
• At present, PSE maintains two trading floors -- one in Makati City
and another in its head office in Pasig City. Even with two trading
floors, PSE maintains a "one-price, one-market" exchange
through the MakTrade System.
ROLES
• brings together companies which aim to
raise capital through the issue of new
securities
• the PSE plays a vital role in the
financing of productive enterprises that
use the funds for growth and expansion
of new jobs. It is therefore essential to
the growth of the Philippine economy.

7. ROLES
• facilitates the selling and buying of the
issued stocks and warrants
• It provides a suitable market for the
trading of securities to individuals and
organizations seeking to invest their saving
or excess funds through the purchase of
securities.
• the PSE has committed itself to:
(a) protecting the interest of the investing
public; and
(b) developing and maintaining an efficient,
fair, orderly and transparent market.

8. SIGNIFICANCE
• It provides and ensures a fair, efficient,
transparent and orderly market for the buying
and selling of securities for investors and
stakeholders.
• It address public demand for speedy access to
information on the securities market
• It offers transparency of listed companies and
ensures full, fair, timely and accurate
disclosure of material information from all
listed companies.

9. SIGNIFICANCE
• It provides comprehensive market data, stock
quotations, dividend declarations, trading
activities, and other pertinent information on
the PSE, trading participants, listed companies
and other institutions.
• It is a critical factor in improving settlement
efficiency, increasing market liquidity and
development of derivative instruments.
(Knowing the Philippine Stock Exchange, 1999)

10. TRADING HOURS
• Playing of the National Anthem 8:45a.m.
Pre-open Period 9:00a.m. - 9:30a.m.
Calculation of Open Price/Market
Open 9:30a.m.
Regular Trading Period 9:30a.m.-12:00noon
1:30-3:30 pm
• A ten (10) minute extension from closing time
shall be allowed to execute orders at closing
prices.

12. Why do people start businesses?

13. PROFIT
When you make money in business, it is called a
profit.
Mathematically: Profit = Revenue – Cost
For example: If you buy an iphone for 10000 and
sell it for 12000, you made a profit of …

14. HOW DO YOU RAISE MONEY TO START A
NEW BUSINESS?
One way to raise money is to borrow money from a
bank. This money must be paid back.

15. You can also sell ownership
in the company. This
means you have other
people give you money
and they have a share in
the profits (and losses) of
the company. These
ownership shares are
called shares of stocks.
STOCKS

16. If you own shares of a
company, you can
sell them to other
people in the stock
market.
THE STOCK MARKET
The Philippine Stock
Exchange (PSE) is one of
these markets.

17. • The kind of money that the average investor should
put in the stock market is money that he or she
won’t be needing today, tomorrow, next year,or even
5 to 10 years from now.This is because you can
never exactly predict what the value of your
investment will be in the coming years. So even
though the average annual return on the stock
market (from 1989 to 2009) was 14% per year,
future returns are never guaranteed.
HOW MUCH MONEY DO I PUT IN THE STOCK
MARKET?

18. • The biggest problem that can arise with
investing is when your personal situation
forces you to suddenly sell your investments
for cash when the market is down. In order to
prevent the problem above, there are three
ways to protect your investments from a
sudden need of cash.
THE BIGGEST PROBLEM IN INVESTING

19. • 1. Protect yourself with insurance. This is to make
sure that when an accident happens (to you, your
loved ones, your car, home, or business) it will be
the insurance company that will be obligated to
pay for it. At the same time, you won’t need to
cash out on your investments.
• 2. Shield yourself with an emergency fund. An
emergency fund is a sum of money set aside just
for emergencies. The general minimum of this
amount is 6 months of your living expenses. This
is for the unexpected things in your life which
can’t or won’t be covered by insurance. So if you

20. • suddenly need money because you lost your
job, you can live off your emergency fund
untilyoufinda newone.
• 3. Only put in money you won’t be using for the
next 5 years. In order to be able to do this, you
should have a good grasp of the amount of
money you’ll be using.Don’t forget to factor in
the once a year expenses like birthdays and
holidays. When the 13th month pay isn’t
enough to cover for your Christmas expenses,
it would be very tempting to cash in on your
investments.

21. HOW MUCH TIME DO I NEED TO USE IN STOCK
MARKET?

22. ©2011 CENGAGE LEARNING. ALL RIGHTS RESERVED. MAY NOT BE SCANNED, COPIED OR DUPLICATED, OR POSTED TO A PUBLICLY ACCESSIBLE WEBSITE, IN WHOLE OR IN PART.
STOCK MARKET BASICS

24. RIGHTS OF SHAREHOLDERS
24
• Shareholders (stockholders) have ownership
interest in the company proportional to shares
owned.
• Rights include:
1.rights to be ‘residual claimants’
2.voting rights  influence management

39. STOCK PRICES
When a company is doing well, more people want
to buy the stock and its price in the market rises.
When a company is
not doing well, more
people want to sell
the stock and its price
falls.

43. DIVIDENDS
When a company makes a profit, they typically pay
the owners of stock a dividend.

45. WHAT CAUSES STOCK PRICES TO CHANGE?
• Supply and Demand
• Earnings and Expectations
• Sentiments and Attitudes
• Economic Indicators
• Follow the Leader (volume)
• Anything 
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

46. HOW THE MARKET SETS PRICES
46
• The price is set by the buyer willing to pay the
highest price
• The market price will be set by the
buyer who can take best advantage of the asset
• Superior information about an asset can
increase its value by reducing its risk

58. 15300+45.14=15345.14

59. 15600+124.02=15475.98

60. WHICH STOCKS ARE YOU
GOING TO BUY?

68. WHAT IS YOUR STRATEGIES?
ies

74. GENERAL MARKET ADVICE:
1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are
undervalued.
4. Buy stocks grown in top line and bottom line over
the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are
the key.

75. 8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset
class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to
grow.
13. Buy when everyone is selling and sell when
everyone buys.
14. Invest a fixed amount each month.

76. WHAT YOU MUST DO
 Get rid of the junk
 Diversify
 Believe in your investment
 Stick to your strategy

77. WHAT YOU MUST NOT DO
 Don't panic
 Don't make huge investments
 Don't chase performance
 Don't ignore expenses

78. PREPARED BY:
•ODIELON O. GAMBOA
“Take a RISK, if you win, you will be
happy, if you loose, you will learn”