Levels of LEARNing

• Warrior
• Elite
• Master
• Grandmaster
• Epic
• Legend
• Mythic
Introductory Stage
Warrior
 Introduction to Stock Market
• Do you know how many Filipinos are currently
investing in stocks?
Ten million people?
Lower.
Five million?
Lower.
One million?
Still, lower.

The correct answer is less than 1 million people — 640,665 to be exact.

 You are a few steps to learning
about the Stock Market. But first,
one must identify the basic
terms used in Trading
 Definition of Terms
• Broker : a person who buys and sells goods or assets for others
• Blue Chip Companies : known to weather downturns and operate
profitably in the face of adverse economic conditions, which helps to
contribute to their long record of stable and reliable growth
• Dividend : a sum of money paid regularly (typically quarterly) by a
company to its shareholders out of its profits
• Investing : expend money with the expectation of achieving a profit
or material result by putting it into financial schemes, shares, or
property, or by using it to develop a commercial venture
 Definition of Terms
• Philippine Stock Exchange (PSE) : the national stock exchange of the
Philippines
• Profit : obtain a financial advantage or benefit, especially from an
investment
• Shares : one of the equal parts into which a company's capital is
divided, entitling the holder to a proportion of the profits
• Stock : the capital raised by a business or corporation through the
issue and subscription of shares
 Definition of Terms
• Stock Exchange : A stock exchange, share market or bourse is a place
where people meet to buy and sell shares of company stock
• Stock Market : The stock market refers to public markets that exist for
issuing, buying and selling stocks that trade on a stock exchange or
over-the-counter
• Trading : the activity of buying and selling shares, currencies, etc. on
financial markets
• VUL Insurance : Variable life insurance is a permanent life insurance
policy with an investment component
 Introduction to Stock Market
• What is stock investing?

Stocks are issued publicly to use as additional capital for businesses.

Companies expand businesses by using funds from investors who buy
their stocks.

Buying stocks means that you invest your money in the

company providing the capital for their business as a
Shareholder.
 Two Basic Ways of Stock Trading
• Active Trading
This type of trading involves “timing the market” and doing
fundamental and technical analysis. One must be knowledgeable
enough about the principles of trading so as not to lose in this type of
trading. Active traders attempt to make profit out of the daily price
fluctuation of target stocks. They also make multiple trades during the
day.
• Passive Trading
This involves doing steady investments through time. It requires less
time and energy thus tend to make slower stream of profit.
 Introduction to Stock Market
• How much do I need to invest in stocks?
Do you have an impression that stock investing is only
for the rich people?

Actually, you can start investing with a particularly small

capital.

The minimum number of shares you need to buy from a

company highly depends on the price marked for it.
 Investing in the Philippine Stock Market

• The stock market, as the name suggests, is just another type of

market—like a food market where you buy meat and fish!

• The only difference is that in the stock market, people buy and
sell company shares like PLDT, Ayala Land, Meralco, and many
more.

• In the stock market, you can become a part-owner of some of

the biggest companies in the Philippines.
Investing in the Philippine Stock Market
A slice of the company

Just like how you would cut a

pizza into slices to make it easier
to eat, companies are divided into
shares to make it easier for people
to buy.
Once you buy a share in a
company, you will become a part-
owner of that company.
 Investing in the Philippine Stock Market
Once you’ve bought shares in a company (or a few companies), you can
make money in 2 ways:

Through Price Rise1 or through Dividends2:

1CapitalGain/Price Rise: Profit from a price increase. Simply, buying
low and selling high.
2Income Gain/Dividends: The firm may distribute
some of their profits quarterly, semi-annually,
or annually to shareholders.
Blue Chip Companies in the PSE (2018)
Blue Chip Companies in the PSE (2018)
 Making Profit in the Philippine Stock Market
1. Profit from Capital Gain/Price Rise:

Example:

Mang Juan bought 10 shares of Jollibee Foods Corp. stock (JFC) at Php260 in
August. The share price rose to Php310 within a few months, so he sold
them. We can compute his profit by this easy way:

(New Price – Old Price) x Number of Shares = Profit

(310 pesos – 260 pesos) x 10 shares = 500 pesos.

From a Php2,600 capital, Mang Juan had a profit of Php500.

 Making Profit in the Philippine Stock Market
2. Dividends (Income Gain)
Example:
Mang Juan bought 10 shares of Meralco Company stock (MER) at Php300.
After a General Shareholders’ Meeting, the Executives decided to issue a
Php5 dividend per share.

Dividend x Number of Shares = Profit

Php5 x 10 shares = Php50

From a Php3,000 capital, Mang Juan earned another

Php50 as share from the Company’s profit.
 Start Investing in the Philippine Stock Market
3. Combination: Profit from a Price Rise + Dividends
Exercise Problem:
Mang Juan bought 1000 shares of Metro Pacific Investments (MPI)
stock at Php4.60. After the General Shareholders’ Meeting, MPI
Executives issued a Php0.10 dividend. The news on dividend share has
been spread rising the price to Php5.10 within a few months, so he sold
his shares in the market.
Question: How much profit did Mang Juan earned?
Answer :
 Answer to Exercise Problem:
Mang Juan bought 1000 shares of Metro Pacific Investments
(MPI) stock at Php4.60. After the General Shareholders’
Meeting, MPI Executives issued a Php0.10 dividend. The news on dividend
share has been spread rising the price to Php5.10 within a few months, so
he sold his shares in the market.
Question: How much profit did Mang Juan earned?

Simple Computation:
(Php5.10 – Php4.60) x 1000shares = Php500 (Price Rise)
Php0.10 x 1000shares = Php100 (Dividends)

Answer:
Php500 + Php100 = Php 600.00 (Total Profit Earned)
 5 Things You Should Know Before Investing
in the Philippine Stock Market
Stocks Make Money
• Why the rich becomes richer
- They know how to invest
- They know what passive income is
• The rich people would rather invest their money
in stocks and other investments to multiply their
equities.
• The rich people know their priorities:
Business and Equities
 5 Things You Should Know Before Investing
in the Philippine Stock Market
Investing is Risky
• Only INVEST what you can afford to LOSE.
Only YOU (not your financial advisor, not me,
not your friends, not your parents) can make
decisions on your finances.
• Risks include doubling your money in two (2)
days or losing half of it in a day.
 5 Things You Should Know Before Investing
in the Philippine Stock Market
“Time is Money”
 5 Things You Should Know Before
Investing in the Philippine Stock Market
“Time is Money” in stock market,

Php10,000 / Php39 per share = 250 shares

250 shares x Php313 current price = Php78,250

Php78,250 – Php10,000 = Php68,250 pesos

earned from your Php10,000 capital.
 5 Things You Should Know Before
Investing in the Philippine Stock Market
“Stock Market is still a Risk”

Php30,000 / Php2915 per share = 10 shares

10 shares x Php1,215 current price = Php12,150 pesos

Php30,000 – 12,150 = 17,850 pesos has been

lost from your Php30,000.
 5 Things You Should Know Before
Investing in the Philippine Stock Market
Do Not Panic!!!!
• Investing in the stock market is not a walk in
the park. The market could crash any day or
any moment but if you are into long term
investing on blue chip stocks, you should not
panic.
• Focus on applying cost-averaging technique
and remember your goal which is your
target.
• Stock Trading or Investing is Simple but not
Easy
 Interested? Here’s How You can Get Started
Step 1: Know what you’re getting into

Invest in KNOWLEDGE. Learn the basics and make sure you understand the
principles.

Although you can make a lot of money through the stock market, you can
also lose a lot of money if you don’t know what you’re doing.

You don’t get to be a stock market wizard in a snap.

Stock trading is a skill, just like drawing or playing an
instrument.
 Interested? Here’s How You can Get Started
• Step 2: Find a stock broker
Investors must first open an account through
brokerage companies which will serve as middle men
between you and the market. After funding your
account, you are now ready to buy stocks.

Note:
Brokerage companies such as BDO Nomura, COL
Financial, 2tradeasia, etc. serves as your platform to
transact huge orders in the Philippine Stock Exchange
(PSE) in accordance with the market’s fixed rule.
Transactions are executed safely with the investors
settling through the brokerage companies.
 Interested? Here’s How You can Get Started

Online Brokers:
Online brokers are usually institutions that are licensed to buy and sell
stocks between investors and companies. To make a transaction, you
would simply need to log into their website and make the transaction
yourself.
However, you will need to educate yourself on proper trading and stock
market analysis before entering this trade business. You may read
books and other written modules or attend seminars on how to start
trading.
 Online Stock Broker Account Opening

Initial Investment Required to Open Account Online Stock Broker

Php 1,000 COL Financial
Any amount as long as you are an account holder BDO Nomura
Php 25,000 2Tradeasia
Php 2,500 FirstMetroSec
Php 5,000 Philstocks
Php 100,000 Timson Securities

*Note that these are just some of the numerous trading platforms available in the market.
Market
Trading
Hours
 Cost-Averaging Technique
In simpler terms, peso cost averaging means you buy stocks or shares
for a set amount of money each month or quarter over the medium to
long-term.

This could be as low as P1,000 a month for three years, or as high as

P100,000 every quarter for five years. The amount and time frames
are up to your budget. You can customize it depending on your
financial capability.
Cost-Averaging Technique
Cost-Averaging Technique
Cost-Averaging Technique
Cost-Averaging Technique
Cost-Averaging Technique
Cost-Averaging Technique