Jay G.

Peaflor, CSS

Head, Market Education Dept., PSE Certified Securities Specialist (CSS) Faculty, San Beda College & Centro Escolar University Co-Author, Building Wealth with Stocks Director and Former Chair, PSE Employees Cooperative Radio Host, DZAR 1026 Business Agenda

WHATS A STOCK? EQUITIES SHARES

ISSUES

STOCKS

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WHATS A STOCK?
EQUITIES Ownership interest in a company SHARES

A stock represents a ISSUES claim on the company's assets and earnings

50% return in 1 day is possible!

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A GOOD FORM OF INVESTMENT

Example, if a item that is An asset or company issued 100 shares of purchased with the stocks and an investor hope 10 share, then he owns that it will generate income or owns 10% of that company appreciate in the future.

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WAYS TO MAKE MONEY FROM STOCKS

DIVIDENDS CAPITAL GAINS

CAPITAL APPRECIATION
Stock
ABS-CBN AC ALI BPI BDO

22-Jun-03
20.50 139.26 4.48 25.80 18.75

22-Jun-07
31.50 471.69 18.25 58.62 71.00

22-Jun-10
38 317.00 13.5 45.5 44.00

GLOBE
JFC MER PLDT URC
source: PSE

538.16
17.20 8.73 484.08 4.22

1,213.07
54.06 90.45 2456.91 19.00

875
68.5 190 2395 28.00

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DIVIDENDS
EX-DIV SYM SECB MBT PSB PSB HLCM UBP MFC SLF ABS ICT URC TEL TEL AC TYPE CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH VALUE P0.25 per share (regular) P0.60 per share P2.75 per share P0.15 per share P0.40 per share P2.20 per share CAD 0.13 per share CAD 0.36 per common share P1.11 per share P0.40 per share P0.94 per share P76.00 per share (regular) P65.00 per share (special) P2.00 per share (regular) DATE 21-May-10 22-Mar-10 12-May-10 26-Mar-10 31-May-10 05-May-10 13-May-10 21-May-10 26-Mar-10 27-Apr-10 30-Apr-10 12-Mar-10 12-Mar-10 17-Jun-10 RECORD DATE 26-May-10 25-Mar-10 17-May-10 31-Mar-10 03-Jun-10 11-May-10 18-May-10 26-May-10 31-Mar-10 30-Apr-10 05-May-10 17-Mar-10 17-Mar-10 22-Jun-10 DATE PAYABLE 22-Jun-10 15-Apr-10 31-May-10 16-Apr-10 25-Jun-10 04-Jun-10 21-Jun-10 30-Jun-10 29-Apr-10 20-May-10 20-May-10 20-Apr-10 20-Apr-10 16-July-10

source: PSE

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CRITERIA OF A SOUND INVESTMENT

Returns
Safety

Liquidity
Beats Inflation

Tax Advantage
Minimum Investment
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RISKS & REWARDS

RISKREWARD CONCEPT
Return should compensate for bearing this risk The higher the risk, the more you should receive for holding the investment, and the lower the risk, the less you should receive

Stocks

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REASONS TO GET INTO STOCKS

An opportunity to make gains through stock & cash dividends
An opportunity to gain through capital appreciation A way to diversify your portfolio An opportunity to help the capital market and the economy at length

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TYPES AND CLASSES OF STOCKS

Preferred and Common
Class A and B

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FORMS OF STOCKS
BLUECHIP INCOME GROWTH SPECULATIVE

DEFENSIVE
CYCLICAL SEASONAL

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HOW MUCH DO I NEED TO BECOME A STOCK MARKET INVESTOR?

FOR A LOW AS P10,OOO.OO OR THE COST OF NEW MOBILE HANDSET, YOU CAN BE PARTOWNER OF THE CONPANY THAT YOUVE ALWAYS WANTED.

MINIMUM INVESTMENTS
PRICE
From 0.0001 0.0100 0.0500 0.2500 0.5000 5.0000 10.0000 20.0000 50.0000 100.0000 200.0000 500.0000 1000.0000 2000.0000 5000.0000 To 0.0099 0.0490 0.2490 0.4950 4.9900 9.9900 19.9800 49.9500 99.9500 199.9000 499.8000 999.5000 1999.0000 4998.0000 UP 0.0001 0.0010 0.0010 0.0050 0.0100 0.0100 0.0200 0.0500 0.0500 0.1000 0.2000 0.5000 1.0000 2.0000 5.0000 1,000,000 100,000 10,000 10,000 1,000 100 100 100 10 10 10 10 5 5 5

TICK SIZE or Fluctuations

Minimum Shares

INVESTMENT PROCEDURES

Select your stockbroker Open an account Discuss which stocks to buy/sell Give orders to the broker Get the confirmation receipt Deliver/pay before settlement date Receive payment

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ORDER PLACEMENT
Thru Ph o n e

Investor

Broker Internet Walk-In

STOCK CERTIFICATES
NAME CERTIFICATES TRADING W/ SCRIP

STREET CERTIFICATES SCRIPLESS TRADING

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CHARGES

BUY Brokers Commission (BC) - minimum of 0.25/maximum of 1.5% + 12 VAT Clearing Fee of .0001 PSE Transaction Fee (1/200 of 1% of value of stocks Stock Transaction Tax (1/2 of 1% of value of stocks)

SELL

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CHARGES
SAMPLE COMPUTATION (BUYING) 2,000 shares x P 5.00 = Add: Brokers Commission (1.5% + 12% VAT) Clearing Fee of .0001 (P10,000 x .0001) PSE Transaction Fee (1/200 of 1% of value of stocks) Total cost of transactions P10,000.00 165.00 1.00 .50 _____________ P 10,166.50

==========

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CHARGES
SAMPLE COMPUTATION (SELLING)
2000 shares x P 6.00 = Less: Brokers Commission (1.5% + 12% VAT) Clearing Fee of .0001 (P12,000 x .0001) PSE Transaction Fee (1/200 of 1% value of stocks) *Stock transaction tax (P12,000 x 0.005%) **Cancellation Fee P20 + 10% VAT
Net amount to be received

P12,000.00
198.00 1.20 .60 60.00 22.00 ___________ P 11,718.20 ==========

*Sales tax is already a final tax. No more capital gains. **If certificated

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STOCK PRICE FLUCTUATIONS

The Law of Demand and Supply

What push demand for stock to go up?

FACTORS WHICH MAY AFFECT STOCK PRICES

COMPANY (Profitability, Expansion, Governance)
ECONOMY (GNP, Inflation, Interest, ExR) INDUSTRY (Regulation, Competition) EXTERNAL (US Economy, Dow) POLITICAL

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STOCK MARKET QUOTES

OPEN

CLOSE
52-WK HIGH AND LOW VOLUME

VALUE TURNOVER
GAINERS LOSERS NET FOREIGN BUY/SELL

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THE ELECTRONIC BOARD

NAME BID ASK HIGH LOW L/T VOL ABS AC JFC TEL SMPH SMC 13.00 295.00 34.50 1535.00 212.00 65.00 13.50 297.50 35.00 1540.00 213.00 65.50 13.25 297.50 35.50 1555.00 212.00 65.50 13.25 292.50 34.00 1540.00 212.00 65.00 13.25 295.00 35.00 1540.00 212.00 65.50 82,000 67,160 279,700 4,810,000 51,370 18,000

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GUIDELINES IN INVESTING IN THE STOCK MARKET

Buy stocks when the market is bullish or when stock prices go up as a
result of growing economy and rising corporate earnings.

Look for new leads and fresh information about the listed companies.
News about them will move their prices up or down.

Unburden yourself with trading-related stress and tension by ditching

speculative stocks. Pick stocks with solid fundamentals.

Employ fundamental and technical analyses to know what stocks to buy

and when to trade those stocks.

Choose a good broker and consult them all the time!

Hearsays about stocks must be verified first before making them as a
basis of your buying and selling decisions.

Invest only your disposable income. Put an end to procrastination. Invest and win in the stock market now!

THE QUALITIES OF A GOOD STOCK BROKERAGE COMPANY

1.It should be in good standing with the PSE and SEC. A good broker has a clean record of operations. It strictly adheres to the rules and regulations of the PSE and the SEC. 2.A good broker boasts a portfolio of satisfied clients.

3.A good broker provides its clients with free research services and free consultations.
4.A good broker provides accurate and reliable information to its clients. A good broker provides stock picks and trading recommendations, which are results of scientific research and analysis.

5.A good broker is always accessible. A good broker is always available for consultations.
6.A good broker responds quickly to the customers requests and instructions.

THE QUALITIES OF A GOOD STOCK BROKERAGE COMPANY

7. A good broker promptly settles customers claims. 8. A good broker offers reasonable brokers commission. 9. A good broker is equipped with broad and advance communication and trading facilities. 10. A good broker should have the following important units within their organization; a research department and a customer service department. 11. A good broker is run and manage by competent and qualified professionals. 12. A good broker is transparent. It allows its customers access to its books and financial records.

SOURCES OF STOCK MARKET INFO

BROADSHEETS

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SOURCES OF STOCK MARKET INFO

TV NEWS, BUSINESS SEGMENT

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SOURCES OF STOCK MARKET INFO

SMS/WAP SERVICES

Dial 211

Dial 2333

pse quotes <symbol> pse market pse index <idxname> pse gainers pse losers pse actives pse corporate disclosures

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SOURCES OF STOCK MARKET INFO

ELECTRONIC BILLBOARDS

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SOURCES OF STOCK MARKET INFO

ELECTRONIC BILLBOARDS

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PSE HISTORY

Manila Stock Exchange Aug. 8, 1927

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PSE HISTORY

Makati Stock Exchange May 27, 1963

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PSE HISTORY
The MSE and MKSE unified in December 23, 1992 to become the

PHILIPPINE STOCK EXCHANGE

the nations only organized stock exchange to conduct trading of shares of stocks and other investment instruments using uniform rules and regulations
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THE PSE

For Efficiency, Orderliness, Fairness, Integrity and Transparency

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 Demutualized Publicly Listed Self Regulatory Organization 250 Listed Companies Php 4-5 Billion

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INVEST NOW!!!!

Thank you for investing your time with us!

BORROWER

$
$$ $ $

$
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Visit the PSE website:

www.pse.com.ph
Jay Peaflor
Market Education Department E-mail Ad.:cgpenaflor@pse.com.ph Tel. No.: 6887537/09326068740

THANK YOU.