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Intro To Stock and Stock Market

The document defines stocks as shares in a company that give the stockholder ownership. It discusses common and preferred stock, as well as stockholders who own shares and can profit from price appreciation or dividends. The Philippine stock market is described as consisting of publicly traded companies on the Philippine Stock Exchange. Key terms related to stocks and the market are also defined.

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86 views

Intro To Stock and Stock Market

The document defines stocks as shares in a company that give the stockholder ownership. It discusses common and preferred stock, as well as stockholders who own shares and can profit from price appreciation or dividends. The Philippine stock market is described as consisting of publicly traded companies on the Philippine Stock Exchange. Key terms related to stocks and the market are also defined.

Uploaded by

Vandom Gallardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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DBA-326

Stocks and The


Philippine
Stock Market
Vandom B. Gallardo, MPA
Introduction to Stock
and The Stock
Market

Alternative Hybrid Education and Asynchronous Distance Learning


Learning Outcome
After the completion of the discussion, students will be able to:

• Critically understand stock and stock market

1. Definition and Concept of Stock and Stockholder

2. Types of Stock

3. The Stockholder

4. Stock Market and The Philippine Stock Market

5. Understanding the Stock Market Language

Alternative Hybrid Education and Asynchronous Distance Learning


Definition of Stock
What are stocks?
Stocks are the shares in a company that give the stockholder or
shareholder a certain amount of ownership in the company. The
more stocks you buy, the more of the company you own. But if
the company loses in value, you also lose money. If the company
gains in value, you also gain money.

Plain and simple, stock is a share in the ownership of a company.


Stock represents a claim on the company's assets and earnings.
As you acquire more stock, your ownership stake in the company
becomes greater. Whether you say shares, equity, or stock, it all
means the same thing.
Alternative Hybrid Education and Asynchronous Distance Learning
Concept of Stock and
Stockholder
Holding a company's stock means that you are one of
the many owners (shareholders) of a company, and,
as such, you have a claim (albeit usually very small) to
everything the company owns. Yes, this means that
technically you own a tiny sliver of every piece of
furniture, every trademark, and every contract of the
company. As an owner, you are entitled to your share
of the company's earnings as well as any voting rights
attached to the stock.

Alternative Hybrid Education and Asynchronous Distance Learning


Understanding the Types
of Stock
Common vs Preferred Stock

COMMON PREFERRED

Sold at fair market value Sold at higher amount based on


valuation
Equity
In terms of payout, common stock Risk of losing
The company liquidate assets for
shareholders has lower priority everything those bankrupt, shareholder are
more likely to get their money back

Have voting rights No voting rights

Alternative Hybrid Education and Asynchronous Distance Learning


The Stockholder
A stockholder, also referred to as a shareholder, is
a person, company, or institution that owns at
least one share of a company’s stock, which is
known as equity. Because shareholders are
essentially owners in a company, they reap the
benefits of a business’ success. These rewards
come in the form of increased stock valuations, or
as financial profits distributed as dividends.
Conversely, when a company loses money, the
share price invariably drops, which can cause
shareholders to lose money, or suffer declines in
their portfolios’ values.
Alternative Hybrid Education and Asynchronous Distance Learning
The Stockholder
Stockholders gain money from stocks in two ways:
stock price appreciation and dividends. Stock price
appreciation is when the market price of your price
goes up. This is where the ”buy low, sell high” principle
comes in. When the value of the stock is now higher
than when you bought it, you have earned the
difference. If you sell the stock when it is at a higher
value, you gain profit from the sale. Meanwhile,
dividends are given out when profitable companies
share their profits with their shareholders through
additional cash or stocks.
Alternative Hybrid Education and Asynchronous Distance Learning
The Stockholder
The stockholder can only buy and
sell stocks of publicly listed
companies that have released their
initial public offering (IPO).

The playground for all of these


stocks? The stock market, or in our
case, the Philippine Stock Exchange
(PSE), Inc. This is where all local
stocks are bought and sold in hopes
of raising individual capital.
Alternative Hybrid Education and Asynchronous Distance Learning
The Stock Market
The stock market is a complex system where
shares of publicly-traded companies are issued,
bought and sold. 
The stock market refers to the collection of
markets and exchanges where regular activities of
buying, selling, and issuance of shares of publicly-
held companies take place. 
While both terms - stock market and stock
exchange - are used interchangeably, the latter
term is generally a subset of the former. If one
says that she trades in the stock market, it means
that she buys and sells shares/equities on one (or
more) of the stock exchange(s) that are part of the
overall stock market. 
Alternative Hybrid Education and Asynchronous Distance Learning
The Stock Market
The leading stock exchanges in the world are the
following:
1. New York Stock Exchange
2. NASDAQ
3. Tokyo Stock Exchange
4. Shanghai Stock Exchange
5. Hong Kong Stock Exchange

Alternative Hybrid Education and Asynchronous Distance Learning


The Philippine Stock
Market
The Philippine Stock Exchange, Inc. is
the national stock exchange of the
Philippines. The exchange was created
in 1992 from the merger of the Manila
Stock Exchange and the Makati Stock
Exchange. Including previous forms,
the exchange has been in operation
since 1927.

Alternative Hybrid Education and Asynchronous Distance Learning


The Philippine Stock
Market
The list below are the best blue chip stocks that have the best fundamentals, strong balance sheets,
excellent management, great recurring income, and reputable status (as of September 4, 2020).
• Ayala Corp. (Conglomerates)
• Ayala Land, Inc. (Property)
• Aboitiz Power Corp. (Power)
• Banco De Oro (Bank)
• Bank of the Philippine Islands (Bank)
• Int’l Container Terminal Services (Port Operations)
• Jollibee Foods Corp. (Consumer)
• Metropolitan Bank & Trust Company / Metrobank (Bank)
• Metro Pacific Investments (Infrastructure)
• SM Investments Corp. (Conglomerates)
• SM Prime Holdings (Property)
• PLDT (Telecom)
• Universal Robina Corp. (Consumer)

Alternative Hybrid Education and Asynchronous Distance Learning


Understanding the Stock
Market Language
Blue-chip stocks – made up of common
shares of a well-established companies

Venture capital stocks – stocks of fairly


new small to medium companies

Stock exchange’s share price index –


quick and easy way to see if the market
trend is increasing or decreasing

Alternative Hybrid Education and Asynchronous Distance Learning


Understanding the Stock
Market Language
Buy low-sell high – practice of buying
stock when it is inexpensive and selling
it when it has risen its price

Bull market – most of the prices on the


stock market are rising

Bear market – most of the prices on the


stock market are falling
Alternative Hybrid Education and Asynchronous Distance Learning
Understanding the Stock
Market Language
Bid – highest price that anyone
is willing to pay a stock

Ask – lowest price that anyone


will accept to sell a stock

Portfolio – different stocks that


an investor has chosen to
purchase
Alternative Hybrid Education and Asynchronous Distance Learning
REFERENCES
• Investopedia
• Pesobility
• PSEAcademy
• Esquire
• Forbes

Alternative Hybrid Education and Asynchronous Distance Learning

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