Stock Market Trading Participants

Prof. Jay G. Peñaflor, our speaker in the BusinessCoach’s How to Invest in the Stock Market seminar, lectured us who are the participants in the stock market trading. In the Philippine Stock Market settings, they are Philippine Stock Exchange (PSE), Publicly Listed Companies, Trading Participants or Stockbrokers, and Stockholders or Investors.

1. Philippine Stock Exchange (PSE)
The role of the PSE goes beyond bringing buyers and sellers together and facilitating sales and purchase of stocks. It makes sure that these transactions are done in an efficient , orderly, fair, and transparent manner. It enforces rules and regulations that its members (publicly listed companies and trading participants) must strictly abide by. In this way, the PSE fulfills its function as the guardians of the stock market.

The PSE also plays a key role in bringing about economic development by providing a centralized environment where companies in need of capital have easier access to funds through stock investors. Companies can sell their shares through Initial Public Offering (IPO) to potential investors. Through this, they can expand their business to produce more goods and services as well as create more jobs. The investing public can own a part of the company with the assurance that their investment interests are safeguarded by the PSE.

2. Publicly Listed Companies
A company becomes publicly listed when its shares are traded in the Philippine Stock Exchange. To become publicly listed company, a company must meet the stringent listing and reportorial requirements of the PSE to safeguard the investor’s interests and ensure transparency.

3. Trading Participants or Stockbrokers
A Stockbroker or Trading Participant acts as an agent/broker between buyer and seller of stocks in the stock market. A Trading Participant is licensed by the SEC (Securities and Exchange Commission) and is a member of the PSE, authorized to execute orders for purchases or sales of stocks.

4. Stockholders or Investors
Investors in stocks or stockholders are those who own shares of stocks of a publicly listed company, at least until the time that they decide to sell them. Stockholders are accorded certain rights set by the PSE. These rights are accorded to them by the company they have now become part owners of.

Learn How Publicly Traded Companies Stocks Traded >>>

If you like this Early Retirement Investments post, please share to your friends on Twitter, Google+ and Facebook. I appreciate your click in any of the three elegant social media buttons below.

How Do I Start Investing in the Philippine Stock Market

In the BusinessCoach’s How to Invest in the Stock Market seminar I attended last April 16, 2011, Jay G. Peñaflor, a Philippine Stock Exchange Sr. Market Education Specialist, told us participants that getting started in the stock market is a simple process. He revealed to us the four-step process and i.e:

1. Choosing a stockbroker or trading participant.
2. Opening a stockbrokerage account.
3. Placing order to buy best stocks or sell stocks either online or by making a phone call to stock broker.
4. Monitoring and keeping tract of investments.

How do I Choose a Stockbroker?
Mr. Peñaflor told us that there are over 100 licensed stockbrokers accredited by the PSE. Our choice of stockbroker should depend on the type of service we will require and who will best suit our needs. The types of stockbrokers can be classified into Traditional and Online (via Internet).

Traditional brokers are those who assign a licensed salesman to handle our account and take our orders via a written or through phone call.

While Online brokers are those whose main interface with their customer is through the internet. Clients execute their orders and access market information directly online.

Stockbrokers vary in the range of services they offer and the types of customers they serve such as:
*Handling institutional or corporate accounts versus individual retail customers
*Providing advisory services
*Providing research and analysis
*Providing investor education seminars and market briefings

Mr. Peñaflor said that we can get a complete list of accredited stockbrokers of the Philippine Stock Exchange either by visiting www.pse.com.ph or contacting the PSE at (632) 688-7600.

Learn Who are the Stock Market Participants >>>

 

If you like this Early Retirement Investments post, please share to your friends on Twitter, Google+ and Facebook. I appreciate your click in any of the three elegant social media buttons below.

Investing in the Stock Market: How Much of my Savings Should I Invest

Jay G. Peñaflor, a Philippine Stock Exchange Sr. Market Education Specialist and who is also a Certified Securities Specialist (CSS), our speaker in the BusinessCoach’s How to Invest in the Stock Market seminar last April 16, 2011, gave us tips on how to determine how much we can afford to invest.

To determine how much we can afford to invest, we need to determine our financial net worth (what we own minus what we owe).

Mr. Peñaflor suggested that a portion of our funds should be in short-term liquid investments, such as bank savings time deposits, and Treasury bills to cover living expenses, and any possible emergencies. The amount to keep will vary according to our individual lifestyle. A practical rule of thumb is to keep at least 6 to 12 month’s worth of living expenses in short-term liquid investments. The remainder of our savings can be invested in medium or long-term instruments such as bonds, stocks or both, depending on the time horizon of our financial goals.

He said that a more conservative approach is to keep at least 75% of our savings in short to medium-term fixed income instruments. The balance of 25% can be set aside for our investment in the stock market.

Mr. Peñaflor explained to us that we can begin investing in the stock market for as low as Php5,000.00.

Additional readings… How do I Start Investing in the Philippine Stock Market >>>

 

If you like this Early Retirement Investments post, please share to your friends on Twitter, Google+ and Facebook. I appreciate your click in any of the three elegant social media buttons below.