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 >>>

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2 thoughts on “Stock Market Trading Participants

  1. A stock exchange is the marketplace where companies are listed and where the trading happens. Depositories hold securities in an account, transfer securities between accounts on the instruction of the account holder and facilitate the transfer of ownership without the account holder needing to handle securities.

  2. Pingback: How Do I Start Investing in the Philippine Stock Market - My Early Retirement Investments Journey to Financial Freedom - Early Retirement Investments

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