BARBA, Ryneth Claire T.
Financial Markets
BSA 2 B1 Mr. John Benvers Malabanan
FINANCIAL MARKETS – FINAL REQUIREMENT
1. Choose at least one financial market you intend to invest with. (Stock
Market)
I intend to invest in stock market. Since I was in senior high, I planned to invest
because of the lessons my teacher taught us about financial markets. I choose
stock market because I can start an investment for a low price and it is also
popular here in Philippines.
2. Discuss the chosen financial market
The stock market is a collection of stocks and exchanges where daily
transactions such as buying, sale, and issuing of publicly traded company shares
take place. As to what I’ve recalled in our past lessons, when new securities are
issued in the primary market, they are traded in the secondary market, where
one person buys them from another at the current market price or whatever price
the buyer and seller agree to. The regulatory body regulates the secondary
market or stock exchanges.
3. Risks involve in financial market investment
Investing in general involves risk, but taking investing decisions based on your
priorities and risk tolerance keeps individual stock losses to a minimum. Other
risks, on the other hand, are unavoidable in investing and are beyond your
influence. Most of these risks affect the market or economy and require investors
to adjust portfolios. The economy will go down at any time, which is one of the
most obvious risks of investing. Just like what we’ve experiencing right now, the
pandemic has big effect on our economy and lots of businesses here in our
country has been closed. It will also be prone to liquidity risk. Liquidity risk is the
chance of not being able to sell your investment at a reasonable price and
withdraw your funds when you need them. You will have to consider a cheaper
price in order to sell the investment. Business risk is also included because if
there is no profit, then it will lead to losses. Business risk is the ability of a
company whether a business would be able to make enough profits and earn
enough money to pay its operating expenses and generate income.
4. What type of financial market investment? Choose entity you want to invest
with. E.g. San Miguel Corp.
I want to invest in SM Prime because they have a lot of business that
surround us. I’m also fascinated about the history of the owner and its
business that starts with just a shoe market. By that, I want to invest to
them and make my money grow without hassle and with greater returns.
Also, SM Prime is a well-known and one of the successful companies here
in the Philippines. I believe that even in this time of pandemic if I were to
invest in their market, my money will still grow. This is the record of SM
Prime Holdings, even if they experience their lows, they still manage to
keep their height and lift themselves that is why I want to invest to them. I
am also a fan of SM because of its history and I like to go to their malls and
buy the things I need when the pandemic hasn’t started yet.
5. How to invest.
According to SM PRIME;
You may contact any registered stock broker to buy stocks of SM Prime
listed on the Philippine Stock Exchange. For a list of trading participants
who can trade on the Philippine Stock Exchange, you may
visit www.pse.com.ph.
You may also call:
BDO Securities Corporation
20th Floor South Tower BDO Corporate Center
7899 Makati Ave. corner H. V. De La Costa St.
Makati City, Philippines 0726
Trading Desks: +02 8 878 4070
Operations: Settlements: +02 8 840 7000 loc. 6392 or 6394 or 6386
Securities Custodianship: +02 8 840 7000 loc. 4034 or 6068 or 2104
Research: +02 8 840 7000 loc. 6387
Compliance: +02 8 840 7000 loc. 2496
I Picked COL Financial as my stock broker because one of my teachers in
accounting introduce it to me and she trust it.
1. Choose your broker
2. Online (COL Financial, First Metro, and Phil Stocks)
The online stock brokers directly communicate with the customers online. Clients
execute the orders, and they have direct access to the market’s information.
COLF has been receiving great reviews as the best and easy to use the online
platform as a stockbroker. You can start funding your account for as low as
P1,000.00 as of this writing.
3. Traditional (Use a licensed broker or salesman to handle account)
These are assigned licensed salespeople to handle your account, and they take
orders via phone call.
4. Open your stock market brokerage account
You can avail COL Financial’s entry-level account at P1,000. You can download
the forms here. Fill up the forms and attached with the requirements and send
them over via mail. If you want quick verification of documents and approval, you
can drop by at their office in Ortigas.
5. Fund your account
You can fund your account via online banking. Once approved, COL will provide
the bank details so you can fund your account. You’re given a grace period of
three months to fund your account for activation. You can either fund your
account via bank deposit or personally deposit the money to your broker’s office.
6. Place your order: buy or sell, via online or phone call to your
stockbroker
Again, before you buy or sell, you may want to read more on the companies you
want to buy stocks from. For starters, you can read The Intelligent Investor by
Benjamin Graham and Increase your Financial I.Q. by Robert Kiyosaki. For
beginners, you can buy stocks on a regular schedule with the same amount of
fund. Do this if you’re going to invest for long-term. It’s the Peso-Cost average
where you grow your money in the long run.
7. Monitor or track your investments
Investing is an ongoing process as you may want to track and monitor the
progress of your stocks. If you choose the online stock brokerage like COL, you
can log in to their website. You can access all the information and data you need.
Source: How to Invest in the Stock Market in the Philippines - MoneySmart
Philippines
6. Expected returns.
The expected returns of SM Prime Holdings can be monitored in SMPH Stock
Price | SM Prime Holdings Inc. Stock Quote (Philippines: Manila) | MarketWatch
It varies depends on the situation they have in their company.
7. Lessons learned from financial markets subject.
I learned a lot in financial markets subjects especially the importance of investing
and financial markets itself. It helps me to understand more about investing my
money than putting it all in my bank account. I learned that my money can gain
greater returns as the time passes by. Also, without financial markets, the
companies will have a hard time on how to get funds for their business. If there
were no funds, then no business will be successful, and the whole country will be
stagnant because there are no money for them also. Financial markets support in
the effective flow of savings and investments in the economy, facilitating capital
growth and the output of goods and services. Borrowers and lenders, as well as
the overall economy, benefit from a combination of well-developed capital
markets and banks, as well as a diverse variety of financial products and
instruments.
