PROF. 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 wwwstockssimplified.wordpress.com

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FUNDRAISING OPTIONS
Bank financing

Debt financing
Equity financing

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EXPANSION = PROFITABILITY

Vertical expansion (JFC) Horizontal expansion (PLDT, SMC)

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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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WHATS A STOCK?

A GOOD FORM OF INVESTMENT

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

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WAYS TO MAKE MONEY FROM STOCKS

DIVIDENDS CAPITAL GAINS

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 Invest in companies that are profitable today and will be more profitable in the coming years ahead

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 Profitability is positively correlated with cash dividends and capital gains

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Capital Appreciation
Stock
ABS-CBN AC ALI BPI BDO GLOBE

22-Jun-03
20.50 139.26 4.48 25.80 18.75 538.16

22-Jun-07
31.50 471.69 18.25 58.62 71.00 1,213.07

22-Jun-10
38 317.00 13.5 45.5 44.00 875

JFC
MER PLDT URC
source: PSE

17.20
8.73 484.08 4.22

54.06
90.45 2456.91 19.00

68.5
190 2395 28.00

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Dividends
EX-DIV SYM TYPE VALUE DATE RECORD DATE DATE PAYABLE

SECB MBT PSB PSB HLCM UBP MFC SLF ABS ICT URC TEL TEL AC

CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH CASH

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)

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

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

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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DIVIDEND YIELD = (CASH DIVIDEND / BUYING PRICE) x 100

PLDT (TEL)

Cash Dividend 2011 = Php 222/share

Alberts Buying Price = Php 484/share

PLDT Dividend Yield = (222/484) x 100 =

45.87%

Higher than 1% interest income in savings deposit Higher than 3-5% interest income in bonds and PDA

Higher than the prevailing inflation rate of 4.2%

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TOTAL RETURN =((CASH DIVIDEND + CAPITAL GAIN) / BUYING PRICE)) X 100

PLDT (TEL) Cash Dividend 2011 = Php 222/share Current Market Price = 2,750/share Alberts Buying Price = Php 484/share

Return = ((222 + 2266)/484)) x 100% =

468.18%

Higher than 1% interest income in savings deposit Higher than 3-5% interest income in bonds and PDA Higher than the prevailing inflation rate of 4.2%

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CRITERIA OF A SOUND INVESTMENT

Returns
Safety Liquidity Beats Inflation Tax Advantage Minimum Investment
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Be greedy when others are fearful, be fearful when others are greedy
Warren Buffet 3rd Richest Man in the World

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RISK & REWARD

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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TYPES 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?

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For a low as Php5,000.00 or the cost of new mobile handset, you can be partowner of a big corporation in the Philippines!

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MINIMUM INVESTMENTS
Price Ranges 1.02 TO 2.50 2.55 TO 5.00 5.10 TO 10.00 10.25 TO 25.00 Fluctuation .02 .05 .10 .25 Minimum Shares 1,000 1,000 1,000 100

25.50 TO 50.00
50.50 TO 100.00 101.00 TO 250.00 252.50 TO 500.00 505.00 UPWARD

.50
.50 1.00 2.50 5.00

100
100 10 10 10

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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

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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?

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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.

Learn first before investing. 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!

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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 INFORMATION

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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INVEST NOW!!!!

Thank you for investing your time with us!

BORROWER

$
$$ $ $

$
$

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www.stockssimplified.wordpress.com
Jay Peaflor
Market Education Department E-mail Ad.:cgpenaflor@pse.com.ph Tel. No.: 6887537/09275224830

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