All Shares Index
A complementary index to the PSEi which takes into consideration stocks of all listed companies except those suspended, as well as bonds, preferred and warrants.
Interest that has been earned but not yet received. It is normally applicable to bonds or debentures.
Listed stocks (shares) which are frequently and heavily traded on a stock exchange.
A person who directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with the person specified, through the ownership of voting shares by contract or otherwise.
Is subsequent selling or buying transactions of shares after IPO, where proceeds accrue to the selling dealers and investors, and not to the companies that originally issued the securities.
An individual or firm authorized to act on behalf of another, called the principal, such as by executing a transaction. The agent does not assume any financial risk in the transaction, as a dealer would.
The simultaneous purchase and sale of securities in different markets in an attempt to profit from short-term price disparities.
The lowest price a seller of a security is willing to take for a unit of a security at a particular time, also called "offer price".
An employee of a broker or dealer who, directly exercises control of supervisory authority, but does not include a salesman, or an agent or a person whose functions are solely clerical or ministerial.
At the close order
An order accepted during the 10-minute run-off period, the price of which shall be limited to the closing price of a particular issue.
Maximum number of shares of any class a company may legally create under the terms of its Articles of Incorporation also called authorized stock.
A person licensed by the SEC and the Exchange, and is employed by an active trading participant to act on its behalf as far as trading on the floor of the Exchange is concerned.
Advance Warning and Control System
It is designed to protect the integrity of the equities market from fraud, manipulation, and breaches of marketplace rules. It also monitors and detects unusual stock price or volume movements possibly brought about by insider trading and other manipulative trading practices.
A composite measure that gives insight into the movement of the overall market or of a particular industry. Typically, it consists of a small number of stocks and is usually not capitalization weighted.
Means the sum of the pre-tax profits of the subsidiaries divided by the sum of the consolidated pre-tax profits of the parent company and its subsidiaries for the last two fiscal years.
A strategy in which an investor lowers the average price paid for each share of stock by purchasing more shares as the price declines.
A phrase used to describe difference in bond yields, with one basis point representing one-hundredth of a percentage point.
Prolonged period of falling prices. A bear market in stocks is usually brought on by the anticipation of declining economic activity, and a bear market in bonds is caused by rising interest rates.
A person who enjoys the benefits of ownership even though the title is in another name. When securities are held by a broker in "street name", the real owner is the beneficial owner.
The highest price a buyer of a security is willing to pay for a unit of the security at a particular time.
A pre-arranged transaction executed through the facilities of the Exchange. For regular block sale, the minimum transaction value is PhP 20M with price not more than 5% above or below the reference price. Special block sale transaction has a minimum value of PhP 50M.
Blue chip stock
The share of stable, profitable and well-known public companies that have a long history of steady revenues and dividend payments. It exhibits modest but dependable returns and is relatively of lower risk.
Is the minimum number of shares one can purchase or sell a stock at a specific price.
Board Lot Table
Determines the minimum number of shares one can purchase or sell at a specific price range. Therefore, the minimum amount needed to invest in the stock market varies and will depend on the market price of the security as well as its corresponding board lot. Prices of stocks move through a scale of minimum price fluctuations.
Any interest-bearing or discounted government or corporate security that obligates the issuer to pay the holder a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity. The holder is a creditor of the issuer rather than a partial owner.
The market for long-term debt instruments such as T-notes, T-bonds, municipal bonds, mortgage bonds and debentures.
Book entry system
Is an accounting system which facilitates the transfer or ownership of securities via electronic debit and credit of holdings. Securities move between parties without the need for the movement of physical documents.
Person who acts as intermediary between a buyer and seller, usually charging a commission; they must be registered with the exchange where the securities are traded.
Prolonged rise in the prices of stocks, bonds or commodities. Bull markets usually last at least a few months and are characterized by high trading volume.
The process by which SCCP buys Securities on the Trading Floor of PSE to settle a Failed Trade.
The total of principal assets that an investor has invested in securities, real estate, and other fixed assets, as well as cash.
Is an increase in the market price of your stock. It is the difference between the amount you paid when buying shares and the current market price of the stock.
These are profits made due to an increase in the market price of a stock from the buying price.
The loss that results if the proceeds from the sale of a security are less than that security cost basis.
Markets where capital funds are traded. Included are private placement sources of debt and equity as well as organized markets and exchanges.
The risk that an investor can lose the money invested in a security. This risk is made up of several different types: business, liquidity, systematic, inflationary, and political.
The part of the company's funds raised by issuing stocks and bonds.
A dividend given to shareholders in the form of cash. It is computed by multiplying the number of shares held by the cash dividend rate declared.
Or ceiling price or ceiling range. Means the highest buying price which is set at not more than 50% above the last traded price of a particular security in the in the previous trading day.
An entity that interposes itself between the counterparties to trades, acting as the buyer to every seller and the seller to every buyer.
A document that evidences the ownership of, and the undertakings of the issuer of, a security or financial instrument. See also "stock certificate"
Capturing the patterns of a stock's price and volume movements on a line, bar, point and figure, or moving average graph.
Technical analyst who charts the patterns of stocks to make buy and sell recommendations to clients. Chartists believe recurring patterns of trading can help them forecast future price movements.
Means the process of determining the accountability and creating obligations for the exchange of the Security Element and/or the Cash Element between counterparties to a transaction.
Any person or company acting as intermediary in making deliveries upon payment to effect settlement in securities transactions.
Clearing and Trade Guarantee Fund (CTGF)
The fund established, maintained and administered by SCCP for the purpose of covering failed trades due to a member's illiquidity and/or insolvency of a member.
A one-time offering of a fixed number of shares to the public where the issuer does not issue new shares nor redeem old shares.
Is the last traded price of the stock at 12:00NN of the trading day.
Means the market value of such securities after reducing the market value of the securities by 30% except for securities issued by the government.
Short-term obligations with maturities ranging from 2 to 270 days issued by banks, corporations, and other borrowers to investors with temporary idle cash.
The basic fee charged by a broker or agent for executing an order for a customer.
Are usually purchased for participation in the profits and control of ownership and management of the company. Holders of common stocks have voting rights. They are also entitled to an equal pro rata division of profits without preference or advantage over another stockholder. However, they have the last claim on dividends and are the last to collect in case of corporate liquidation.
Refers to the formal memorandum from a broker to a client giving details of securities transaction.
A written report giving details of the trade to the customer or the other broker/dealer involved in the trade, Confirmations must be sent the next business day after the trade.
A bond's par value cash amount when it is converted to a share of common stock.
Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred share when the conversion takes place.
Convertible preferred stock
Preferred stock that at some future time can be converted into a specified number of shares of common stock.
Changes in companies that affect their listings on stock exchanges. Examples of corporate actions are new issues, defunct issues, mergers and name changes.
Means an individual duly authorized by a corporate trading participant to act on its behalf and to exercise the rights and duties of said trading participant pursuant to Exchange Rules.
A party to a trade.
Denotes the interest expressed as a percentage of the face value.
The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. Credit risk includes replacement cost risk and principal risk. It also includes the risk of settlement bank failure.
Means a deal where the same broker has a buying and selling order from his two different clients at the same price and the same issue.
Means with dividend, i.e. any person buying shares of stock of an issuer before ex-dividend date is entitled to the dividends declared on such stock.
With rights; shares of stocks that entitle the purchaser to buy a specified amount of stock that is yet to be issued.
Preferred stock whose dividends accumulate until paid.
The current yield takes into account the price at which the bonds can be purchased. Buying a bond at a discount increases the yield while buying it at a premium reduces the yield.
An entity, often a bank, that safe keeps securities for its customers and may provide various other services, including clearance and settlement, cash management, foreign exchange and securities lending.
The safekeeping and administration of securities and other financial instruments on behalf of others.
The risk of loss on securities in safekeeping as a result of the custodian’s insolvency, negligence, misuse of assets, fraud, poor administration or inadequate record keeping.
Customer First Policy
It ensures that business and trading practices of stockbrokers conform to the laws stipulated in the Securities Regulation Code of the Philippines.
Stocks of corporation whose earnings fluctuate with the business cycle. Also refers to stocks that are highly dependent on the state of the economy. Examples are: airline, hotel, steel, cement, cars, etc.
A type of transaction order placed with a stockbrokerage firm to buy or sell shares of stock that is only valid for one trading day.
Refers to establishing and liquidating the same position or positions within one day"s trading.
Means a matched order, matched either by the trading system or by the broker as in cross or special block sale.
Refers to an individual or firm acting as a principal in a securities transaction. Principals trade for their own account and risk.
A member who, by the end of business hours on settlement date does not have sufficient funds in its settlement bank account to settle its net money obligation or does not have sufficient securities in its settlement sub-account to settle the security element of its trade.
Characterized by the degree of stability during periods of a declining economy. Examples are corporation involves in essential products and services.
Refers to transactions done on the trading floor and are coursed through the central depository but are made on a date later then the usual settlement date.
Final transfer of a security or financial instrument.
Delivery versus payment
A link between securities transfer and funds transfers that ensured that delivery occurs if, and only if, payment occurs.
The elimination of physical certificates or documents of title that represent ownership of securities so that securities exist only as accounting records.
The market of derivatives or instruments whose values are derived from other underlying assets. Examples of derivatives are options and futures contracts.
Refers to transactions done on the trading floor but are not coursed through the central depository.
Brokerage house that executes orders to buy and sell securities at commission rates sharply lower that those charged by a full-service broker.
The share in the profits of a corporation which is paid to the stockholders out of the unrestricted retained earnings, in proportion to the number of shares owned by the stockholders. May be in the form of cash, stock or property.
Placement of physical certificates for securities and financial instruments in a central securities depository so that subsequent transfers can be made by book entry.
Stock paying high and regular dividends to shareholders.
A medium used to denote trends in securities market.
Indirect market participant
A market participant that uses intermediary for the execution of trades on its behalf. Generally, institutional investors and cross-border clients are indirect market participants.
Initial Public Offering or IPO
Is a process whereby a privately held corporation offers for sale of shares of stock for the first time to the public in order to raise capital to fund investments and business expansion.
Any person who has or whose relationship or former relationship to the issuer gives or gave him access to material information about the issuer or the security that is not generally available to the public.
Means the act of selling or purchasing, or causing the sale or purchase of a security having knowledge of a fact of special significance with respect to the issuer or the security that is not generally available.
Organizations whose primary purpose is to invest their own assets or those entrusted to them by other. The most common are employee pension funds, insurance companies, mutual funds, university endowments, and banks.
Interest rate risk
Refers to the volatility of bond prices that result from changes in interest rates. Interest rates are affected by various factors and are hard to predict especially over the long term.
It is the ability to make your savings grow or appreciate to achieve your long-term financial goals. It is also the most effective way to build your personal wealth and secure your financial future.
Means a duly licensed enterprise authorized to underwrite securities of another person or enterprise, including securities of the government and its instrumentalities.
Capital stock that has been sold to shareholders.
The originator, maker, obligor, or creator of the security. The company offering its shares.
Means a person or entity that controls or owns at least 10% of the voting stock of a corporation.
An auction trading system based on price and time priority.
The illegal act of creating a false impression of trading volume or price for a security.
The customer consents pledging his securities as collateral for a debit balance.
Shall mean those securities which have been purchased by a customer on the basis of credit extended by a broker or dealer pursuant to the provisions of the Securities Regulations Act.
Is the currency value of a company’s outstanding shares based on its current stock price. It is calculated by multiplying the company’s outstanding shares by the current stock market price.
Market Integrity Board
Is an independent body created by the PSE to oversee stockbrokers’ compliance with the rules governing market transactions.
An order to buy or sell a security at the price prevailing at the time the order is given. This is generally done when the client wants immediate execution of his order.
Market Regulatory Division (MRD)
It monitors the market through a word-class and sophisticated surveillance system called AWACS. And from the information provided by AWACS, MRD conducts investigation of unusual price and volume who might have committed price manipulation practices.
Is the price at which buyers and sellers are willing to purchase or sell the stock based on information or perceived value.
Marking the close
A prohibited practice of closing up or down at an obviously small amount or board lots just before the closing of the market for purposes of manipulating stock prices.
The date at which a loan or bond or debenture comes due and must be redeemed or paid off.
The smallest possible price movement of a security. Also known as minimum tick.
The market of highly liquid, short-term fixed-income instruments such as t-bills, commercial paper, and bank certificates of deposits.
Means that the quantity of the lot is less than one board lot.
Also known as "asked price"
Means the period within which securities will first or be made available for sale to the public.
Shall mean an account in which a broker or dealer effects transactions for its customer through another broker.
Are those whose main interface with their customer is through the internet. Clients execute their orders and access market information directly online.
An order that has been entered but not effected.
Is the first price the stock traded for trading day.
The risk that deficiencies in information systems or internal controls, human errors or management failures will result in unexpected losses.
Means either a bid or a quote from a client entered into the trading system by the trader.
A system dominated by brokers acting as agents. Customers" orders are posted into the system and anyone viewing the standing orders knows exactly what trades are going to be executed if a new quote or limit order is entered.
Issued capital stock that is held by shareholders. This therefore represents the total issued capital stock less any treasury stock.
Means a security that is not listed and traded on an organized exchange.
Price-to-earnings ratio. A ratio to evaluate a stock’s worth. Calculated by dividing the stock’s price by an earnings-per-share figure. If calculated with the past year’s earnings, it is called the trailing P/E. If calculated with an analyst’s forecast for next year’s, it is called forward P/E.
Philippine Association of Securities Brokers and Dealers, Inc. An umbrella organization of all licensed stockbrokers and independent securities brokers and dealers, as well as investment houses in the country.
Philippine Association of Stock Transfer Agencies, Inc. An organization of stock transfer agencies in the country.
Means the amount paid for subscribed capital stock.
An arbitrary value given to the stock at the time of issuance and is used to record the value of shares on the books of the corporation.
Philippine Central Depository (PCDI)
A central securities depository company organized to implement a book-entry system that will greatly improve the efficiency of securities settlement.
Philippine Deposit Receipts (PDRs)
A security which grants the holder the right to the delivery or sale of the underlying share, and to certain other rights including additional PDR or adjustments to the terms or upon the occurrence of certain events in respect of rights issues, capital reorganizations, offers and analogous events or the distribution of cash in the event of a cash dividend on the shares. PDRs are evidences or statements nor certificates of ownership of a foreign/foreign-based corporation. For as long as the PDRs are not exercised, the shares underlying the PDRs are and will continue to be registered in the name of and owned by and all rights pertaining to the shares shall be exercised by the issuer.
An aggregate measure of relative changes in the market capitalization of common stocks that provides comprehensive picture of market trends. Composed of a fixed basket of 30 listed common stocks carefully selected to represent general.
Philippine Stock Exchange
Is a private organization that provides and ensures a fair, efficient, transparent and orderly market for buying and selling of securities.
Its name is derived from preference given to the holders of these stocks over holders of common stocks. Holders of preferred stocks are entitled to receive dividends, to the extent agreed upon, before any dividends are paid to the holders of common stocks. However, preferred stocks usually have a specified limited rate of return or dividend and a specified limited redemption and liquidation price.
A group of securities held or owned for investment purposes by an individual or institutional investor, An investor’s portfolio may contain common and preferred shares, bonds, options and other types of securities.
Means the right of the stockholder of the company to subscribe to all issues or disposition of shares of any class in proportion to his shareholdings.
A transaction by which the price shall be its stated price or a better buying (lower) or selling (higher) price depending on the calculated opening price.
The risk that counterparties to a transaction for completion at a future date will default before final settlement. The resulting exposure is the cost of replacing the original transaction at current market prices.
Stocks issued by a firm which shareholders are given preference over common stockholders. They have limited rate of return or dividend and a specified limited redemption and liquidation price.
The amount by which a bond or preferred stock may sell above its par value. Also, that part of redemption price of a bond or preferred stock in excess of par.
Premium (new issue)
The amount the market price rises over the original selling price of a new issue of stocks or bonds.
Amount paid to the option seller or writer for assuming the risk that he may have to buy (for puts) an underlying security for more than the market price or sell (for calls) at less than the market price.
Refers to the closing price at which the issue was last traded.
Also known as trading band. The allowable price for a buy or sell order is reckoned from the last closing price or posted bid, whichever is higher.
Occurs when the trading price of the shares moves 50% upward or 40% downward from the previous closing price. Trading is still allowed but the movement of the price is not.
A series of transactions designed to raise or lower the price of a security or to give the appearance of trading for the purpose of inducing others to buy or sell said security. An intentional interference with the free forces of supply and demand.
PER. A financial ratio that measures the number of times that a stock's price exceeds its earnings. Computed as share price divided by the EPS.
Venue where new issues of stocks and bonds are sold by corporations, national and local government units.
Means securities offered to one or several investors whether existing stockholder/s of the applicant company or otherwise, as opposed to securities that are being publicly distributed.
Means the shares out of the unissued authorized capital stock of a company.
The risk the seller of a security delivers the security but does not receive payment or that the buyer of a security makes payment but does not receive delivery. In such an event, the full principal value of the securities or funds transferred is at risk.
Is the document made by or on behalf of an issuer, underwriter or dealer to sell or offer securities for sale to the public through a registration statement filed with the Commission.
PSE Composite Index (PSEi)
The PSEi is the benchmark index measuring the performance of the Philippine stock market. It is a fixed basket comprised of 30 listed companies representing the general movement of stock prices. The selection of these companies is based on a specific set of criteria.
The offering or sale to the general public of new or subsequent issues of securities traded on the stock exchange.
Public Listed Companies
A company becomes publicly listed when its shares are traded in the Philippine Stock Exchange. To become a 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.
Securities Clearing Corporation of the Philippines. Established to provide a centralized clearance, settlement and risk management services in the book entry environment of the PCDI system.
A natural person, employed as such or as an agent, by a dealer, issuer or broker to buy and sell securities.
Physical evidence of ownership, as in stock certificate.
The trading system where settlement is carried out via book-entries rather than by the movement of physical securities.
Exchanges and OTC markets where securities are bought and sold subsequent to original issuance which took place in the primary market. Also called "aftermarket".
Means shares that have been previously issued by the company.
Are proof of one's ownership or indebtedness in a company. Examples of securities are treasury bills and commercial papers, which are considered as short-term and are traded in the money market; and stocks and bonds, which are long-term and traded in the capital market. Securities are easily bought and sold in the stock market.
A non-governmental organization that has the power to create and enforce industry regulations and standards. The priority is to protect investors through the establishment of rules that promote ethics and equality.
Securities and Exchange Commission (SEC)
The SEC is a government agency whose primary mission is to protect investors and maintain the integrity of the capital markets, among which is the stock market.
The date on which either payment or securities are due to settle a trade. Currently, for equities, settlement is set at 3 days after trade date. For SDT Bonds, settlements are on the day the trade was made.
Share of stock
Means a unit of equity ownership in a corporation.
The number of authorized shares in a company that are held by investors including employees and executives of that company. Unissued shares are not included in this figure.
Any sale of a security which the seller does not own or any sale which is consummated by the delivery of a security borrowed by, or for the account of the seller.
A physical paper or document evidencing ownership by a shareholder in a corporation.
Small-Denominated Treasury Bonds (SDT-Bonds)
Are long-term and relatively risk-free debt securities issued by the Bureau of Treasury (BTr) of the Republic of the Philippines. The bond is a certificate of indebtedness of the Republic of the Philippines to the owner of the SDT-Bonds.
A person or a corporation authorized and licensed by the Securities and Exchange Commission (SEC) and PSE to trade securities.
Are shares of ownership in a corporation. When you become a stockholder or shareholder of a company, you become part-owner of that company.
A dividend given to shareholders in the form of additional stocks. It is computed by multiplying the number of shares held by the percentage of the stock dividend declared.
and listed stocks. It is an organization whose function is to facilitate the purchase and sale of stocks and other securities. It is a market for outstanding equity shares.
Stockholders or Investors
Are those who own shares of stocks of a publicly listed company, at least until the time that they decide to sell them.
Stock rights offering is the option given to the present shareholders to buy additional shares of stock at a price lower than its market price.
A place where stocks are being bought and sold to investors.
Is the currency value of a listed company per share in the stock market. It is derived by dividing the market capitalization by the total number of shares outstanding.
Is the option given to the present shareholders to buy additional shares of stock at a price lower than its market price.
Is the right to purchase a specified number of shares of stock for a specified price at a specified time.
Increase in a corporation's number of outstanding shares without any change in the shareholders' equity or the aggregate market value at the time of the split.
Phrase describing securities held in the name of a broker or another nominee instead of a customer.
Is an affiliate controlled by another corporation directly or indirectly through one or more intermediaries.
Three Fluctuation Rule
A rule that allows entry of buying order from the lowest allowable price up to a maximum price which is three fluctuations above the best (lowest) offer; selling order is allowed from the highest allowable price down to a maximum price which is three fluctuations below the best (highest) bid.
A computerized listing of information showing stock market activity and stock price movements. Information includes the stock symbol, last traded price, and the volume of shares traded.
Means the total number of stock shares traded in a particular period.
Means the allowable price range for regular buy or sell orders; from the highest buying price (ceiling) and the lowest selling price (floor) on a particular day.
Refers to any day when the Exchange is open for transaction and trading is conducted.
Means the premises where trading of securities are conducted.
Means the temporary stoppage or suspension of the trading of a listed security or suspension of trading in the Exchange.
Means any Broker Dealer who has the right, pursuant to PSE Rules, to trade at the Exchange.
Are those who assign a licensed salesman to handle your account and take your orders via a written instruction or through phone call.
Means an agreement for the purchase and sale of securities.
A firm, usually a commercial bank, appointed by a corporation to maintain records of stock owners, to cancel and issue certificates, and to resolve problems arising from lost, destroyed, or stolen certificates.
Shares of stock which were previously issued and fully paid, but subsequently reacquired by the issuing corporation by purchase, redemption, donation, or through some other lawful means.