The Stockmarket - Market Education

The Stock Market

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Explore inside The Stock Market!

The stock market is a place where stocks are bought and sold or a place where people can invest in publicly listed companies through the Philippine Stock Exchange, Inc. (PSE). Historical data has shown that investing in stocks over the long-term provides superior returns. Stocks offer potentially higher yields compared with fixed income instruments such as time deposits, government securities and bonds. There are three (3) rationales for stock investing:

Ownership in a company
When an individual invests in the stock market, he automatically becomes a stockholder of a particular listed company. As a stockholder, he is entitled to the following benefits: 1) voting rights; 2) dividends to be declared by the corporation; and 3) share of the remaining assets of the company if it is to be liquidated.

Liquidity of funds
A stock market investor has easier access to funds. Compared with banks which require high minimum conditions for deposits and credit, an individual can start an investment for as low as Php 5,000.00. He can cash in or out his funds during trading hours, through his broker.

Make money
Investors in the stock market make money through dividends and capital appreciation. When a listed company declares dividends, its shareholders increase their investing power. An investor who buys into the company at a low market price and sells it at a higher price will gain capital appreciation.