Organizational Structure of the Market

• Financial markets can be classified by its organizational structure.
• The stock exchange is an entity which is in the business of bringing buyers and sellers of stocks and securities together.
• The stock exchange floor is a physical location where buying and selling takes place.
• The purpose of the stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a market place which may be virtual or real or both.
• The PSE brings together companies which aim to raise capital through the issue of new securities.
• The PSE was formed from the country’s former stock exchanges.
• The PSE has committed itself to protecting the interest of the investing public and developing and maintaining an efficient, fair, orderly, and transparent market.
• The PSE is located at PSE Tower, BGC, Taguig City.
• Efficiency, fair, and market transparency are defined as the core values of the PSE.
• Buyer’s and sellers’ orders are matched by the central computer, and if quantities and prices correspond, then a trade is set to be executed.
• The stock exchange ensures that the company provides all the information pertaining to its working from time to time, including events that affect its valuation, such as mergers, amalgamations and such other sensitive matters.
• Large volumes are possible in these markets because shares traded in are received and delivered through an electronic entry in the books of buyers and sellers.
• Large volumes are possible in these markets because sellers get their money while buyers get their shares.
• Listing means admission of securities to dealings in a recognized stock exchange of any incorporated company, national or local governments, and other qualified organizations.
• The principal objective of listing is to provide liquidity and marketability to listed securities and ensure effective monitoring of trading for the benefit of all participants in the market.
• Over-the-counter market are stocks of corporations not listed and therefore not traded in the stock exchange but registered and licensed by the Securities and Exchange Commission for sale to the public.
• Over-the-counter market is not a specific organization but another way of trading securities.
• Over-the-counter (OTC) Transactions are carried out by direct inquiries and negotiations among buyers and sellers through the use of email, telephone, or other forms of communication.
• Day trading is a strategy in which traders hold their share of financial asset for just a few minutes or even seconds.
• Scalping is a strategy in which the trader holds their share or financial asset for just a few minutes or even seconds.
• The Philippine Stock Exchange was formed from the country's two former stock exchanges, the Manila Stock Exchange (MSE), established on August 8, 1927, and the Makati Stock Exchange (MkSE), which was established on May 27, 1963.
• Day trading is a high risk occupation, is stressful, and is expensive.
• Stock exchange is an entity which is in the business of bringing buyers and sellers of stocks and securities together.
• Transparency in the Philippine Stock Exchange proceeds from the assumption that the investor can only make informed and intelligent decisions about the particular stock he wants to buy.
• Day trading is a strategy in which the traders hold their share or financial asset for just a few minutes or even seconds.
• The role of the Philippine Stock Exchange is to facilitate the buying and selling of shares, currency, or other financial instruments in the fastest possible way, ensuring that no investor has an undue advantage over another market player in trading by manipulating prices and engaging in insider trading.
• The Stock Exchange and Over-the-Counter Market are two financial markets based on the organizational structure of the market.
• Margin trading is a method of buying shares that involves the Day Trader borrowing a part of the sum needed from the broker who is executing the transaction.
• Potential day traders should be aware of the three things: Day trading is a high risk occupation, is stressful, and is expensive.
• The difference between a price at which a share is sold, and that at which it is bought, is known as the bid-offer spread.
• The Philippine Stock Exchange (PSE) is the only stock exchange in the Philippines and is one of the oldest stock exchanges in Asia, having been in continuous operation since the establishment of the Manila Stock Exchange (MSE) in 1927.
• Potential day traders should be aware of the bid-offer spread.
• Day trading is the buying and selling of shares, currency, or other financial instruments in a single day.
• The current trading information for each day-trading market is the price and other related data for a financial instrument reported by a trading venue such as a stock exchange.