FINANCE

• Stocks


  Shares of ownership of a company listed in the Philippine Stock Exchange (PSE)
• Stock market


  The collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place
• Types of stocks available in the Philippine market

  • Common stock
  • Preferred stock
  • Cumulative preferred stock
  • Convertible preferred stock
• Common stock


  • Entitles the owner to vote at shareholders' meetings and to receive any dividends paid out by the corporation
  • Purchased for participation in the profits and control of ownership and management of the company
• Classification of common stocks

  • Class A (exclusively traded by Filipino investors)
  • Class B (traded by both Filipino and foreign investors)
• Preferred stocks


  Another type of security that gives the holder a claim on the company's earnings and assets before common stockholders
• Dividends


  Payment made by a company out of its earnings to investors in the form of a check or electronic transfer
• Cash dividend


  Dividends paid in cash
• Stock dividend


  Dividends paid in the form of additional shares of stock
• Common stock


  Security usually purchased for participation in the profits and control of ownership and management of the company
• Common stockholder


  • Exercises control through voting rights during annual or special stockholders' meetings
  • Can only claim rights to the company's assets and earnings when preferred shareholders are already paid in full
• Common stocks


  Also known as "ordinary shares"
• Classification of common shares

  • Class A (exclusively traded by Filipino investors)
  • Class B (can be bought and sold by both Filipino and foreign investors)
• Both Class A and Class B common shares have the same privilege and receive the same amount of dividends
• Preferred stocks


  • Another type of securities issued by corporations
  • Holders are entitled to receive a fixed minimum amount of dividends (expressed either in pesos or as a percentage of the stock's par value), to the extent declared by the company's Board and if there are sufficient retained earnings before any dividends are paid to the holders of common stocks
• Cumulative preferred stocks


  • Special preferred stocks that accumulate unpaid dividends for future payment
  • Have prior rights to dividends over common stock
• Convertible preferred stocks


  Preferred stocks that are exchangeable into common stocks at the option of the holder under specified terms and conditions
• Dividends


  Periodic payments made by the company to its shareholders from its current and past profits
• Types of dividends


  • Cash dividend (payment made by a company out of its earnings to investors in the form of cash)
  • Stock dividend (dividend given to shareholders in the form of additional stocks, instead of cash)
• Capital gains

  Profit earned on the sale of an asset that has increased in value over the holding period
• Capital gains result from capital appreciation or an increase in the market value of the stock
• Stock certificates are a written evidence of ownership
• The Philippine Stock Exchange (PSE) is where different types of stocks can be bought and sold
• Stockholders make money through returns of dividends or capital gains