BR 4 L - 6

• STOCKS

  also known as equity, is a security that represents the ownership of a fraction of the issuing corporation.
• STOCKS

  A shareholder is considered an owner of the issuing company, determined by the number of shares an investor owns relative to the number of outstanding shares.
• Stockholders do not own a corporation but corporations are a special type of organization because the law treats them as legal persons.
• A CORPORATION CAN...

  • file taxes
  • own property
  • borrow money
  • get sued
• Shareholders

  own shares in a company, but the company itself owns all the assets it has, like buildings or equipment.
• Stocks

  Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
• Shareholder

  Owning stock could give you the right to vote in shareholder meetings, receive dividends if and when they are distributed, and the right to sell your shares to somebody else.
• TYPES OF STOCKS ACCORDING TO RIGHTS

  • Common Stock
  • Preferred Stock
• KINDS OF STOCKS ACCORDING TO OWNERSHIP

  • CLASS A - These are stocks that can be exclusively traded by Filipino investors.
  • CLASS B - These are stocks that can be bought and sold by bothFilipino and foreign investors.
• KINDS OF STOCKS ACCORDING TO SECTORS

  • FINANCIALS SECTOR
  • INDUSTRIAL SECTOR
  • HOLDING FIRMS SECTOR
  • PROPERTY SECTOR
  • SERVICES SECTOR
  • MINING AND OIL SECTOR
• Common Stock

  •is a type of security that offers ownership in a company and the potential for profits.

  • These stocks are prevalent in stock markets and are also called "ordinary shares."
• Common Stock

  Common stockholders can control the company through voting rights in meetings
• Preferred Stock

  • is a type of security that provides the holder with a higher claim on a company's assets and earnings compared to common stockholders.
  • These stocks offer a fixed rate of return or dividend and are also called "preference shares."
• Preferred Stock

  Preferred shareholders have priority in receiving dividends and assets during liquidation, although they typically do not have voting rights.
• FINANCIALS SECTOR

  • This includes companies engaged in banking, investments, and finance.
• INDUSTRIAL SECTOR

  • This includes companies involved in the following: Electricity, Energy, Power, and Water, Food, Beverage, and Tobacco, Construction, Infrastructure, Diversified Industrials
• HOLDING FIRMS SECTOR

  • This includes companies or firms that control or manage partial or complete interest in another company or other companies.
  • Usually, these companies do not produce goods or services itself;
• PROPERTY SECTOR

  • This includes companies involved in land and property development.
• SERVICES SECTOR

  • This includes companies involved in the following: Media, Telecommunications, Information Technology, Transportation Services, Hotel and Leisure, Education, Casino & Gaming, Retail, Diversified Services
• MINING AND OIL SECTOR

  • This includes companies engaged in mineral extraction, oil exploration, extraction, and production.
• HOW TO READ STOCK QUOTES

  • Name
  • Symbol
  • Bid
  • Ask
  • Open
  • High
  • Low
  • Close
  • Volume
  • Value
• Name

  The name of the listed company.
• Symbol

  A unique alphabetic name which identifies the stocks of a listed company.
• Bid

  The highest price that a buyer is willing and able to purchase for a share of stock at a particular time, also called the "buyer's price".
• Ask

  The lowest price that a seller is willing and able to offer for sale for a share of stock, also called the "seller's price".
• Open

  The opening price of the stock for the day.
• High

  The highest traded price of a stock during a specific trading period.
• Low

  The lowest traded price of a stock during a specific trading period.
• Close

  The closing price of the trading day.
• Volume

  The total number of shares traded during a given period of time.
• Volume

  Comes in the form of a triangle or arrow head pointing either up or down, which indicates whether the stock is trading higher or lower than the previous day's closing price.
• Value

  • The amount of transactions in peso terms traded on a particular period.
  • This indicates how much money is turned over from the trading of stocks.
• Capital Appreciation

  This occurs when the market price of your stock increases, resulting in a gain in the value of your investment.
• Dividends

  Companies may distribute a portion of their earnings to shareholders through dividends.
• Two types of Dividends

  • cash dividends
  • stock dividends
• Cash Dividends

  which are paid out in cash per share held
• Stock Dividends

  which give shareholders additional shares at no cost.
• Way to make your Money Grow in Stock

  • Capital Appreciation
  • Dividends
• If you have 33% of a company's shares, it doesn't mean you own exactly 1/3 of the whole company. But you do own 1/3 of the shares. This is called the "separation of ownership and control."