The Philippine Stock Exchange in a Snapshot: Key Points

Buying or Selling Shares of Stocks

NOTE: This is an old post and most of the details are not current anymore. We are not updating this post anymore since its posting on March 7, 2009. So, readers are advised to go straight to The Philippine Stock Exchange website for more details. Here is the link to the PSE:

The Philippine Stock Exchange, Inc.

Trading Participants

In the Philippines, the only operating stock exchange is the Philippine Stock Exchange or PSE. Its main function is to facilitate the buying and selling of stocks and other securities through its accredited trading participants. (You may click on the images to enlarge.)



The PSE has two trading floors - PSE Centre in Ortigas, Pasig City and PSE Plaza in Ayala, Makati City - where trading participants trade daily - from 9:30 a.m. to 12:10 p.m. except Saturdays, Sundays, legal holidays and days when the Central Bank Clearing Office is closed.

Stocks and Securities

Stocks are shares of ownership in a corporation. When you become a stockholder or shareholder of a company, you become a part-owner of that company.

Securities, on the other hand, are proof of one's ownership or indebtedness in a company. Securities are easily bought and sold in the stock market.

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.

Unit of Trading

Trading of shares shall be in terms of fixed minimum amounts called board lots. Depending on the price range of a particular stock, the unit of trading ranges from 10 to 1,000,000 shares. The cost of a transaction, therefore, varies from company to company since the prices of each company differ according to its par value.

Ayala Corporation (AC) shares, for example, are traded in board lots of ten (10) shares in the PSE.

The Starter Investor's Favorite Stock

For starter investors looking to make their first investment in the stock market, Ayala Corporation (AC) stock may be a viable option. Here are five reasons why choosing AC stock can be advantageous, even with limited funds:

• Firstly, Ayala Corporation is one of the largest conglomerates in the Philippines and operates in diverse business segments, such as real estate, banking and financial services, telecommunications, water infrastructure, and healthcare. This diversification provides a buffer against market volatility, reducing the risk for investors.

• Secondly, Ayala Corporation has a long history of stable growth and has consistently delivered strong financial performance, making it an attractive investment option.

• Thirdly, Ayala Corporation's subsidiaries and affiliates are known for their brand equity, innovation, and contributions to social development in the Philippines. This brand reputation can help provide investors with confidence in the long-term viability of the company.

• Fourthly, Ayala Corporation has a strong focus on sustainability, incorporating environmental, social, and governance (ESG) factors into its business operations. This approach can potentially result in better risk management, higher operational efficiency, and long-term value creation.

• Finally, Ayala Corporation is listed on the Philippine Stock Exchange (PSE), which is a well-regulated market that offers a transparent and accessible trading platform. This allows investors with limited funds to invest in AC stock with ease and confidence.

In conclusion, investing in the Philippine Stock Exchange (PSE) can be a smart choice for those looking to diversify their portfolios and grow their wealth. By understanding the key points about the PSE, such as the basics of online stock trading, investors can make informed decisions and minimize risks. Moreover, with the availability of online trading platforms such as BPI Trade, investing in the PSE has become more accessible and convenient. For novice investors, choosing a reputable company such as Ayala Corporation (AC) for their first investment can be a sound strategy due to the company's stability, strong financial performance, diversification, brand reputation, and focus on sustainability. With these key points in mind, individuals can start their journey towards successful investing in the Philippine Stock Exchange.