Philippine stock exchange guide for beginners: We are super pumped to share with you the Philippine stock exchange guide for beginners. Every day, people make money on the Philippines stock exchange, and sometimes if the market is on their side, they can make some serious profit quickly.
If you are reading this article, it’s most likely because you have little experience in the Philippines stock exchange but fear not! We will be going over what it involves, how it works, and any other questions you may have.
We are writing this in the hopes you will never need to research the basics again as we aim to provide everything you need today, but, If there is something we haven’t answered, please feel free to reach out to us via social media as we’d love to help you answer it!
Unfortunately, because there have been many scams across the Philippines, people are understandably cautious of the stock market. However, people do question, “Can the average person earn good money on the Philippines stock exchange?”, let me reassure you the answer is 100% Yes! as long as you do your research online around the companies & news which could affect the stocks, then this can be the ultimate money earner and even a great source of earning money online / passive income.
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Philippine Stock Exchange Guide For Beginners
What is the Philippines stock market / Philippines Stock Exchange?
In the simplest way, a stock market is a place where companies and stockholders meeting. It’s a place where you can buy a part of a company, commonly known as shares or stocks. An investor can also sell their stock investment in the Philippines stock exchange to make a profit.
An investor can also invest in funds. Each fund is different but revolves around the stock exchange, for instance. There is a fund available that is made up of the best-performing companies in the Philippines.
The stock market is open Monday to Friday from 09:30 – 12:00 and 13:30 – 15:30. On national holidays the stock market may be closed. A stock trader can only buy or sell shares during this time period.
What is a trader and how can I make money online from the Philippines stock market?
When looking at a stock exchange beginner guide, it’s important to understand the basics. When you invest in the stock exchange, you buy a small part of that company. For example, let’s take BDO bank; you may invest ₱25,000 into them, which gives you a total of 250 shares because each share is priced at ₱100.
The next day you notice the price has increased to ₱110 per share, so you sell your stock to other traders who want to buy a piece of BDO. You now have a balance of ₱27,500.
Original balance – new balance = profit (₱2,500 ) So you made a total of ₱2500 by allowing your money to work for you. This was, of course, just an example, but it highlights that it is possible to make money online via the Philippines stock exchange.
What is a shareholder/stockholder on the philippine stock exchange?
Both mean the same as they both take part in the ownership of a company. If you research online, you will notice some sites use shareholders while others use stockholders sometimes. This depends on what country. For instance, they sometimes refer to traders and shareholders in the UK, while the US refers to them as stockholders.
That being said, there is an underlying difference between stocks & shares; however, for the purpose of this article, we shall be keeping it simple.
How many companies should I invest in when investing in the philippine stock exchange?
Good question! Even if I did compliment myself. A trader should never invest in just one company because the risk is too high on the capital. For example, if you invested ₱100,000 in one company and it decreased, it would be more damaging than if you invested the same amount split between 10 companies; in theory, they are less likely to decrease.
The drawback an investor faces is if they did invest in one good company and did very well in the market, they could have made more profit from that one company instead of if they split their risk between 10 average companies or so.
Tip: This is the game of investment do you take the risk? There are lots of different advice, methods, and plans but most experts agree to split your risk between different types of companies.
Why do companies list themselves on the Philippines stock market?
Growing companies sometimes reach a point where they can no longer grow by the capital or assets the company owns. So, they decide to turn their private company into a public one. The stock market is the platform where they can do this.
If we time travel back to the start of Jollibee when things were still growing, the management at Jollibee said, “Hey, we want to open up 75 branches in other countries during the next 5 years, and the total price would be around ₱3 Billion!” so they would have turned to the Philippines stock exchange where they would have been able to sell a percentage of their company in exchange for a price, therefore, raising the capital for their company.
How much do I need to invest in the philippine stock exchange as a beginner?
As an investor, you would start to sign up for a trading platform ( Company). The amount you start with depends on 2 main things 1) The platform’s minimum deposit. 2) the board lot.
1) The platform you choose will normally have a minimum deposit to open an account normally. This ranges from ₱1000-to ₱50,000. I personally would recommend the company I use called COL Financial. We have spoken about them in past articles, and the reason why we recommend them is that their deposit amount is only ₱1000 and as an online platform, you can buy and sell shares from the conform of your own bed!
2) The board lot is the minimum number of shares you can buy from that company. Let’s say we have Vista Land shares. They are around ₱8 per share at the time of writing this article, and their board lot is 100, which means the minimum amount you could buy would be ₱8 share price x 100 = ₱800
The amount you decide to invest is down to your personal circumstances. Some people prefer to invest a certain amount each month. This is a good strategy for long-term investors because it gives investors the Peso average / PHP averaging.
Can Foreigners Invest In The Philippines Stock Market?
The law states in most cases, foreigners can own up to 40% of a company (sometimes higher) as long as the stock has less than 40% ownership, then there are no legal hurdles, and a foreigner can invest in the Philippines stock exchange.
How can I start Investing in the philippine stock exchange?
If you are searching for a stock exchange beginner guide, you most likely want to know how to start, so let me help you. First, of course, you can invest at any time. Before you do, however, it is strongly recommended you learn about the stock market. There are quite literally thousands of free information and courses online, and if you visit a trading platform, they will often help you with courses and information, which is also free.
I personally trade with a company called COL financial and have done it for many years. I use them above other companies because their dashboard is easily usable by any new trader. In addition, as an online trader, you buy and sell the stock yourself without speaking to a representative.
Philippine Stock Exchange Guide For Beginners: Resourced & References
- PSEi Index – https://www.marketwatch.com/investing/index/psei?countrycode=ph
- SEC Legislation – https://www.sec.gov.ph/laws-rules-decisions-and-resolutions/legislation/
- Foreign Investment Act – https://investmentpolicy.unctad.org/investment-laws/laws/95/philippines-foreign-investment-act
- Republic Act 8799 – https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html
- Rights As An Investor – https://www.equilyst.com/informational/10-rights-of-a-stock-investor-in-the-philippine-stock-market/
- Updates – https://www.barrons.com/market-data/stocks/pse?countrycode=ph
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