TERUEL, Gerardo Miguel R.

2A1

TOPIC: How to start investing in the stock market.

PURPOSE: To demonstrate to the audience on how to invest in the stock market
STRUCTURE: Chronological

I. INTRODUCTION
A. Fact
B. However, that is just half of the story — stock investing also comes with a measure of risk
and if you are not careful, you may lose some, if not all of your capital.
C. Thesis Statement: Investing in a stock market involves four steps: Assessing yourself,
Knowing the market, finding a stock broker, and finally monitoring and evaluating your
investment.
II. ASSESING ONESELF
A. Set financial goal
B. Categorize if long term or short term investment
C. Know the riskiness of investment
D. Determine the financial capability and amount to invest.
III. KNOWING THE MARKET.
A. Make sure it’s durable.
B. Determine the value of the business.
C. Make sure the company is run with a CEO with integrity.
IV. FINDING A STOCK BROKER
A. Open a brokerage account
B. Choose your investment with the guidance of the chosen stock broker
V. MONITORING AND EVALUATING INVESTMENT
VI. CONCLUSION
A. Summary of main points
 HOW TO START INVESTING IN THE STOCK MARKET

With the Philippine Stock Exchange index hitting new highs, many Filipinos are now
realizing the advantages of investing their hard-earned money, versus simply parking it in a savings
account or time deposit. Stocks can grow in value, providing you with returns that may be higher
than what you can get from putting your money in a bank. However, that is just half of the story
— stock investing also comes with a measure of risk and if you are not careful, you may lose some,
if not all of your capital. With that in mind, investing in a stock market involves four steps:
Assessing yourself, Knowing the market, finding a stock broker, and finally Monitoring and
Evaluating your investment.

Before you begin to invest in stocks, it is important to know what you want, and to
determine if equity investing is for you. Questions like: what are your financial goals? Know your
financial objectives and your current financial state. You should support your daily needs first
before investing. Considering the risk, are you still interested to invest? The general rule of the
stock market is that “The higher the risk, the higher the reward.” Yet it also means that the higher
the risk the higher the chance that you lose your money. Are you in it for long term or short term?
Studies have also shown that equities tend to grow in value over a long period of time because
stocks are best for those without time pressures to deal with. Lastly, how much are you willing to
invest? Do not invest everything that you have because in the stock market risk is always present.
When you have already answered this questions, your next step is to research about the market.

The better you understand a company or an industry on how they operate and their outlook,
the more informed your decisions will be about whether or not they are a good buy. In order to
better understand the market here are three key points to research about. First, make sure the
company is durable, the best stocks are the ones that you can hold onto for a long period of time,
profiting off of them more and more as the years go on. In fact, Warren Buffett takes it a step
further, saying, "If you aren't willing to own a stock for ten years, don't even think about owning
it for ten minutes." When choosing a company to invest in, you should have a 10-15-year outlook.
It's crucial, therefore, to make sure the company is durable enough to remain profitable for that
long. Second, determine the value of the business. Value and price are not the same thing. Another
great lesson from Warren Buffet is, "Price is what you pay; value is what you get." Sometimes,
the market will drastically inflate the price of a business above its real value. Other times, though,
the market will drive the price of business well below what its actual value is and these are the
stocks you want to buy. Finally, make sure the company is run with a CEO with integrity.
Companies live and die by their CEOs. It's not uncommon at all for a great CEO to take a struggling
company and completely turn it around. By the same token, it's also not uncommon for CEOs to
embroil their company in scandals and mishaps, causing the stock to tank. Volkswagen’s stock in
2015 fluctuated due to the poor integrity of its CEO and upper management. To avoid such pitfalls,
be sure to invest in a company that is run by a CEO with integrity. Researching will serve as a
guide as to how you reassure yourself that investing is really for you. Hence it will be a great way
to prepare when you consult a stockbroker.

As to finding a stockbroker, The Philippine Stock Exchange has a list of brokers that you
can refer to. There are also brokerage houses that allow you to do online trading, which some find
to be a more convenient way of handling transactions. Some banks also offer stock broking
services. Brokers differ in the range of services they offer, as well as in the minimum investment
amount that they require. The larger brokerages servicing institutions and high-net-worth
individuals typically offer research services on top of trading, while smaller ones can simply offer
trading services. Ideally, your broker would take the time to ask you about your investment goals
and where your ideal investment will be. They will also give you a list of requirements to fulfill
for you to open a brokerage account.

Now that you have already invested, it is time to monitor and evaluate your investment by
regularly consulting your broker and Periodically monitoring the movement of the stocks in your
portfolio. Closing prices may be monitored online, on TV and in business newspapers. Keep
yourself informed of any dividend announcements, which may entitle you to cash or additional
shares of stock.

Today I have demonstrated the four steps in investing in the stock market: Assessing
yourself, Knowing the market, finding a stock broker, and finally monitoring and evaluating your
investment. Carl Icahn with a net worth of 24.5 B, George Soros - 24.5, and Warren buffet – 62.9B
acquired almost all their assets by investing in the stock market. Investing in stocks can indeed
earn you a good amount of asset but it can also diminish your heart earned assets.