INVESTMENT

INFORMATION AND
SECURITIES
TRANSACTIONS
Presented by
Mary Rhanessa Edar
Czedrick Faller
Learning Objectives
1 3
Online investing, pros and cons Understanding Market Averages
of using the internet as a and Indexes
medium of investing.

2 4
Types and sources of Making securities in transactions:
investment tools and services by stockbrokers
information basic type of orders
investment protection
roles of advisors and clubs
INVESTMENT RESEARCH AND
PLANNING
INVESTMENT EDUCATION SITES:

Investing Online Resource Center

InvestorGuide.com
The Motley Fool
Investopedia
WSJ.com
Nasdaq
 INVESTMENT EDUCATION SITES:

1. Smart Pinoy Investor | Romer Tawid.

2. PSE Academy | Philippine Stock Exchange, Inc.
3. Investagrams | John Christian Bisnar.
4. Pesos and Sense | Aya Laraya.
5. Pinoy Investor Academy | Pinoy Investor.
INVESTMENT TOOLS
Planning

Screening

Charting

Stock Quotes and Portfolio Tracking

 PROS AND CONS OF THE INTERNET AS AN
INVESTMENT TOOL
PROS CONS
Do it yourself investing Risky
Point-and-click investing No live brokers
Even the novices can invest Too good to be true
Low transaction costs
Here are some advice before you buy
or invest:

Don’t let the speed and ease of making

transactions blind you to realities of
online trading.
Don’t believe everything you read.
If you get bitten by the online buying bug,
don’t be tempted to use margin debt to
increase your stock holdings.
TYPES OF SOURCES OF
INVESTMENT
INFORMATION
 DESCRIPTIVE INFORMATION
-presents factual data on the past behavior
of the economy, the market, the industry,
the company, or a given investment.

ANALYTICAL INFORMATION
-presents projections, and
recommendations about possible
investments based on current data.
TYPES OF INFORMATION
Economic and current event
information
Industry and company information
Information on alternative
investments
Price information
Information on personal investment
strategies
 FINANCIAL JOURNALS

1.The Wall Street Journal- the most

popular source of financial news. Published
daily Monday through Saturday .
WSJ Online- online version. Updated
frequently throughout the day including the
weekends.
2. Barron’s- published weekly.
3. Investor’s Business Daily- published
Monday to Friday
INDUSTRY AND COMPANY INFORMATION
 PRICE INFORMATION

Price information about

various types of
securities is contained in
their quotation, which
include current price
behavior.
 FINANCIAL
PORTALS

BOND SITES

MUTUAL FUND SITES

 AVOIDING SCAMS
The ease with which information is
available to all investors today makes
it easier for scam artists and others to
spread false news and manipulate
information.
SEC RECOMMENDS THAT YOU ASK THE FOLLOWING
FIVE KEY QUESTIONS BEFORE MAKING ANY
INVESTMENT:
Is the seller licensed?
Is the investment registered?
How do the risks compare with
the potential rewards?
Do you understand the
investment?
Where can you turn for help?
Understanding Market
Average and Indexes
Gauge general market conditions

Provide a convenient method of capturing

the general mood of the market

Compare your portfolio performance to a

large, diversified portfolio

Study market cycles, trends, and behaviors to

forecast future market behavior.
 Stock market averages and indexes measure the
general behavior of stock prices over time.

Averages
reflect the arithmetic average price
Indexes
measure the current price behavior
behavior at a given point in time. relative to a base value set at an
earlier point in time.
Making Securities Transactions
Stockbrokers

also called account executives,

investment executives, and financial
consultants—act as intermediaries
between buyers and sellers of securities.
buying and selling shares and other
securities.
market makers - transactions are
executed rapidly.

Stockbrokers must be licensed by both the SEC and the securities exchanges, and
they must follow the ethical guidelines of those bodies.
 The Role of Stockbrokers
Brokerage Services

Buying and selling shares and other securities

Providing advisory services
Provide margin
Brokering other securities

Street Name - stock certificates issued to ensure safekeeping—a common way of

buying securities.
Types of Brokerage Firms
Full-Service Brokers

Premium Discount Broker

Basic Discount Broker

Brokerage Firms in the Philippines
1. Abacus Securities Corp. (MyTrade)
2. Alpha Securities Corp. (AlphaSec)
3. BDO Securities Corp.
4. BPI Securities Corp. (BPITrade)
5. China Bank Securities Corp. (Chinabank Sec)
6. First Metro Securities Brokerage Corp. (First Metro Sec)
7. Globalinks Securities & Stocks, Inc. (GTrade)
8. Landbank Securities, Inc.
9. Maybank Kim Eng (MaybankTrade)
10. Optimum Securities Corp. (Optimum Online)
11. Philstocks Financial, Inc. (Philstocks)
12. RCBC Securities, Inc. (RCBC ezTrade)
Selecting a Stockbroker
Find someone who understands your investment
goals.
Consider the investing style and goals of your
stockbroker.
Be prepared to pay higher fees for advice and help
from full-service brokers.
Ask for referrals from friends or business associates.
Beware of CHURNING: increasing commissions by
causing excessive trading of clients’ accounts.
Opening an Account
1. Single or Joint
2. Cash or Margin
3. Wrap Account

INVESTORS CAN BUY ODD-LOT AND

ROUND-LOT TRANSACTIONS
ODD LOT: order consists of >100
shares of stock
ROUND LOT: orders for a 100-share
unit or multiple thereof.
 Types of Orders
Market Order Limit Order Stop-Loss Order

Quickest way to fill Order to buy at or below “Suspended order” placed

order a specified price (limit sell to sell a stock if the price
order) reaches or falls below a
specified level.
 Online
Transactions
DAY TRADING
Day Trader: an investor who buys and sells stocks quickly throughout the
day in hopes of making quick profits.

highly risky
Technical and Service Problems
Service outages
high brokerage Slowdowns in the process of

commissions confirming trades can lead to

duplicate orders.
Long wait times on hold when using
phone.
Tips for Successful Online Trades
Know how to place and confirm your order before you
begin trading
Verify the stock symbol of the security you wish to buy
Use limit orders
Don’t ignore the online reminders that ask you to check
and recheck
Don’t get carried away: have a strategy and stick to it to
avoid impulse trading.
Open accounts with two brokers
Double check orders for accuracy.
Transaction Costs
Brokerage Fees
Stamp Duty
Clearing Fees
Investors Protection
RA 8799 - The Securities Regulation Code

Capital Markets Integrity Corporation

(CMIC) - a fully-owned subsidiary of
PSE.
Investment Advisors and
Investment Clubs
Investment Advisor Investment Clubs

an individual or firm that legal partnership binding

provides investment a group of investors
advice, typically with (partners) to a specific
fees. organizational structure,
operating procedure
Robo-Advisors and purpose.
Thank You