STOCKS

AND
BONDS
STOCKS
It is a type of security that signifies
ownership in a corporation and
represents a claim on part of the
corporation’s assets and earnings.
STOCKS
It is a share in
the ownership of
a company.
STOCKS
 Symbo
Company Name Price
l
PIZZA Shakey's Pizza Asia Ventures, Inc. 12
STOCKS
249.8
JFC Jollibee Foods Corporation
 
PCOR Petron Corporation 8.65
PIP Pepsi-Cola Products Philippines, Inc. 1.81 
PMPC Panasonic Manufacturing Phils. Corp. 6.34 
146.7
SECB Security Bank Corporation
 
SMC San Miguel Corporation 170 
STI STI Education Systems Holdings, Inc. 0.91 
STOCKS
The investor who buys stocks is
called the stockholder or
shareholder.
STOCKS
The more shares you own, the larger
the portion of the profits you get.
STOCKS
STOCKBROKER
They function as a middleman
between the two (2) transacting
parties buying and selling stocks.

The broker charges a commission

called brokerage fee.
STOCKBROKER
 Walmart Company
purchased 20,000 shares
of Costco Corporation at
exampl ₱4.85 during the opening
of the trading day. If the
e brokerage fee is 8.5%,
find the cost of buying the
stocks.
 Cost of Shares =
Quantity x Price

formulas Broker’s Fee =

Cost of Shares x Broker’s Rate

Total Cost =
Cost of Shares + Broker’s Fee
 Walmart Company
purchased 20,000 shares
of Costco Corporation at
₱4.85 during the opening
solution of the trading day. If the
brokerage fee is 8.5%,
find the cost of buying the
stocks.

Total Cost = P105,245

 Walmart Company sold all
the Costco Corporation’s
20,000 shares when the
exampl price is at its high level at
₱5.95 per share and paid a
e brokerage fee of 4.5%.
What was the net proceeds
from selling the stocks?
 Proceeds =
Quantity x Price

formula Net Proceeds =

Proceeds – Broker’s Fee

Gain/Loss =
Net Proceeds – Total Cost
 Walmart Company sold all
the Costco Corporation’s
20,000 shares when the
price is at its high level at
solution ₱5.95 per share and paid a
brokerage fee of 4.5%.
What was the net proceeds
from selling the stocks?
Net Proceeds = P113,645
Gain = P8,400
BONDS
It is a written contract stating a debt
in which the debtor promises to pay
its holder a specified amount of
money, plus a certain rate of
interest at a stated future date.
BONDS
The investor is the bondholder. It
covers a long term to pay the debt.
A company that needs money can
borrow from investors by selling
bonds.
 Maturity Duration Face or Par Value

Interest Rate
BONDS
 JFC purchased a bond of par
value of P100,000. How
much is its annual interest if
the rate is 7%?

exampl I = Prt
e Where: P = par value,
r = interest rate
t = 1, for annual interest

I = P7000
 How much will JFC receive
exampl semi-annually?
 
I = P7,000
e I = P7,000 2
I = P3,500
BOND MARKET
MARKET VALUE
It is the amount that the investor
actually pays for the bond.

PRICE QUOTATION
It represents the percent of par value.

Market Value = Par Value x Price Quotation

 National Power Corporation
purchased a bond having a
par value of P200,000 with
a price quotation of 1.03.
exampl Solve for the market value
of the bond.
e
MV = Par Value x PQ
MV = 200,000 x 1.03
MV = P206,000
BONDS
A bond sold at a market value higher
than its par value is said to be sold
at premium.
A bond sold at a market value lower
than its par value is said to be sold
at a discount.
 JAD Corporation purchased
a bond quoted at 0.932
and has a par value of
P300,000. Solve for the
exampl market value of this bond.

e
MV = Par Value x PQ
MV = 300,000 x 0.932
MV = P279,600
 1. Posh Company purchased 10,000 shares of John
Calvin Corporation at P7.85 during the opening of
the trading day. If the brokerage fee is 8.5%, solve
ASSIGNMENT

for the cost of buying the stocks.

2. Posh Company sold all John Calvin Corporation’s
10,000 shares while the price is at P8.95 per share
and paid a brokerage fee of 4.5%. What was the
net proceeds from selling the stocks?
3. Determine if Posh Company lost or gained in this
trade.
 1. Dominican Company purchased a bond of par
ASSIGNMENT

value P250,000. How much is its annual interest if

the rate is 2.75%?
2. How much will Dominican Company receive
semi-annually?
3. Texas Corporation is a bond holder of P350,000
par value. Solve for its market value if the price
quotation is 1.19.