HOW TO GET STARTED IN THE PHILIPPINE STOCK MARKET

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STOCK INVESTING 101

FOR BEGINNERS


Now that you have learned the basics of saving money but for those who haven't read my blog about 'Lesson 1: Saving', please do so.

So, what is the stock market? How it works? How can I earn? Is it a scam? Is it a get-rich-quick scheme? Where can I invest? 

These are some of the questions I frequently hear from other people. If you are new to investing, there are things you should learn before you start your journey in investing in the Philippine Stock Market. In this blog, you'll know the answer to those questions. 


Let's start with the basics:


WHAT ARE STOCKS?

To simplify things, here is an example.

Here we have a pizza and it serves as the company/business.









Do you want a slice? Here you go.
Now that you have a slice of pizza, just like stocks, you are considered as a stockholder of a company.


WHERE CAN I BUY STOCKS?

In the public market, also known as palengke in the Philippines, you can see different kinds products and merchants, where you can buy or sell.


The stock market is just like a palengke, where you can buy stocks or shares of a company.


Instead of buying products, you buy company shares.

You might be wondering why do companies share their stocks to the public? They are huge companies, but they still need money. And by selling their shares, they would be able to raise funds for their projects in order for their business to grow even more.


3. HOW TO EARN IN THE STOCK MARKET?

  • Price Appreciation
You as a shareholder, when the price of the company goes up, the value of the company increases, and the money you invested will also increase. When companies perform well, they attract investors/buyers, and it drives the prices up. When something bad happens, there are more willing sellers, and it overwhelms the buyers, prices tend to go down. Basic supply and demand.

















  • Dividends
A dividend or cash dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders. It can also be stock dividend where payment is made in the form of additional shares rather than a cash payout. Companies may decide to distribute this type of dividend to shareholders of record if the company's availability of liquid cash is in short supply.








Before you start, you should learn first. There are some firms out there using the name of the stock market to attract people to invest in them. So, investing in knowledge is very important to avoid investment scams and to know if it's legit, and to know what you are entering. Investing/trading in the stock market is legit and it is not a get rich quick scheme. It's a continuous process of learning, planning and execution. You won't get rich overnight just by investing/trading. It takes time to build wealth and a serious learning is a must.


FINDING THE RIGHT BROKER FOR YOU

Here are the list of Stock Brokers in the Philippines 2019:

  • AB Capital Securities, Inc.
  • Abacus Securities Corp.
  • AP Securities, Inc.
  • BA Securities, Inc.
  • BDO Nomura Securities, Inc.
  • BPI Securities Corp. (BPITrade)
  • Coherco Securities, Inc. (CohercoTrade)
  • COL Financial Group, Inc.
  • DA Market Securities, Inc. (iTrade)
  • F. Yap Securities, Inc. (2TradeAsia)
  • First Metro Securities Brokerage Corp.
  • HDI Securities, Inc.
  • Investors Securities, Inc. (Investors Online)
  • JAKA Securities Corp.
  • Lucky Securities, Inc.
  • Maybank ATR Kim Eng Securities, Inc. (MakeTrade)
  • Meridian Securities, Inc. (MSiTrade)
  • Optimum Securities Corp. (Optimum Online)
  • Papa Securities Corp. (P2P Trade)
  • Philstocks Financial, Inc.
  • RCBC Securities, Inc. (RCBC ezTrade)
  • Regina Capital Development Corp.
  • Timson Securities, Inc. (Timson Trade)
  • UCPB Securities, Inc (UCPB My Stocks)
  • Unicapital Securities, Inc. (uTrade)
  • VC Securities Corp. (VC Trade)
  • Wealth Securities Inc. (WealthSec)
Visit their website, explore and do some research. I personally recommend COL Financial, especially for beginners since it is user-friendly. After deciding which broker, you can now open, apply and fund your account. After that you can start buying stocks.

So, start early and start now!

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