In this article, we’ll continue answering the most frequently-asked questions about stock market investing. I hope that after reading this article, you’ll continue your quest to gain more knowledge and become a wiser investor. Have you missed the previous article? Check it out here.
5. What is an index? What is the Philippine Stock Exchange index?
An index tracks the movement of a selected basket of stocks, usually blue-chip stocks, and is used as a barometer to gauge the economic conditions of a nation. In the U.S., the three main indices monitored are the Dow Jones Industrial Average (DJIA), Standard & Poor’s 500 (S&P 500), and the NASDAQ. Here in the Philippines, it is called the Philippine Stock Exchange index (PSEi) or sometimes called “Phisix” or “PCOMP”. It is made up of selected blue chip stocks, the composition of which is regularly evaluated based on a set criteria.
6. When can I buy and sell stocks?
Here in the Philippines, our stock market is open from 9:30AM until 3:30PM with a lunch break from 12PM to 1:30PM.
7. What is a bull and a bear market?
A bull market is characterized by an uptrend of the market’s main index along with a series of price appreciation of majority of stocks. This is driven by strong buying activity where demand overwhelms supply pushing prices upward. Conversely, a bear market happens when the index, along with most stocks blue chip or not, is on a downtrend. This is characterized by strong selling pressure where sellers overpower buyers.
8. What are the fees involved in buying and selling a stock?
There are several fees involved in buying and selling stocks and is summarized below:
|
FEE |
AMOUNT |
REMARKS |
|
Commission |
.25% |
Of the Gross Trade Amount |
|
Value Add Tax (VAT) |
12% |
Of Commission |
|
Philippine Stock Exchange Transaction Fee (PSE Trans Fee) |
.005% |
Of the Gross Trade Amount |
|
Securities Clearing Corporation of the Philippines Fee (SCCP) |
.01% |
Of Gross Trade Amount |
|
ADDITIONAL FEE FOR SELLING |
||
|
Sales Tax |
No. of Shares x Price x .005 |
|
9. How can I make money from stocks?
There are several ways you can make money through stocks. The most common is through capital gains from the appreciation of a stock price. This is where the buy low – sell high strategy comes in. Of course, this is not an easy thing to do, otherwise, everyone would have been so rich already! Timing is the most improtant skill that you need to acquire to make this profitable.
Another way to make money is through dividends. There are several publicly-listed companies in the Philippine Stock Exchange that regularly gives out dividends to their shareholders. This is usually given whenever the company generates profit that beats estimates. Therefore, investing in blue chips is also recommended if you’re after dividends as these are the most stable companies that almost always grow their revenues and profits.
There you have it. Additional resources about stock market investing can be found almost everywhere. All it takes to make money from stocks is the dedication to learn, the capacity to recover and learn from mistakes, and the passion to keep going.
Incoming search terms:
- Published News Upcoming News Submit a New Story Groups selling investment property, Published News Upcoming News Submit a New Story Groups free performance appraisal, Published News Upcoming News Submit a New Story Groups free business directory, powered by SMF international business transactions, powered by SMF global
Recent Comments