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INTRODUCTION

Have you ever asked yourself, "What is stock?" Do you ever wonder what
it feels like in investing your excess cash or savings to the stock market? Have you
ever tried to become a shareholder of a company, well-known or not? Did you tried
to browse what it would be like when you invested or purchased stocks in a stock
market? Do you even know what the basics of stocks are? Well, this would
probably help you as a guide in your beginner’s journey in the stock market.

Stocks are said to be the shares held by the shareholders, the holder of the
stock certificate who has a claim to be a part of the corporation’s assets and
earnings. History has proven that investing in stocks has been one of the most
effective and efficient way for individuals to build wealth and raise their passive
income. Investing in stock is complex. Hence, stocks are still misunderstood by
some people. There are factors that must be taken into consideration before
investing in stocks such as the company where to invest and what type of stocks
to buy. Thus, stocks usually have two types: the common stock and the preferred
stock. When people talk about stocks, they are generally referring to the common
stock. In fact, great majority of sock is issued in this form. It represents a claim on
profits (dividends) and confers voting rights. On the other hand, preferred stock
usually doesn’t come with the voting rights. Also, they are given a guaranteed fixed
dividend unlike with the common stocks which give variable dividends that varies
along the profits or earnings of the corporation for a period.

Investing is risky. You need to enrich your investment strategy and be


tactical in order to maintain your investment and attain your desired goals.
Therefore, investing is truly about “working smarter, not harder.”

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PART I. STOCK INVESTMENT 101

STOCKS: DEFINITION AND BACKGROUND

A stock is a type of security that signifies ownership in a corporation and


represents a claim on part of the corporation’s assets and earnings. It is also
referred to as “shares” or “equity”.

It is used to symbolize an investor’s ownership in a company. Those who


own stock are commonly called stockholders or shareholders. As a shareholder,
an investor theoretically owns a percentage of everything the company owns or
owes. The company’s profitability, or lack thereof, determines whether its stock is
traded at a higher or lower price.

It is issued by companies to raise capital in order to grow the business or


undertake new projects. The stock (also capital stock) of a corporation is
constituted of the equity stock of its owners. A single share of the stock represents
fractional ownership of the corporation in proportion to the total number of shares.

The stock of a corporation is partitioned into shares, the total of which are
stated at the time of business formation. Additional shares may be authorized by
the existing shareholders and issued by the company. In some jurisdictions, each
share of stock has a certain declared par value, which is a nominal accounting
value used to represent the equity on the balance sheet of the corporation. In other
jurisdictions, however, shares of stock may be issued without associated par value.

Classes of Shares

A business may declare different types (or classes) of shares, each having
distinctive ownership rules, privileges, or share values. Ownership of shares may
be documented by issuance of a stock certificate.

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A stock certificate is a legal document that specifies the amount of shares
owned by the shareholder, and other specifics of the shares, such as the par value,
if any, or the class of shares.

Typically, stock takes the form of shares of either common stock or


preferred stock. The distinction between the two will be discussed as follows:

1. Common Stock – usually entitles the owner to vote at shareholder’s


meetings and to receive dividends. These are the stocks to which everyone
is usually referring when they use the term in the context of portfolio
management or the world of investing. In modern times, common stock is
virtually always issued as "fully paid and non-assessable", which means
once you have acquired it, you can't be forced to come up with any more
money, though that wasn't always the case. That is, your potential losses
are limited to what you have invested so long as you didn’t borrow on
margin.

2. Preferred Stock – generally does not have voting rights, but has a higher
claim on assets and earnings than the common shares and is legally entitled
to receive a certain level of dividend payments before any dividends can be
issued to other shareholders. For example, owners of preferred stock
receive dividends before common shareholders and have priority in the
event that a company goes bankrupt and is liquidated.

Aside from those two classes of shares stated above that are of common
nature and both frequently used in investing in the stock market as the major
classes of shares of stock, there are still some categories or classifications of
shares of stock that one should be knowledgeable in order to have a background
and idea of what investing really means.

Thus, other classifications of shares of stock were presented and itemized


based on stocks’ ownership rights, company specifics, and on their relative size.

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Different Types of Stocks and Stock Classifications

1. Based on Ownership Rights

This is the most basic parameter for classifying stocks. In this case,
the issuing company decides whether it will issue common, preferred or hybrid
stocks. There are two different types of stock that investors can own. They
have different ownership rights and different privileges.

a. Common Stock

Common stock is as it sounds, common. When people talk


about stocks they are usually referring to common stock, and the great
majority of stock is issued is in this form. Common stock represent
ownership in a company and a claim on a portion of that companies’
profits (dividends). Investors can also vote to elect the board members
who oversee the major decisions made by management.

Historically, common stock has yielded higher returns than


almost all other common investment classes. In addition to the highest
returns, common stock probably also carries the highest risk. If a
company goes bankrupt, the common shareholders will not receive
money until the creditors, bondholders and preferred shareholders are
paid.

This risk can be greatly reduced by owning many different well


established companies (diversification) that have solid financial
statements and a history of strong earnings.

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b. Preferred Stock

Preferred stock represents some degree of ownership in a


company but usually doesn’t come with the same voting rights. With
preferred shares, investors are usually guaranteed a fixed dividend.
Recall that this is different than common stock, which has variable
dividend payments that fluctuate with company profits. Unlike
common stock, preferred stock doesn’t usually enjoy the same
appreciation (or depreciation in market downturns) in stock price,
which results in lower overall returns. One advantage of preferred
stock is that in the event of bankruptcy, preferred shareholders are
paid off before the common shareholder (but still after debt holders).

I like to think of preferred stock as being somewhere in


between bonds and common stock. It shares similarities with both. As
a result, I wouldn’t hold preferred stock. I don’t really see any reason
to forego the growth potential of common stock, or the additional
safety provided by bonds. For me, it’s a hybrid that doesn’t belong in
my portfolio.

2. Based on Company Specifics

Each company has a unique plan for growth and dividend


distributions which is reflected in these stock classifications.

a. Blue-Chip Stocks

Blue-chip stocks are stocks of the biggest companies in the


country. These are usually high quality companies with years of strong
profits and steady dividend payments. They are also some of the
safest stocks to invest in. Because the companies are large, stable

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investments, they don’t have as much room to grow. This usually
results in steady stock prices, but less upside for investors. As a result,
historical returns for very large companies have trailed the returns of
smaller companies.

b. Income Stocks

Income stocks are often times related to “Blue Chip” stocks.


They are stable companies that pay large dividends. Older people
who are retired often buy stocks in these stable income companies
since it provides them with a steady income stream in the form of
dividends (although I think that’s a poor reason). When you combine
the dividend payments with the appreciation in stock price, these
stocks often provide retirees with more money than they can earn by
investing in bonds or other fixed income investments. Of course, this
comes with higher risk that the stock price will fall in a market
downturn.

c. Value Stocks

Value stocks are the stocks of companies that usually have


one or more of the following:

o Low price-to-earnings ratios


o Low price-to-book ratios
o Low price-to-dividend ratios
o Low price-to-sales-and-cash-flow ratios

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In other words, they are underpriced when compare to other
similar companies in the market. Sometimes this is a result of distress
or financial problems. Other times, it may be due to investor behavior
and cyclical trends.

d. Growth Stocks

Growth stocks are stocks of companies with profits that are


increasing quickly. This increase in profits is reflected in the rise in the
company’s stock price. These companies often reinvest the profits
and pay little to no dividends to stock owners. In doing so, they hope
that the growth in stock price is enough to keep stockholders on
board.
Growth companies are often technology centered, and usually
either sell a product or focus on research and design. Most of these
companies experience rapid growth. Their stock prices often grow
faster than underlying earnings, which results in high price/earnings
(P/E) ratios. This can continue for a while but stock prices always
revert back to the mean historical P/E average, leaving some
investors to get burned on these stocks. Growth stocks can rise in
value quickly, but they often fall even quicker.

3. Based on size

Market capitalization (market cap) is simply a way of referring to the


size of a company in a manner that allows you to compare companies in
different industries. You compute market cap by multiplying the number of
outstanding shares by the current stock price. For example, if a company had
100 million shares of common stock outstanding and a current stock price of
$50 per share, its market cap would be $5 billion (100 million x $50).

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Investors usually categorize companies under one of these labels –
although there is not universal agreement on the exact cutoffs.

o Mega-cap: Over $200 billion


o Large-cap: Over $10 billion
o Mid-cap: $2 billion–$10 billion
o Small-cap: $250 million–$2 billion
o Micro-cap: Below $250 million
o Nano-cap: Below $50 million

The size of a company is very important in stock pricing. Investors


often talk about investing is small, mid, or large cap mutual funds. This means
that the mutual fund only invests in companies of a certain size.

There is a strongly correlation here between risk and return. Small


companies are more risky than large companies because they have less
resources available, haven’t established themselves as well in the market
place, and may not be as well-known as the giant stock issuers.

As a result of increased risk, these “small cap” companies have produced


higher returns than “mid cap” or “large cap” companies over the century.
Continuing the trend, “mid cap stocks” have outperformed “large cap” and
“mega cap” stocks.

For this reason, many investors choose to allocate more of their portfolio to
small or mid cap stocks, also called a “tilt.” Again, this results in slightly more
risk.

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How Are Stocks Created and Why Do They Exist?

Stocks exist for several reasons but among the most important are the following:

• Stocks allow companies to raise capital (money) to turn good ideas into
viable businesses, which ultimately benefits civilization. Without capitalism
and well-functioning capital markets, most of the modern comforts you take
for granted wouldn't exist or be available to you.
• Stocks provide a place for investors to potentially earn satisfactory returns
on capital that might allow them to achieve their financial goals more quickly
than they otherwise could.
• Stocks separate ownership from management, allowing those who have no
interest, ability, or time to run an enterprise to still participate economically
and through voting rights, resulting in a more efficient allocation of
resources, including human capital.

STOCK MARKET: DEFINITION AND HISTORY

In today’s world, people really want to have a large amount of money


through simple ways. Thus, they want to gain earnings without further efforts such
as managing the business, being employed in a manufacturing company, working
in a firm with lots of tasks to do and so on. In line with this, they are attracted to the
existence of the stock market in the Philippines.

A stock market, equity market or share market is the aggregation of buyers


and sellers (a loose network of economic transactions, not a physical facility or
discrete entity) of stocks (also called shares), which represent ownership claims
on businesses; these may include securities listed on a public stock exchange as
well as those only traded privately.

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A stock market is a venue where buyers and sellers of shares meet and
decide on a price to trade. Some exchanges are physical locations where
transactions are carried out on a trading floor, but increasingly the stock exchanges
are virtual, composed of networks of computers where trades are made and
recorded electronically.

These are secondary markets, where existing owners of shares can


transact with potential buyers. So, when you buy a share of stock in a stock market,
you are definitely not buying it from the company, but from some other existing
shareholders. In the same manner, when you sell your shares, you do not sell them
directly to the company, but to some other investors interested with your shares.

Such examples include shares of private companies which are sold to


investors through equity crowdfunding platforms. Stock exchanges list shares of
common equity as well as other security types, e.g. corporate bonds and
convertible bonds.

Stock markets are some of the important parts of today’s global economy.
Some countries around the world depend on a stock market for their economy’s
growth. Nowadays, stock markets have become the driving economic force in a
country.

HISTORY OF THE STOCK MARKET


Early Stock and Commodity Markets

The first genuine stock markets didn’t arrived until 1500s, however, there
are some markets that really exist which are similar to stock markets. For example,
it was found out that France had a system where couriers managed agricultural
debts throughout the country on behalf of banks. This can be seen as the first
major example of brokerage because the men effectively traded debts.

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In addition to that, merchants of Venice, in later years, were credited with
trading government securities as early as the 13 th century. Soon after, bankers in
the nearby Italian cities of Pisa, Verona, Genoa and Florence also began trading
government securities.

Coffee Shops: First Real Stock Markets

Before investors yelled across trade floors and threw order forms into the
air, they conducted business in coffee shops. Early stocks were handwritten on
sheets of paper and investors traded these stocks with other investors in coffee
shops.

As the volume of shares that has been traded increased, the need for an
organized marketplace to exchange these shares became necessary. As a result,
stock traders decided to meet at a London coffeehouse, which they used as a
marketplace. Eventually, they took over the coffeehouse and, in 1773, changed its
name to the "stock exchange." Thus, the first exchange, the London Stock
Exchange, was founded. The idea made its way to the American colonies with an
exchange started in Philadelphia in 1790.

In other words, coffee shops were the first real stock markets due to the fact
that investors would visit these markets to buy and sell stocks. Before long,
somebody realized that the entire business world would be more efficient if
somebody made a dedicated market place where businessmen could trade stocks
without having to order a coffee or yell across a crowded café.

This how the stock markets formed as similar as today’s stock markets.

The First Stock Exchange

As it was previously stated, a coffeehouse in London became well-known


as the first exchange and named as the “London Stock Exchange”. However, its

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purpose was solely for governmental purposes and for arranging debts of the
country to some other countries. In other words, stocks are left unknown until 1817.

New York Stock Exchange (NYSE) has been created in 1817 which serves
as an important moment in the history. It has traded stocks since its’ very first day.
NYSE is one of the world’s leading equity markets and combined with the NYSE
Group family of exchanges, trades more U.S. equity volume than any other
exchange group.

However, contrary to what some may think, the NYSE wasn’t the first stock
exchange in the United States. The Philadelphia Stock Exchange holds that title.
But, NYSE became the most powerful stock exchange in the country due to the
lack of any type of domestic competition and its positioning at the center of U.S
trade and economics in the New York.

Modern Stock Markets

Nowadays, every country has its own stock market. Stock markets
can be found around the world and there’s a greater emphasis on the global
importance of the stock markets. Every day, trillions of dollars are traded on
stock markets around the world and they are truly the engine of the capitalist
world.

In the Philippines, its stock exchange was popularly known as the


“Philippine Stock Exchange, Inc.” (Filipino: Pamilihang Sapi ng Pilipinas:
PSE). It is the national exchange of the Philippines. It was created in 1992
from the merger of Manila Stock Exchange (established on August 12, 1927)
and the Makati Stock Exchange (established on May 15, 1963). Including
previous forms, it has been in operation since 1927.

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In around the world, there are lots of stock exchanges or stock
markets. Here are the top 10 stock markets in the world today ranked by market
capitalization:

1. New York Stock Exchange

2. NASDAQ

3. Tokyo Stock Exchange

4. London Stock Exchange Group

5. Euronext

6. Hong Kong Stock Exchange

7. Shanghai Stock Exchange

8. Toronto Stock Exchange

9. Frankfurt Stock Exchange

10. Australian Securities Exchange

PHILIPPINE STOCK EXCHANGE (PSE)


As it was tackled previously, Philippine Stock Exchange, Inc. (PSE) is the
national stock exchange of the Philippines. It has been created in December 23,
1992, with 24 years of existence since the two exchanges (Manila Stock Exchange
and Makati Stock Exchange) was merged. However, it has been in operation since
1927, with 90 years of operating years.

In June 1998, the Securities and Exchange Commission (SEC) granted the
PSE a “Self-Regulatory Organization” (SRO) status, which meant that it can
implement its own rules and establish penalties on erring trading participants (TPs)
and listed companies.

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The PSE implemented on March 25, 1994 an automated trading system
linking the two exchanges. The system resulted in a single trading price for all listed
securities and the consolidation of the Makati Stock Exchange and the Manila
Stock Exchange into the PSE. Stock trading activities are now conducted by the
PSE on two trading floors: one in Makati City and the other one in Pasig City.

In 2001, the PSE was transformed from a non-profit, non-stock, member-


governed organization into a shareholder-based, revenue-earning corporation
headed by a president and a board of directors.

In December 15, 2003, it has listed its own shares on the exchange and
traded under the ticker symbol PSE).

INVESTING IN THE STOCK MARKET

Open
an
account

Figure 1. Process of Investing/Buying Stocks

1. Choose your stockbroker.

At present, there are more than a hundred stockbrokerage companies to


choose from. When you choose a stockbroker, you need to consider the type of
service you will require and who will best suit your needs. You should remember
that your stockbroker is your financial agent that will help you make your invested
money grow.

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Stockbrokers are also classified into two: traditional brokers or online
brokers which will be discussed as follows:

Traditional Brokers Vs. Online Brokers

The online brokers compete with the traditional brokers. The online brokers
offer lower costs, increased speed and a better guarantee of transparency and
anonymity. The only real advantage of traditional brokers is the gathering of
information. In online brokers, the time needed for traders to react to new
information is reduced. In traditional brokers, it’s advantageous in a manner that
they have the ability to collect and supply information, and that is what may make
their survival possible.

Traditional brokers are those who assign a licensed salesman to handle


your account and take your orders via written instruction or through a phone
call. Online brokers, on the other hand, are those whose main interface with their
customer is through the Internet.

Figure 2 shows an online poll, conducted and closed on February 06, 2016
at exactly 04:26 am, which aims to know and identify which between traditional
broker and online broker is at of the preference of the investors.

Figure 2. Online Poll – Traditional broker vs. Online broker

The figure shows the preferences of the investors of whom between the two
types of brokers (traditional vs online) is more convenient to use and is more
helpful. Thus, online brokers got 95% while live brokers only got 5% of the total
who responded in the poll.

Buying Stocks Using Licensed Brokerage Firm

Individuals typically buy and sell shares through a licensed brokerage firm
or broker who makes the actual trade. Historically, stockbrokers were hired only
by wealthy individuals and families, but today a wide range of brokerages exist for
all price ranges.

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So-called “full-service” brokers offer a suite of research, opinion, and expert
advice and can offer a personal relationship between the broker and the client.
However, there are clients who look for a brokerage firm that would give them
some services with respect to their budgets. In line with this, there are some
brokerages that offer and asking as low as Php5,000.00.

When comparing brokers, be sure to consider:


• Research resources. Reliable data on leading companies can significantly
streamline your stock-buying homework, and many top brokers offer it.
• Customer support. The best brokers offer real-time assistance through
multiple channels, including by phone, email or chat.
• Educational resources. Broker-produced guides and tutorials can help
beginners get up to speed on the stock-buying process much more
quickly.
• Trading platform. You can buy stock through any online broker’s website,
but if you plan to nurture this habit, you may want to graduate to a more
advanced and user-friendly system

The following brokers are some of the brokers that are part of the list of
accredited online brokers in the Philippines:

DEPOSIT TO OPEN
BROKER WEBSITE
AN ACCOUNT

AB Capital
www.abcapitalonline.com P10,000
Securities, Inc.

Abacus Securities
www.abacusonline.com.ph P10,000
Corporation

AP Securities Inc.
(formerly Angping &
www.angpingonline.com P5,000
Associates Securities
Inc.)

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none if you have
BDO Nomura
http://www.bdo.com.ph/bdonomura/ BDO Online Banking
Securities, Inc.
account

BPI Securities none if you have BPI


www.bpitrade.com
Corporation account

Coherco Securities,
www.cohercotrade.ph P150,000
Inc.

COL Financial
www.colfinancial.com P5,000 – P25,000
Group, Inc.

DA Market
itrade.psetradex.ph P50,000
Securities, Inc.

F. Yap Securities,
www.2tradeasia.com P25,000
Inc.

First Metro Securities


Brokerage www.firstmetrosec.com.ph P5,000
Corporation

Maybank ATR Kim


www.maketrade.com.ph P25,000
Eng Securities, Inc.

Philstocks Financial,
Inc. (formerly Accord
www.philstocks.ph P5,000
Capital Equities
Corp.)

Unicapital Securities,
www.utradeph.com P10,000
Inc.

Wealth Securities,
www.wealthsec.net P10,000
Inc.

Table 1. List of Some of the Brokers in the Philippines

The table shows the list of some of the brokers in the Philippines which are
accredited online brokers in the Philippines and the amount they require. Thus, the
following are the discussions of each online brokers:

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a. AB Capital Securities, Inc.

The AB Capital Group is one of the Philippines’ leading


financial services institutions focused on the capital markets. AB
Capital & Investment Corporation (ABCIC) is an investment house
that has built its capability on three major areas of strength: corporate
finance, fixed-income securities dealership and fund management.
AB Capital Securities, Inc., is one of the oldest stock brokerage
houses in the Philippine Stock Exchange.

b. Abacus Securities Corporation

Ranked among the top ten stockbrokerage houses in the


country. The Company is renowned for four things, namely: stability,
expertise, professionalism and customer care. Abacus aims to
become one of the leading and the choice brokerage company in the
Philippines, as it is committed to provide impeccable service and
value to its clients.

c. AP Securities Inc. (formerly Angping & Associates Securities Inc.


(AASI))

AP Securities Inc. is a full-service stock brokerage firm in the


Philippines offering a wide array of client services and support
products. The company is one of the leading stock brokerages in the
country as it has consistently ranked among the top brokers in terms
of turnover since its inception. Guided by its mission to increase the
number of Filipinos investing in the Philippine stock market, APS
offered online brokerage services to widen its reach and increase the
accessibility of its services to Filipinos around the world.

d. BDO Nomura Securities Inc.

BDO Nomura Securities, Inc. (Formerly : PCIB Securities,


Inc.) is a joint venture between BDO Unibank and Nomura Holdings
of Japan with the goal of becoming one of the premier securities
brokerage firms in the Philippines by providing online trading
services for local stocks to individual investors. The business also
aims to provide stock brokerage services to institutional clients
overseas and to eventually provide a platform to connect Filipino
investors to the international stock markets.

e. BPI Securities Corporation

Their mission is to be the most trusted and respected


domestic broker in the Philippines, who places customers’ interest
and financial objectives first by offering seamless end-to-end trading
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convenience; superior, objective and expert investment advice; and
a robust and easy-to-use trading platform.

f. Coherco Securities, Inc.

Coherco Securities, Inc. was founded in 1999 with the


acquisition of the Philippine Stock Exchange seat of defunct
brokerage Connell Securities, Inc. (customer accounts and positions
were not included in the said acquisition.) It is backed with the full
strength and resources of a family-owned business conglomerate
with interests in manufacturing, distribution, retail, real estate, and
financial services. Throughout the past 14 years Coherco has quietly
established itself as a competent and reliable broker-dealer with an
outstanding regulatory record.

g. COL Financial Group, Inc.

COL Financial Group, Inc. (COL) is the fastest growing online


stockbroker in the country today with over 100,000 customers and
Php55 billion in customer assets established in 1999. COL prides
itself as the number one Online Stockbroker in the Philippines.

h. DA Market Securities, Inc.

A top equities brokerage with an affiliate in banking and


financing in operation mostly in Central Luzon. We continue to
service clients and corporations through the bulls and bears of the
Philippine capital market.

i. F. Yap Securities, Inc.

Yapster e-Trade, Inc., is the online arm of F.Yap Securities,


Inc. We were granted pioneer status by the Board of Investments on
February 2001 as the first in the Philippines to provide a complete
solution that integrates trading, financial planning and portfolio
management capabilities online.

j. First Metro Securities Brokerage Corporation

First Metro Securities Brokerage Corporation or


FirstMetroSec is a stockbrokerage house licensed to trade in the
Philippine Stock Exchange (PSE). The company is wholly-owned by
First Metro Investment Corporation (FMIC), the investment banking
arm of the Metropolitan Bank and Trust Company (Metrobank).

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k. Maybank ATR Kim Eng Securities, Inc.

Maybank ATR Kim Eng Securities, Inc., regularly ranks


among the top securities firms in the PSE catering to 97% of the
domestic institutional funds that actively trade the stock market. By
offering exceptional execution capabilities and providing excellent
research with timely calls and recommendations to clients, Maybank
ATR Kim Eng Securities, Inc., continues to help realize its parent
company’s vision to be a regional powerhouse by 2015.

l. Philstocks Financial, Inc. (formerly Accord Capital Equities Corp.)

Philstocks Financial, Inc. is a full-service brokerage firm that


has gained a solid reputation through the years. It has kept its list of
long-term clients through achieving a balance between financial
know-how and commitment to quality. Increasing clients’ wealth and
preserving capital drive the Company to excellence. Institutions,
seasoned and new investors alike, all trust the Company’s
personalized approach to delivering innovative investment solutions.

m. Unicapital Securities, Inc.

Unicapital Securities, Inc. (USI) is a leading full-service


securities brokerage house licensed by the Securities and Exchange
Commission (SEC) and is a bona-fide member of the Philippine
Stock Exchange. Since its inception in 1997, USI has successfully
established itself as an active player in the trading of equity
securities.

n. Wealth Securities, Inc.

Ranked among the top 20 brokerages in the Philippines since


its incorporation in November 1986. In 2000, Wealth received the
Euro Money Award for Excellence as the “Best Domestic Securities
House in the Philippines”. Wealth caters to both retail and
institutional clients in the Philippines and overseas. With over 25
years of experience in equity securities, its research team is often
quoted in local newspapers and journals for their stock picks and
coverage of mid-to-large cap stocks.

2. Activate and fund your brokerage account.

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3. Buy and sell stocks using your brokerage account.

Regardless of the type of brokerage used, the mechanics of buying or


selling shares is fairly uniform. First, a stock quote is obtained. In the early days of
stock exchanges, price information was transmitted via tickertape – a long ribbon
of paper that printed basic data via telegraph wire. That is why today we still refer
to stock quotes as the ticker. A stock quote carries a lot of information including
the current bid and offer prices as well as the last price that traded. The bid is the
highest price that somebody in the market is willing to pay at a given time, while
the offer is the lowest price that somebody is willing to sell. If you are interested in
buying shares, you will make a bid, and if you want to sell an offer. When the price
of a bid and offer coincide, a trade is affected.

Stock quotes obtained online are often real-time quotes that confer second-
by-second details, and online quotes also often include charts and interactive tools.
Stocks are quoted by their ticker symbol, for example, for Ayala Corporation (AC)
and for Megaworld Corporation (MEG).

With this regard, the investors must be knowledgeable in interpreting the


stock movements of a company that they acquired in order to manage the
investments and to properly handle their investments with their own capacity,
ability and comprehension.

Thus, the interpretations for every element of a stock table will be discussed
based on their respective columns as follows:

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STOCK TABLE INTERPRETATIONS

Any financial paper has stock quotes that will look something like the image below:

Figure 3. Example of a Stock Table

Columns 1 & 2: 52-Week High and Low - These are the highest and lowest
prices at which a stock has traded over the previous 52 weeks (one year). This
typically does not include the previous day's trading.

Column 3: Company Name & Type of Stock - This column lists the name of the
company. If there are no special symbols or letters following the name, it
is common stock. Different symbols imply different classes of shares. For example,
"pf" means the shares are preferred stock.

Column 4: Ticker Symbol - This is the unique alphabetic name which identifies
the stock. If you watch financial TV, you have seen the ticker tape move across
the screen, quoting the latest prices alongside this symbol. If you are looking for
stock quotes online, you always search for a company by the ticker symbol.

Column 5: Dividend Per Share - This indicates the annual dividend payment per
share. If this space is blank, the company does not currently pay out dividends.

Column 6: Dividend Yield - The percentage return on the dividend. Calculated


as annual dividends per share divided by price per share.

Column 7: Price/Earnings Ratio - This is calculated by dividing the current stock


price by earnings per share from the last four quarters.

Column 8: Trading Volume - This figure shows the total number of shares traded
for the day, listed in hundreds. To get the actual number traded, add "00" to the
end of the number listed.

Column 9 & 10: Day High and Low - This indicates the price range at which the
stock has traded at throughout the day. In other words, these are the maximum
and the minimum prices that people have paid for the stock.

22
Column 11: Close - The close is the last trading price recorded when the market
closed on the day. If the closing price is up or down more than 5% than the previous
day's close, the entire listing for that stock is bold-faced. Keep in mind, you are not
guaranteed to get this price if you buy the stock the next day because the price is
constantly changing (even after the exchange is closed for the day). The close is
merely an indicator of past performance and except in extreme circumstances
serves as a ballpark of what you should expect to pay.

Column 12: Net Change - This is the dollar value change in the stock price from
the previous day's closing price. When you hear about a stock being "up for the
day," it means the net change was positive.

STOCK PRICES

The price of a stock represents the “value” of the corporation. At its most
basic level, this value is computed by dividing the value of the company, known as
the market capitalization (or “market cap”) by the number of shares outstanding.
For example, if ABC Corporation is valued at P1,000,000 and it has 100,000
shares outstanding, the price of each share is P10.00.

What does a company’s value represent? A company has stuff and sells
stuff. The stuff it has are buildings, machineries, patents, money in the bank, etc.
– constitutes its book value, or the amount of money a company would get if they
sold all the stuff at once.

ADVANTAGES OF INVESTING IN STOCKS

Investment Gains. One of the primary benefits of investing in the stock market is
the chance to grow your money. Over time, the stock market tends to rise in
value, though the prices of individual stocks rise in value, though the prices of
individual stocks rise and fall daily. Investments in stable companies that are able
grow tend to make profits for investors.

Stock ownership takes advantage of a growing economy. As the


economy grows, so do corporate earnings. That's because economic growth
creates income. The fatter paycheck boosts consumer demand, which
drives more revenues into companies' cash registers. It helps if you
understand the phases of the business cycle.

23
They are the best way to stay ahead of inflation. Historically, stocks have
averaged an annual return of 10 percent. That's better than the average
annual inflation rate of 3.2 percent. It does mean you must have a longer
time horizon. That way, you can buy and hold even if the value temporarily
drops. (Source: "What Are the Advantages of Investing in Stocks for
Retirement?" CNN.) Compare stocks, inflation, and gold prices in Gold Price
History.

Easy to buy. The stock market makes it easy to buy shares of companies.
You can purchase them through a broker, a financial planner, or online.
Once you've set up an account, you can buy stocks in minutes. For more,
see How to Invest in Stocks.

You make money in two ways. Most investors intend to buy low and then
sell high. They invest in fast-growing companies that appreciate in value.
That's attractive to both day traders and buy-and-hold investors. The first
group hope to take advantage of short-term trends, while the latter expect
to see the company's earnings and stock price grow over time. They both
believe their stock-picking skills allow them to outperform the market. Other
investors prefer a regular stream of cash. They purchase stocks of
companies that pay dividends. Those companies grow at a moderate rate.

They are easy to sell. The stock market allows you to sell your stock at any
time. That's important if you suddenly need your cash in a hurry. Since prices
are volatile, you run the risk of being forced to take a loss.

DISADVANTAGES OF INVESTING IN STOCKS

You could lose your entire investment. If a company does poorly,


investors will sell, sending the stock price plummeting. When you sell, you
will lose your initial investment. If you can't afford to lose your initial
investment, then you should buy bonds. You get an income tax break if you
lose money on your stock loss. Unfortunately, you also have to pay taxes if
you make money. See Capital Gains Tax.

24
Stockholders are paid last if the company goes broke. Preferred
stockholders and bondholders get paid first.

It requires a lot of time. You've got to research each and every company
to determine how profitable you think it will be before you buy stock. You've
got to learn how to read financial statements and annual reports, and follow
your company's developments in the news. You've also got to monitor the
stock market itself, as even the best company's price will fall in a market
correction, a market crash or bear market.

It can be an emotional rollercoaster. Stock prices rise and fall every


second. Individuals have the tendency to buy high, out of greed, and sell
low, out of fear.

You compete against professionals. Institutional investors and traders


have more time and knowledge to invest. Find out how to gain an advantage
as an individual investor.

25
PART II. BEGINNER’S GUIDE IN STOCK INVESTMENTS

When you invest in the stock market, you would be thinking about the
steps required, necessary documents, account information, and a lot more.
Thus, it is difficult to purchase stocks in the market without the help of any
broker. As what have been discussed in this document, there are several
steps and requirements in applying for a broker. Further, the class chose an
online broker based on the poll or an online survey arriving to the 95% of
respondents who prefer to have an online broker rather than traditional or
live broker. Furthermore, it is inconvenient for students, like us, to have a
traditional or live broker because it will costs more fees, such as
transportation expenses when you had a meeting with your chosen broker,
coffee or food you’ll incur while waiting or when the meeting wasn’t started
yet due to some reasons, brokerage commission and so on.

In this document, we applied in Col Financial Group, Inc. We’ve been


knowledgeable about this online broker through the use of browsers and
social media. Also, it was suggested in an article online that the said broker
is advisable for people who have small amount of funds, like the minimum
requirement of Php 5,000.00, and who have minimal idea or background
information and no experience in terms of stock investment.

Looking back to the steps we had in applying to Col Financial, we had


summarized it as follows:

1. Prepare the necessary requirements, such as the following:


a. Printed forms - Customer Account Information Form (CAIF) and
Foreign Account Tax Compliance Act (FATCA) Disclosures
Form
b. A valid government issued ID (in our case, we use PhilHealth
ID)
c. A savings bank account, which accepts check deposits as
required by Col Financial (in our case, we opened a savings
bank account in Banco De Oro (BDO) – Tagaytay Rotonda
Branch and the steps are as follows:
i. Regarding what bank to open with, Col Financial said that
as long as it accepts check deposits will do. If you’re
trying to open an account with BDO, bring the necessary

26
requirements: at least 2 valid IDs with present address
and landline or postpaid numbers, proof of billing under
your name or barangay clearance with picture indicating
your present address with dry seal from the Barangay
where it was issued. (BDO)

The following are the list of valid identification cards


accepted by BDO:

a. Passport
b. Driver’s License ID Card with validated O.R
c. Philippine Postal ID
d. Voter’s ID card
e. Recent School ID with Registration Form
f. Government Service and Insurance System
(GSIS) Ecard
g. Social Security System (SSS) ID
h. Senior Citizen ID Card
i. Overseas Workers Welfare Administration
(OWWA) ID
j. Overseas Filipino Workers (OFW) ID
k. Seaman’s Book
l. Alien Certification of Registration (ACR)/
Immigrant Certificate of Registration (ICR)
m. Government Office and GOCC ID
n. Integrated Bar of the Philippines (IBP) ID
o. Certification from the National Council for
the Welfare of Disabled Persons (NCWPD)
p. Department of Social Welfare and
Development (DSWD) Certification
q. Company ID’s issued by private entities or
institutions registered with or supervised or
regulated by the BSP, SEC or IC
r. Tax Identification Number (TIN) ID
s. Barangay ID
t. PhilHealth ID

27
As required by BDO, you have to bring with you your
money for payment of at least the maintaining balance required
to open a savings bank account. Particularly for Tagaytay-
Rotonda Branch, we paid Php 2,000.00 maintaining balance
plus Php 1,000.00 of extra funds just to make sure of the
continuance of the account.

ii. Next, you’ll just go directly to the nearest bank from your
place. We suggest BDO branch as compared to BPI
branch because it only requires you a maintaining
balance of Php 2,000.00 in contrast with Php 3,000.00 of
BPI’s maintaining balance for a savings account. When
you’re there, fill-up the necessary forms, including the
signature card, related party questionnaire (individual),
ATM Claim Stub (you’ll have to bring this with you in
claiming your ATM card), customer information record,
terms and conditions governing deposit accounts, and so
on.
iii. Right after, you’ll just have to present your valid IDs and
give your payment when asked. After some minutes, they
will give you the ATM Claim Stub, together with the
payment slip.
iv. Finally, you just have to wait for some working days until
you get your ATM card (may be delivered directly to your
address or may be obtained through going to the bank).
Now, you already have your savings bank account and
the account number will be used in filling-up the forms
required by Col Financial Group, Inc.
d. Next, fill-up the forms. Attached with the forms are your valid
IDs for presentment and verification of your identity.
e. You may send it directly to Col Financial Group, Inc. at their
head office or you may send it through couriers. In our case, we
send our documents through LBC – Ayala Serin Branch. If you
will do the same, they will give you the receptacle sticker with
from and to sections. For from section, you just have to write
your full name, complete address and contact number/s while
for to section, as per with the full name, write “Col Financial
Group, Inc.”, as per with complete address, write “24/F East

28
Tower, Philippine Stock Exchange Centre Exchange Road,
Ortigas Center, Pasig City, 1605 Philippines, and as per with
contact number/s, write “+632 651 5888”.
f. After 2-3 working days, you’ll be receiving an e-mail from Col
Financial Group, Inc. which tells you to have some time (2-3
minutes) for video call with their staff for processing of the data
received. You’re the one to set the date of the online interview
(video call). The date you will set should be 2-3 counting days
after your date of settlement (for example, you are about to
reply to their email on September 30, 2017, you must have to
put the date of interview as October 3 onwards. Note: You must
have to bring with you your school ID (for students) and/or valid
IDs.
g. Next, after the online interview, a message will be sent to your
e-mail which gives you your account number for final
processing.
h. Finally, you may proceed with funding of your account which
may be through online banking, over-the-counter and so on.
i. After 2-3 working days, they will send another message which
tells you your log-in information so you can now access your
COL account anytime and purchase or sell stocks without any
costs aside from the fees to be discussed in this document.

29
PART III. PERSONAL EXPERIENCES

STOCK MONITORING ACTIVITY

“Someone's sitting in the shade today because someone planted a

tree a long time ago.” Around July of this year, our final output in Management

Accounting and Financial Management has been announced. We were tasked to

experience investing in stocks, as well as sharing those experiences and the

knowledge we have earned through a seminar. Majority of us don’t have that much

experience much less a clue on what stock investment is, so stock investing comes

as a great opportunity for us to learn.

We started with planning and setting goals. We had countless meetings, we

had assigned different committees. One for food, logistics, research, registration

and the like. We assigned groups per week of who’s going to monitor the stock

performance of the companies we had bought. Because of these, everyone got to

experience investing and had their own insights.

No one knew among us that we can actually produce quite a money if we

became tactful in investing, until we did the activity. We never knew until then that,

stock prices drops because of many reasons, such as company scandals and

issues, interest rates fluctuating and the like. We absorbed so much about

investing that all of us has considered doing it in the future – and we hope through

the seminar we had done, the audience might feel the same.

Investing in stocks is one of the few things people can do to multiply their

money while still learning. It is one of the best ways to prepare for the future. As

30
what Warren Buffet stated in the quote above, if we prepare for the future, we can

put our minds at ease because we made ourselves ready. Investing in stocks is a

hopeful way to face the present to prepare the future.

31
WEEKLY STOCK PERFORMANCE REPORT

This report is submitted on August 19, 2017 to give a detailed report and an
analysis of the performance of the stocks purchased by the fourth year students,
taking up Bachelor of Science in Accountancy (BSA) and Bachelor of Science in
Accounting Technology (BSAT), as part of their final output in both subjects,
Management Accounting II and Financial Management II.
In line with this, the section planned to have groups in charge with
monitoring the stock performance within six weeks, until September 22, 2017.
Thus, in each group, they have a leader who will collect daily reports from his/her
groupmates and then, properly manage how to come up with the interpretations
and how to arrive at the required weekly stock performance report.
This stock report gives relevant information regarding the important matters
that affect the stock investment per week. Thus, this report, in particular, is for the
First week of Monitoring – August 14, 2017 to August 18, 2017
(Tuesday-Friday).

Prepared by:
GROUP 1

Leader: Vidallo, Jenica Angel P.

Members:
Almendras, Louella
Deligero, Hydee
Fortus, Aira Claire
Salazar, Kendy
Yap, Sherlene B.

32
STOCK PERFORMANCE MONITORING
August 14, 2017 – August 18, 2017
First Week

Introduction

Starting from the month of July, the class started to research on the possible

companies where to invest in especially to the ones which will be worth investing

for. Everyone has different insights and opinions about their own preferred stock

investment. Therefore, it was hard for the class to come up with one or at least two

companies where the money will be put at. And since the class has to take into

consideration the available money for this investment which is only limited to

₱5,000, it made more difficult to choose which stock will be worthy to invest

in.

Having such confusion about which company to choose, the class came up

with a solution of having a voting on the preferred stock investment. Researchers

have chosen Filinvest Land Inc. (FLI), Double Dragon (DD), BDO Unibank (BDO)

and Jollibee Food Corporation (JFC) as the possible options for this investment.

The potential investors have three options. The first one will be Double Dragon

alone. The second will be the combination of Jollibee Food Corp. and Filinvest

Land Inc. And lastly, the combination of Jollibee and BDO Unibank. As a result of

the voting, majority of the class vote for JFC and FLI.

During the first day of the stock investment, the bid price of the FLI stocks

was ₱1.79 and JFC was ₱222. So, the class started to invest in FLI at a price of

33
₱1.79 at a board lot of 1000 shares. Also, as of that day, the price of the

stock of JFC has increased, therefore the investors loses its opportunity to

invest in this stock. As a result, only one investment was granted, which is

with the FLI.

In this report, the stock performance of FLI for the first week starting from

August 14, 2017 to August 18, 2017 will be presented together with the stock table

and graph showing the changes that took place for the entire week. Likewise, it will

include the conclusion and interpretation regarding the stock performance.

STOCK TABLE
August 14, 2017 – August 18, 2017
FILINVEST LAND, INCORPORATED (PSE: FLI)
STOCK PERFORMANCE
Date Par PE
EPS Open High Low Close Volume Value
2017 Value RATIO
August 14 1.00 0.22 1.75 1.81 1.75 1.81 4,434,000 7,943,150 8.23
August 15 1.00 0.22 1.80 1.82 1.78 1.80 9,487,000 17,082,820 8.18
August 16 1.00 0.22 1.80 1.89 1.80 1.87 51,562,000 94,933,850 8.36
August 17 1.00 0.22 1.88 1.93 1.85 1.88 40,651,000 76,767,290 8.50
August 18 1.00 0.22 1.85 1.88 1.84 1.86 6,890,000 12,801,540 9.30
Table 2. Stock Table – First Week of Monitoring

As shown in the Table 2, the opening price of the Filinvest Land Inc. (FLI)

on August 14 was ₱1.75. The maximum price that investors have paid for this stock

was ₱1.81 while the minimum price was 1.75. On that day, 4,434,000 shares of

stock were traded and the last trading price was ₱1.81. As of August 14, the value

of stock was ₱7,943,150. And, its price earnings ratio was 8.23.

34
On August 15 the opening price was₱1.80 with the maximum price of ₱1.82

that the investors have paid for the stock and a minimum price of ₱1.78. Also the

last trading price was ₱1.80 and 9,487,000 shares of stock have been traded. As

of August 15, ₱17,082,820 is the value of the stock of FLI, and its P/E ratio was

8.18.

On August 16, the opening price was ₱1.80. The investors have paid the

stock with a maximum price of ₱1.89 and a minimum price of ₱1.80. The number

of stock that was traded on that day was 51,562,000 and the last trading price was

₱1.87. The value of stock of FLI was ₱94,933,850 as of August 16, 2017. And, its

P/E ratio was 8.36.

On August 17, the opening price was ₱1.88 with the maximum price of

₱1.93 that investor have paid for stock and a minimum price of ₱1.85. Also the last

trading price was ₱1.88 and 40,651,000 shares of stock have been traded. As of

August 17, 2017, ₱76,767,290 is the value of the stock of FLI and its P/E ratio was

8.50.

On August 18, ₱1.85 became the new opening price of the stock. The

maximum price was ₱1.88 and the minimum price was ₱1.84 that the investors

have paid for the stock. The last trading price was ₱1.86 and 6,890,000 shares

have been traded. As of that date, the value of the FLI became ₱12,801,540. And,

its P/E ratio was 9.30.

35
Figure 4. Stock Performance – First Week of Monitoring

As it was shown on the figure 4, starting August 14, 2017, the price of the

stock is increasing. However, there was a sudden decrease on its price on August

18, 2017.

CONCLUSIONS AND INTERPRETATIONS

During the first week of stock performance monitoring, stock investment

flows smoothly since there had been only minimal fluctuation on the price of the

stock. Although there were days wherein the price of the stock goes down

especially on August 15 and 18, but still, the entire stock investment on the first

week was favorable given that it does not incur any loss on the account equity

value of the investors. From ₱4,975 equity value on the first day of stock

36
investment, it increased to ₱4,990.35 at the end of the week. With a minimal

fluctuation on the price of the stock along with such increase on the equity

value of the investors, a decision of retaining the stocks was made by the

group and the class as a whole.

In addition, considering the increase on the price earnings ratio, which

is an indicator to measure the company’s market performance, and a

disclosure from FLI on its capital expansion, it helped the investors to arrive

at a decision of retaining the stock, with an expectation of a potential

earnings growth in the future. Furthermore, stock prices fluctuation would still

be diverse but fluctuations would only be minimal.

37
WEEKLY STOCK PERFORMANCE REPORT

This report is submitted on August 26, 2017 to give a detailed report and an
analysis of the performance of the stocks purchased by the fourth year students,
taking up Bachelor of Science in Accountancy (BSA) and Bachelor of Science in
Accounting Technology (BSAT), as part of their final output in both subjects,
Management Accounting II and Financial Management II.
In line with this, the section planned to have groups in charge with
monitoring the stock performance within six weeks, until September 22, 2017.
Thus, in each group, they have a leader who will collect daily reports from his/her
groupmates and then, properly manage how to come up with the interpretations
and how to arrive at the required weekly stock performance report.
This stock report gives relevant information regarding the important matters
that affect the stock investment per week. Thus, this report, in particular, is for the
Second Week of Monitoring – August 21 to August 25, 2017
(Monday-Friday)

Prepared by:
GROUP 2

Leader: Alvarez, Michelle Anna Corazon R.

Members:
Doctora, Jomar L
Legaspi, Danelle Joy J.
Olaes, Ericson O.
Reyes, EJ Angella M.
Tanlangit, Leizelle Joy G.

38
STOCK PERFORMANCE MONITORING
August 21, 2017 – August 25, 2017
Second Week

Introduction
As of the first week of stock performance monitoring, the last trading price
is ₱ 1.86 and the total account equity value is ₱ 5010.25. The changes in stock
prices range from ₱ 1.81 to ₱ 1.86.
In this report, the updates for the second week of stock performance
monitoring will be presented wherein the stock table, the graph illustrating the
changes in the trading price, and the interpretations and conclusions regarding the
stock performance are included.

STOCK TABLE
August 21, 2017 – August 25, 2017
FILINVEST LAND, INCORPORATED (PSE: FLI)
STOCK PERFORMANCE
Date Par PE
EPS Open High Low Close Volume Value
2017 Value RATIO
August 21 - HOLIDAY -
August 22 1.00 0.22 1.87 1.92 1.87 1.88 43, 588, 000 82, 601, 240 8.55
August 23 1.00 0.22 1.89 1.93 1.87 1.88 17, 022, 000 32, 361, 240 8.55
August 24 1.00 0.22 1.88 1.93 1.88 1.90 8, 095, 000 15, 459, 420 8.64
August 25 1.00 0.22 1.90 1.93 1.89 1.89 11, 637, 000 22, 129, 370 8.59
Table 3. Stock Table – Second Week of Monitoring

As shown in the Table 3, the opening price on August 22 was ₱ 1.87. The
maximum price that investors have paid for the stock was ₱ 1.93, while the
minimum price was ₱ 1.87. On that date, 43, 588, 000 shares of stock were traded
and the last trading price was ₱ 1.88. As of August 22, the value of the stocks of
FLI was ₱ 82, 601, 240.

On August 23, the opening price was ₱ 1.89 with the maximum price of
₱1.93 that the investors have paid for the stock and a minimum price of ₱ 1.87.
Also, the last trading price was ₱ 1.88 and 17, 022, 000 shares of stocks had been
traded. As of August 23, 2017, ₱ 32, 361, 240 is the value of stocks of FLI.

39
On August 24, the opening price was ₱ 1.88. The investors have paid the
stock with a maximum price of ₱1.93 and a minimum price of ₱ 1.88. The numbers
of stock that was traded on that date was 8, 095, 000 and the last trading price
was ₱ 1.90. The value of the stocks of FLI was ₱ 15, 459, 420 as of August 24.

On August 25, ₱ 1.90 became the new opening price of the stocks. The
maximum price was ₱ 1.93 and the minimum price was ₱ 1.89 that the investors
paid for the stock. The last trading price was ₱ 1.89 and 11, 637, 000 shares have
been traded. As of that date, the value of the FLI became ₱ 22, 129, 370.

Figure 5. Stock Performance – Second Week of Monitoring

40
As it was shown in the figure 5, the price of the stock declined during the
first week which has ended on August 18. However, it shows that the stock price
gradually increased on the second week which is from August 21 until August 25.

CONCLUSIONS AND INTERPRETATIONS


During the second week, there had been minimal fluctuations in the stock
prices and it is favorable on our part as investors. The total account equity value
did not incur a loss since the account balance is still higher than its original value.
The gain on the stock investment from the first week to second week is ₱ 29.85
which is calculated by subtracting the ending balance of the first week which is
₱4990.45, from the ending balance of the second week which is ₱ 5020.20.

On August 24, the last trading price of the stock was ₱ 1.90, the price upon
which the class agreed to sell the stock. However, the group did not opt to sell the
stock of FLI because the stock price of other companies that the class would like
to invest in is still high compared to the minimum price it can be paid for.

The group has decided to retain the stock investment in FLI, considering
the possible change in the equity value if the stock would be sold to purchase
shares of stock from another company.

41
WEEKLY STOCK PERFORMANCE REPORT

This report is submitted on September 2, 2017 to give a detailed report and


an analysis of the performance of the stocks purchased by the fourth year
students, taking up Bachelor of Science in Accountancy (BSA) and Bachelor of
Science in Accounting Technology (BSAT), as part of their final output in both
subjects, Management Accounting II and Financial Management II.
In line with this, the section planned to have groups in charge with
monitoring the stock performance within six weeks, until September 22, 2017.
Thus, in each group, they have a leader who will collect daily reports from his/her
groupmates and then, properly manage how to come up with the interpretations
and how to arrive at the required weekly stock performance report.
This stock report gives relevant information regarding the important matters
that affect the stock investment per week. Thus, this report, in particular, is for the
Third week of Monitoring – August 28 to September 1, 2017
(Monday-Friday).

Prepared by:
GROUP 3

Leader: Nicolas, Mark Andrew F.

Members:
Aventurado, Lei Ann U.
Bornalo, April Jane A.
Sangria, Jasmin M.
Sumagui, Czerina Kathleen P.
Tibayan, Ma. Cristina I.

42
STOCK PERFORMANCE MONITORING
August 28, 2017 – September 1, 2017
Third Week

Introduction
Since we purchased the FilInvest Land Inc., it had performed outstandingly
and resulted into a gain in total account equity value of P5,020.20 as of the end of
2nd week of stock performance monitoring. As compared to our initial total account
equity value of P4,975.00, we had gained an amount of P45.17 which is
considerably high with respect to the stock’s fluctuation rate of .05%.
The first week became exciting, enjoyable and fun. Since it was our first
experience in handling stocks by ourselves only, or rather without any help of
traditional or live brokers, we had fun and gained memorable experiences. In the
first week of stock performance monitoring, the stock reached 1.93 and fell down
to 1.75, its highest and lowest value as of the first week. Thus, the total account
equity value risen up to P4,990.35, with a portfolio gain/loss of P15.32.
The second week became more exciting, enjoyable and fun. The stock
market value consistently risen up. As compared to the first week, it has a .01
difference in its highest stock value with 1.92 per share while its’ lowest stock value
climbed up to 1.83 per share. The stock performance during the second week of
the monitoring activity can be described as constantly improving. Our total account
equity value climbed up to P5,020.20, with a portfolio gain/loss of P45.17.
As of this week, the third week of stock performance monitoring activity, we
already experienced the buy-and-sell transaction. We sold our stock with FilInvest
Land Inc. at a market price of 1.91 per share and immediately purchased stock of
Double Dragon at a market price of 33.60 per share. The discussion of the third
week stock performance monitoring activity will be imparted through the remainder
of this paper.
Since the start, the section really want to purchase Double Dragon stock
because of the suggestions of other people, may it be in the internet or websites
or through the word-of-mouth. Also, the section decided to purchase Double
Dragon stock when its amount reaches the lowest value as of the month.
Based on our observation in our FLI stock, when the price of the stock turns
high, the value of our investment also turns high. However, due to its small
fluctuation rate, it increases minimal amount. This is the reason why we are
pursuing Double Dragon up until now. We want some change. We want our stock
investment to become higher so we decided to invest in a risky type of stock
investment.

43
Double Dragon has 0.05 fluctuation rate as compared to 0.01 fluctuation
rate of FilInvest Land, Inc (FLI).

STOCK TABLE
August 28, 2017 – September, 2017
FILINVEST LAND, INCORPORATED (PSE: FLI)
STOCK PERFORMANCE
Date Par PE
EPS Open High Low Close Volume Value
2017 Value RATIO
August 28 - HOLIDAY -
August 29 1.00 0.22 1.90 1.93 1.89 1.89 40,651,000 76,767,290 8.50
August 30 1.00 0.22 1.91 1.91 1.89 1.91 8, 095, 000 15, 459, 420 8.64
August 31 1.00 0.22 1.91 1.93 1.89 1.91 5,564,000 10,647,560 8.65
Table 4. Stock Table – Third Week of Monitoring
(Before sale of FilInvest Land, Inc. (PSE:FLI) stock)

DOUBLE DRAGON (PSE: DD)


STOCK PERFORMANCE
Date Par PE
EPS Open High Low Close Volume Value
2017 Value RATIO
August 31 0.10 44.35 44.45 43.60 43.60 172,600 7,569,835 179.40
September1 - HOLIDAY -
Table 4.1. Stock Table – Third Week of Monitoring
(After purchase of Double Dragon (PSE:DD) stock)

As shown in the Table 4 and 4.1, the group decided to have buy-and-sell.
Since, the stock investment in FilInvest Land, Inc. turned 1.91 for two consecutive
days, we had resulted to sell it and purchase shares of stock of another company
to try for something riskier.
As of the week, FLI stock reached 1.93 as its highest price while its lowest
price is 1.89 for three consecutive days. Since Double Dragon, as compared to its
previous prices, it became 43.60, its lowest amount as of the month, we already
sold the FLI stock and immediately purchased DD stock.

44
Figure 6, 6.1 and 6.2 shows the 3 steps in selling the FLI stock investment.

Figure 6. Selling the FLI Stock Investment – Step 1

Figure 6.1 Selling the FLI Stock Investment – Step 2

45
Figure 6.2. Selling the FLI Stock Investment – Step 3
On this date, August 31, 2017, we our order to sell the FLI stock was sent for
execution and immediately been sold. We have been notified that it has already been sold
and the amount was transferred already to our COL Financial account, resulting to Php
5,040.09 actual balance and buying power.
Then, we immediately purchased Double Dragon (DD) stock. Figure 6.3, 6.4 and
6.5 show the steps on purchasing the DD stock.

Figure 6.3. Purchasing the Double Dragon (DD) stock – Step 1

46
Figure 6.4. Purchasing the Double Dragon (DD) stock – Step 2

Figure 6.5. Purchasing the Double Dragon (DD) stock – Step 3

On the same date, August 31, 2017, we immediately grabbed the


opportunity to purchase DD stock at a price of 43.60. Our order was sent for
execution. Immediately, our order was granted and we finally had the Double
Dragon stock. Our actual balance and buying power had decreased to Php 657.03.

47
Further, we had been notified the other day of the stock transaction that
occurred on August 31, 2017. Its’ purpose is to let us know of the stock transaction
– buy and sell because if not, we may immediately tell them so that they can do a
specific course of action.

Figure 6.6 shows the notification of the transaction.

Figure 6.6 Notification of the Stock Transaction

The figure shows that the group had sold completely the 1,000 shares of
FLI stock at an amount equal to Php 1,910.00 and had purchased 100 shares of
DD stock at an amount equal to Php 4,360.00.

48
WEEKLY STOCK PERFORMANCE REPORT

This report is submitted on September 9, 2017 to give a detailed report and


an analysis of the performance of the stocks purchased by the fourth year
students, taking up Bachelor of Science in Accountancy (BSA) and Bachelor of
Science in Accounting Technology (BSAT), as part of their final output in both
subjects, Management Accounting II and Financial Management II.
In line with this, the section planned to have groups in charge with
monitoring the stock performance within six weeks, until September 22, 2017.
Thus, in each group, they have a leader who will collect daily reports from his/her
groupmates and then, properly manage how to come up with the interpretations
and how to arrive at the required weekly stock performance report.
This stock report gives relevant information regarding the important matters
that affect the stock investment per week. Thus, this report, in particular, is for the
Fourth Week of Monitoring – September 4 to September 8, 2017
(Monday-Friday)

Prepared by:
GROUP 4

Leader: Cabral, Kaycee

Members:
Aterrado, Ara
Chavez, Jesilyn
Ciupan, Cristel Joy
Ilagan, Denise
Sulit, Alicia Nichole

49
STOCK PERFORMANCE MONITORING
September 4, 2017 – September 8, 2017
Fourth Week

Introduction

In this report, the updates for the fourth week of stock performance
monitoring will be presented wherein the stock table, the graph illustrating the
changes in the trading price, and the interpretations and conclusions regarding the
stock performance are included.

STOCK TABLE
August 28, 2017 – September, 2017
DOUBLE DRAGON (PSE: DD)
STOCK PERFORMANCE
Date Par PE
EPS Open High Low Close Volume Value
2017 Value RATIO
September 4 0.10 0.25 44.00 44.80 43.50 44.85 489,300 21,883,570 179.40
September 5 0.10 0.25 44.25 44.85 44.25 44.80 96,600 4,323,480 179.20
September 6 0.10 0.25 33.80 45.20 44.50 44.85 132,000 5,916,060 179.40
September 7 0.10 0.25 45.00 45.00 43.80 44.10 243,800 10,808,570 176.40
September 8 0.10 0.25 44.25 44.75 43.35 43.60 533,300 23,273,805 174.00
Table 5. Stock Table – Fourth Week of Monitoring
(After purchase of Double Dragon (PSE:DD) stock)

Table 5 showed that the opening price on September 4 was ₱ 44.00. The
maximum price that investors have paid for the stock was ₱ 44.80, while the
minimum price was ₱ 43.50. On that date, 489,300 shares of stock were traded
and the last trading price was ₱ 44.85. As of September 4, the value of the
stocks of Double Dragon was ₱ 21,883,570. The change in the stock price was
2.87 percent and the price earnings ratio was 179.40
On September 5, the opening price was ₱ 44.25 with the maximum price of
₱ 44.85 that the investors have paid for the stock and a minimum price of ₱ 44.25.
Also, the last trading price was ₱ 44.80 and 96,600 shares of stocks had been
traded. As of September 5, ₱ 4,323,480 is the value of stocks of DD. The change
in the stock price was -0.11 percent and the price earnings ratio was 179.20

50
On September 6, the opening price was ₱ 44.80. The investors have paid
the stock with a maximum price of ₱45.20 and a minimum price of ₱ 44.50. The
numbers of stock that was traded on that date was 132,000 and the last trading
price was ₱ 44.85. The value of the stocks of DD was ₱ 5,916,060 as September
6. The change in the stock price was 0.11 percent and the price earnings ratio was
179.40

On September 7, the opening price was ₱ 45.00. The maximum price that
investors have paid for the stock was ₱ 45.00, while the minimum price was
₱43.80. On that date, 243,800 shares of stock were traded and the last trading
price was ₱ 44.10. As of September 7, the value of the stocks of DD was ₱
10,808,570. The change in the stock price was -1.67 percent and the price
earnings ratio was 176.40.

On September 8, ₱ 44.25 became the new opening price of the stocks. The
maximum price was ₱ 44.75 and the minimum price was ₱ 43.35 that the investors
paid for the stock. The last trading price was ₱ 43.50 and 533,300 shares have
been traded. As of that date, the value of the FLI became ₱ 23,273,805. The
change in the stock price became -1.36 percent and the price earnings ratio was
174.00.

51
Figure 7. Stock Performance – Fourth Week of Monitoring

Figure 7 showed the hourly stock performance of Double Dragon on second


week which is from September 4 until September 8. Also, it was revealed that the
price of the stock declined during the last day of monitoring.

CONCLUSIONS AND INTERPRETATIONS


During the fourth week, the price-to-earnings ratio of the Double Dragon
fluctuates significantly depending on economic conditions. It is important to
evaluate and assess the price-to-earnings ratio because it may lead to more
investors. If it is high, investors will expect higher earnings in the future and growth
prospects are good. Therefore, they will tend to invest. On the other hand, when it
is low, investors will think that the company will not able to provide good earnings.

Also, there had been minimal fluctuations in the stock prices and it is
favorable on our part as investors. Stock prices change every day as a result of
market forces. One of the reasons is because of supply and demand. If more
people want to buy a stock (demand) than sell it (supply), then the price moves up.

52
Conversely, if more people wanted to sell a stock than buy it, there would be
greater supply than demand, and the price would fall. The price of a stock doesn't
only reflect a company's current value, it also reflects the growth that investors
expect in the future.

As of September 8, the total account equity value ₱ 4,962.23. It incurred a


loss since the account balance became lower than its original value which is ₱
4,975. The loss on the stock on the last day is ₱ 77.86 which is calculated by
subtracting the ending balance of the previous ending balance which is ₱ 5,091.56
from the ending balance of the current balance which is ₱ 4,962.23.

The group has decided to retain the stock investment in Double Dragon
because the performance of DD was moderate. Although we incurred a loss, we
are expecting that the stock price of DD will to increase on following week.

53
WEEKLY STOCK PERFORMANCE REPORT

This report is submitted on September 16, 2017 to give a detailed report


and an analysis of the performance of the stocks purchased by the fourth year
students, taking up Bachelor of Science in Accountancy (BSA) and Bachelor of
Science in Accounting Technology (BSAT), as part of their final output in both
subjects, Management Accounting II and Financial Management II.
In line with this, the section planned to have groups in charge with
monitoring the stock performance within six weeks, until September 22, 2017.
Thus, in each group, they have a leader who will collect daily reports from his/her
groupmates and then, properly manage how to come up with the interpretations
and how to arrive at the required weekly stock performance report.
This stock report gives relevant information regarding the important matters
that affect the stock investment per week. Thus, this report, in particular, is for the
*Fifth week of Monitoring – September 11, 2017 to September 15, 2017
(Monday-Friday).

Prepared by:
GROUP 5

Leader: Dimailig, Krissia Lane L.

Members:
Abela, Cristine Marie M.
Cabeltes, Ederlyn B.
Develos, Kaith Shaira D.
Reyes, Cherryll T.
Ricofuerto, Jelly Joyce B.
Satparam, Felicia Paula R.

54
STOCK PERFORMANCE MONITORING
September 11, 2017 - September 15, 2017
Fifth Week

Introduction
On the fourth (4th) week of monitoring, the shares in the Double Dragon
Corp. were purchased. It was chosen over the Filinvest (FLI). For the first week of
investing therein, it already incurred a loss. Everyone in class is hoping it will
recover from a loss, especially in the fifth week of monitoring its performance. But,
as expected from Double Dragon, it continuously incurred a loss until September
14. On the last day of monitoring, September 15, the Double Dragon provided a
gain. It is as if it has regained its confidence and has already recovered from certain
circumstances.

Why the Stock prices of Double Dragon did continuously goes down?
The Double Dragon provided certain cases when their stock prices
can be affected.
• News releases on earnings and profits and future estimated earnings
• Announcement of dividends
• Introduction of a new product or a product recall
• Securing a new large contract
• Employee layoffs
• Anticipated takeover or merger
• A change of management
• Accounting errors or scandals
• Stock prices can also fluctuate when they are publicly offered (IPO), and
corporations that issue the new stocks can dilute the shares and potentially
cause their value to drop.
Note: An initial public offering (IPO) is the first time that the stocks of a private company
are offered to the public. IPOs are often issued by smaller, younger companies seeking
capital to expand, but they can also be done by large privately owned companies looking
to become publicly traded.

55
Connecting Explanations
The Double Dragon, led by Chairman Edgar “Injap” Sia II (founder of Mang
Inasal) and Co Chairman Tony Caktiong (founder of Jollibee), had a vision of
accumulating the 1million sq-m of leasable space by 2020 wherein 700 sq-m of it
was in market under its subsidiary City Mall, and 300 sq-m of it was in two offices
projects in Metro manila, particularly in DD Meridian Park in Bay and Jollibee
Tower in Ortigas. By 2020, it goal is to achieve the 5.5 billion net profits from 4.8
billion. During the operation, there have been a change of plans. Its goal, as of
now, is to accumulate 1.2 million sq-m leasing space by 2029.
In order to achieve this goal, the Double Dragon now decided to go further.
It’s not only attracting the local investors, but it also now attracts
foreign/international investors. In line with this going internationally, the Double
Dragon previously had a public offering which can be the reason of the fluctuations
of stock prices.

Table 8 and Figure 6 will provide the summarized information for the fifth
week of monitoring.

STOCK TABLE
September 11, 2017 to September 15, 2017
DOUBLE DRAGON (PSE: DD)
STOCK PERFORMANCE
Date Par
EPS Open High Low Close
2017 Value
September 11 0.10 0.25 43.50 44.00 43.40 43.40
September 12 0.10 0.25 43.40 44.00 43.40 43.40
September 13 0.10 0.25 43.40 43.80 41.80 41.80
September 14 0.10 0.25 41.80 42.00 39.80 39.85
September 15 0.10 0.25 39.85 39.85 40.00 40.00
Table 6. Stock Table – Fifth Week of Monitoring

As shown in the Table 6, from the last day of monitoring of the fourth week
up to the fourth day of the fifth week (September 8- September 14), it can be seen
that the losses are continuously incurred, and at the last day of the fifth week of
monitoring, it finally had a gain.

56
Figure 8. Stock Performance – Fifth Week of Monitoring

The last four (4) days of the fifth week, (from sept. 11- sept. 14), we are
hoping for a recovery from loss. During sept. 15, the stocks prices of DD opened
for 39.85. it’s highest and lowest prices were 41 and 38.9 respectively, but it closed
for 40. During the opening of stock market, the DD already incurred a positive day
change of .15, which is good news for us investors.

Reason why Investors doesn’t decided on selling the shares on Double


Dragon
At the very first moment the investors purchased shares from Double
Dragon & Co., they already knew that it would be risky. It’s fluctuation rate is very
high that when it has a low share price, it will really be very low, but when it
recovers, it will increase prices very high than usual. Although arguments between
investors have occurred, the decision still remains to be the same, retain the
shares in Double Dragon until the losses are recovered, and then decide
afterwards, whether to stay at risk, but obtain the experience, or invest on a new
company where stability is present.

57
CONCLUSIONS AND INTERPRETATIONS
After the fifth week of monitoring the stock prices of Double Dragon & Co.,
the members of the Group 5 can conclude that investing in stock market is really
a gamble. No one can tell when it will incur a loss, or a gain, or when it will be
stable. We, the investors learned that it is good, once in a while, to hold on and
wait, even though the results we’re receiving aren’t that good. It is for the reason
that we can never know what will happen until we do it and experience it. In line
with this, it is concluded, as for the perspective of investing in stocks, that a sudden
loss is not a signal to give up on your investment (provided it doesn’t reach your
allowable loss percentage), but a time to give chance for the company you’ve
invested to recover from sudden changes and circumstances that has happened
in the company and its environment.

58
WEEKLY STOCK PERFORMANCE REPORT

This report is submitted on September 23, 2017 to give a detailed report


and an analysis of the performance of the stocks purchased by the fourth year
students, taking up Bachelor of Science in Accountancy (BSA) and Bachelor of
Science in Accounting Technology (BSAT), as part of their final output in both
subjects, Management Accounting II and Financial Management II.
In line with this, the section planned to have groups in charge with
monitoring the stock performance within six weeks, until August 8, 2017. Thus, in
each group, they have a leader who will collect daily reports from his/her
groupmates and then, properly manage how to come up with the interpretations
and how to arrive at the required weekly stock performance report.
This stock report gives relevant information regarding the important matters
that affect the stock investment per week. Thus, this report, in particular, is for the
Sixth week of Monitoring – September 18, 2017 to September 22, 2017
(Monday-Friday).

Prepared by:
GROUP 6

Leader: Mendoza, Rachel Anne A.

Members:
Anciro, Joana Mae S.
Creus, Bren Bernard R.
Doneza, Yarrah-Zynne A.
Garcia, Rensie Mae L.
Lamagan, Nicole T.

59
STOCK PERFORMANCE MONITORING
September 18, 2017 – September 22, 2017
Sixth Week

Introduction

In this report, the updates for the sixth week of stock performance

monitoring will be presented wherein the stock table, the graph illustrating the

changes in the trading price, and the interpretations and conclusions regarding the

stock performance are included.

STOCK TABLE
September 18, 2017 – September 22, 2017
DOUBLE DRAGON (PSE: DD)
STOCK PERFORMANCE
Date Par PE
EPS Open High Low Close Volume Value
2017 Value RATIO
September 4 0.10 0.25 41.00 42.95 40.60 42.45 588,900 24,879,320 161.90
September 5 0.10 0.25 42.50 43.10 42.00 42.00 582,100 24,825,965 162.09
September 6 0.10 0.25 42.40 43.00 41.80 42.95 447,100 19,036,070 160.18
September 7 NO TRADING
September 8 0.10 0.25 44.20 44.35 43.00 43.00 362,400 15,884,765 167.24
Table 7. Stock Table – Sixth Week of Monitoring

Table 7 showed that the opening price on September 18 was ₱ 41.00. The

maximum price that investors have paid for the stock was ₱ 42.95, while the

minimum price was ₱ 40.60. On that date, 588,900 shares of stock were traded

and the last trading price was ₱ 42.45. As of September 18, the value of the stocks

of Double Dragon was ₱ 24,879,320. The change in the stock price was 5.07

percent and the price earnings ratio was 153.70.

60
On September 19, the opening price was ₱ 42.45 with the maximum price

of ₱ 43.10 that the investors have paid for the stock and a minimum price of ₱ 40.

Also, the last trading price was ₱ 42 and 582,100 shares of stocks had been

traded. As of September 19, ₱ 24,825,965 is the value of stocks of DD. The change

in the stock price increased to 0.10% percent and the price earnings ratio was

161.90.

On September 20, the opening price was ₱ 42.40. The investors have paid

the stock with a maximum price of ₱43.00 and a minimum price of ₱ 41.80. The

numbers of stock that was traded on that date was 447,100 and the last trading

price was ₱ 42.95. The value of the stocks of DD was ₱ 19,036,070 as of

September 20. The change in the stock price declined to 0.00%1 percent and the

price earnings ratio was 162.09.

On September 21, the opening price was ₱ 43.00. The maximum price that

investors have paid for the stock was ₱ 0 because there was no trade, while the

minimum price was also ₱ 0 for the same reason. On that date, 0 shares of stock

were traded and the last trading price was ₱ 0. As of September 21, the value of

the stocks of DD was ₱ 0. There was no change in the stock price and there was

also no price earnings ratio.

On September 22, ₱ 44.2 became the new opening price of the stocks. The

maximum price was ₱ 44.35 and the minimum price was ₱ 43.00 that the investors

paid for the stock. The last trading price was ₱ 43.00 and 362,400 shares have

been traded. As of that date, the value of the DD became ₱ 15,884,765. The

61
change in the stock price increased to 0.30% percent and the price earnings ratio

was 167.24.

Figure 9. Stock Performance – Sixth Week of Monitoring

As shown on Figure 9, which presents the hourly stock performance of


Double Dragon on the sixth week which is from September 18 until September 22.
From September 18, price declined in 19 but rose up again on 21. The price finally
dropped on the last day of monitoring during September 22.

CONCLUSIONS AND INTERPRETATIONS

The price-to-earnings ratio has been fluctuating during the sixth week

because of some economic situations. The price-to-earnings ratio is of essence

because it can be used to attract investors, the higher the price-to-earnings ratio,

the better. If this is the case, more investments will flow. On the other hand, if it is

low, it will give the impression that the company can’t be able to yield a good return.

According to PSE Stockholders (2017), Double Dragon currently is in an

oversold condition based on the momentum oscillators. A momentum oscillator is

62
created by calculating the difference between the sum of all recent gains and the

sum of all recent losses and then dividing the result by the sum of all price

movement over the period. Its volatility is extremely low when compared to the

average volatility over the last 10 periods. Despite this, an increase in volatility is

seen possible with the sharp price fluctuations in the near future.

Stock prices fluctuates because of many factors. Such factors may be: news

releases on earnings and profits, future estimated earnings, announcement of

dividends, securing a new large contract, employee layoffs, change in

management, anticipated takeover or merger, and accounting errors or scandals.

In the case of Double Dragon, stock price fluctuations might have happened

because of Double Dragon’s new project to build a new hotel in Mindanao which

is considered as the biggest there. A big project like this, of course, will indicate a

new large contract which will affect the stock prices.

During September 21, there was a “No Trade” happening as it had been the

Day of the Protest the Office of the President announced. Office work was affected

and therefore no stocks are traded at the time.

In September 22, the total account equity value is ₱ 4,912.49. It incurred a

loss since the account balance became lower than its previous value which is ₱

5,011.97. The loss on the stock on the last day is ₱ 99.48 which is calculated by

subtracting the ending balance of the previous day which is ₱ 5,011.97 from the

ending balance of the current day which is ₱ 4,912.49.

The group came to the decision to retain the stock investment in Double

Dragon because the performance of DD was still unstable though nearly moderate.

63
Despite the loss, the group is anticipating that DD will soon hit an increase in the

stock price as they are having good comments from analysts and because of the

performance the stocks have.

64
For the succeeding weeks

Over the past weeks that we have invested in and monitored the stock

market, we learned how investing in certain companies can be risky and proper

research about the companies are detrimental before buying stocks. Double Dragon

is one of the companies that are very risky in stock investing. It gains rapidly in a

large amount of price and in contrast, it also drops in a big price. Students had

already experienced gaining a bigger amount of profit but on the other hand, we also

experienced continuous losses for the consecutive weeks. Students are still hoping

even though they incur losses, they are expecting that they will obtain profit from it.

For us, it is not all about the money that we should consider in investing stocks but

also, we want to experience not only gaining profit but also, to experience some

risky situations including the trade between Double Dragon. As of this date,

September 25, 2017, the start 7th week of monitoring the stock performance of

Double Dragon, it continues to have losses starting from the losses obtained from

the previous weeks. But there are times that its stock price increases rapidly and

the same as it decreases the price quickly. During this week, Double Dragon

presently is in an oversold condition and some economic situations, being

continued from the 6th week. Despite this, an increase in the movement is seen

possible with the sharp price fluctuations in the near future.

Stock prices fluctuate because of many factors. Such factors may be: news

releases on earnings and profits, future estimated earnings, announcement of

dividends, securing a new large contract, employee layoffs, change in

management, anticipated takeover or merger, and accounting errors or scandals.

65
In the case of Double Dragon, stock price fluctuations might have happened

because of Double Dragon’s new project to build a new hotel in Mindanao which

is considered as the biggest there. A big project like this, of course, will indicate a

new large contract which will affect the stock prices.

During September 21, there was a “No Trade” happening as it had been the

Day of the Protest the Office of the President announced. Office work was affected

and therefore no stocks are traded at the time.

In September 22, the total account equity value is ₱ 4,912.49. It incurred a

loss since the account balance became lower than its previous value which is

₱5,011.97. The loss on the stock on the last day is ₱ 99.48 which is calculated by

subtracting the ending balance of the previous day which is ₱ 5,011.97 from the

ending balance of the current day which is ₱ 4,912.49.

The group came to the decision to retain the stock investment in Double

Dragon because the performance of DD was still unstable though nearly moderate.

Despite the loss, the group is anticipating that DD will soon hit an increase in the

stock price as they are having good comments from analysts and because of the

performance the stocks have.

66
CONDUCTING A SEMINAR

“Don’t work for money, Let your money work for you”, a striking quotation in
the seminar held on October 21, 2017 at St. John Paul Conference Hall in
Rogationist College. The Seminar was facilitated by the Bachelor of Science in
Accountancy and Accounting Technology (BSA/T 701) Students in corroboration
with its theme: “Resourceful Mind Yields Lifetime Credit”. The seminar aims to
unlock the knowledge of the participants on Stock Investment. Moreover, to give
them curiosity about how stock investment could change their future.

Present in the event were Mr. Mher Anthony A. Ampo, MA the Business
Science Cluster (BSC) Head, Mr. John Rick Gatdula, CPA, Accounting Professor,
and Ms. Anjelyn Hernando, CPA, the facilitators’ adviser in Stock Investment.

There were 24 participants who attended the event which came from
different clusters in Rogationist College and outsiders.

This seminar is all about the introduction and basics of stock investing and
also the personal experiences that students encountered before, during and after
the actual stock investment. The objective of the seminar was to give the exposure
and understanding of stock investment to the students and was introduced to
students for participation.

Investing in the stock market is very much like any other businesses where
you buy a product to sell to someone else at a profit. Too many investors treat their
stock market investing more like gambling at the casino. Successful and profitable
investors know the difference. The stock market is a great equalizer where people
with small amounts of money can earn the same way that the big time players do.
It does not matter how much you start with if you use sound business techniques
for your investing. What does matter is how you make your investing funds work
for you. While knowing the basics and strategies from the seminar, participants are
encouraged to research and start investing. This seminar will take the attendees
to make them feel like they are on the business setting where they can actually
decide just like buying and trading of stocks in the market. From having no idea

67
into a business minded one, participants will gain knowledge and confidence as
they learn how to design and strategize their stock investments. This seminar will
teach them on how to think like a business owner and not a speculator, different
important factors that should be considered before, during and after stock
investing, introduction about stocks, how you will benefit, and more.

The seminar started with an opening prayer inspired by the video of Five
Loaves and Two Fishes, led by Ms. Felicia Paula Satparam, then followed by the
opening remarks of the Program Chair of Business Science Cluster, Mr. Mher
Anthony A. Ampo, MA, introduced by the masters of the ceremony, Ms. Cristine
Abela and Ms. Ara Aterrado, who gave a wonderful and inspiring message and
introduction about stock investing, and after that, the seminar proper begun. The
first speakers are Ms. Jesilyn Chavez and Ms. Sherlene Yap wherein they
introduce the terms and basics of stock investment. Participants at first doesn’t
have any idea about it. But eventually, they asked the speakers on what part they
are not cleared with it. Speakers also presented videos related to their topics for
additional information. Questions are being entertained after the discussing the
topics. Secondly, Ms. Rensie Mae Garcia and Ms. Michelle Alvarez were the next
speakers that tackled about understanding more on stocks. The speakers
continued to discuss the first part of the seminar and deepen the understanding
towards stocks and other terms. After the first half of the program, Ms. April
Bornalo, Ms. Jenica Vidallo and Ms. Ederlyn Cabeltes were the leaders for the
Chicken dance that served as the energizer of the participants to prevent boredom
from listening to the seminar. After that active dance number, snacks are given
and the second half of the program started as well. The third speakers are MS.
Krissia Dimailig and Ms. Hydee Deligero wherein they discussed about the basics
in stock investing. They even encouraged the participants to invest in the stock
market and presented the importance of investing their excess cash in purchasing
stocks. The speakers actively interacted to the participants. They frequently ask
questions to them about the topic. They are also scenarios in which participants
were involved in decision making for stock investment. Speakers used different

68
quotes and sayings as their way of inspiring and encouraging people to invest on
stock market.

After that wonderful talk, they have a simple yet exciting ice breaker for the
participants called “Ahasin mo ako”. It is the common game rock-paper-scissor but,
participants need to provide one peso and this will be given to the winning player.
In our case, the BSA/T 701 provided one peso for each participant. It is called
“Ahasin mo ako” because all the players who lost in the game will go at the back
of the player who won until all the players will go at the back of the winner. This
game is like investing on sticks wherein you will sacrifice an amount of money to
invest and you will use strategies to win the game. Mr. Redickson Loriaga was the
winner and he won 30 pesos.

Finally, the last speakers are Ms. Nicole Lamagan and Ms. Kendy Salazar
wherein they present the actual processes and personal experiences of the
students on stock investing.

After the talk, Ms. Anjelyn Hernando, CPA, the professor of the subject,
Management Accounting 2 and Financial Management 2 of the BSA and BSAT
Students, gave an inspiring and marvelous closing remarks wherein she
expressed her deepest gratitude to the participants for attending the seminar and
most especially, congratulated the students for a great job on conducting the
seminar. The masters of the ceremony presented and awarded the certificate of
appreciation for the participants and gave the evaluation forms to assess the whole
program. And after that, the food and registration committees gave foods to the
participants before leaving the venue.

The conference hall was filled with laughter and learning which were
brought by the speakers who have discussed about the basics of stock investment,
the considerations, steps in investing, the tips on a successful investment,
managing risk in investment, as well as the actual journey of the class (BSA/T 701)
on their Stock investment.

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The seminar ended with enthusiasm that the participants have learned
something about stock investment and gave them extra tips on how they can earn
more in the future through adding value to their earnings and hitting the right
strategy.

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APPENDICES

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REFERENCES

http://www.niftytradingacademy.com/wp-content/uploads/2015/07/Serious-Stock-
Market-Correction-is-Overdue.jpg

http://bebusinessed.com/history/history-of-the-stock-market/

http://www.money-zine.com/investing/stocks/stock-market-history/

http://www.ihap.org/HTML/philstock/TopTenListCo/btoptenlistedco.htm

https://en.wikipedia.org/wiki/Stock

http://www.investopedia.com/university/stocks/stocks8.asp

https://www.thebalance.com/what-is-stock-358099

https://www.cashcowcouple.com/different-types-of-stocks-classifications/

https://www.pinoymoneytalk.com/forum/index.php?topic=13877.0

http://ageconsearch.umn.edu/bitstream/43988/2/albuquerque.pdf

http://www.pseacademy.com.ph/LM/investors~details/id1310562298291/How_to
_invest_in_STOCKS.html

http://www.akosiallan.com/how-to-invest-in-the-stock-market-in-the-philippines-
in-3-easy-steps/

https://philpad.com/list-of-accredited-online-trading-brokers-in-the-philippines/

http://www.investopedia.com/university/stocks/stocks4.asp

http://www.investopedia.com/simulator/?source=dfp&subid=dfp-note-sim

http://www.smartpinoyinvestor.com/beginners

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