Monday, March 29, 2010

Part 2: Stocks Investing

Part II: What is the minimum amount needed to invest in the stock market?

Trading stocks is done though board lot or round lot system, which means there is a minimum number of shares one can buy or sell at a specific price range.

The Board Lot Table determines the minimum number of shares one can purchase or sell at a specific price range. Therefore, the minimum amount needed to invest in the stock market varies and will depend on the market price of the security as well as its corresponding board lot. Prices of stocks move through a scale of minimum price fluctuations.

The Philippine Stock Exchange uses the Board Lot Table.

How can i profit in the stock market?


Investors can profit in the stock market thru any or a combination of the following;
  • Capital Gains - These are profits made due to an increase in the market price of a stock from the buying price.

  • Cash Dividend - A dividend given to shareholders in the form of cash. It is computed by multiplying the number of shares held by the cash dividend rate declared.

  • Stock Dividend - A dividend given to shareholders in the form of additional stocks. It is computed by multiplying the number of shares held by the percentage of the stock dividend declared.

  • Stock Rights - Stock rights offering is the option given to the present shareholders to buy additional shares of stock at a price lower than its market price.

Is there any risk involved in investing?

Yes, since risk is always a part of any investment. And because stock investment is the most volatile, a better attitude would be to limit and manage your risk. A maximum level of gain or loss should be set and calculated decisions should be made when this level is reached.

Do I need to keep track of my investment?

Yes! Having placed some amount in stocks, you should spend some time and effort in studying your investment. You should keep track of the stock price and follow closely the developments of the company. This way, you are able to foresee possible gains or losses that will guide you in making sound and wise investment decisions.

Daily quotations of stock prices can be obtained from your stockbroker or from all leading newspapers. You may also get information from our official website: www.pse.com.ph or from the PSE-Public Information and Assistance Center (PIAC) at telephone numbers 688-7602 to 03.


Source: http://www.pse.com.ph

1 comment:

busystock said...

http://www.BusyStock.com is a free emerging provider of financial service with a distinctive approach.

The unparalleled stock screener built for traders, with 5 day high/low watch, 20 day high/low watch, ATR, RSI, MFI, MA crossover and more. http://www.BusyStock.com offers a fresh perspective beyond what traditional data can reveal.

In the meantime, BusyStock.com's Earning Release Tracking tool has been the buzz for a long time.

Also, We follow Pre-Market with a unique Top 100 Stock list.

We thank all of you for your support and your constructive input which helps us to grow and serve you better. If you like our site, tell your friends. If you don’t, tell us.

Is Your Career at Risk in the Age of AI?

The rise of AI is reshaping industries, and it's time to ask the tough question: Is your career future-proof or on shaky ground ? While...