More OFW families are now saving and investing
June 16, 2008
Now, here’s one more good news.
According to the Bangko Sentral ng Pilipinas (Central Bank of the Philippines), almost half of the families of Overseas Filipino Workers (OFW) are now saving and investing part of the remittances they are receiving.
A visit to the Philippine Stock Exchange
March 28, 2008
Our “Investment Management” class in UP Diliman went to the Tektite Tower last week just before the Holy Week holiday to have a tour of the Philippine Stock Exchange (PSE).
It surely was exciting to actually visit one of the country’s stock trading floors but, at the same time, disappointing because we did not see a lot of “action.”
Remember pictures or movie scenes of stock traders where they shout and haggle their orders passionately on the floor? Well, there was nothing like that during our tour. In fact, at one point, we saw a few people taking a nap on their desks and also a group of traders chit-chatting — all during trading hours!
Stocks Basics 4: What are the types of stock trading orders?
January 7, 2008
What are the different types of stock trading orders?
There are several types of trades that meet one’s stock trading requirements and objectives — market order, limit order, all-or-none order, day order, amd good till canceled order.
Read more
On the last trading day of the year, will the PSE be up or down?
December 28, 2007
Today, December 28, is the last trading day of the Philippine Stock Exchange (PSE). On Monday and Tuesday next week, the markets are closed for New Year celebrations, and the first trading day in 2008 is on Wednesday, January 2.
Is the market set to close higher today because portfolio managers and traders might try to “window dress” their portfolios in time for year-end 2007?
A bit likely. In a previous article, we explained that Window Dressing is a strategy employed by fund managers wherein they try to make their portfolio look as attractive as possible before presenting it to clients or stockholders.
In the days leading up to the end of the quarter or the year, fund managers would purchase recent winners while selling old holdings at a loss, in an attempt to show that they own the best-performing stocks of the period.
Overview of the different types of investments
November 26, 2006
Citibank provides below a short and simple explanation of various investment options available to investors. For a more detailed discussion of these investment products, read the Time deposits, stocks, bonds, mutual funds, real estate: Where to invest my money? article.
DEBT INSTRUMENTS
When the government or a corporation needs to raise cash, it may borrow from investors. A corporation can borrow privately from lending institutions using promissory notes. A corporation can also borrow publicly by issuing commercial papers which are registered with the SEC.
On the other hand, the government can borrow from the public through instruments such as treasury bills, notes and bonds.
Since debt instruments are normally longer-term investments, interest payments tend to be higher than term deposits.
STOCKS
A common stock is a unit of ownership in a corporation for which the holder can vote on corporate matters and receive dividends from the company’s earnings. Therefore, when the investor purchases a stock, he becomes a part-owner of the whole company.
Although investing in stocks involves higher risks versus investing in debt or money market instruments, you can take advantage of the higher earning potential that can be gained from stocks through capital appreciation and dividends. Furthermore, stock investments have in general outperformed bond and money market instruments over time.
FUNDS
An investment fund pools money from unrelated investors with similar investment objectives. The fund is managed by a portfolio manager who invests the money in a portfolio of securities and / or other instruments according to the specified investment objectives.
A fund offers several distinct benefits to investors:
- As a single investor, it may be difficult to achieve diversification. Funds enable you to purchase various types of securities and other instruments to build a diversified portfolio.
- The fund is managed by experienced professionals who have access to information on the economy and market movements.
- Through the fund, you can invest in a diversified portfolio, enjoying the same earnings potential from the securities that would have been accessible exclusively to institutional investors.
- Funds make it possible for investors to buy instruments at a lower cost. When the fund buys different instruments, the cost of buying these instruments is divided among all investors versus the sole investor bearing the total cost.
