Limit in stock market philippines

Stocks are shares of ownership in a corporation. The stock market is a place where stocks are bought and sold.

Investing in the Philippine Stock Market

The Philippine Stock Exchange PSE is the corporation that governs our local stock market. People buy or invest in stocks to benefit from a company's tremendous value potential over time.

Once you buy or invest into a stock you now become part owner or a shareholder of that particular corporation.

As a Shareholder , you can now participate in the company's growth and success through stock Price Appreciation and by earnings Dividends. Capital or price appreciation is an increase in the market price of your stock over time brought about by an increase in its potential value and the demand to buy its shares.

The faster a company can grow, the faster its price can appreciate. Profitable corporations can also issue dividends , whether in cash or in additional shares of stock as a means for shareholders to share in their distributed profits. History has proven that investing in quality stocks can provide greater returns than most investment instruments.

This offers you the best chance in achieving your financial goals and gives you the ability to later enjoy the benefits of your money working for you. The track record of the stock market also shows that a good basket of stocks climb more often than decline - reducing risk over the long-term.

Another reason why stocks can outperform other asset classes is because it can compound the value of your investment.

Types of Stock Trading Orders // PSE Academy

Companies can reinvest the profits they make to generate even more profit. Moreover any dividends you receive can also be used to buy more shares and thereby enlarging your overall value as well. Discipline and the right methodology is the key to a successful stock investment program.

Understand and adopt these four essential rules of thumb to keep you on track. Now instead of investing just once, every year I regularly add the same amount into my investment. Look at the significant difference this can affect my portfolio:. Compounding and regularly adding to your investment is the key. Long term investing solves the problem of short-term volatility choppiness in price.

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On occasion some issues may come up that may cause prices to swing up and down whether economic, political or natural events. But you can see from the chart below that the PSE index always bounces back to new highs even through problematic times.

After all companies need time to grow so prepare to sow your seeds in great businesses and let time do the rest. The management of risk should always come hand-in-hand with your choice of investment.

One way of containing risk is through diversifying or by spreading investments around and away from one single asset class. Moreover try to allocate your capital evenly to a number of stocks in different industries or sectors so as not to put too much risk in one area; have a good balance in your investments.

Learn about an easy and simple way of investing in stocks: More than just a portal for you to trade, COL Financial is a partner fully committed to help you invest wisely in the stock market.

By working with us, you gain immediate access to everything you need to help you succeed. New To Investing What are stocks?