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Investment and Portfolio Management > Trading Process > Flashcards

Trading Process Flashcards

1
Q

Trading Process

A
  1. Choose your stockbroker
  2. Open a trading account
  3. Discuss with your stockbrokers the stock you wish to BUY or SELL
  4. Give orders to the stockbrokers
  5. Get the confirmation receipt
  6. Deliver/Pay before the Settlement Date
  7. Receive the Payment
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2
Q

Company will require you to fill out ________

A

Customer Account Information Form

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3
Q

Requirements in opening Trading Account

A

2 Valid IDs
Specimen signature cards
Proof of billing

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4
Q

2 ways to order stocks

A
  1. A telephone call or sending SMS
  2. Directly online via internet
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5
Q

QTY

A

Number of shares, divisible by 10

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6
Q

Higher the _____, lower the ______

A

price, board lot

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7
Q

Time you wanted to queue the order

A

Term

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8
Q

Bid Price: ______; _________: Sell

A

Buy, Ask Price

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9
Q

2 ways to make your money grow

A
  1. Increase in stock price or capital appreciation
  2. Dividends declared by the company
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10
Q

Ways to post an order

A

Over-the-Phone
Online
Face-to-Face

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11
Q

Buying or selling of stocks without a specified price, or immediately at the prevailing market price when the order is executed

A

Market Order

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12
Q

With a specified price known as the limit price

A

Limit Order

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13
Q

Accepted only during pre-open and pre-close periods

A

Market on opening/closing order

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14
Q

order entered for immediate execution at the best price with whatever volume is available and the remaining quantity will be queued as a limit order

A

Market-to-Limit Price

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15
Q

triggered when a specified price limit is reached

A

Stop Order

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16
Q

2 kinds of stop order

A
  1. Stop Loss Order
  2. Stop Limit Order
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17
Q

Valid until the end of the trading the day

A

Day Order

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18
Q

Valid until cancelled by the trader

A

Good Till Cancelled

19
Q

Valid until the date specified

A

Good Till Date

20
Q

Valid for seven (7) Calendar Days

A

Good Till Week

21
Q

Valid for 360 Calendar Days

A

Sliding Validity

22
Q

Execute-and-Eliminate order is valid upon execution

A

Fill-and-Kill

23
Q

Order Type

A
  1. Market Order
  2. Limit Order
  3. Market an opening/closing order
  4. Market-to-Limit Price
  5. Stop Order
24
Q

Order Validity Types

A
  1. Day Order
  2. Good Till Cancelled
  3. Good Till Date
  4. Good Till Week
  5. Sliding Validity
  6. Fill-and-Kill
25
Q

organized marketplace/ facility that brings buyers and sellers together and facilitates the sale and purchase of stocks

A

Stock Exchange

26
Q

who owns shares of stock of a publicly listed company

A

Investors

27
Q

licensed by SEC. An agent between a buyer and seller of stocks in the market.

A

Stockbrokers

28
Q

2 types of stockbroker

A
  1. Traditional
  2. Online
29
Q

Shares of stock are traded. Qualified with the requirement of the PSE

A

Listed Companies (issuers)

30
Q

Security Clearing Corporation of the Philippines. To ensure the orderly settlement of equity traders executed at the PSE

A

Clearing House

31
Q

custodian of listed shares of stocks

A

Depositor (Philippine Depository and Trust Corp)

32
Q

accept deposits of funds for payment

A

Settlement Banks

33
Q

provide the issuer or the listed company with a list of holders of its securities

A

Transfer Agent (Official Keeper)

34
Q

For traditional stockbrokers, settlement of all transactions, either buying or selling is usually done after __________from the transaction date or ___. This means that the buyer must pay for the costs of the transaction to his stockbroker within _____________________ the trade was done. Similarly, the seller will receive the proceeds of the sale from the stockbroker after the ______________________.

A

three (3) trading days, T+3, three (3) trading days after, third day from the transaction date

35
Q

For online stockbrokers, settlement of all transactions is done on the _____________. To buy shares of stock, you will need to fund your account prior to any purchase. In the same manner, the proceeds of your sale will be credited to your account ________________________from the transaction date.

A

transaction date, not later than three (3) working days

36
Q

stock symbol of the listed company

A

NAME

37
Q

Opening price of the stock for the day

A

OPEN

38
Q

Displays the highest buying price

A

BID

39
Q

lowest selling price

A

ASK

40
Q

Highest price traded for the period

A

HIGH

41
Q

Lowest price traded for the period

A
42
Q

Closing price of the trading day

A

CLOSE

43
Q

Last traded price

A

L/T

44
Q

Total number of stocks transacted

A

VOL

Investment and Portfolio Management (10 decks)

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