Cm Flashcards
(20 cards)
Year that the Manila Stock Exchange was established .
August 8 , 1927
Commonwealth Act No. 83 or the Securities Act of 1936 was enacted on October 26. It
created the Securities and Exchange Commission (SEC)
1936
the MSE suspended operations during the Japanese Occupation.
1940
The SEC was also abolished
by the Philippine Executive Commission and later reactivated in
1945
When MSE resumed trading operations
1946
What year did the Makati Stock Exchange, Inc. (MkSE) was organized by Hermenegildo B. Reyes,
Bernard Gaberman, Eduardo Ortigas, Aristeo Lat and Miguel Campos
May 27 1963
MkSE started operation
November 16
are structures through which funds flow. They are the institutions and systems that facilitate transactions in all types of financial claims.
Financial markets
the heart of the financial system determining the volume of credit available, attracting savings, and setting interest rates and security prices
Financial markets
the one who lends the money, the owner of the fund.
Creditor / the surplus unit
the one who is borrowing, the one who needs the fund.
Debtor/ the deficit unit
are markets in which users of funds raise funds, through new issues of financial instruments such as stocks and bonds.
Primary Market
Primary markets consist of
issuers and underwriters
The underwriter or the financial intermediary
acts as the _____ or ____ that will satisfy the needs of the deficit units and the surplus units.
Middleman or bridge
guarantees the sale of the issues, but does not intend to hold the shares or bonds
in his own account.
Underwritter
Investment banks provide the following services
- Provide funds in advance (giving cash to the issuer based on the agreed price of the
security, usually a certain percentage of the total agreed price) - Give advice to issuing corporations as to the price and number of securities to issue
- Attract the initial public purchasers of the securities
- Act as a market analyst and advisor to the issuing company
- Absorb the risk and cost of creating a market (market-maker) for the securities
are markets for currently
outstanding securities, referred to as
secondary securities.
Secondary Market
cover markets for short-term debt instruments, usually issued by companies with high credit standing.
Money market
an unconditional direct obligation/debt issued by the government
Government security
