Trading Process

Question 1

Trading Process

Answer 1

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

Question 2

Company will require you to fill out ________

Answer 2

Customer Account Information Form

Question 3

Requirements in opening Trading Account

Answer 3

2 Valid IDs
Specimen signature cards
Proof of billing

Question 4

2 ways to order stocks

Answer 4

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

Question 5

QTY

Answer 5

Number of shares, divisible by 10

Question 6

Higher the _____, lower the ______

Answer 6

price, board lot

Question 7

Time you wanted to queue the order

Answer 7

Term

Question 8

Bid Price: ______; _________: Sell

Answer 8

Buy, Ask Price

Question 9

2 ways to make your money grow

Answer 9

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

Question 10

Ways to post an order

Answer 10

Over-the-Phone
Online
Face-to-Face

Question 11

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

Answer 11

Market Order

Question 12

With a specified price known as the limit price

Answer 12

Limit Order

Question 13

Accepted only during pre-open and pre-close periods

Answer 13

Market on opening/closing order

Question 14

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

Answer 14

Market-to-Limit Price

Question 15

triggered when a specified price limit is reached

Answer 15

Stop Order

Question 16

2 kinds of stop order

Answer 16

1. Stop Loss Order
2. Stop Limit Order

Question 17

Valid until the end of the trading the day

Answer 17

Day Order

Question 18

Valid until cancelled by the trader

Answer 18

Good Till Cancelled

Question 19

Valid until the date specified

Answer 19

Good Till Date

Question 20

Valid for seven (7) Calendar Days

Answer 20

Good Till Week

Question 21

Valid for 360 Calendar Days

Answer 21

Sliding Validity

Question 22

Execute-and-Eliminate order is valid upon execution

Answer 22

Fill-and-Kill

Question 23

Order Type

Answer 23

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

Question 24

Order Validity Types

Answer 24

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

Question 25

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

Answer 25

Stock Exchange

Question 26

who owns shares of stock of a publicly listed company

Answer 26

Investors

Question 27

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

Answer 27

Stockbrokers

Question 28

2 types of stockbroker

Answer 28

1. Traditional 2. Online

Question 29

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

Answer 29

Listed Companies (issuers)

Question 30

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

Answer 30

Clearing House

Question 31

custodian of listed shares of stocks

Answer 31

Depositor (Philippine Depository and Trust Corp)

Question 32

accept deposits of funds for payment

Answer 32

Settlement Banks

Question 33

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

Answer 33

Transfer Agent (Official Keeper)

Question 34

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 ______________________.

Answer 34

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

Question 35

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.

Answer 35

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

Question 36

stock symbol of the listed company

Answer 36

NAME

Question 37

Opening price of the stock for the day

Answer 37

OPEN

Question 38

Displays the highest buying price

Answer 38

BID

Question 39

lowest selling price

Answer 39

ASK

Question 40

Highest price traded for the period

Answer 40

HIGH

Question 41

Lowest price traded for the period

Question 42

Closing price of the trading day

Answer 42

CLOSE

Question 43

Last traded price

Answer 43

L/T

Question 44

Total number of stocks transacted

Answer 44

VOL