_________ are structures through which funds flow.
Financial markets
They are the institutions and systems that facilitate transactions in all types of financial claims.
Financial markets
A _______ entitles an accreditor to receive payment from a debtor in circumstances specified in a contract between them, oral or written.
financial claim
1)________ have financial claims on banks where they hold their deposits; 2)_______ have financial claims on companies issuing the bonds they hold.
- Depositors
- bondholders
The 1)_______ shares the meeting place for those with excess funds (investors or lenders referred to as surplus/savings units) and those who need funds (borrowers or issuers of securities referred to as deficit units). 2)______ from households and businesses are channeled to those individuals and businesses that need the funds. The need for 3)_______ and 4)______ gave rise to financial markets.
- financial market
- Savings
- deficit units
- surplus units
_______ are at the heart of the financial system determining the volume of credit available, attracting savings, and setting interest rates and security prices (Rose 1994).
Financial markets
A _________ is an organized marketplace or facility that brings buyers and sellers together and facilitates the sale and purchase of stocks.
stock exchange
The only stock exchange operating in the country is The _________.
Philippine Stock Exchange
It makes sure that trading transactions are done in an efficient, orderly, fair, and transparent manner. It enforces rules and regulations that its publicly listed companies and trading participants must strictly abide by.
Philippine Stock Exchange
In this way, the PSE fulfills its function as the “_______” of the Philippine stock market.
guardian
_______, also referred to as stockholders or shareholders, are those who own shares of stock of a publicly listed company.
Investors
They are accorded certain privileges like the right to fair and equal treatment, the right to vote and exercise related rights, and the right to receive dividends and other benefits due to stockholders.
Investors
They are classified as either retail or institutional, and local or foreign.
Investors
A ________ or trading participant is licensed by the Securities and Exchange Commission (SEC) and is entitled to trade at the Exchange.
stockbroker
They act as an agent between a buyer and seller of stocks in the market.
stockbroker
For their services as stockbrokers, they receive from their clients either a buying or a selling ______.
commission
As of 1)_______, the PSE has 2)______ active stockbrokerage houses.
- July 2023
- 125
The representatives (1)________) of these accredited stockbrokers convene daily, at certain specified hours, on the “2)_______” of the exchange, where they sell and buy shares of stocks for the account of their clients. They execute orders in the market to the greatest possible advantage of their customers, by buying at the lowest possible price or by selling at the highest possible price.
- licensed salesmen
- trading floor
There are two (2) types of stockbrokers:
- Traditional
- Online
those who assign a licensed salesman to handle your account and to take your orders via phone call, SMS or messaging apps.
Traditional
those whose main interface is online trading platform where clients execute their orders and access market information online.
Online
A _________ is an individual who engages in the buying and selling of assets in any financial market, either for themself or on behalf of another person or institution.
trader
The main difference between a trader and an investor is the _______ for which the person holds the asset.
duration
1) _______ tend to have a longer-term time horizon, while 2)______ tend to hold assets for much shorter periods to capitalize on short-term trends.
- Investors
- traders
