1.

Common stocks, preferred stocks, warrants, Philippine Deposit Receipts (PDRs) and SmallDenominated Treasury Bonds (SDT-Bonds) are the securities traded in the PSE.
2. Participants and their roles or function:
STOCK EXCHANGE
A stock exchange is an organized marketplace or facility that brings buyers and sellers together
and facilitates the sale and purchase of stocks. 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.
INVESTORS
Investors, also referred to as stockholders or shareholders, are those who own shares of stock of a
publicly listed company. They are classified as either retail or institutional, and local or foreign.
STOCKBROKERS
A stockbroker or trading participant is licensed by the Securities and Exchange Commission
(SEC) and is entitled to trade at the Exchange. They act as an agent between a buyer and seller of
stocks in the market.
LISTED COMPANIES
Listed companies, also called issuers, are those whose shares of stock are traded on the
Exchange.
CLEARING HOUSE
It was established to ensure the orderly settlement of equity trades executed at the PSE.
It is responsible for establishing the cash and securities liabilities and entitlements of its clearing
members, synchronizing the settlement of funds and the transfer of securities; guaranteeing the
settlement of trades in the event of a trading participants trade default; implementing
appropriate risk management measures in order to mitigate risks inherent in the clearing and
settlement of Exchange trades and the maintenance and administration of the Clearing and Trade
Guarantee Fund (CTGF).
DEPOSITORY
It acts as securities depository or custodian of listed shares of stock that are traded at the
PSE. It was organized to establish a central depository in the Philippines and to implement
scripless
trading.

SETTLEMENT BANKS
It is where trading participants make and receive payments for stock transactions. The settlement
banks accept deposits of funds for payment of securities bought, confirm payments of due
clearing obligations to SCCP, debit buyers cash account and credit sellers cash account during
settlement, and receive and/or return cash collateral put up by clearing members to cover their
daily trade negative exposures.
TRANSFER AGENTS
The stock transfer agent is considered the official keeper of the corporate shareholder records.
The stock transfer agents provide the issuer or the listed company with a list of holders of its
securities. They effect transfer of beneficial ownership and process corporate actions like stock
or cash dividends, stock rights, stock splits, and collation of proxy forms.
3. Mechanics of trading:
An investor has to open an account and present valid identification with a broker before he can
actively trade stocks on the Exchange. An investor would need at least the minimum amount of
investment to open a trading account which is Php 5,000.00.
Getting started in the stock market is a simple process.
1. Choose your stockbroker or trading participant.
2. Open a trading account with your stockbroker of choice.
3. Place your buy or sell order either online or through a phone call to your stockbroker.
4. Monitor and keep track of your investments.
4. A stock market index is a method of measuring the value of a section of the stock market. It is
computed from the prices of selected stocks and sometimes a weighted average. Its use is to
describe the market, and to compare the return on specific investments. Its computation is
illustrated on the next page.

The PSE has two trading floors PSE Centre in Ortigas, Pasig City and PSE Plaza in Ayala,
Makati City where trading participants trade daily from 9:30 a.m. to 12:10 p.m. except
Saturdays, Sundays, legal holidays and days when the Central Bank Clearing Office is closed.
First Gen Corp. is one of the companies who trades stock in PSE. It is a holding company
for the power generation and energy related businesses of the Lopez Group. The Company's
primary focus is on power generation. Its sector and industry are utilities while its sub-industry is
power generation. The following photo illustrates First Gen Corp.s stock performance and
shows the volume of its stock price.