Cheska Marie G.

Burnea MA21

* History of Philippine Stock Exchange (PSE)

The Philippine Stock Exchange first appeared in 1993, but its history runs much longer. The exchange
was a merger of the Manila Stock Exchange and the Makati Stock Exchange, which created a single
exchange in the Phllippines. The merger also served as a symbol to a country that had seen its share
of political divisions that the nation could act in a singular direction.

The Manila Stock Exchange was founded Aug. 8, 1927, by five U.S. businessmen. It was in the Insular
Life Building on Plaza Cervantes, Binondo. Founders W.P.G. Elliot, W. Eric Little, Gordon W. Mackay,
John J. Russell and Frank W. Wakefield said that they wanted a stock exchange that would serve the
public, practice ethical standards and uphold good business practices. They also claimed that trading
in stocks would stimulate the Philippine's economy. The Manila Stock Exchange moved to Pasig in
1992.

The younger Makati Stock Exchange was founded May 27, 1963. It, too, had five founding members:
Miguel Campos, Bernard Gaberman, Aristeo Lat, Eduardo Ortigas and Hermenegildo B. Reyes.
Because the Philippines already had an operating stock exchange, there was opposition to a second
one. The exchange, which was in the Insular Life Building in Makati, did not begin operating until
Nov. 16, 1965. In 1971, it moved to its own building on Ayala Avenue in Makati.

Though the Philippines had two stock exchanges, they both traded the same stocks. They were
duplicating efforts, but they had different policies, different members and different stock prices. It
soon became evident that the country needed only a single stock exchange.

Philippine President Fidel Ramos led the effort to unite the two exchanges as one. The Philippine
Stock Exchange was founded July 14, 1992, and by Dec. 23, both the Makati and the Manila
exchanges agreed to become part of it.

The first board of governors for the Philippine Stock Exchange was elected March 20, 1993. They
were the president of the exchange and 14 member brokers. Eduardo de los Angelos was the first
president of the Philippine Stock Exchange and Eduardo C. Lim was the first chairman of the board.
Just short of a year later, the Securities and Exchange Commission granted the stock exchange its
license to operate as a securities exchange. The licenses for the Manila and Makati exchanges were
canceled at the same time. The Philippine Stock Exchange is at the Philippine Stock Exchange Centre,
Ortigas Centre, Pasig City and at the PSE Plaza, Ayala Avenue, Makati City. The Philippine Stock
Exchange has made improvements in its goal to become a premiere exchange. It became a member
of the Association of National Numbering Agencies in 1995. In 1998, the Securities and Exchange
Commission made the Philippine Stock Exchange a self-regulatory organization, which allows it to
create its own rules and impose penalties on members.

* Terms commonly used in Stock Investments

1. Annual Report

An annual report is a report prepared by a company that’s intended to impress shareholders. It

contains tons of information about the company, from its cash flow to its management strategy.
When you read an annual report, you’re judging the company’s solvency and financial situation.

2. Arbitrage
Arbitrage refers to buying and selling the same security on different markets and at different price
points. For instance, if stock XYZ is trading at $10 on one market and $10.50 on another, the trader
could buy X shares for $10 and sell them for $10.50 on the other market, pocketing the difference.

3. Averaging Down

When an investor buys more of a stock as the price goes down. This makes it so your average
purchase price decreases.

4. Bear Market

Gold cast statuette depicting a stylized bull and a bear in dramatic contrasting light representing a
financial market trends.

Trading talk for the stock market being in a downward trend, or a period of falling stock prices. This
is the opposite of a bull market. If a stock price plummets, it’s very bearish.

5. Beta

A measurement of the relationship between the price of a stock and the movement of the whole
market. If stock XYZ has a beta of 1.5, that means that for every 1 point move in the market, stock
XYZ moves 1.5 points, and vice versa.

6. Blue Chip Stocks

The stocks behind large, industry-leading companies. They offer a stable record of significant
dividend payments and have a reputation of sound fiscal management. The expression is thought to
have been derived from blue gambling chips, which is the highest denomination of chips used in
casinos.

7. Bourse

This stock market term is a little murky. Technically, it’s just another name for the stock market and
originates from a house in which wealthy men gathered to trade shares. However, when you hear it
in today’s conversations about the stock market, it usually either refers to the Paris stock exchange
or to a non-U.S. stock exchange.

8. Bull Market

When the stock market as a whole is in a prolonged period of increasing stock prices. It’s the
opposite of a bear market. A single stock can be bullish or bearish too, as can a sector, which I’ll
describe later on.

9. Broker

A person who buys or sells an investment for you in exchange for a fee (a commission).

10. Bid

The bid is the amount of money a trader is willing to pay per share for a given stock. It’s balanced
against the ask price, which is what a seller wants per share of that same stock, and the spread is the
difference between those two prices.

* Companies under Philippine Stock Exchange with Ticker Symbol

* Ayala Corp. (AC)

* Aboitiz Equity Ventures, Inc. (AEV)

* Alliance Global Group, Inc. (AGI)

* Ayala Land, Inc. (ALI)

* Aboitiz Power Corp. (AP)

* BDO Unibank, Inc. (BDO)

* Bloomberry Resorts Corp. (BLOOM)

* Bank of the Philippine Islands (BPI)

* DMCI Holdings, Inc. (DMC)

* First Gen Corp. (FGEN)

* Globe Telecom, Inc. (GLO)

* GT Capital Holdings, Inc. (GTCAP)

* International container Terminal Services, Inc. (ICT)

* Jollibee Foods Corp. (JFC)

* JG Summit Holdings, Inc. (JGS)

* LT Group, Inc. (LTG)

* Metropolitan Bank & Trust Company (MBT)

* Megaworld Corp. (MEG)

* Manila Electric Company (MER)

* Metro Pacific Investments Corp. (MPI)

* Puregold Price Club Inc. (PGOLD)

* Robinsons Land Corp. (RLC)

* Robinsons Retail Holdings, Inc. (RRHI)

* Semirara Mining and Power Corp. (SCC)

* Security Bank Corp. (SECB)

* SM Investments Corp. (SM)

* San Miguel Corp. (SMC)

* SM Prime Holdings, Inc. (SMPH)

* PLDT (TEL)

* Universal Robina Corp. (URC)