Investment Learning

It is the benchmark index measuring the performance of the Philippine Stock Market.

• PSEi

• EPHE

• TEL

• MSCI Philippines

I Love

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.

• Dividend

• Rights

• Warrants

• Options

The standardized number of shares one can purchase or sell a stock at a specific price range.

• Board lot

• Odd lot

• Volume

• DMI

An agent or a firm that acts as an agent that charges a fee or commission for executing buy and sell orders submitted by an investor.

• Stock Broker

• Bank

• Mutual Fund Firm

• Stock Exchange

Which type of private equity strategy is most likely used to finance a start-up company?

• Growth equity

• Buyout

• Venture capital

A process whereby a privately held corporation offers for sale its shares of stock for the first time to the public in order to raise capital to fund investments and business expansion.

• IPO

• PP

• List By Way of Introduction

• Backdoor Listing

The act of putting your current funds into securities or tangible assets for the purpose of gaining future appreciation, income, or both.

• Trading

• Investing

• Speculating

• Scalping

It generally does not have voting rights, but has a higher claim on assets and earnings than the common stocks.

• Preferred Stock

• Warrants

• Bond

• Rights

The act of placing buy/sell orders for financial securities and/or currencies with the use of a brokerage's internet-based proprietary trading platforms. 

• Online Trading

• Forex Trading

• Online Banking

• E-trading

A written proof that you have invested in the corporation.

• Stock certificate

• Bond certificate

• Investment certificate

• Corporate coupon

The first price the stock traded for the trading day.

• Opening Price

• Board lot

• Previous Price

• Market value

If Mexico is running a large current account deficit with Canada, which of the following will most likely occur?

• Canada will reduce its imports from Mexico

• The Mexican peso will depreciate relative to the Canadian dollar

• There will be an increase in Canadian exports to Mexico

A graphical representation of stock prices over a specific time period.

• Stock Chart

• Stock Diagram

• Stock Map

• Stock Board

Those who assign a licensed salesman to handle your account and take your orders via written instruction or through a phone call.

• Traditional brokers

• Online brokers

• Professional Traders

• Mutual Fund Firms

A situation in which a business, individual or government offers money to a failing business in order to prevent the consequences that arise from a business's downfall.

• Bailout

• Market Crash

• Financial Crisis

• Default

A place where stocks are bought and sold.

• Stock Market

• Stock Broker

• Mutual Fund Company

• Bank

It includes companies engaged in banking, investments, and finance.

• Financials Sector

• Industrial Sector

• Holding Firms Sector

• Services Sector

Shares of well-established and financially sound companies that have demonstrated their ability to pay dividends in both good and bad times.

• Blue Chip stocks

• Speculative stocks

• Growth stocks

• Value stocks

This Market Stage shows downtrend, breakdown, bearish.

• The Basing Area

• Advancing Phase

• Top Area

• The Declining Phase

Buying and selling securities or commodities on a short-term basis, hoping to make quick profits.

• Trading

• Investing

• Speculating

• Scalping

Market Stage 1

• The Basing Area

• Advancing Phase

• Top Area

• The Declining Phase

A market condition in which the prices of securities are rising or are expected to rise. It is characterized by optimism, investor confidence and expectations that strong results will continue.

• Bull Market

• Bear Market

• Green Market

• Emerging Market

The PSEi is composed of how many companies?

• 30

• 25

• 20

• 15

It is similar to a bar chart, but it differs in the way that it is visually constructed. It has also has a thin vertical line showing the period's trading range. The difference comes in the formation of a wide bar on the vertical line, which illustrates the difference between the open and close.

• Line Chart

• Bar Chart

• Candlestick Chart

• STS Chart

A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows.

• Bull Market

• Bear Market

• Red Market

• Emerging Market

A debt that is not collectible and therefore worthless to the creditor.

• Bad Debt

• Free Debt

• Forgotten Debt

• Non-collectible Debt

Stock Chart is simply called

• Chart

• Diagram

• Map

• Indicator

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

• Dividend Yield

• P/E Ratio

• P/B Ratio

• P/S Ratio

They buy assets they believe can increase in value.

• Investors

• Traders

• Speculators

• Scalpers

A form of pension plan in which the participant has some ability to determine how pension contributions are invested is described as a(n):

• Defined contribution plan

• Endowment plan

• Defined benefit plan

The market indexes attempt to go up or down but end up just about where they started.

• Sideways Market

• Less Bullish Market

• Less Bearish Market

• Fair Market

When a stock's RSI readings greater than the 70 level, it is considered

• Overbought

• Oversold

• Undervalued

• Overvalued

A trading indicator used in technical analysis of stock prices, created by Gerald Appel in the late 1970s.

• MACD

• RSI

• DMI

• STS

When the price of a stock moves above the top of its resistance zone.

• Range Trade

• Breakdown

• Breakout

• Pullback

After a stock breaks out of its trading range and advances, there is at least one profit-taking correction that brings the price of the stock back close to the initial break point. This is an ideal to do further buying especially if it occurs on decreased volume.

• Breakdown

• Sell-off

• Range Trade

• Pullback

The analyst that tries to determine a company's value by looking at the balance sheet, cash flow statement and income statement.

• Fundamental analyst

• Technical Analyst

• Accountant

• Financial Analyst

Those whose main interface with their customer is through the Internet.

• Traditional brokers

• Online brokers

• Online Professional Traders

• Online Mutual Fund Firms

A consumer pays off a car loan held by a bank with which he has no other business. Which of the following is the most appropriate document management practice for the bank to follow?

• Return all documents to the consumer

• Shred all documents related to the transaction

• Determine which documents to retain and which to dispose of

When you buy a stock, you get one vote for each share of stock you own. The more shares you own, therefore, the more of the corporation you __________.

• Control

• Hold

• Invest

• Trade

Which of the following is not a Services Index Company?

• ORE

• TEL

• MCP

• TUGS

Market Stage 2

• The Basing Area

• Advancing Phase

• Top Area

• The Declining Phase

The price at which buyers and sellers are willing to purchase or sell the stock based on information or perceived value.

• Opening Price

• Board lot

• Cross Value

• Market value

The type of bank that is exclusively owned by its members is a:

• Savings and loan bank

• Commercial bank

• Mutual bank

It looks at the price movement of a security and uses this data to predict its future price movements.

• Fundamental analysis

• Technical analysis

• Basura Analysis

• Hula Analysis

The best financial statement to use to find information about what a company owns and owes others is called the:

• Income statement

• Balance sheet

• Cash flow statement

It includes companies involved in the following: Electricity, Energy, Power, and Water, Food, Beverage, Tobacco, Construction, Infrastructure, Allied Services, Chemicals.

• Financials Sector

• Industrial Sector

• Holding Firms Sector

• Services Sector

A valuation ratio of a company's current share price compared to its per-share earnings.

• Dividend Yield

• P/E Ratio

• P/B Ratio

• P/S Ratio