Stocks and Corporations - Vocabulary Flashcards

Vocabulary flashcards covering key terms related to stocks, shares, corporations, trading, and common investor steps based on the lecture notes.

Stock (equity)

A security representing ownership in a corporation; entitles the holder to a proportional share of assets and profits.

Share

A unit of stock; represents a portion of ownership in a corporation.

Shareholder (Stockholder)

The owner of shares; the holder of stock.

Philippine Stock Exchange (PSE)

The official stock market of the Philippines where listed shares are traded.

Stock trading platform

Online system connected to a stock exchange used to buy and sell shares.

Ordinary/Common Stock

Stock that gives voting rights and potential dividends; represents basic ownership.

Dividend

A portion of a company’s earnings paid to shareholders, in cash or additional shares.

Preferred Stock

Stock with higher claim on assets and dividends; typically without voting rights.

Corporation

A legal entity separate from its owners; can contract, borrow, sue, own assets; has limited liability.

Limited liability

Owners are not personally liable for the debts of the corporation beyond their investment.

SEC (Securities and Exchange Commission) Philippines

Regulator overseeing corporations and securities in the Philippines.

Publicly Traded/Listed Corporation

A corporation whose shares are freely traded on a stock exchange or OTC.

Privately Held Corporation

A corporation whose shares are not offered publicly; ownership traded privately.

Non-stock Corporation

A corporation without owners represented by shares; has members.

Capital Gains / Price Appreciation

Profit from selling a stock at a higher price than it was bought.

Dividends (Profit Sharing)

Payments of profits to shareholders; can be cash or extra shares.

Trading hours (PSE)

PSE operates Monday–Friday, 9:30 AM–3:00 PM (local time).

Stockbroker

Licensed intermediary who executes buy/sell orders on behalf of clients.

Traditional broker

Broker that handles orders via phone/email; slower, less tech-driven.

Online broker

Broker that enables trading via website or app (e.g., COL Financial, BDO Securities, First Metro Sec, GCash, Maya).

Over-the-Counter (OTC)

Trading of shares outside formal stock exchanges.

Open an account with a stockbroker

Step to start investing; must open with a PSE-accredited broker.

Fund your account

Deposit money into your brokerage account to buy stocks.

Choose stocks to buy

Select from companies listed on the PSE (e.g., Jollibee Foods Corp - JFC, Ayala Corp - AC, SM Investments - SM).

Place an order

Submit an order to buy or sell a certain number of shares at a price.

Hold / Wait / Sell

Strategy: hold to receive dividends or wait for price increase; selling yields profit.

Jollibee Foods Corporation (JFC)

Listed Philippine company used as an example of a stock to buy.

Ayala Corporation (AC)

Listed Philippine company used as an example of a stock to buy.

SM Investments (SM)

Listed Philippine company used as an example of a stock to buy.