Chapter 10:

Philippine Stock
Exchange
MARKET PLACE FOR BUYING OR SELLING
SHARES OF STOCKS AND/OR BONDS
PSE – is the only operating stock exchange in the Philippines
Main function:
 is to facilitate the buying and selling of stocks and other
securities through its accredited trading participants.
PSE has two trading floors:
 PSE Centre in Ortigas, Pasig City
 PSE Plaza Ayala, Makati City
- where trading participants trade daily – from 9:30 am to
12:10 pm except Saturdays, Sundays, legal holidays and days
when the Central Bank Clearing Office is closed.
Methodology of Acquiring and Selling Shares
and SDT-Bonds Bought or Sold
Stockbroker – is a person or corporation authorized and licensed by the Securities
and Exchange Commission (SEC) and PSE to trade securities.
Investing Procedures:
1. Choose a stockbroker.
2. You shall be required to open an account and fill out a Reference Card and to
submit identification papers for verification. The stockbroker will then assign a
trader or agent to assist you in either buying or selling any listed security.
Discuss with the trader what stocks to buy or sell.
3. Give the order to your broker/trader, and then get the acknowledgement
receipt.
4. For equity transaction: Deliver the Stock Certificate if you are selling or pay
within the settlement date (3 days from date of transaction) if you are buying.
Some brokers may require you to pay with post-dated checks upon ordering.
For SDT-Bonds transaction: Selling investors must open a RoSS account under
his broker’s sub-account and instruct his bank-underwriter to transfer the share
to this account. Buying investors must also open an account with a BTr
accredited bank and pay the appropriate amount of transaction to the
settlement bank on the trade date.
5. You shall receive from your broker either the proceeds of sale of your stocks
(after 3 days for equities and on the date of trade for SDT-Bonds) or proof of
ownership of stocks you bought (confirmation receipts and invoice). If you
wish to have a physical certificate of the equitie you bought, just give instructions
to your broker and pay the required upliftment fee. Buyers of SDT-Bonds will
only be given a confirmation slip in lieu of the bond certificates.
IPO (Initial Public Offering) – the one can purchase shares of stock or through
the open market.

Shares sold through IPOs are offered for the first time to the public by the
company (primary market) whereby proceeds of the sale directly to the
company.

Shares of listed or publicly traded companies are bought during trading (open
market). These shares have since been transferred from one owner to another
(secondary market) and proceeds of the sales do not go directly to the company
but to the owners of the shares.
 Buying
Selling Investor
Investor

Broker Broker

PCD or RoSS
RCBC/EBC
(Depository)
(settle House)
SCCP
(Cleaning House)
PCD or RoSS RCBC/EBC
(Depository) (Settle House)

Broker Broker

Buying
Selling Investor
Investor