Stocks and Bonds
Stocks and Bonds
AND
BONDS
STOCKS
It is a type of security that signifies
ownership in a corporation and
represents a claim on part of the
corporation’s assets and earnings.
STOCKS
It is a share in
the ownership of
a company.
STOCKS
Symbo
Company Name Price
l
PIZZA Shakey's Pizza Asia Ventures, Inc. 12
STOCKS
249.8
JFC Jollibee Foods Corporation
PCOR Petron Corporation 8.65
PIP Pepsi-Cola Products Philippines, Inc. 1.81
PMPC Panasonic Manufacturing Phils. Corp. 6.34
146.7
SECB Security Bank Corporation
SMC San Miguel Corporation 170
STI STI Education Systems Holdings, Inc. 0.91
STOCKS
The investor who buys stocks is
called the stockholder or
shareholder.
STOCKS
The more shares you own, the larger
the portion of the profits you get.
STOCKS
STOCKBROKER
They function as a middleman
between the two (2) transacting
parties buying and selling stocks.
Total Cost =
Cost of Shares + Broker’s Fee
Walmart Company
purchased 20,000 shares
of Costco Corporation at
₱4.85 during the opening
solution of the trading day. If the
brokerage fee is 8.5%,
find the cost of buying the
stocks.
Gain/Loss =
Net Proceeds – Total Cost
Walmart Company sold all
the Costco Corporation’s
20,000 shares when the
price is at its high level at
solution ₱5.95 per share and paid a
brokerage fee of 4.5%.
What was the net proceeds
from selling the stocks?
Net Proceeds = P113,645
Gain = P8,400
BONDS
It is a written contract stating a debt
in which the debtor promises to pay
its holder a specified amount of
money, plus a certain rate of
interest at a stated future date.
BONDS
The investor is the bondholder. It
covers a long term to pay the debt.
A company that needs money can
borrow from investors by selling
bonds.
Maturity Duration Face or Par Value
Interest Rate
BONDS
JFC purchased a bond of par
value of P100,000. How
much is its annual interest if
the rate is 7%?
exampl I = Prt
e Where: P = par value,
r = interest rate
t = 1, for annual interest
I = P7000
How much will JFC receive
exampl semi-annually?
I = P7,000
e I = P7,000 2
I = P3,500
BOND MARKET
MARKET VALUE
It is the amount that the investor
actually pays for the bond.
PRICE QUOTATION
It represents the percent of par value.
e
MV = Par Value x PQ
MV = 300,000 x 0.932
MV = P279,600
1. Posh Company purchased 10,000 shares of John
Calvin Corporation at P7.85 during the opening of
the trading day. If the brokerage fee is 8.5%, solve
ASSIGNMENT