Do you have any idea on how to buy stocks of Philippine companies like Jollibee, San Miguel or PLDT? Perhaps it is also your question you want to ask. Buying stocks involves a process that you need to undergo before you could actually purchase a stock.
In this post, I would like to discuss some important points and information on investing in Philippines stocks. If you are living abroad, and you still want to buy some stocks in the Philippines, you can get the details in this post on how to do it.
I assume you already know what is stock? But for those people who don’t know what it is, here’s a short definition: a stock is the share of ownership of a public company. When you say a public company, it is a company listed in a stock exchange and the public can buy that stocks. This is different from a private one where the ownership of the company belongs only to few people.
Before You Invest in Stocks
In my previous post, I have published an article on the imortant factors that you should consider before putting your money into this kind of investment. You can see the post here.
Buying stocks is not for everyone because it entails discipline and self-education for the investor. Investing in stocks can be very hard for some people but easy for other.
The Things You Must Have
Prior to buying stocks of some Philippine companies, there are things that you must have. Without these stuffs, you cannot buy stocks.
1. Stock Broker Account
First of all, you must have a stock broker account. A stock broker is a company that will buy the stock directly from the stock market. You cannot buy directly as an individual.
If you are looking for the list of stock broker in the Philippines, you can see some of those here. In my opinion, it is better to open an account to online stock broker because it has the facility for online stock trading. In this way, even if you are located outside the Philippines, you could still buy or sell stocks through the Internet.
You can see below some of the posts I have published before to help you in opening a stock broker account in some of the most popular companies in the Philippines.
- How to Open a BPI Trade Stock Account
- How to Open a Citiseconline Stock Trading Account
- How to Open an Online Stock Trading Account at FirstMetroSec
- Philstocks Online Stock Broker Review
2. Enough Money
When opening a stock broker account, you need to put an initial opening deposit into your account so it will become active. Some stock brokers have P5,000 opening deposit while others have P25, 000 initial deposit (regular deposit). However, if you can put more money into your account, it will be better so that you can buy more shares of the stock you want.
If you don’t have a big amount of money, it is still OK. You can do the systematic cost averaging method wherein each month or quarter, you will place a certain amount of money into your account and then you use it to buy stock that you are planning to acquire.
3. Stocks that You Plan to Invest
Before actually buying the stocks you want to acquire, you should research and understand first how the company behind that stock is performing and earning money. For example, if you want to invest in Jollibee stock, understand first its business, how it earns money, what are the businesses under this company, and who manages the company.
You can also learn about this company by going to their website directly. In “Investor Relations” section, you will see all information about the financial statistics and the annual income report which you can use to get better understanding regarding the business of the company.
How to Buy Philippine Stocks
Once you have the necessary stuffs I mentioned above, you are now ready to buy some Philippine stocks that you want to invest. In the video below, you can watch on how can you buy stocks through CitisecOnline. It is very simple to follow, just watch it to give you a clearer idea.
To Sum Up
Buying Philippine stocks could be one of the best investment you can make. But before you can buy socks, you need to open first a stock broker account and fund it with enough money to be able to purchase bigger number of shares. If you want to learn more about investing in stocks, you can see all of the posts I have published before by clicking here.
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