- Why invest in stocks? How do I make my money grow in the stock market?
Historical data has shown that investing in stocks over the long-term provides superior returns. Stocks offer potentially higher yields compared with fixed income instruments such as time deposits, government securities, and bonds. There are three (3) rationales for stock investing:
a. Ownership in a company
b. Liquidity of funds
c. Making money
- Is there any risk involved in investing?
While it is true that a stock investment is the most volatile of all securities, investors might well remember that uncertainty is a permanent feature of the investing perspective. This means that risk is always a part of any investment. A better attitude would be to limit and manage your risk. A maximum level of gain or loss should be set, and calculated decisions should be made when this level is reached.
- Do I need to have physical evidence of my stock ownership?
The PSE through its central depository, the Philippine Depository Trust Corp. (PDTC) uses the computerized book-entry system (BES) to transfer ownership of securities from one account to another, thus eliminating the need for physical exchange of scrip between buyer and seller. This system is called scripless trading. However, you may still request for an upliftment of your shareholdings to get a physical certificate.