Alpha
A marketplace where buyers and sellers trade financial securities, commodities, and other assets
Financial Market
A part of the financial market where short-term borrowing and lending occur, typically involving instruments with maturities of one year or less
Money Market
The market where previously issued securities are bought and sold among investors
Secondary Market
A type of equity that generally provides fixed dividends
Preferred Stock
Issued by companies (corporations) to raise capital for various purposes, such as funding operations, paying off existing debt, expanding businesses, or investing in new projects
Debt Securities
Refers to a period when the overall market or a specific asset is experiencing sustained growth and rising prices
Bullish Market
These are markets for long-term securities, where funds are raised for periods exceeding one year. They involve the buying and selling of long-term debt and equity instruments.
Capital Market
Gives the holder the right to sell an underlying asset at a set price (strike price) within a specific period
Put Options
Offered by banks or financial institutions in which the investor deposits a certain amount of money for a fixed term and earns interest over that term
Certificate of Deposits
A short-term debt obligations issued by the Philippine government through the Bureau of the Treasury.
Treasury Bills
A type of security that gives the holder the right (but not the obligation) to buy a specific number of shares of a company's stock at a predetermined price (called the exercise price or strike price) before a certain expiration date
Warrants
A type of investment fund that holds a collection of assets, like stocks, bonds, or commodities, and is traded on stock exchanges, similar to how individual stocks are bought and sold.
Exchange Traded Fund
Types of Option
Call & Put Options
Types of Derivatives
Future Contract
Options
Swap
Warrants
Types of Mutual Funds
Equity Funds
Bond Funds
Balanced Funds
A financial metric that shows the proportion of a company’s earnings that is paid out to shareholders in the form of dividends
Dividend Payout Ratio
Interest Rate Swap
Currency Swap
Commodity Swap
Equity Swap
TYPES OF SECURITIZED INSTRUMENT
Mortgaged-Backed Securities
Asset-Backed Securities
Collateralized Debt Obligations
Provide: DIVIDEND PAYOUT RATIO
DPR = (Dividend per share/ Earnings per share) x 100
A short-term borrowing arrangement in which one party (usually a bank or financial institution) sells securities to another party with the agreement to repurchase them at a later date, typically within a few days, at a slightly higher price
Repos
5 Features of Preferred Stocks
•Dividend Priority
•Fixed Dividends
•Limited Voting Rights
•Liquidation Priority
•No Significant Capital Appreciation
Future Stock Price Formula
FSP = Current Stock Price X (1 + r) n
TYPES OF CAPITAL MARKET INSTRUMENT
Equity Instrument (Stock)
Debt Instrument (Bonds)
Derivatives
Secured Instrument
Investment Funds
Dividend per Share (DPS): $6
Stock Price: $65
Expected Annual Growth Rate of the Stock: 8%
Earnings per Share (EPS): $12
Future Value in 8 years
Total Investment: $215,000
DY - 9.23%
ERR - 17.23%
FSP - $120.31
TVI - 397,948.46
DPR - 50%
Dividend per Share (DPS): $7
Stock Price: $110
Expected Annual Growth Rate of the Stock: 8%
Earnings per Share (EPS): $15
Future Value in 5 years
Total Investment: 2,500,000
Compute for DY, ERR, FSP, TVI & DPR
DY - 6.36%
ERR - 14.36%
FSP - $161.62
TVI - 3,673,181.82
DPR - 46.67%