In my previous blog I give you an answered on some questions about the Stock Market like; What is stock market? Who are the participants of the stock market? and How it works? kung hinde mo pa nababasa yun part 1 click here. Today let's consider this as part 2 of the Question & Answer About Stock Market and I know you still have some question in mind about the Stock Market. Like, how much money do I need to Invest, how I will earn in the Stock Market, when is the right time to Invest and etc.
How I will earn in the Stock Market? There are two ways on how you will earn in the Stock Market. 1.) Through Capital Appreciation or an increase in the stock price. Halimbawa bumili ka ng stocks ng company A ngaun sa halagang Php80.00 per stocks after that the price goes up to Php100.00 so the difference is Php20.00 yun ang kinita mo per stocks at kung meron kang 10 shares dun sa company A ang total mo na kinita ay Php200.00. 2.) Through Dividends declared by the company, sa madaling salita kapag nagdeclare yun kompanya ng kita lahat ng mga shareholder or stockholder ng kompanya ay magkakaroon din ng karagdagang kita. They gave it to the investor either cash dividend or stock dividend. Halimbawa kung yun company A nag-declare ng dividend na Php1.00 per share at meron kang 1000 shares you will get Php1,000.00 kung stocks dividend naman at nagdeclare si company A ng 25 % dividend at my 1000 shares ka magkakaroon ka ng karagdagang 250 shares.
You say declared what if the company did not declare a Dividend? The company owners are also a stockholder of their own company, so by declaring a dividend they are also paying themselves.
Meaning of dividend from Investopedia:
Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar (money) amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.
How much money should I Invest in the Stock Market? The money you will invest in the stock market is depend on you. You are the master of your own future, just remember that you are investing for a long term. So, the amount of money you will invest is the money you did not need it after 1 month or 1 year. Be consistent with it, if you are already starting a saving divide it and set a certain amount from it to Invest in the stock market. Pwedi ka naman mag-umpisa nang kahit every month Php2,000.00 or more and then every two months buy a stocks. Remember that "it is better you start it slowly rather than not starting it at all". At isang paalala lang bago ko makalimutan, don't put all your saving in the Stock Market because if suddenly happen and all of your savings is in the stock market you will be forced to withdraw it even the value of your Investment is low.
When is the Right Time to Invest in the Stock Market? There is no right time because every time is a right time. Investing in the stock market "time is your greatest ally" the earlier you invest the more time your money grows. See this sample illustration below showing investing of Php5,000.00 monthly. You will see that the earlier you invest the higher your money Grow. So start your investing as early as you can.
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| Source of Image: PSE Building Wealth with Stock Market |
Historically, stocks have offered average returns of 10% to 12% a year if maintained for the long term regardless of economic conditions and market environments.
What are the Cost involve in Buying & Selling Stocks? See the image below for the basic amount of cost in buying & selling stocks.
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| Source of Image: PSE Building Wealth with Stock Market |
Maliit lang ang cost per transaction, see sample below of my transaction as I bought stocks of EEI Corporation the cost is Php9.95 per stocks I bought 100 shares.
Php9.95 x 100 = Php995.00 gross amount or total price of stocks
Add: Stockbrokers fee which is Php20.00, plus vat Php2.40 & other charges equivalent to Php0.15. The total charge of Php22.55, so the Net Amount I paid for this transaction is Php995.00 + Php22.55 = Php1, 017.55 (See sample image below).
Hanggang dito na lang muna, hope you find the answer for some of your question here and see you in my next post. Thanks for reading & God Bless to you....
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Read Also:
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Let's talk About SAM in the Truly Rich Club
How to Open & Fund a COL Financial Account While Abroad
How to buy stocks through COL Financial Online Platform
P.S. Do you want to gain Financial wealth & Spiritual abundance at the same time?
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