Stock Investing Procedures

This section explains how to invest in Philippine Stock Exchange. But before going through the steps below, ask yourself the following questions to determine if you are all set: 

• Do you already have the grasp of the basics?
• Do you have a company in mind where you would like to invest into?
• Have you done enough research of that company to ensure your hard earned money will not go to waste?

If you think you are all set, then let's proceed.

Step 1. Choose a stockbroker. A stockbroker is a person or a corporation authorized and licensed by the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) to trade securities. Basically, they will be the one to buy and sell stocks for you. They can also offer you services such as access to market reports/studies, on-time delivery of important documents, and advise on your investments. Click here to see a list of trading participants (brokers) in PSE.

Step 2. You need to open an account on your chosen broker. You will be asked to fill out a Customer Account Information Form and to submit identification papers for verification. The stockbroker will then assign a trader or agent to assist you in either buying or selling any listed security. You can then discuss with this trader about the stocks that you would like to buy (or sell). Most of the stockbrokers nowadays also offer online trading facility that allows you to post orders by yourself. But if you are still new to the game, it is highly recommended to get a broker's services first.

Step 3. Give the order to your trader, and do not forget to ask for the confirmation receipt. Your orders are then relayed to the stockbroker s dealer for execution. Trades that are successfully executed will give you confirmation via phone, email or online and an official confirmation or invoice should be delivered to you.

Step 4. Pay before settlement date. For traditional stockbrokers, the delivery or payment should be made before the settlement date of 3 business days from the Transaction date (T+3). For example, if you bought stocks on Monday, payment should be received by Thursday. For online stockbrokers, settlement of all transactions is done on the transaction date (real time). 

Step 5. The proceeds of your stock sale or proofs of stock ownership (invoice) should be delivered to you after 3 business days. If you wish to have a physical certificate of the stocks you bought, you can give instructions to your broker and pay the required upliftment fee. 

Step 6. You shall receive from your broker either the proceeds of sale of your stocks (after 3 business days) or proofs of ownership of stocks you bought (confirmation receipt and invoice). If you wish to have a physical certificate of the stocks you bought, you can give instructions to your broker and pay the required upliftment fee (Php50 per certificate).