Stocks are your chance to own a part of a company or business. Simply put, they’re pieces of a corporate pie. When you buy stocks, or shares, you become an owner of a portion of the company, in effect, you become a stockholder or shareholder of the company. You become entitled to profit from the company’s operations.
Anyone (age 18 years and up) who has excess funds and wants to earn a better return than an ordinary savings account can invest in stocks.
You can invest any amount beginning at Php25,000. You just have to realize that while investing stocks promises higher rewards, there are also corresponding risks.
You will need to fill out a “Customer Account Information Form (CAIF) which is available for download in our website or you can personally visit our office / branches. You will also to need to attach photocopy of 2 Identification papers showing your picture and signature (acceptable IDs: driver’s license, passport, company ID, any government issued IDs); Tax Identification Number (TIN); initial deposit of at least Php25,000.00 or any stock certificate for lodgment. Then deliver personally or send via return mail (if address outside Metro Manila) the completed and signed forms with the required documentation to:
C/O RAQUEL ESCRAMAN
CUSTOMER SERVICE GROUP
ABACUS SECURITIES CORPORATION
Unit 2904 East Tower, PSE Centre
Exchange Road, Ortigas Center
Pasig City 1600
The smallest amount you need will depend on the minimum board lot or number of shares for the stock of your choice and trade in board lots thereafter. (e.g. if price of stock is .002 you can buy a minimum of 1,000,000 shares and in multiples of 1,000,000 thereafter)
The following table will give you the prevailing minimum board lot for publicly traded stocks.
| PRICE | MINIMUM
FLUCTUATION |
BOARD LOT |
| 0.001 to 0.0024 | 0.0002 | 1,000,000 |
| 0.0026 to 0.0050 | 0.0002 | 1,000,000 |
| 0.055 to 0.0100 | 0.005 | 1,000,000 |
| 0.0110 to 0.0250 | 0.001 | 100,000 |
| 0.0260 to 0.0500 | 0.001 | 100,000 |
| 0.0525 to 0.1000 | 0.0025 | 100,000 |
| 0.105 to 0.2500 | 0.005 | 10,000 |
| 0.2600 to 0.5000 | 0.001 | 10,000 |
| 0.5100 to 1.000 | 0.001 | 10,000 |
| 1.020 to 2.500 | 0.0025 | 1,000 |
| 2.550 to 5.000 | 0.005 | 1,000 |
| 5.10 to 10.00 | 0.01 | 1,000 |
| 10.25 to 25.00 | 0.01 | 100 |
| 25.50 to 50.00 | 0.02 | 100 |
| 50.50 to 100.00 | 0.05 | 100 |
| 101.00 to 250.00 | 0.1 | 10 |
| 252.50 to 500.00 | 0.25 | 10 |
| 505.00 and up | 0.5 | 10 |
After your order has been carried out, you will receive a confirmation invoice showing how much you will have to pay for. Three (3) days after the stock purchase, you need to settle the amount due reflected in the confirmation by either depositing it through our depository banks or requesting for check pick-up. All check payments should be payable to “Abacus Securities Corporation” FAO (name of account holder or account code). Please fax the copy of your deposit slip to Abacus Securities Corporation – Accounting Department at (632) 6342105.
Our bank account details are as follows:
BDO Ortigas Tektite branch – S/A 343000031-3
Metro Bank Xavier Greenhills branch- C/A 344-3-34450870-5
Unionbank Tektite branch – C/A 002060005742
RCBC Garnet branch – C/A 0284-00135-4
Check payments will be issued under your account name and will be delivered to your mailing address indicated in your account information three (3) days after the stock sale. You can also request for the check payment to be deposited to your designated bank account.
TRANSACTION COST
| Buying | Selling | |
| Commission | Gross Amount x Commision Rate (range: 0.5% – 1.5%) | Gross amount x Commission Rate (range: 0.5% – 1.5%) |
| VAT | Commission x 12% | Commission x 12% |
| Sales Tax | Gross Amount x 0.5% | |
| SCCP | Gross Amount x 0.0001 | Gross Amount x 0.0001 |
Example :
Bought MEG 50,000 shares at Php2.00
| Gross Amount | No. of Shares x Price | Php100,000.00 |
| Commission (at 0.50%) | Gross Amount x 0.50% | 500.00 |
| VAT | Commission x 12% | 60.00 |
| SCCP | Gross Amount x 0.0001 | 10.00 |
| Net Amount | Gross Amount + Commission + VAT + SCCP | Php100,570.00 |
Sold MEG 50,000 shares at Php2.20
| Gross Amount | No. of Shares x Price | Php110,000.00 |
| Commission (at 0.50%) | Gross Amount x 0.50% | 550.00 |
| VAT | Commission x 12% | 66.00 |
| Sales Tax | Gross Amount x 0.50% | 550.00 |
| SCCP | Gross Amount x 0.0001 | 11.00 |
| Net Amount | Gross Amount – Commission – VAT – Sales Tax – SCCP | Php108,823.00 |
Before you can sell your stock certificates, you must surrender your duly endorsed stock certificates to Abacus for clearing with the Philippine Central Depository. Please note that it will take three to four working days before the certificates are cleared. Additional requirements you need to submit are as follows: photocopy of acceptable IDs, duly signed signature cards and Lodgement fee of Php100.00 per stock plus Php20.00 per certificate.
Abacus account holders may request for issuance of stock certificate for their shares by completely filling up the Upliftment Form available for download from our web site. You can then send the duly accomplished form together with a photocopy of acceptable ID, signed signature cards and upliftment fee of Php165.00 per stock to our office address. Please note that it would take a month or two for the corresponding stock transfer office to generate new stock certificate/s.
Written transfer of shares instruction letter should be submitted to Abacus and a copy to the receiving broker. Please note that a Transfer fee of Php75.00 per stock will be charged by both the issuing and receiving broker. Transfer will be done electronically two to three days upon receipt of the instruction letter.
If you wish to sell your shares of stocks, set a desired profit and sell when the price reaches your target. The strategy is to buy “low” and sell “high”. You may also hold on to your shares indefinitely and earn through dividends, which can be in form of cash, or stocks.
Generally, there are two methods used by investment professionals to analyze available market information: Fundamental Analysis and Technical Analysis.
Fundamental analysis is the study of a company’s present status, financial conditions, management, and competitive position in the industry.
Technical analysis is the evaluation of the past performance or the study of a stock’s cycles based on charts of past stock prices. These charts become the basis of sound stock market predictions, eliminating guesswork, and identifying the best time to buy or sell particular stocks.
Apart from investing based on good research, diversification can be a way to reduce the risks in investing in the stock market. Having a diversified portfolio means distributing your investments among more than one industry sector.
For change of details in the account information, you may either call our Customer Service Group at (632)6345104 or email your request to customerservice@abacus-sec.com .
Statements of account are issued monthly, which contains a summary of your account activity. Stock market information are available though our website, newspapers and televisions. This will allow you to monitor price movements of your stocks. You may also email your requests and queries to our Customer Service Group at customerservice@abacus-sec.com or call our office between 8:30AM to 5:30 at (632) 6345104 locals 2044, 2003, and 2071.
First, learn all you can about stocks. Then call the experts – us! You must consider a reputable brokerage house with the expertise, experience and service such as Abacus Securities Corporation.
You can then deal with any of our Sales persons who will answer all the questions you may have.