The Philippine Capital Market
FINANCIAL MANAGEMENT
The PHILIPPINE CAPITAL MARKET
CAPITAL MARKET-is any domestic or international market in which governments,banks,multilateral organizations and companies can borrow or invest large amounts of money for medium to longterm periods.
Capital market is different from the money market primarily because most money market instruments have maturities not exceeding 12months.
The types of instruments issued in the local capital market are debt and equity,hybrid.
PRIMARY AND SECONDARY CAPITAL MARKETS
In the PRIMARY MARKET new shares are issued and sold to the investing public for the first time through an INTIAL PUBLIC OFFERING(IPO) proceeds of the sale is go directly to the issuer,which is the company.There is occasionally a secondary offering in the primary market.
In the SECONDARY MARKET investors can buy and sell shares of stock which have been issued to the public in the primary market. It is the venue where an investor can buy additional shares of stock or sell his initial shares of the stocks. The proceeds of the sales do not go directly to the company but to the owners of the shares.
This market include the stock exchange and the over the counter market.
BOND MARKET-is a market issued debt securities like bonds.
Bonds differ from capital stock in several ways.
BONDHOLDERS are creditors and not owners of the corporation. They receive interest payments and have a specific maturity date.
STOCKHOLDERS they normally have voting rights and participate in the earnings of the corporation.They receive dividends and remain outstanding indefinitely and have no maturity date.
In the Philippine CM,The bond is not a common form of long term finance among private companies.
The national government regularly issues TREASURY BONDS through the BUREAU OF TREASURY to finance various programs and projects.
This market has a PRIMARY AND SECONDARY MARKETS.
In Primary Market the auction for TB and other government securities was assumed by the BTR
The PHILIPPINE CAPITAL MARKET
CAPITAL MARKET-is any domestic or international market in which governments,banks,multilateral organizations and companies can borrow or invest large amounts of money for medium to longterm periods.
Capital market is different from the money market primarily because most money market instruments have maturities not exceeding 12months.
The types of instruments issued in the local capital market are debt and equity,hybrid.
PRIMARY AND SECONDARY CAPITAL MARKETS
In the PRIMARY MARKET new shares are issued and sold to the investing public for the first time through an INTIAL PUBLIC OFFERING(IPO) proceeds of the sale is go directly to the issuer,which is the company.There is occasionally a secondary offering in the primary market.
In the SECONDARY MARKET investors can buy and sell shares of stock which have been issued to the public in the primary market. It is the venue where an investor can buy additional shares of stock or sell his initial shares of the stocks. The proceeds of the sales do not go directly to the company but to the owners of the shares.
This market include the stock exchange and the over the counter market.
BOND MARKET-is a market issued debt securities like bonds.
Bonds differ from capital stock in several ways.
BONDHOLDERS are creditors and not owners of the corporation. They receive interest payments and have a specific maturity date.
STOCKHOLDERS they normally have voting rights and participate in the earnings of the corporation.They receive dividends and remain outstanding indefinitely and have no maturity date.
In the Philippine CM,The bond is not a common form of long term finance among private companies.
The national government regularly issues TREASURY BONDS through the BUREAU OF TREASURY to finance various programs and projects.
This market has a PRIMARY AND SECONDARY MARKETS.
In Primary Market the auction for TB and other government securities was assumed by the BTR