investing word of the day: Market Price

Definition from http://en.mimi.hu/

"The value given to a share in the marketplace. In other words, the current quoted price of a share of stock."

Market value is the value anyone would accept base on a reference that anyone would acknowledge. For the purpose of stock valuation market value is the last traded price in any stock market. 

source: http://www.worldcorrespondents.com/

investing word of the day: Market Price

Definition from http://en.mimi.hu/

"The value given to a share in the marketplace. In other words, the current quoted price of a share of stock."

Market value is the value anyone would accept base on a reference that anyone would acknowledge. For the purpose of stock valuation market value is the last traded price in any stock market. 

source: http://www.worldcorrespondents.com/

investing word of the day: Market Price

Definition from http://en.mimi.hu/

"The value given to a share in the marketplace. In other words, the current quoted price of a share of stock."

Market value is the value anyone would accept base on a reference that anyone would acknowledge. For the purpose of stock valuation market value is the last traded price in any stock market. 

source: http://www.worldcorrespondents.com/

From The Millionaire Next Door: Concept of PAW, AAW, & UAW

I have been reading this book written by Thomas J Stanley & William D. Danko.

It is more of a research that the two did in their search who are the real millionaires in the United States and to their surprise the real millionaires are not the people that you see in TV and news announcing the value of their newly bought how in the Hampton or their latest  fashion style care of this and that designer. The true millionaires are the ordinary people who has mastered some of the secret of wealth accumulation. I have already mentioned about this topic in a previous post but I would like to expound on the three acronyms.

source: http://www.life123.com/relationships/issues/money-management-couples/reining-in-a-big-spender.shtml

UAW or Under Accumulator of Wealth are persons who doesn't know how to manage their finances. You can find a big rock star, a well known doctor, a very good sales person earning a lot of commissions but they still fall under this category for the fact that they don't know how to make their money work for them in spite of their earning capacities. In layman's term these are the Spenders. They may have great sources of income but must of those earning are slipping away from their hands because  they never knew how to make that money work for them....in other words they work hard to spend money and in the end they are broke.

source: http://www.berganblue.com.au/

AAW or Average Accumulator of Wealth. These are the normal people. They have regular jobs or even they are famous celebrity or a famous neighborhood shop owner. They do there daily routines and that is all. They are able to meet their needs and only sometimes they struggle to fund some of their financial needs. In other words they just have enough for what ever they need they are in actuality savers. So in case emergencies come there capabilities is only of to what they have save. Savers are good people but nit as lucky as the PAW. These group should be able to rise above so that they can well manage their finances and make money work for them.

source: http://www.badidea.co.uk/2009/03/

PAW or Prodigious Accumulator of Wealth are the wise people who knew how to save and how to invest. They don't mind having a second hand car as long a sit serves ts purpose and it never broke their wallets because they wanted their money to work for them. They invest in business, stocks, and other sources of income while still having a regular job. They only spend when necessary and always take advantage of the right bargain. They always way options first before buying and if it is possible to delay and wait for a better price they can always wait. The secret is knowing how to invest what you have save.

From The Millionaire Next Door: Concept of PAW, AAW, & UAW

I have been reading this book written by Thomas J Stanley & William D. Danko.

It is more of a research that the two did in their search who are the real millionaires in the United States and to their surprise the real millionaires are not the people that you see in TV and news announcing the value of their newly bought how in the Hampton or their latest  fashion style care of this and that designer. The true millionaires are the ordinary people who has mastered some of the secret of wealth accumulation. I have already mentioned about this topic in a previous post but I would like to expound on the three acronyms.

source: http://www.life123.com/relationships/issues/money-management-couples/reining-in-a-big-spender.shtml

UAW or Under Accumulator of Wealth are persons who doesn't know how to manage their finances. You can find a big rock star, a well known doctor, a very good sales person earning a lot of commissions but they still fall under this category for the fact that they don't know how to make their money work for them in spite of their earning capacities. In layman's term these are the Spenders. They may have great sources of income but must of those earning are slipping away from their hands because  they never knew how to make that money work for them....in other words they work hard to spend money and in the end they are broke.

source: http://www.berganblue.com.au/

AAW or Average Accumulator of Wealth. These are the normal people. They have regular jobs or even they are famous celebrity or a famous neighborhood shop owner. They do there daily routines and that is all. They are able to meet their needs and only sometimes they struggle to fund some of their financial needs. In other words they just have enough for what ever they need they are in actuality savers. So in case emergencies come there capabilities is only of to what they have save. Savers are good people but nit as lucky as the PAW. These group should be able to rise above so that they can well manage their finances and make money work for them.

source: http://www.badidea.co.uk/2009/03/

PAW or Prodigious Accumulator of Wealth are the wise people who knew how to save and how to invest. They don't mind having a second hand car as long a sit serves ts purpose and it never broke their wallets because they wanted their money to work for them. They invest in business, stocks, and other sources of income while still having a regular job. They only spend when necessary and always take advantage of the right bargain. They always way options first before buying and if it is possible to delay and wait for a better price they can always wait. The secret is knowing how to invest what you have save.

From The Millionaire Next Door: Concept of PAW, AAW, & UAW

I have been reading this book written by Thomas J Stanley & William D. Danko.

It is more of a research that the two did in their search who are the real millionaires in the United States and to their surprise the real millionaires are not the people that you see in TV and news announcing the value of their newly bought how in the Hampton or their latest  fashion style care of this and that designer. The true millionaires are the ordinary people who has mastered some of the secret of wealth accumulation. I have already mentioned about this topic in a previous post but I would like to expound on the three acronyms.

source: http://www.life123.com/relationships/issues/money-management-couples/reining-in-a-big-spender.shtml

UAW or Under Accumulator of Wealth are persons who doesn't know how to manage their finances. You can find a big rock star, a well known doctor, a very good sales person earning a lot of commissions but they still fall under this category for the fact that they don't know how to make their money work for them in spite of their earning capacities. In layman's term these are the Spenders. They may have great sources of income but must of those earning are slipping away from their hands because  they never knew how to make that money work for them....in other words they work hard to spend money and in the end they are broke.

source: http://www.berganblue.com.au/

AAW or Average Accumulator of Wealth. These are the normal people. They have regular jobs or even they are famous celebrity or a famous neighborhood shop owner. They do there daily routines and that is all. They are able to meet their needs and only sometimes they struggle to fund some of their financial needs. In other words they just have enough for what ever they need they are in actuality savers. So in case emergencies come there capabilities is only of to what they have save. Savers are good people but nit as lucky as the PAW. These group should be able to rise above so that they can well manage their finances and make money work for them.

source: http://www.badidea.co.uk/2009/03/

PAW or Prodigious Accumulator of Wealth are the wise people who knew how to save and how to invest. They don't mind having a second hand car as long a sit serves ts purpose and it never broke their wallets because they wanted their money to work for them. They invest in business, stocks, and other sources of income while still having a regular job. They only spend when necessary and always take advantage of the right bargain. They always way options first before buying and if it is possible to delay and wait for a better price they can always wait. The secret is knowing how to invest what you have save.

What are stocks anyways?

source: http://www.zdiaz.com/

Hey wait a minute what are stocks anyways?

I know I have been babbling things about investing in stocks and yet I haven't explained yet what are stocks. So I am writing these to share you something about stocks..... I'll make the story as short as possible :)

There are 3 basic forms of business organization. These business models or layout are primarily based on the ownership of a person or persons involved has on the business. These are Sole Proprietorship, Partnership, and Corporation.

Since our area of concern is about stocks I will just make a short explanation about Sole Proprietorship and Partnership for comparison purposes.

Sole proprietorship, the name says it all. It is a business owned or under the name of one person. It is like a "tindahan" with the name "Tindahan ni ALlng Nena". The business may be owned or maybe run by the family of Aling Nena but as regards to recognition the business is under Aling Nena's name thus she is the Sole owner.

source: http://video.tellytube.in/tindahan/

Partnership in Philippine law is formed when 2 or more persons enter into an agreement to join and form a business and share earnings and losses.Also under Philippine law when partners agree to join and form such to operate a business a juridical person is created thus the partnership stands as one juridical person in the eyes of the law under the Partnership Code of the Philippines and the partners represent the partnership.When one or some of the partners die, withdraw, or sell his interest in the partnership, the partnership is dissolve and the remaining partners has the option to continue the partnership by agreeing to new agreement or to totally dissolve the partnership.(If this one seems nosebleed to you better ask your lawyer or CPA friend to further expound about this topic I hope they don't charge you consultation fee).

And now about the topic I should have discuss in the beginning.

Here is the definition of a corporation from the Philippines Corporation Code or Batas Pambansa Blg. 68:

Sec. 2. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.(taken from http://www.chanrobles.com/legal5title1.htm#TITLE%20I)

Corporation is business model where at least 5 but not more than 14 incorporators, which must be natural persons, form the corporation requiring at least that 25% of the authorized shares is subscribed and that 25% of the subscribed shares are paid. From there on ownership of the company can be transferred from one person to another through sale, inheritance, or donation and the remaining unsubscribed shares can be issued to interested investors or through a stock market by way of an Initial Pubic Offering(IPO).

Stocks or Shares of stocks represent one's ownership in the stock-corporation in particular because there are corporations which are non-stock corporation(again ask your lawyer or CPA friend to explain these further). As stated in the definition corporations has the "right of succession" meaning stock ownership can be transferred from one person to another. In law person can be natural person or juridical person(again ask your lawyer or CPA friend about this).

A corporation's stock could either be a common stock(share capital) or a preferred stock(preference share). To defined common stock let us first define preferred stock which is defined as stocks that carry no voting rights(with some special cases where such stocks can vote), but may carry priority over common stock in the payment of dividends and upon liquidation. Preferred stock may carry a dividend  that is paid out prior to any dividends being paid to common stock holders. Preferred stock may have a convertibility feature into common stock.  

Common stock is the opposite of Preferred stock. Preferred stock may have a stated rate of dividend that must be paid out first before paying out Common stock holders and will be given priority on the return of capital in case of liquidation. In a way it has the qualities of a loan or bond because of the attached rate that the company must pay out first to each Preferred stock holder before paying some to common stock holders.

The good thing with this is that a Preferred stock share in the company's earnings is limited to the rate stated, so when the company has performed well the remaining distributable earnings all goes to the common stock holders after satisfying the amount due to preferred shares holder.

The proceeds of the initial sale of the stock from the company goes to the equity section of the company where we based the Book value per share. A stock may have a par value but could be bought at above par thus when you read a company's Balance sheet a portion of the Stockholder's Equity has the section Paid in Capital. This represent the amount paid by the investor on top of the par value. In the company's book it is not recorded as income because such transaction is related to financing activity rather than its operating activity.

When the initial investor sales his or her stocks to another person the proceeds now goes to the investor since it is mere sale of his or her property to another which may be at a profit or at a loss. Thus stock market are there for such transactions. Stock markets has rules to follow to make sure the transfer of stocks from one person to another is properly recorded and that the investing public interest's is safeguarded against fraud. 

Since the stocks that are traded are now properties of their respective owners, the price of each stock now is dictated by market forces just like in any ordinary market place.We sell our property to gain and not to lose thus prices change and the price now is called market price.

Though the stock's market price is not dictated by the company that issued it, investors still look into the operation of the company to gauge its value and demand a higher price in times that the company performs well. Thus a company that reported a good performance will have its traded shares having a higher market price because investors sees that as a value added to the stock which one can get when such is a holder of it. These is what we call dividend. But since such could still be sold in a stock market one would normally sell to gain profit from there investment. 

What are stocks anyways?

source: http://www.zdiaz.com/

Hey wait a minute what are stocks anyways?

I know I have been babbling things about investing in stocks and yet I haven't explained yet what are stocks. So I am writing these to share you something about stocks..... I'll make the story as short as possible :)

There are 3 basic forms of business organization. These business models or layout are primarily based on the ownership of a person or persons involved has on the business. These are Sole Proprietorship, Partnership, and Corporation.

Since our area of concern is about stocks I will just make a short explanation about Sole Proprietorship and Partnership for comparison purposes.

Sole proprietorship, the name says it all. It is a business owned or under the name of one person. It is like a "tindahan" with the name "Tindahan ni ALlng Nena". The business may be owned or maybe run by the family of Aling Nena but as regards to recognition the business is under Aling Nena's name thus she is the Sole owner.

source: http://video.tellytube.in/tindahan/

Partnership in Philippine law is formed when 2 or more persons enter into an agreement to join and form a business and share earnings and losses.Also under Philippine law when partners agree to join and form such to operate a business a juridical person is created thus the partnership stands as one juridical person in the eyes of the law under the Partnership Code of the Philippines and the partners represent the partnership.When one or some of the partners die, withdraw, or sell his interest in the partnership, the partnership is dissolve and the remaining partners has the option to continue the partnership by agreeing to new agreement or to totally dissolve the partnership.(If this one seems nosebleed to you better ask your lawyer or CPA friend to further expound about this topic I hope they don't charge you consultation fee).

And now about the topic I should have discuss in the beginning.

Here is the definition of a corporation from the Philippines Corporation Code or Batas Pambansa Blg. 68:

Sec. 2. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.(taken from http://www.chanrobles.com/legal5title1.htm#TITLE%20I)

Corporation is business model where at least 5 but not more than 14 incorporators, which must be natural persons, form the corporation requiring at least that 25% of the authorized shares is subscribed and that 25% of the subscribed shares are paid. From there on ownership of the company can be transferred from one person to another through sale, inheritance, or donation and the remaining unsubscribed shares can be issued to interested investors or through a stock market by way of an Initial Pubic Offering(IPO).

Stocks or Shares of stocks represent one's ownership in the stock-corporation in particular because there are corporations which are non-stock corporation(again ask your lawyer or CPA friend to explain these further). As stated in the definition corporations has the "right of succession" meaning stock ownership can be transferred from one person to another. In law person can be natural person or juridical person(again ask your lawyer or CPA friend about this).

A corporation's stock could either be a common stock(share capital) or a preferred stock(preference share). To defined common stock let us first define preferred stock which is defined as stocks that carry no voting rights(with some special cases where such stocks can vote), but may carry priority over common stock in the payment of dividends and upon liquidation. Preferred stock may carry a dividend  that is paid out prior to any dividends being paid to common stock holders. Preferred stock may have a convertibility feature into common stock.  

Common stock is the opposite of Preferred stock. Preferred stock may have a stated rate of dividend that must be paid out first before paying out Common stock holders and will be given priority on the return of capital in case of liquidation. In a way it has the qualities of a loan or bond because of the attached rate that the company must pay out first to each Preferred stock holder before paying some to common stock holders.

The good thing with this is that a Preferred stock share in the company's earnings is limited to the rate stated, so when the company has performed well the remaining distributable earnings all goes to the common stock holders after satisfying the amount due to preferred shares holder.

The proceeds of the initial sale of the stock from the company goes to the equity section of the company where we based the Book value per share. A stock may have a par value but could be bought at above par thus when you read a company's Balance sheet a portion of the Stockholder's Equity has the section Paid in Capital. This represent the amount paid by the investor on top of the par value. In the company's book it is not recorded as income because such transaction is related to financing activity rather than its operating activity.

When the initial investor sales his or her stocks to another person the proceeds now goes to the investor since it is mere sale of his or her property to another which may be at a profit or at a loss. Thus stock market are there for such transactions. Stock markets has rules to follow to make sure the transfer of stocks from one person to another is properly recorded and that the investing public interest's is safeguarded against fraud. 

Since the stocks that are traded are now properties of their respective owners, the price of each stock now is dictated by market forces just like in any ordinary market place.We sell our property to gain and not to lose thus prices change and the price now is called market price.

Though the stock's market price is not dictated by the company that issued it, investors still look into the operation of the company to gauge its value and demand a higher price in times that the company performs well. Thus a company that reported a good performance will have its traded shares having a higher market price because investors sees that as a value added to the stock which one can get when such is a holder of it. These is what we call dividend. But since such could still be sold in a stock market one would normally sell to gain profit from there investment. 

What are stocks anyways?

source: http://www.zdiaz.com/

Hey wait a minute what are stocks anyways?

I know I have been babbling things about investing in stocks and yet I haven't explained yet what are stocks. So I am writing these to share you something about stocks..... I'll make the story as short as possible :)

There are 3 basic forms of business organization. These business models or layout are primarily based on the ownership of a person or persons involved has on the business. These are Sole Proprietorship, Partnership, and Corporation.

Since our area of concern is about stocks I will just make a short explanation about Sole Proprietorship and Partnership for comparison purposes.

Sole proprietorship, the name says it all. It is a business owned or under the name of one person. It is like a "tindahan" with the name "Tindahan ni ALlng Nena". The business may be owned or maybe run by the family of Aling Nena but as regards to recognition the business is under Aling Nena's name thus she is the Sole owner.

source: http://video.tellytube.in/tindahan/

Partnership in Philippine law is formed when 2 or more persons enter into an agreement to join and form a business and share earnings and losses.Also under Philippine law when partners agree to join and form such to operate a business a juridical person is created thus the partnership stands as one juridical person in the eyes of the law under the Partnership Code of the Philippines and the partners represent the partnership.When one or some of the partners die, withdraw, or sell his interest in the partnership, the partnership is dissolve and the remaining partners has the option to continue the partnership by agreeing to new agreement or to totally dissolve the partnership.(If this one seems nosebleed to you better ask your lawyer or CPA friend to further expound about this topic I hope they don't charge you consultation fee).

And now about the topic I should have discuss in the beginning.

Here is the definition of a corporation from the Philippines Corporation Code or Batas Pambansa Blg. 68:

Sec. 2. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.(taken from http://www.chanrobles.com/legal5title1.htm#TITLE%20I)

Corporation is business model where at least 5 but not more than 14 incorporators, which must be natural persons, form the corporation requiring at least that 25% of the authorized shares is subscribed and that 25% of the subscribed shares are paid. From there on ownership of the company can be transferred from one person to another through sale, inheritance, or donation and the remaining unsubscribed shares can be issued to interested investors or through a stock market by way of an Initial Pubic Offering(IPO).

Stocks or Shares of stocks represent one's ownership in the stock-corporation in particular because there are corporations which are non-stock corporation(again ask your lawyer or CPA friend to explain these further). As stated in the definition corporations has the "right of succession" meaning stock ownership can be transferred from one person to another. In law person can be natural person or juridical person(again ask your lawyer or CPA friend about this).

A corporation's stock could either be a common stock(share capital) or a preferred stock(preference share). To defined common stock let us first define preferred stock which is defined as stocks that carry no voting rights(with some special cases where such stocks can vote), but may carry priority over common stock in the payment of dividends and upon liquidation. Preferred stock may carry a dividend  that is paid out prior to any dividends being paid to common stock holders. Preferred stock may have a convertibility feature into common stock.  

Common stock is the opposite of Preferred stock. Preferred stock may have a stated rate of dividend that must be paid out first before paying out Common stock holders and will be given priority on the return of capital in case of liquidation. In a way it has the qualities of a loan or bond because of the attached rate that the company must pay out first to each Preferred stock holder before paying some to common stock holders.

The good thing with this is that a Preferred stock share in the company's earnings is limited to the rate stated, so when the company has performed well the remaining distributable earnings all goes to the common stock holders after satisfying the amount due to preferred shares holder.

The proceeds of the initial sale of the stock from the company goes to the equity section of the company where we based the Book value per share. A stock may have a par value but could be bought at above par thus when you read a company's Balance sheet a portion of the Stockholder's Equity has the section Paid in Capital. This represent the amount paid by the investor on top of the par value. In the company's book it is not recorded as income because such transaction is related to financing activity rather than its operating activity.

When the initial investor sales his or her stocks to another person the proceeds now goes to the investor since it is mere sale of his or her property to another which may be at a profit or at a loss. Thus stock market are there for such transactions. Stock markets has rules to follow to make sure the transfer of stocks from one person to another is properly recorded and that the investing public interest's is safeguarded against fraud. 

Since the stocks that are traded are now properties of their respective owners, the price of each stock now is dictated by market forces just like in any ordinary market place.We sell our property to gain and not to lose thus prices change and the price now is called market price.

Though the stock's market price is not dictated by the company that issued it, investors still look into the operation of the company to gauge its value and demand a higher price in times that the company performs well. Thus a company that reported a good performance will have its traded shares having a higher market price because investors sees that as a value added to the stock which one can get when such is a holder of it. These is what we call dividend. But since such could still be sold in a stock market one would normally sell to gain profit from there investment. 

Who are the Ayala brothers

source: http://www.millionaireacts.com

While yesterday's massive downtrend in the Philippine Stock Market was rumored to be 50% caused by the erroneous placement of trade of ALI(Ayala Land Inc.) of the Ayala group(AC), these two brothers are seen as one of the country's top businessmen. Please meet Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala.

 Source: http://peace-foundation.net

Jaime Augusto Zobel de Ayala

He currently serves as chairman and chief executive officer of the Ayala Corporation. 

In addition to his position in the Ayala Corporation, Jaime is chairman of the Board of Directors of Globe Telecom, Bank of the Philippine Islands, and Integrated Microelectronics Inc. (IMI); vice chairman of the Board of Directors and member of the Executive Committee of Ayala Land, Inc. (ALI); vice chairman of Manila Water Co.; and co-vice chairman and trustee of Ayala Foundation, Inc.

He is also a member of various international and local business and socio-civic organizations including the J.P. Morgan International Council, Mitsubishi Corporation International Advisory Committee, Toshiba International Advisory Group, Harvard University Asia Center Advisory Committee, Board of Trustees of the Asian Institute of Management, National Council member of the World Wildlife Fund (US), and Chairman of World Wildlife Fund (Philippines). 

Honors include World Economic Forum Global Leader for Tomorrow in 1995; Emerging Markets CEO of the year in 1998 (sponsored by ING); Philippine TOYM (Ten Outstanding Young Men) Award in 1999 and Management Association of the Philippines Management Man of the Year Award in 2006. Most recently, Mr. Zobel was awarded the Presidential Medal of Merit on March 11, 2009 by Philippine President Gloria Macapagal Arroyo for "enhancing the prestige and honor of the Republic of the Philippines both at home and abroad."

On September 27, 2007, Ayala Corp. chair Jaime Augusto Zobel de Ayala was conferred the Harvard Business School’s highest honor, the Alumni Achievement Award, by Dean Jay O. Light. The award was also given to: Donna Dubinsky, A. Malachi Mixon of Invacare, Sir Martin Sorrell of WPP Group and Hansjorg Wyss of Synthes. Jaime Augusto received his MBA from HBS in 1987. He was cited for “his innovative, entrepreneurial style of management (that) has benefited both Ayala and an island nation that faces significant social and economic challenges.” He is the first Filipino to receive this prestigious award.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Jaime Augusto on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.
 

Jaime Augusto holds a B.A. degree in economics (cum laude) from Harvard College (1981), and an MBA from the Harvard Graduate School of Business Administration (1987). 

source: http://www.flickr.com/photos/joseworks/

Fernando Zobel de Ayala

He  graduated from Harvard College with a Bachelor of Arts degree in 1982. He also completed a program in International Management at INSEAD in France.

Fernando is the President and Chief Operating Officer of Ayala Corporation, the holding company of the Ayala group. He is also the Chairman of Ayala Land. The Ayala Land is the Philippines’ largest real estate firm and its only complete line property developer. In addition, he is one of the leader of the boards of the other Ayala Group companies. 

Aside from serving on these various boards of the Ayala group, Fernando is an active member of business clubs and professional organizations namely the Young Presidents’ Organization in the Philippines, the Management Association of the Philippines, the Makati Business Club and the Harvard Club. He is also a member of the World Economic Forum, the Habitat for Humanity International Advisory Group for Asia Pacific, the INSEAD East Asia Council and the International Council of Shopping Centers Board of Trustees.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Mr. Zobel on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.

Who are the Ayala brothers

source: http://www.millionaireacts.com

While yesterday's massive downtrend in the Philippine Stock Market was rumored to be 50% caused by the erroneous placement of trade of ALI(Ayala Land Inc.) of the Ayala group(AC), these two brothers are seen as one of the country's top businessmen. Please meet Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala.

 Source: http://peace-foundation.net

Jaime Augusto Zobel de Ayala

He currently serves as chairman and chief executive officer of the Ayala Corporation. 

In addition to his position in the Ayala Corporation, Jaime is chairman of the Board of Directors of Globe Telecom, Bank of the Philippine Islands, and Integrated Microelectronics Inc. (IMI); vice chairman of the Board of Directors and member of the Executive Committee of Ayala Land, Inc. (ALI); vice chairman of Manila Water Co.; and co-vice chairman and trustee of Ayala Foundation, Inc.

He is also a member of various international and local business and socio-civic organizations including the J.P. Morgan International Council, Mitsubishi Corporation International Advisory Committee, Toshiba International Advisory Group, Harvard University Asia Center Advisory Committee, Board of Trustees of the Asian Institute of Management, National Council member of the World Wildlife Fund (US), and Chairman of World Wildlife Fund (Philippines). 

Honors include World Economic Forum Global Leader for Tomorrow in 1995; Emerging Markets CEO of the year in 1998 (sponsored by ING); Philippine TOYM (Ten Outstanding Young Men) Award in 1999 and Management Association of the Philippines Management Man of the Year Award in 2006. Most recently, Mr. Zobel was awarded the Presidential Medal of Merit on March 11, 2009 by Philippine President Gloria Macapagal Arroyo for "enhancing the prestige and honor of the Republic of the Philippines both at home and abroad."

On September 27, 2007, Ayala Corp. chair Jaime Augusto Zobel de Ayala was conferred the Harvard Business School’s highest honor, the Alumni Achievement Award, by Dean Jay O. Light. The award was also given to: Donna Dubinsky, A. Malachi Mixon of Invacare, Sir Martin Sorrell of WPP Group and Hansjorg Wyss of Synthes. Jaime Augusto received his MBA from HBS in 1987. He was cited for “his innovative, entrepreneurial style of management (that) has benefited both Ayala and an island nation that faces significant social and economic challenges.” He is the first Filipino to receive this prestigious award.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Jaime Augusto on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.
 

Jaime Augusto holds a B.A. degree in economics (cum laude) from Harvard College (1981), and an MBA from the Harvard Graduate School of Business Administration (1987). 

source: http://www.flickr.com/photos/joseworks/

Fernando Zobel de Ayala

He  graduated from Harvard College with a Bachelor of Arts degree in 1982. He also completed a program in International Management at INSEAD in France.

Fernando is the President and Chief Operating Officer of Ayala Corporation, the holding company of the Ayala group. He is also the Chairman of Ayala Land. The Ayala Land is the Philippines’ largest real estate firm and its only complete line property developer. In addition, he is one of the leader of the boards of the other Ayala Group companies. 

Aside from serving on these various boards of the Ayala group, Fernando is an active member of business clubs and professional organizations namely the Young Presidents’ Organization in the Philippines, the Management Association of the Philippines, the Makati Business Club and the Harvard Club. He is also a member of the World Economic Forum, the Habitat for Humanity International Advisory Group for Asia Pacific, the INSEAD East Asia Council and the International Council of Shopping Centers Board of Trustees.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Mr. Zobel on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.

Who are the Ayala brothers

source: http://www.millionaireacts.com

While yesterday's massive downtrend in the Philippine Stock Market was rumored to be 50% caused by the erroneous placement of trade of ALI(Ayala Land Inc.) of the Ayala group(AC), these two brothers are seen as one of the country's top businessmen. Please meet Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala.

 Source: http://peace-foundation.net

Jaime Augusto Zobel de Ayala

He currently serves as chairman and chief executive officer of the Ayala Corporation. 

In addition to his position in the Ayala Corporation, Jaime is chairman of the Board of Directors of Globe Telecom, Bank of the Philippine Islands, and Integrated Microelectronics Inc. (IMI); vice chairman of the Board of Directors and member of the Executive Committee of Ayala Land, Inc. (ALI); vice chairman of Manila Water Co.; and co-vice chairman and trustee of Ayala Foundation, Inc.

He is also a member of various international and local business and socio-civic organizations including the J.P. Morgan International Council, Mitsubishi Corporation International Advisory Committee, Toshiba International Advisory Group, Harvard University Asia Center Advisory Committee, Board of Trustees of the Asian Institute of Management, National Council member of the World Wildlife Fund (US), and Chairman of World Wildlife Fund (Philippines). 

Honors include World Economic Forum Global Leader for Tomorrow in 1995; Emerging Markets CEO of the year in 1998 (sponsored by ING); Philippine TOYM (Ten Outstanding Young Men) Award in 1999 and Management Association of the Philippines Management Man of the Year Award in 2006. Most recently, Mr. Zobel was awarded the Presidential Medal of Merit on March 11, 2009 by Philippine President Gloria Macapagal Arroyo for "enhancing the prestige and honor of the Republic of the Philippines both at home and abroad."

On September 27, 2007, Ayala Corp. chair Jaime Augusto Zobel de Ayala was conferred the Harvard Business School’s highest honor, the Alumni Achievement Award, by Dean Jay O. Light. The award was also given to: Donna Dubinsky, A. Malachi Mixon of Invacare, Sir Martin Sorrell of WPP Group and Hansjorg Wyss of Synthes. Jaime Augusto received his MBA from HBS in 1987. He was cited for “his innovative, entrepreneurial style of management (that) has benefited both Ayala and an island nation that faces significant social and economic challenges.” He is the first Filipino to receive this prestigious award.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Jaime Augusto on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.
 

Jaime Augusto holds a B.A. degree in economics (cum laude) from Harvard College (1981), and an MBA from the Harvard Graduate School of Business Administration (1987). 

source: http://www.flickr.com/photos/joseworks/

Fernando Zobel de Ayala

He  graduated from Harvard College with a Bachelor of Arts degree in 1982. He also completed a program in International Management at INSEAD in France.

Fernando is the President and Chief Operating Officer of Ayala Corporation, the holding company of the Ayala group. He is also the Chairman of Ayala Land. The Ayala Land is the Philippines’ largest real estate firm and its only complete line property developer. In addition, he is one of the leader of the boards of the other Ayala Group companies. 

Aside from serving on these various boards of the Ayala group, Fernando is an active member of business clubs and professional organizations namely the Young Presidents’ Organization in the Philippines, the Management Association of the Philippines, the Makati Business Club and the Harvard Club. He is also a member of the World Economic Forum, the Habitat for Humanity International Advisory Group for Asia Pacific, the INSEAD East Asia Council and the International Council of Shopping Centers Board of Trustees.

The Philippine Legion of Honor with rank of Grand Commander was awarded to Mr. Zobel on June 29, 2010. This is awarded by the President of the Republic of the Philippines to recognize outstanding public service that has benefitted the republic, particularly in the preservation of the honor of the country and in nation building.

Investing word of the day: Correction

source: http://seekingalpha.com

We have seen this lately in the local stock market after the DOW went to the red. Also due to the three or four days that the PSE defied DOW thus this week it is expected to slow down after a great uptrend for the past days, so what then is correction or market correction?

As usual I got this definition from Investopedia.com:

"A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level."

Layman's explanation:

It is a decrease of the market after a extended uptrend.  Generally when the market has enjoyed a continuous increase in price it will come to the point where it is at its highest point thus it will start to pull back. An analogy used by most is the bouncing ball analogy. Just like the bouncing ball, stock market is not always in an uptrend mode at any point it will go down and it will bounce back again.  

That is why it is important to learn how to time the market. When prices are down it is the best to buy because sooner or later it will bounce back or it may even surpass the previous highs. In relation to the Law of supply and demand when the stock market becomes saturated meaning either the buys or sells is more than the other it will surely create a change. When prices are rising sellers dominate the market because everyone wants to profit and when it is a downtrend buyers dominates it because it is a bargain market. 

The stock market is any ordinary market that we know. It is always buy low sell high. You don't sell at below cost if you are in your sane mind, you are trading for profit. Correction is that time when as Investopedia.com says there is no apparent reason for prices to go down its just that prices are to high and in order to sell prices should be lowered to attract buyers.

So bargain hunters lets go shopping!

Links worth checking:

http://uk.reuters.com/article/idUKLNE63F01120100416

http://www.ctv.ca/generic/generated/static/business/article1582086.html

Investing word of the day: Correction

source: http://seekingalpha.com

We have seen this lately in the local stock market after the DOW went to the red. Also due to the three or four days that the PSE defied DOW thus this week it is expected to slow down after a great uptrend for the past days, so what then is correction or market correction?

As usual I got this definition from Investopedia.com:

"A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level."

Layman's explanation:

It is a decrease of the market after a extended uptrend.  Generally when the market has enjoyed a continuous increase in price it will come to the point where it is at its highest point thus it will start to pull back. An analogy used by most is the bouncing ball analogy. Just like the bouncing ball, stock market is not always in an uptrend mode at any point it will go down and it will bounce back again.  

That is why it is important to learn how to time the market. When prices are down it is the best to buy because sooner or later it will bounce back or it may even surpass the previous highs. In relation to the Law of supply and demand when the stock market becomes saturated meaning either the buys or sells is more than the other it will surely create a change. When prices are rising sellers dominate the market because everyone wants to profit and when it is a downtrend buyers dominates it because it is a bargain market. 

The stock market is any ordinary market that we know. It is always buy low sell high. You don't sell at below cost if you are in your sane mind, you are trading for profit. Correction is that time when as Investopedia.com says there is no apparent reason for prices to go down its just that prices are to high and in order to sell prices should be lowered to attract buyers.

So bargain hunters lets go shopping!

Links worth checking:

http://uk.reuters.com/article/idUKLNE63F01120100416

http://www.ctv.ca/generic/generated/static/business/article1582086.html

Investing word of the day: Correction

source: http://seekingalpha.com

We have seen this lately in the local stock market after the DOW went to the red. Also due to the three or four days that the PSE defied DOW thus this week it is expected to slow down after a great uptrend for the past days, so what then is correction or market correction?

As usual I got this definition from Investopedia.com:

"A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level."

Layman's explanation:

It is a decrease of the market after a extended uptrend.  Generally when the market has enjoyed a continuous increase in price it will come to the point where it is at its highest point thus it will start to pull back. An analogy used by most is the bouncing ball analogy. Just like the bouncing ball, stock market is not always in an uptrend mode at any point it will go down and it will bounce back again.  

That is why it is important to learn how to time the market. When prices are down it is the best to buy because sooner or later it will bounce back or it may even surpass the previous highs. In relation to the Law of supply and demand when the stock market becomes saturated meaning either the buys or sells is more than the other it will surely create a change. When prices are rising sellers dominate the market because everyone wants to profit and when it is a downtrend buyers dominates it because it is a bargain market. 

The stock market is any ordinary market that we know. It is always buy low sell high. You don't sell at below cost if you are in your sane mind, you are trading for profit. Correction is that time when as Investopedia.com says there is no apparent reason for prices to go down its just that prices are to high and in order to sell prices should be lowered to attract buyers.

So bargain hunters lets go shopping!

Links worth checking:

http://uk.reuters.com/article/idUKLNE63F01120100416

http://www.ctv.ca/generic/generated/static/business/article1582086.html

Is stock investing gambling?

sources: http://www.game-bler.com/ , http://www.leap.us/

I had a chance to chat with my ex-girlfriend this week, and as usual the friendly chat is everything under the sun. (It is nice to have my ex-girlfriend as a friend without the hassle of looking back in the past so I hope all couples who parted ways could still be friends one way or another but again this is just my suggestion, an advice).

So I told her that she can invest in the stock market at only Php 5,000.00 and she said "isn't that gambling?" So I ask her why she think stock investing is gambling, she has two good points on her argument:

1. There is risk involved

2. The market is unpredictable

So I thought about it and answered her "I beg to disagree but stock investing is not gambling."

This kind of thinking is one of the reasons why the Philippines has a very small percentage of its population engaged in investing. Filipinos are afraid to even try it because of the stories they hear for example a businessman who invested all his money in a particular stock is now in debt and without work because the stock he bought crashed big time. Another reason is that  people think that companies are just using their money for personal gain thus they don't want to participate in the stock.

Going back to the important things one must always remember when one starts to or even decide to participate in the stock market:

1. Invest only your free cash.

2. Invest in stocks of fundamentally sound companies

3. Always learn and don't stop learning

4.You only lose when you sell your stock below your total 
    purchased cost

5. Time the market

Let me relate these pointers why stock market is not gambling.

Gambling is when one puts everything he or she has against something which is uncertain, relying only on pure luck. That is why I and my friends have always advice to only put your free cash in the stock market. Yes it is due to the risk involved that everyone sees it as gambling. But the risk in stock market is what we call a calculated risk. You can always decide whether to go on or not in buying or selling because we have a basis like financial report and performance, on time news updates, and regulatory bodies that implement laws that safeguards us investors unlike in gambling where due to your desperation to recover your loses you bet your last centavo hoping against all hope that you will win this last time around without any basis. It is so calculated that is why we even advice only your free cash to really make sure you don't regret if the stock you bought will be at a negative for quite some time.

There are stocks that we call speculative and their are what we called fundamentally sound. The good thing at investing in stocks with good fundamentals is that no matter what happens they wont easily be affected by financial troubles. They will surpass and will remain standing, and they will be there and will still give you profits in times of harsh financial conditions.

Stock investing commands continues learning or what the Japanese termed Kaizen. Even the veteran like the likes of Warren Buffet still do their homework doing due diligence before buying stocks of companies. Probably this is one of the reasons why so many avoid the topic or even the idea of investing in stock, its nosebleed. With the so technical and so complex concepts and words to learn many have avoided it. But I always say this, you are the investor so don't be afraid to ask. Many think that it cost a lot to learn about stock investing but with the invention of the internet information is all around us.... and one of the best ways to learn is to share what you know and listen to other person's perspective. Always remember always be humble to learn about stock investing even if you have a PhD degree or MBA.

Again many people are afraid to invest in stock market because they think they are losing when their portfolio is in the read. I remembered when I first made my first investment: mutual fund at Philamlife. At that time it was the beginning of the subprime crisis in the US. I asked the fund manager who was also a former seminarian like me and said that the problem why the market continues to fall is because people panic and starts to withdraw form the stock market thinking that they will lose there hard earn money. In accounting we call this unrealized loss or in layman's term paper loss. This is, as the term says, not real loss. As long as one does not sell a stock which has a value lower than one's purchase cost, one has not lost yet. It only becomes a lost when it is realized by way of selling it below its purchased cost.

That same thing applies to the stock market, remember they are just the same that they are traded in the market but with this difference: no matter how good quality a mango is it will still rot, no matter how bad the times is a stock with good fundamentals will still stand after the storm.

I have this idea why people lose in the stock market, they look at it as gambling thus they do gambling approach by betting all they have on wrong stocks without proper timing, impulsiveness, and limited information. That is why I started blogging about stock investing to share my ideas at the same time attract ideas of others. In a way it is a collaborative way of learning by looking at others perspective.

Though it is not gambling I would like to borrow my friends advice---- trade at your own risk :)