It’s back to basics once again for our readers and OFW UsapangPiso Forum members.
Why go back to basics? Because only less than 1% of the Filipino population are investing. And it is presumed that almost half of that 1% are plainly putting their money in financial instruments such as stocks, funds, and bonds without even knowing the basic principles and concepts of investing. We really need a lot of catching up to do to reach out to the rest of the country.
What Are Stocks and What is the Stock Market?
Filipinos are starting to be aware about the stock market and are hearing about the good benefits of investing in it for the long-term. I have been receiving the same question “What are stocks and how to invest in it?” every single day since the middle of March this year until this morning. Proof that the broadcast and print media have the power to promote financial literacy among our people.
Here’s our friend and forum mentor Aya Laraya with his simple and brief explanation of the basics of stock market investing in Filipino (Tagalog-English).
What Are Bonds?
Government and corporations use this method of debt investment to finance their various projects. I once wrote about bonds and even promoted it to our OFW’s medium-term investment portfolios when it was still offering higher return rates last year.
However, amidst the booming economy of the Philippines, banks and government institutions cut their rates in their financial products this year. The Philippine Government 3-year bond yields even plunge to all-time low of 1.625% coupon returns.
Now let’s hear a good voice from Investopedia discussing about this debt instrument called Bonds.
What’s the Difference Between Stocks, Bonds, and Funds?
And to summarize what stocks, bonds, and funds are, let me share with you a video clip from InvestingAnswers.com.
The video clip also clearly differentiates the meaning of index, mutual, and exchange-traded funds.
Did you enjoy our short learning session today? What are the terms and concepts that you still don’t understand? Join our OFW UsapangPiso Facebook Group now for FREE to learn more about the different financial instruments and how to build your wealth from our group coaches and mentors.
Continue receiving information on the basics of saving and investing for your future by subscribing to BurnGutierrez.Com for FREE.
P.S. 1. Four years ago, I joined the TrulyRichClub. It was one of the best decisions of my life. Founded by Bo Sanchez, its purpose is to “help good people become rich”. Because of the guidance I get from the Club, I’m now investing in the Stock Market (and mutual funds, bonds, UITF’s) each month! It’s amazing how I’m personally growing in my finances. I’m inviting you to join the Club too. If you’re interested, then join the TrulyRichClub NOW! And email me at firstname.lastname@example.org if you have any questions.
P.S. 2. Learn How To Earn Through Larry Gamboa’s Real Estate System. Real Estate Mentor Larry Gamboa is giving a Seminar on June 1, 2013 on how he buys foreclosed properties or properties from “motivated sellers” and turn them around into rental properties or quick sales. If you’re interested to learn his system, click here now!
photo credit: 401(K)2013