Investment education is not a typical part of the curriculum in the Philippines. It is not a subject commonly offered in colleges or universities, leaving many Filipinos uncertain about how to grow their savings and ensure a stable financial future. Recognizing this gap, GCash has introduced GStocks PH in partnership with AB Capital Securities, Inc. This platform enables users to conveniently invest in companies listed on the Philippines Stock Exchange, making investing more accessible to a wider audience.
Why should you start investing in stocks?
Stock investments are a great way to earn more from the money that you make. Others may consider it a risky and tedious process, but the benefits far outweigh the risks.
In comparison to keeping your money in a savings account, investing gives you the potential for higher returns and the opportunity to grow your earnings over time. If you’re in it for the long-term, stock investments will be a rewarding experience..
Many think that keeping their excess cash in a savings account is safe. But in reality, you are not able to preserve its value and put up a fight against inflation. Simply put, if your surplus cash is earning less than the increase in the prices of goods, soon enough the money in your savings account will not be enough to purchase the same amount of goods or services.
This is why you need to invest, to potentially earn a higher return than inflation.
What are stocks?
A stock represents a share of ownership in a company. As part owner of a company, the stockholder is entitled to a portion of the company’s earnings and assets.
How do stocks provide income?
There are two ways to make money in the stock market: the first one is through dividends or that portion of the company’s earnings that they give out to their shareholders; the second is through price appreciation. Some investors can choose to sell their stock at a price higher than their purchase price to realize a profit.
Stock Investments: the traditional way
In the Philippines, the only way to purchase stocks is through a licensed broker. The stockbroker helps you open a stock brokerage account, which provides you with access to the Philippine Stock Exchange. However, numerous account opening requirements and steep minimum opening balances oftentimes prevent many from taking the first step towards investing.
Should you meet the minimum amount, you will have to call your broker to place your buy or sell your orders. The broker is also in charge of sending you your account statements so that you know your outstanding stock positions.
