The Philippine Stock Exchange (PSE) is a self-regulatory organization that provides and ensures a fair, efficient, transparent and orderly market for the buying and selling of securities. The exchange also offers a conve- nient and efficient venue in raising capital to support the growth of businesses.
What is the history of the Philippine Stock Exchange?
- The Philippine Stock Exchange (PSE) is one of the oldest stock market exchanges in Asia. It was established in 1927 (PSE 2015a; Visda et al. 2013). At that time, the general market activities in the PSE were regarded as insignificant and essentially speculative (Tan 1981).
What is the role of PSE in stock market?
- The main role of PSE is to bring together companies which aim to raise capital through the issue of new securities. Through the listing of their share in the stock exchange, companies can have easier access to funds. The PSE facilitates the selling and buying of the issued stocks and warrants.
What is the PSE Composite Index?
- One of the main indices monitored in the credit ratings is the PSE Composite Index or PSEi, which is a major stock market index tracking the performance of the most representative companies listed on The Philippine Stock Exchange. It is a free-float, capitalization-weighted index.
What is the market structure of the stock market in Philippines?
- The market structure of the stock market is built around the PSE, with the support of the Philippine Central Depository and the Securities Clearing Corporation of the Philippines for clearance and settlement of trading activities (IMF 2004; PSE 2015a).
The PSE facilitates the selling and buying of the issued stocks and warrants. It provides a suitable market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities.