Investing in the Philippines: A Content Analysis of Stocks and Bonds

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Far Eastern University of Manila
Institute of Accounts Business and Finance
Sampaloc, Manila, Philippines

Investing in the Philippines: A Content Analysis of Stocks and Bonds

By
Lagman, Joseph Alexander S.
Capili, Teddy Jon B.
Granados, Jan Jesrique T.
October 9, 2013
D E D I C A T I O N

This Research Paper
is lovingly dedicated
to our respective parents
who have been our constant sources of inspiration.
They have given us the drive and discipline to tackle any task with enthusiasm and determination.
Without their love and support
this project would not have been made possible.

-JASL, TJBC, JJTG 2013
Abstract

Many investors are having a hard time choosing between stocks and bonds. This study will somehow help them decide on which to choose. The purpose of this study is not just to help investors but also to give knowledge to future investors, students, businessmen, and entrepreneurs. The study was conducted in Manila, Philippines and participated by investors age 25 and above. The researchers made use of a Cross-sectional survey. With the results that we have gathered, we have found out that stocks are better than bonds when it comes to the demand of both investments; we hope to find how other factors affect the option of the investors between stocks and bonds.

Table of Contents
Title Page 1
Dedication 2
Abstract 3
CHAPTER I- THE PROBLEM AND ITS BACKGROUND 6
Background of the Study 6
Statement of the Problem 8
Significance of the Study 9
Scope and Limitations 9
CHAPTER II- METHODOLOGY 11
Research Design 11
Population and Sampling Techniques 11
Research Locale 12
Procedures 12
CHAPTER III- PRESENTATION AND ANALYSIS OF DATA 13
Demographic Profile of Respondents 13
Strategies considered to know which is better between stocks/bonds 18
Factors that can affect stock/bond price change 22
How should an investor act/think 24
CHAPTER IV- SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS 26
Summary 26
Conclusion 28
Recommendation 29
BIBLIOGRAPHY 30
APPENDIX 31
Survey Questionnaire 31
Answered Survey Questionnaire 35

Chapter I
The Problem and Its Background
Background of the Study
Stocks and bonds are major forms of investment. Although they represent fundamentally different forms of securities, according to Edwin Thomas, they share a large number of similarities: why they are issued, how and where they are bought and sold and who oversees their trade. Some of these are important, but they all underscore what these two very old financial instruments have in common. Both can be traded in a market for stock traders (stock exchanges) or for bonds in the bonds market. Just like any investment, both carry risks. They are also greatly affected by the economy. The similarities between the two also bring about their difference.

Stocks, also known as shares, are offered at the time of an Initial Public Offering or later equity sales. Kelly, J. (2010) states that the term “stocks” is usually in reference to publically traded equities, rather than private shares in a company which are issued by a corporation or joint-stock companies. Being publically traded means that the firm offers shares of its company to the public. Their capital is raised through the issuance and distribution of shares. Stocks can also be either common stock or preferred stock. Preferred stock is classified into participating and non-participating...