bond market index.pptxjijowaluriowehfhkj

sd

1. MARKET INDICES FOR STOCKS AND BONDS

2. STOCK MARKET INDEX - A measure of a portion of the stock market.

3. EXAMPLE: The PSE Composite Index or PSEi. It is composed of 30 companies carefully selected to represent the general movement of market prices. The up and down movement in percent change over time can indicate how the index is performing. Other indices are SECTOR INDICES, each representing a particular sector.

4. STOCK INDEX TABLES Val - Value of the index Chg - Change of the index value from the pevious trading day % Chg - ratio of Chg to Val ( i.e., Chg divided by Val)

5. Example: 52weeks HI 52weeks LO STOCK DIV YLD % VOL (100s) CLOSE NETCHG 120 105 GGG 3.5 2.8 4050 118.50 -0.50 16 12 HHH 0.9 1.1 1070 15.80 0.10

6. For stocks JJJ and KKK 1 . W hat was the lowest price of the stock for the last 52 weeks? 2. What was the dividend per share last year? 3. What was the annual percentage yield last year? 4. What was the closing price in the last trading day? 5. What was the closing price the day before the last trading day?

7. ANSWER For stock GGG For stock HHH 1. P105.00 1 . P12.00 2. P3.50 2 . P0.90 3. 2.8% 3 . 1.1% 4. P118.50 4.P15.80 5. Closing price 5 . Closing price (before the last trading day) (before the last trading day) P118.50+P0.50= P119.00 P15.80-P0.10=P15.70

8. BUYING OR SELLING STOCKS BID SIZE- The number of individual buy orders and the total numbers of shares they wish to buy. BID PRICE- The price these buyers are willing to pay for the stock. ASK PRICE- The price of the sellers of the stock are willing to sell the stock. ASK SIZE- How many individual sell orders have been placed in the online platform and the total number of shares these sellers wish to sell.

9. BID ASK/OFFER SIZE PRICE PRICE SIZE 122 354,100 21.6000 21.8000 20,000 1 9 81,700 21.5500 21.9000 183,500 4 42 456,500 21.5000 22.1500 5,100 1 2 12,500 21.4500 22.2500 11,800 4 9 14,200 21.4000 22.3000 23,400 6 For example, the first row under BID means that there are a total of 122 traders who wish to buy a total of 354,100 shares at P21.60 per share. On the other hand, the first row under ASK means that just 1 trader is willing to sell his/her 20,000 shares at a price of P21.80 per share.

10. BOND MARKET INDICES A bond index or bond market index is a method of measuring the value of a section of the bond market. It is computed from the prices of selected bonds (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

11. A composite index of bonds such as government, corporate, high-yield, emerging market, leveraged or mortgage bonds. In similar manner to the stock market index, the index measures the market performance over periods of time. Unlike stock indices, the bond market index is affected by interest rates and maturity dates.

12. BOND MARKET INDICES BOND MARKET INDEX Is a measure of a portion of the bond market.