When it comes to investing, placing money in emerging markets can be very exciting. As emerging markets such as the Philippines grow, there can be quite a lot of money to be made on the upside. However, because corporations in the Philippines trade on an entirely different exchange, it can be tough to find ways to invest in those corporations. Here's how to buy shares of a corporation in the Philippines.
Research the Philippine Stock Exchange. The Philippine Stock Exchange, or PSE, as it is also known, lists several different types of stocks that an investor may buy. These include common stock, preferred stock, warrants and Philippine Deposit Receipts. Companies may issue some of these types of stock or all of them for purchase.
Locate a brokerage that allows investors to invest in emerging markets. Many online brokers now allow their clients to invest on exchanges throughout the world. In this way, stock investing has become a global business. Search for a broker who is authorized to buy and sell securities on the Philippine Stock Exchange.
Open a brokerage account. Many brokerages require a minimum amount of money to open an account. This amount can range from a few hundred dollars to a couple of thousand. Select a broker that allows emerging market investment and fund the account.
Search for companies to invest in. The Philippine Stock Exchange works in the same manner that the United States exchanges work. Select companies that you wish to invest in based on a host of factors such as earnings, potential for growth, market cap and financial reports.
Place an order through your brokerage. Buying a stock on the Philippine Stock Exchange is done in the same manner as investing in the United States exchanges. Select the company, write in the ticker symbol, determine how many shares you wish to purchase and select a purchase order type. Purchase order types include market order, where you buy the shares instantly at market price, or a limit order, where you buy the shares at a price limit.
Watch and manage your Philippine Stock Exchange portfolio. As the prices of companies rise and fall, treat the emerging market portfolio like any other portfolio you may hold. Sell the stocks to lock in profits or cut losses.
The brokerage account will automatically convert the currency prices.
- The brokerage account will automatically convert the currency prices.
- Taste of Philippines image by Michael May from Fotolia.com