The lowest price a seller is currently willing to accept for a share.
Why it matters
The ask helps show immediate selling interest and is one side of the bid-ask spread.
The highest price a buyer is currently willing to pay for a share.
Why it matters
The bid helps show immediate buying interest and is one side of the bid-ask spread.
Company And Financial Terms
Capital Expenditure
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Money spent to buy, build, improve, or maintain long-term assets.
Why it matters
Large capital spending may support future growth but can reduce available cash in the short term.
Dividend Terms
Declaration Date
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The date on which a company’s board formally announces a dividend.
Why it matters
The announcement normally includes the dividend amount and important eligibility and payment dates.
Corporate Action Terms
Dilution
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An increase in the number of outstanding shares that reduces each existing shareholder’s percentage ownership.
Why it matters
New shares may raise useful capital, but existing investors may own a smaller portion of the company afterward.
Example
If outstanding shares rise from 100 million to 125 million, an investor who buys no additional shares owns a smaller percentage.
Dividend Terms
Dividend Yield
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The annual dividend per share divided by the share price, expressed as a percentage.
Why it matters
A high yield may be attractive, but it can also result from a falling share price or a dividend that may not be sustainable.
Company And Financial Terms
Earnings per Share
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The portion of a company’s profit attributable to each outstanding common share.
Why it matters
It makes profit easier to compare on a per-share basis, but can also change when the number of shares changes.
Dividend Terms
Ex-dividend Date
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The date from which a share trades without the right to receive the declared dividend.
Why it matters
An investor generally needs to own the shares before the ex-dividend date to qualify, subject to market settlement rules.
Corporate Action Terms
FOO — Follow-on Offering
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A public offering of additional shares by a company that is already listed on a stock exchange.
Why it matters
A follow-on offering can raise additional capital for the company and may increase the number of shares outstanding, which can affect existing shareholders through dilution.
Example
A listed company may sell additional shares through a follow-on offering to fund expansion, acquisitions, or other corporate needs.
Company And Financial Terms
Gross Profit
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Revenue remaining after the direct cost of producing goods or delivering services is deducted.
Why it matters
It helps show whether the company can sell its products or services at a healthy markup.
Company And Financial Terms
Impairment
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A reduction in the recorded value of an asset when it is no longer expected to be worth its carrying amount.
Why it matters
An impairment can reduce reported profit and may signal that an investment or asset performed worse than expected.
Disclosure Terms
Insider Transaction
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A reported purchase, sale, or other transaction in company securities by a director, officer, or other covered insider.
Why it matters
It shows what an insider did, but it does not by itself prove that the share price will rise or fall.
Market Terms
IPO — Initial Public Offering
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The first time a private company offers shares to the public and becomes listed on a stock exchange such as the Philippine Stock Exchange.
Why it matters
An IPO allows investors to buy shares in a company as it enters the public market. It can also raise new capital for the company.
Example
A Philippine company may conduct an IPO and list its shares on the PSE so public investors can buy and sell them.
How easily shares can be bought or sold without causing a large price change.
Why it matters
Low-liquidity shares may be harder to sell quickly and may have wider bid-ask spreads.
The process of having a company's shares admitted for trading on a stock exchange such as the Philippine Stock Exchange.
Why it matters
Once listed, the company's shares can normally be bought and sold by investors through the stock exchange.
Example
After completing the required listing process, a company's shares may begin trading on the PSE.
Company And Financial Terms
Margin
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A percentage showing how much of revenue remains after a particular level of cost or expense.
Why it matters
Margins help investors see whether the company is becoming more or less efficient.
Market Terms
Market Capitalization
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The company’s share price multiplied by its total outstanding shares.
Why it matters
It measures the market value of the company’s equity, not whether the shares are cheap or expensive.
Disclosure Terms
Material Information
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Information that could reasonably influence an investor’s decision or affect the market price of a security.
Why it matters
Listed companies are expected to disclose material information promptly under applicable rules.
Company And Financial Terms
Net Income
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The company’s remaining profit after expenses, interest, and taxes have been deducted.
Why it matters
It shows whether the company ultimately earned or lost money during the period.
Company And Financial Terms
Operating Cash Flow
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Cash generated or used by the company’s normal business operations.
Why it matters
A company can report accounting profit while generating weak operating cash flow.
Company And Financial Terms
Operating Income
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Profit generated from normal business operations before interest and taxes.
Why it matters
It helps separate the performance of the main business from financing and tax effects.
Dividend Terms
Payment Date
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The date on which an approved dividend is scheduled to be paid to eligible shareholders.
Why it matters
It tells qualified shareholders when the cash or shares are expected to be distributed.
Disclosure Terms
Quarterly Report
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A financial report covering a company’s performance and financial position for a three-month period and usually the year-to-date period.
Why it matters
It helps investors track changes in revenue, profit, cash flow, debt, and business performance during the year.
Dividend Terms
Record Date
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The date on which the company checks its shareholder records to determine who is entitled to a dividend or other corporate action.
Why it matters
It is part of determining eligibility, but investors should also understand the ex-dividend date.
Disclosure Terms
Related-Party Transaction
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A transaction between the company and a person or entity connected to the company, its owners, directors, or management.
Why it matters
These transactions deserve attention because the parties may not be dealing with each other independently.
Company And Financial Terms
Revenue
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The money a company earns from selling goods or services before expenses are deducted.
Why it matters
Revenue shows the scale of business activity, but growing revenue does not automatically mean growing profit.
Corporate Action Terms
Rights Offering
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An offer allowing existing shareholders to buy newly issued shares, usually in proportion to their current holdings.
Why it matters
Shareholders may need to decide whether to participate, sell the rights when possible, or accept possible ownership dilution.
Disclosure Terms
SEC Form 17-C
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A current report used by Philippine public companies to disclose material events or information.
Why it matters
It is a common source for important company announcements outside regular quarterly and annual reports.
Corporate Action Terms
Share Buyback
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A company’s purchase of its own shares from the market.
Why it matters
A buyback can reduce outstanding shares, but investors should also consider the price paid and the company’s alternative uses of cash.
Corporate Action Terms
SRO — Stock Rights Offering
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An offer that gives existing shareholders the right to buy additional shares, usually at a specified price and according to an entitlement ratio.
Why it matters
A stock rights offering allows existing shareholders to participate in a company's capital raising and may help them maintain their proportional ownership if they exercise their rights.
Example
If the entitlement ratio is 1 new share for every 5 shares owned, an investor holding 5,000 shares may be entitled to subscribe to 1,000 new shares.
