History of Philippine stock exchange The emergence of the Philippine Stock Exchange (PSE) in 1993 comes from the

vision to establish a single unified Exchange in the Philippines that aims to contribute to the development of the Philippine capital market. The establishment of the PSE was a result of the unification process integrating the Manila Stock Exchange (MSE) and the Makati Stock Exchange (MKSE) to establish a singular bourse for the Philippines. Paramount to the institution of the PSE was to ensure integrity, uphold high moral and ethical standards, and to imbibe professionalism amongst its employees, its Member Brokers and throughout the securities industry. Both exchanges had witnessed the political and economic upheavals of the Philippines and coming together as one under a unified bourse is a culmination of their efforts and success to uplift the country and partake in the global business community. MANILA STOCK EXCHANGE On a historical perspective, the MSE was established on 8 August 1927 by five American businessmen, namely: W. Eric Little, Gordon W. Mackay, John J. Russell, Frank W. Wakefield and W.P.G. Elliot. Their vision was "to serve the public, to maintain high standards of commercial honor and integrity among it Members and to promote and inculcate just and equitable principles of trade and business." The first office was located in at the Insular Life Building on Plaza Cervates, Binondo and transferred to Pasig in 1992.

MAKATI STOCK EXCHANGE The MKSE was organized on 27 May 1963 by five businessmen, namely: Hermenegildo B. Reyes, Bernard Gaberman, Eduardo Ortigas, Aristeo Lat and Miguel Campos. Due to several difficulties encountered from those who opposed its creation, operations started only on 16 November 1965 and was located Insular Life Building in Makati, the financial district of Metropolitan Manila and later moved to its new offices at the Makati Stock Exchange Building along Ayala Avenue on 17 September 1971. Although the two exchanges remained as separate entities, they basically were trading the same listed issues. The idea to unite the two exchanges and have it managed by a professional group became a compelling vision of the government headed by President Fidel V. Ramos. The idea was geared towards the development of a more efficient capital market. PHILIPPINE STOCK EXCHANGE The effort of President Ramos to attain this vision was capped by the incorporation of the Philippine Stock Exchange, Inc. on 14 July 1992. To consolidate logistics and to hasten development, the leaders of both bourses agreed on December 23 of the same year to unify the Philippine Stock Exchange, Inc. On 20 March 1993, the first election of the PSE Board of Governors was held during the Second General Membership Meeting. Fifteen Governors were elected, of which fourteen were member-brokers of the Exchange. The 15th slot was reserved for the PSE President, who is a non-broker. Mr. Eduardo C. Lim was chosen as the first Chairman of the Board and Atty. Eduardo de los Angeles was the first PSE President. Securities and Exchange Commission (SEC) granted the PSE its license to operate as a securities exchange on 4 March 1994. It simultaneously cancelled the licenses of MSE and the MKSE. The PSE established its home at the Philippine Stock Exchange Centre, Ortigas Centre, Pasig City and at the PSE Plaza, Ayala Avenue, Makati City. With these two sites, the PSE instituted a twin trading floor belonging to a single Exchange. On 24 March 1994, the One Price-One Market exchange was achieved through the successful link-up of the two existing trading floors. From then on, the PSE established its true identity as the sole Exchange of the Philippines. On 13 November 1995, the Unified Trading System (UTS) was implemented using the single-order-book system on a MakTrade software where all orders are posted and matched in one computer. The PSE has actively been participating with other exchanges worldwide promoting the standards, policies, and future directions of the global securities industry. It is with distinction that the PSE was accepted as the 37th fullpledged member of the Federation International des Bourses de Valeurs orInternational Federation of Stock Exchanges (FIBV) on 16 October 1995. Recently, the PSE was conferred member to theAssociation of National Numbering Agencies (ANNA) on 15 November 1999. To magnify its pivotal role in propelling the development of the Philippine capital market, PSE has successfully converted into a stock corporatioon last 08 August 2001. A simple ceremony held at the PSE trading floor in Makati marked the Exchage's compliance with the Securities Regulation Code (SRC) whose provisions included the mandated demutualization of the local bourse one year after its enactment on August 08 2002. http://www.pse.ph/html/AboutPSE/history.html

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LISTED COMPANY A. SORIANO CORPORATION ABOITIZ EQUITY VENTURES, INC. ABOITIZ POWER, CORP. ABS-CBN BROADCASTING CORPORATION ABS-CBN HOLDINGS CORPORATION - Phil. Deposit Receipts ALLIANCE GLOBAL GROUP, INC. APEX MINING COMPANY, INC. "A" ATLAS CONSOLIDATED MINING & DEVELOPMENT CORPORATION AYALA CORPORATION AYALA LAND, INC. BANCO DE ORO UNIVERSAL BANK BANK OF THE PHILIPPINE ISLANDS BELLE CORPORATION BENPRES HOLDINGS CORPORATION CHEMREZ TECHNOLOGIES, INC. CHINA BANKING CORPORATION CITISECONLINE.COM, INC. CYBER BAY CORPORATION DIGITAL TELECOMMUNICATIONS PHILIPPINES, INC. DMCI HOLDINGS, INC. EEI CORPORATION FIRST GEN CORPORATION FILINVEST LAND, INC. FIRST PHILIPPINE HOLDINGS CORPORATION GINEBRA SAN MIGUEL, INC. GLOBE TELECOM, INC. GMA HOLDINGS, INC. (PDR) GMA NETWORK, INC. (COMMON) HOLCIM PHILIPPINES, INC. INTERNATIONAL CONTAINER TERMINAL SERVICES, INC. JG SUMMIT HOLDINGS, INC. JOLLIBEE FOODS CORPORATION LEISURE & RESORTS WORLD CORPORATION LEPANTO CONSOLIDATED MINING COMPANY "A" LEPANTO CONSOLIDATED MINING COMPANY "B" MANILA ELECTRIC COMPANY "A" MANILA WATER COMPANY, INC. MANULIFE FINANCIAL CORP. MEGAWORLD CORPORATION METRO PACIFIC CORPORATION METROPOLITAN BANK & TRUST COMPANY NATIONAL REINSURANCE CORPORATION OF THE PHILIPPINES PAXYS, INC. PETROENERGY RESOURCES CORP. PETRON CORPORATION PHILEX MINING CORPORATION PHILIPPINE LONG DISTANCE TELEPHONE COMPANY "Common" PHILIPPINE NATIONAL BANK PHILIPPINE RACING CLUB, INC. PILIPINO TELEPHONE CORPORATION PNOC Energy Development Corporation RIZAL COMMERCIAL BANKING CORPORATION ROBINSON`S LAND CORPORATION SAN MIGUEL CORPORATION "A" SAN MIGUEL CORPORATION "B" SECURITY BANK CORPORATION SEMIRARA MINING CORPORATION

SYMBOL ANS AEV AP ABS ABSP AGI APX AT AC ALI BDO BPI BEL BPC COAT CHIB COL CYBR DGTL DMC EEI FGEN FLI FPH GSMI GLO GMA7 GMAP HLCM ICT JGS JFC LR LC LCB MER MWC MFC MEG MPC MBT NRCP PAX PERC PCOR PX TEL PNB PRC PLTL EDC RCB RLC SMC SMCB SECB SCC

BOARD LOT 1000 1000 1000 100 100 1000 1000 100 10 1000 100 100 10000 1000 1000 10 100 10000 10000 1000 1000 100 1000 100 100 10 1000 1000 1000 1000 1000 100 1000 10000 10000 100 1000 10 1000 10000 100 1000 1000 1000 1000 10000 10 100 1000 1000 1000 100 100 100 100 100 100

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SM INVESTMENTS CORP. SM SM PRIME HOLDINGS, INC. SMPH SOUTHEAST ASIA CEMENT HOLDINGS, INC. CMT SUN LIFE FINANCIAL, INC. SLF UNION BANK OF THE PHILIPPINES UBP UNIVERSAL ROBINA CORPORATION URC VISTA LAND & LIFESCAPES, INC. VLL The Philippine Stock Exchange, Inc. ("PSE" or the "Exchange") is a private organization that provides and ensures a fair, efficient, transparent and orderly market for the buying and selling of securities. PSE traces its roots from the country's two former bourses: the Manila Stock Exchange ("MSE") and the Makati Stock Exchange ("MkSE"). Founded in March 1927, the MSE was the first stock exchange in the Philippines and one of the oldest in Asia. Originally housed in downtown Manila, the MSE moved to Pasig City in 1992. The MkSE, on the other hand, was established in May 1963 and became the second bourse to operate in the country. It was based in Makati City, a budding business district during those days. While trading the same listed issues, MSE and MkSE remained separate entities for almost thirty years. December 23, 1992 marked a milestone for the Philippine capital market when the MSE and MkSE were unified to become the PSE. At present, PSE maintains two trading floors -- one in Makati City and another in its head office in Pasig City. Even with two trading floors, PSE maintains a "one-price, one-market" Exchange through the MakTrade System. This is a single-order-book system that tallies all orders into one computer and ensures that these orders match with the best bid/best offer regardless of which floor the orders were placed. MakTrade likewise allows PSE to facilitate the trading of securities in a broker-to-broker market through automatic order and trade routing and confirmation. It also keeps an eye on any irregularity in the transactions with its market regulation and surveillance databases. In June 1998, the Securities and Exchange Commission conferred to the PSE the status of a Self-Regulatory Organization, which allows the PSE to implement its own rules and impose penalties on erring trading participants and listed companies. In 2001, or a year after the Securities Regulation Code of 2000 was enacted, the PSE was reorganized and transformed from a non-stock, member-governed organization into a shareholder-based, revenue-generating corporation. Along with this rebirth came the separation of the Exchange's ownership and trading rights, opening the doors for new market participants. On December 15, 2003, PSE shares were listed by way of introduction. The Philippine Central Depository, established in March 1995, provides the securities settlement system for both debt and equity instruments of the Exchange. Its computerized book-entry-settlement system paved the way for a safe and efficient scripless trading. Assuming the role of settlement coordinator and risk manager for broker transactions as well as administrator of the trade guaranty fund is the Securities Clearing Corporation of the Philippines ("SCCP"). SCCP is the clearing and settlement agency for depository eligible trades in the Exchange. Companies are listed in the PSE on the First Board, Second Board or the Small and Medium Enterprises Board. To help the investing public keep track faster of industry performance, listed companies are classified into the following sectors: Financial, Industrial, Holding Firms, Property, Services, and Mining and Oil. More importantly, PSE has adopted an online daily disclosure system to improve the transparency of listed companies and ensure full, fair, timely and accurate disclosure of material information from all listed companies. To address public demand for speedy access to information on the securities market, the PSE's website, www.pse.com.ph, provides comprehensive market data, stock quotations, dividend declarations, trading activities, and other pertinent information on the PSE, trading participants, listed companies and other institutions. http://www.pse.com.ph/ 2. Stocks listed in the PSE are classified into six sectors, namely Financials, Industrial, Holding Firms, Property, Services, and Mining & Oil. Companies are classified according to the business that generates the bulk of their revenues. Companies engaged in banking, investments, and finance are under the Financials sector. The Industrialsector includes companies active in electricity, energy, power & water; food, beverage & tobacco; construction, infrastructure & allied services; chemicals; and diversified industrials. Diversified companies engaged in three or more businesses classified in different industries, any of which does not dominate revenue, are classified under Holding Firms. Companies engaged in land and property development are classified under the Property sector. The Services sector includes companies involved in media, telecommunications, information technology, transportation services, hotel & leisure, education, and diversified services. The Mining & Oil sector includes companies engaged in mineral extraction and in oil exploration, extraction and production.

10 1000 1000 10 100 100 1000

4. African Stock Exchanges GhanaStock Exchange, Ghana Johannesburg Stock Exchange, South Africa The South African Futures Exchange(SAFEX), South Africa Asian Stock Exchanges Sydney Futures Exchange, Australia Australian Stock Exchanges, Australia Shenzhen Stock Exchange, China Stock Exchange of Hong Kong,Hong Kong Hong Kong Futures Exchange,Hong Kong National Stock Exchange of India,India Bombay Stock Exchange, India Jakarta Stock Exchange, Indonesia Indonesia NET Exchange,Indonesia Nagoya Stock Exchange,Japan Osaka Securities Exchange, Japan Tokyo Grain Exchange, Japan Tokyo International Financial Futures Exchange (TIFFE), Japan Tokyo Stock Exchange, Japan Korea Stock Exchange, Korea Kuala Lumpur Stock Exchange, Malaysia New Zealand Stock Exchange, New Zealand Karachi Stock Exchange, Pakistan Lahore Stock Exchange, Pakistan Stock Exchange of Singapore (SES), Singapore Singapore International Monetary Exchange Ltd. (SIMEX), Singapore Colombo Stock Exchange, Sri Lanka Sri Lanka Stock Closings, Sri Lanka Taiwan Stock Exchange, Taiwan The Stock Exchange of Thailand, Thailand European Stock Exchanges Vienna Stock Exchange, Austria EASDAQ, Belgium Zagreb Stock Exchange, Croatia Prague Stock Exchange, Czech Republic Copenhagen Stock Exchange, Denmark Helsinki Stock Exchange, Finland Paris Stock Exchange, France LesEchos: 30-minute delayed prices, France NouveauMarche, France MATIF, France Frankfurt Stock Exchange, Germany Athens Stock Exchange, Greece Budapest Stock Exchange, Hungary Italian Stock Exchange, Italy National Stock Exchange of Lithuania,Lithuania Macedonian Stock Exchange, Macedonia Amsterdam Stock Exchange, The Netherlands Oslo Stock Exchange, Norway Warsaw Stock-Exchange, Poland Lisbon Stock Exchange, Portugal Bucharest Stock Exchange, Romania

Russian Securities Market News, Russia Ljubljana Stock Exchange,Inc., Slovenia Barcelona Stock Exchange, Spain Madrid Stock Exchange, Spain MEFF: (Spanish Financial Futures & Options Exchange), Spain Stockholm Stock Exchange, Sweden Swiss Exchange, Switzerland Istanbul Stock Exhange, Turkey FTSE International (London Stock Exchange), United Kingdom London Stock Exchange: Daily Price Summary, United Kingdom Electronic Share Information, UnitedKingdom London Metal Exchange,United Kingdom London InternationalFinancial Futures and Options Exchange, United Kingdom Middle Eastern Stock Exchanges Tel Aviv Stock Exchange, Israel Amman Financial Market, Jordan Beirut Stock Exchange, Lebanon Palestine Securities Exchange, Palestine Istanbul Stock Exhange, Turkey North American Stock Exchanges Alberta Stock Exchange, Canada Montreal Stock Exchange, Canada Toronto Stock Exchange, Canada Vancouver Stock Exchange, Canada Winnipeg Stock Exchange, Canada Canadian Stock Market Reports, Canada Canada Stockwatch, Canada Mexican Stock Exchange, Mexico AMEX, United States New York Stock Exchange (NYSE),United States NASDAQ, United States The Arizona Stock Exchange, United States Chicago Stock Exchange, United States Chicago Board Options Exchange, United States Chicago Board of Trade, United States Chicago Mercantile Exchange, United States Kansas City Board of Trade, United States Minneapolis Grain Exchange, United States Pacific Stock Exchange, United States Philadelphia Stock Exchange, United States South American Stock Exchanges Bermuda Stock Exchange, Bermuda Rio de Janeiro Stock Exchange, Brazil Sao Paulo Stock Exchange, Brazil Cayman Islands Stock Exchange, Cayman Islands Chile Electronic Stock Exchange, Chile Santiago Stock Exchange, Chile Bogota stock exchange, Colombia Occidente Stock exchange, Colombia Guayaquil Stock Exchange, Ecuador Jamaica Stock Exchange, Jamaica Nicaraguan Stock Exchange, Nicaragua Lima Stock Exchange, Peru Trinidad and Tobago Stock Exchange, Trinidad and Tobago

Caracas Stock Exchange, Venezuela Venezuela Electronic Stock Exchange, Venezuela http://www.tdd.lt/slnews/Stock_Exchanges/Stock.Exchanges.htm

5.

a. Bear market
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market. A prolongedperiodin whichinvestmentprices fall, accompanied by widespread pessimism. If the period of fallingstockprices is short and immediately follows a period of rising stock prices, it is instead called acorrection.Bearmarkets usually occur when theeconomyis in arecessionandunemploymentishigh, or wheninflationis rising quickly. The most famous bearmarketinU.S. history was theGreat Depressionof the 1930s. The term "bear" has been used in afinancialcontextsince at least the early 18th century. While its origins are unclear, the term may have originated fromtraderswhosoldbearskinswith theexpectationsthat prices would fall in the future. opposite ofbull market.
[6]

A bear market is a general decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear and pessimism. According to The Vanguard Group, "While theres no agreed-upon definition of a bear market, one generally accepted measure [7] is a price decline of 20% or more over at least a two-month period." o Examples A bear market followed the Wall Street Crash of 1929 and erased 89% (from 386 to 40) of the Dow Jones Industrial Average's market capitalization by July 1932, marking the start of the Great Depression. After regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half. Another long-term bear market occurred from about 1973 to 1982, encompassing the 1970s energy crisis and the high unemployment of the early 1980s. Yet another bear market occurred between March 2000 and October 2002. The most recent example occurred between October 2007 and March 2009.

B. Bullish market Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. It's difficult to predict consistently when the trends in the market will change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets. The use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market. A prolongedperiodin whichinvestmentprices rise faster than theirhistoricalaverage.Bullmarkets can happen as aresultof aneconomicrecovery, an economicboom, orinvestorpsychology. The longest and most famous bullmarketis the one that began in the early 1990s in which theU.S.equity marketsgrew at their fastest pace ever. opposite ofbear market. When the market is going up - bulls are in control. When bulls are in control - its called a bullish market. Bulls are BUYERS - Bears are SELLERS - so when there are more BUYERS (bulls) - its called a Bullish Market - when there are more SELLERS (bears) - its called a Bearish Market. Bullish market is also referred to as uptrend market or you can simply say the market is bullish. In Forex, during the bullish market - the base currency is gaining value and the quote currency is losing value.

For EUR/USD - if this pair is bullish that means EURO is gaining value while USD is losing value. Since Currencies are traded in pairs the negative effect of one currency has be a positive for other. Example: There are TWO scenarios where any given currency pair could be bullish. A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gains). A bullish trend in the stock market often begins before the general economy shows clear signs of recovery. It is a win-win situation for the investors. Examples India's Bombay Stock Exchange Index, SENSEX, was in a bull market trend for about five years from April 2003 to January 2008 as it increased from 2,900 points to 21,000 points. A notable bull market was in the 1990s and most of the 1980s when the U.S. and many other stock markets rose; the end of this time period sees the dot-com bubble. There are two classic market types used to characterize the general direction of the market. Bull markets are when the market is generally rising, typically the result of a strong economy. A bull market is typified by generally rising stock prices, high economic growth, and strong investor confidence in the economy. Bear markets are the opposite. A bear market is typified by falling stock prices, bad economic news, and low investor confidence in the economy. A bull market is a financial market where prices of instruments (e.g., stocks) are, on average, trending higher. The bull market tends to be associated with rising investor confidence and expectations of further capital gains. A market in which prices are rising. A market participant who believes prices will move higher is called a "bull". A news item is considered bullish if it is expected to result in higher prices.An advancing trend in stock prices that usually occurs for a time period of months or years. Bull markets are generally characterized by high trading volume. Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. Bear markets are the opposite--stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation. A key to successful investing during a bull market is to take advantage of the rising prices. For most, this means buying securitiesearly, watching them rise in value and then selling them when they reach a high. However, as simple as it sounds, this practice involves timing the market. Since no one knows exactly when the market will begin its climb or reach its peak, virtually no one can time the market perfectly. Investors often attempt to buy securities as they demonstrate a strong and steady rise and sell them as the market begins a strong move downward. Portfolios with larger percentages of stocks can work well when the market is moving upward. Investors who believe in watching the market will buy and sell accordingly to change their portfolios.Speculators and risk-takers can fare relatively well in bull markets. They believe they can make profits from rising prices, so they buy stocks, options, futures and currencies they believe will gain value. Growth is what most bull investors seek. What is a Bear Market? The opposite of a bull market is a bear market when prices are falling in a financial market for a prolonged period of time. A bear market tends to be accompanied by widespread pessimism.A bear market is slang for when stock prices have decreased for an extended period of time. If an investor is "bearish" they are referred to as a bear because they believe a particular company, industry, sector, or market in general is going to go down. Runoff market printing of an exchange's closing prices on a ticker tape after the market has closed. The runoff may take a long time when trading has been very heavy and the tape has fallen far behind the action. reduction of a loan portfolio as loans are paid off at scheduled maturity dates, or when borrowers prepay their loans. Loan portfolio runoffs accelerate when interest rates are declining, and borrowers refinance at lower rates.

Ticker tape was the earliest digital electronic communications medium, transmitting stock price information over telegraph lines, in use between around 1870 through 1970. It consisted of a paper strip which ran through a machine called a stock ticker, which printed abbreviated company names as alphabetic symbols followed by numeric stock transaction price and volume information.

Paper ticker tape started to become obsolete in the 1960s, as television and computers were increasingly used to transmit financial information. The concept of the stock ticker lives on, however, in the scrolling electronic tickers seen on brokerage walls and on financial television networks. A computerized device that relays financial information to investors around the world, including the stock symbol, the latest price and the volume on securities as they are traded. 3

stock certificate printed document which states the name, incorporation state, and date of incorporation, the registered number of the certificate, the number of shares of stock in a corporation the certificate represents, the name of the shareholder, the date of issuance, and the number of shares authorized in the particular issue of stock, signed by the President and Secretary of the corporation (or with facsimile signatures). On the reverse side of the certificate is a form for transfer of the certificate to another person. After transfer the new owner should register the change of ownership with the corporation. A physical document that gives the person or company listed a portion of ownership in a publiclytraded company. Stock certificates often contain a great deal of information, such as the owner's name, a right attached to the ownership (such as a warrant), or something else entirely. Stock certificates are vitally important as one may use them in court to prove a fact alleged. In corporate law, a stock certificate (also known as certificate of stock or share certificate) is a legal document that certifies ownership of a specific number of stock shares (or fractions thereof) in a corporation. In large corporations, buying shares does not always lead to a stock certificate (in a case of a small number of shares purchased by a private individual, for instance). Usually only shareholders with stock certificates can vote in a shareholders' general meeting. Sometimes a shareholder with a stock certificate can give a proxy to another person to allow them to vote the shares in question. Voting rights are defined by the corporation's charter and corporate law. Stock certificates are generally divided into two forms: registered stock certificates and bearer stock certificates. A registered stock certificate is normally only evidence of title, and a record of the true holders of the shares will appear in the stockholder's register of the corporation.