CERTIFIED SECURITIES SPECIALIST COURSE

The Philippine Stock Exchange Certified Securities Specialist Course (PSE Securities Course or the
Program) is a key initiative of the Exchange envisioned to provide continuing education for market
participants. It is a 124-hour program that puts emphasis on financial market theories, valuation
techniques and analysis, investment portfolio management, ethics, regulations, and market dynamics.
The PSE Securities Course was charted and developed by the PSE Capital Markets Development
Division, led by its Market Education Department, and a composite team of noted academicians and
market practitioners.

I. PROGRAM DESIGN

A. Course Description

1. The PSE Securities Course is a certification program.

2. The Program is course- or module-based. It is comprised of 12 subject areas focused on the

equities market and capital market industry. All courses are conducted in succession, of which
some are pre-requisites to other courses.

3. Each course covers an intensive learning process to ensure understanding and appreciation of
the subject. This includes theory discussions, concept application to actual settings, and group
dynamics.

4. Written tests are given at the end of each course while a major comprehensive exam is taken by
the participants after the Program ends.

5. Participants are expected to graduate after passing all exams and completing the Program
requirements.

B. Objectives

1. To provide a continuing education program for the public that will enhance their knowledge about
the capital markets industry, with specific focus on the equities industry.

2. To enhance the investing, trading and analytical skills of investors and industry practitioners.

3. To promote an investment culture among Filipinos and the general public.

C. Profile of Participants

Individuals are encouraged to enroll in the PSE Securities Course if you are:

1. Investor who desires to manage his/her own portfolio.

2. Trading participant or market/industry practicioner who wants to enhance investment, trading, and
analytical skills.

a. Securities salesman/representative
b. Investment adviser
c. Trader
d. Analyst
e. Backroom operations personnel (associated person or compliance officer)

3. An executive, officer, or employee

a. Private corporation or listed company

b. Philippine Stock Exchange
c. Securities and Exchange Commission; and
d. Government financial institutions (i.e., GSIS, SSS, BSP, DBP, Land Bank)

4. Entrepreneurs

5. Academe and students

a. Professors of business related courses

b. Members of the academe
c. Graduate students

6. An individual interested to learn about the capital market industry and equities market or wishes
to jumpstart a career in finance or capital market industry.

D. Learning Incentives

By the end of the Program, participants should gain knowledge and understanding on the following:

1. General economics and how this influence industries and companies.

2. Nature and function of the financial and capital markets.
3. Financial products and instruments, i.e., securities and derivatives.
4. Financial statement and risk analysis.
5. Different approaches on valuating a company and its stock.
6. Equity portfolio management.
7. Concept of asset pricing, risk, and return.
8. Use, reading, and analysis of charts.
9. Statistics and application of statistical techniques.
10. Code of standards and ethics in the asset management industry, and securities regulation.
 E. Program Curriculum

No. of Hours
Course Concept
End-of- Total No. of
Course Title Application No. of Class
No. Lecture Course Learning
and Sessions
Exams Hrs/Course*
Dynamics
1a Organization and Functioning of Financial Markets 6 2 1 9 3
1b The Philippine Stock Market 6 2 1 9 3
2 Review of Statistics 6 2 1 9 3
3 The Analysis and Use of Financial Statements 6 2 1 9 3
4 Macroeconomic and Industry Analysis 6 2 1 9 3
5 Company Analysis and Stock Valuation 6 2 1 9 3
6 Relative Valuation Techniques and Measures of Value Added 6 2 1 9 3
7 Technical Analysis 6 2 1 9 3
8 Equity Portfolio Management and Performance Evaluation 6 2 1 9 3
9 Modern Portfolio Theory and Practice 6 2 1 9 3
10 An Introduction to Derivative Markets and Securities 6 2 1 9 3
11 Ethics in the Professional Asset Management Industry 6 2 1 9 3
12 The Securities Regulation Code 6 2 1 9 3
Review Certification Review and Mock Exam 4 0 0 4 1
Exam Final Comprehensive Exam 0 0 3 3 1
82 hrs. 26 hrs. 15 hrs. 124 hrs. 41 classes

F. Methods of Program Delivery

The Program is delivered by way of a number of teaching methodologies. Lecture discussions, concept
application to actual settings, case studies, simulations, and group dynamics are conducted to ensure
participant’s full understanding and appreciation of the course content. Multi-media presentations are
also used to complement classroom discussions. Moreover, participants have computer laboratory hours
dedicated for hands-on trainings using different financial information software.

Participants are expected to be always prepared as written examinations are given after the end of each
course.

On top of these, participants are required to attend at least two (2) PSE-organized seminars and
activities such as stock market orientations, industry and economic briefings, and Exchange and
brokerage visits. The PSE and partner school will announce the schedules.
 G. Course Requirements

To be conferred as Certified Securities Specialist, participants should fulfill the following requirements:

1. Should attend at least 80% of the total Learning Hours required by the Program. Participants are
discouraged to be absent on any particular training day. The participant is responsible for the
missed activities, graded reports, or examinations.

If the participant fails to attend, an excuse letter should be submitted to the program facilitator or
training staff. Further, in any event when the participant fails to complete one or any academic
module/s, he/ she should attend the missed module/s on the next run of the course in the same
partner school. A participant is only allowed to complete the missed module/s within one year
from the end date of the run he/she is initially enrolled in.

2. Successfully submitted and passed all assignments, End-of-Course Tests, and the
Comprehensive Examination. All modules are graded except for the pre-requisite courses, if any.

3. Participation in the PSE Stock Trading Game Tournament. Participants are required to join the
tourney as top players will be given merits and awards.

4. Participation and attendance to two (2) or more PSE-organized events such as seminars,
briefings, and events.

5. Completed and submitted all required academic records of the Program.

6. Achieved the passing rates required by the Program.

 II. ENROLLMENT

A. Registration and Enrollment

There are two ways to register for the PSE Securities Course:

1. On-line Registration
a. Log on to the websites of PSE and partner school.
b. Register to the PSE Certified Securities Specialist Course.

2. On-Site Registration
a. Visit our partner schools nearest you during business hours (Mon-Fri, 9:00 AM to 5:00 PM)
and look for the Securities Course Secretariat.
b. Request for a PSE Certified Securities Specialist Course Application Form.
c. Accomplish the form and submit it to the Securities Course representative.

3. Requirements
a. Accomplished PSE Certified Securities Specialist Course Application/Registration Form; and
b. One (1) copy of 2x2 picture.

III. SCHOLARSHIP

The PSE Securities Course offers scholarship grants (PSE Scholars) for a limited number of participants
per course run.

A. Scholarship*

Successful applicants for scholarship will be granted a fully-paid, full-course scholarship, inclusive of
educational materials, meals, and student kit.

Classification and Eligibility

1. Scholarship for PSE Employees

a. Regular employee of the PSE;

b. Has been formally nominated by his/her Department and/or Division Head;
c. Submitted the accomplished PSE Certified Securities Specialist Course
Application/Registration Form and Scholarship Nomination Form;
d. Successfully passed the screening process by the PSE Management Committee, including
but not limited to written and interview evaluation. Selection criteria include, among others,
the applicant’s interest in the program, work schedule, and availability of facilities; and
e. Secured the approval and endorsement of the PSE Management Committee.

Terms and Conditions

1. Once accepted, enrolled PSE scholars are expected to comply with the Program’s policies, which
include attendance and academic requirements, among others.
 2. Students who have exhibited excellent performance throughout the course shall be given special
mention and/ or award in the graduation ceremony.

3. Upon completion of the course, students will receive their certificate recognized by the PSE and
other market participants. Hence, the title “Certified PSE Securities Specialist” is attained, which will
serve as an additional credential.

4. All PSE employees who qualify are required to successfully complete and pass the program. In
case they decide to quit, they will be obliged to pay 50% of the total course fee.

5. Those who have completed and passed the Program are required to continue serving the PSE
equivalent to the training bond mandated by the PSE Human Resources and Administration
Department. Effective January 2008, the revised training bond is equivalent to Php30,000.00 per
month. Should they decide to resign before required bond tenure is completed, they will also be
obliged to pay 10% of the total course fee.

*Offered only to PSE and SCCP employees only.

IV. ADMISSION

A. Student Kit

A Student Kit will be distributed on the first day of class. The Student Kit includes:

1. Official Student Identification Card;

2. Course Card;
3. Recommended textbook/s (optional and if available);
Investment Analysis and Portfolio Management by Reilly and Brown;
4. Handout Organizer;
5. Program Primer; and
6. Student Handbook.

B. Student Orientation

Before the start of the first course, a short orientation will be conducted by the Program Facilitators to
formally welcome the participants and acquaint themselves about the Program (overview, and what to
expect and what is expected from participants), house rules to observe, and other important matters that
will ensure the smooth run of the course.
 V. CONDUCT OF CLASSES

A. Schedule and Venue

1. Regular classes are held every Monday, Wednesday, and Friday (6:00 PM – 9:00 PM).

2. Each course is given a total of eight (8) Learning Hours, devoted for classroom lectures and
concept application activities, and sixty (60) minutes for the End-of Course Examinations. .

Time MWF
PM 5:30 - 6:00 Registration and Attendance
6:00 - 7:30 Class Lecture (MW) / Activities (F)
7:30 - 8:00 Dinner Break
8:00 - 9:00 Class Lecture (MW) / Exam (F)

B. Examinations

To measure the participant’s understanding of the subjects being discussed, the Program requires
participants to take and successfully pass all examinations of their enrolled courses, inclusive of pre-
requisite subject/s, if offered.

The Program has two types of examinations:

1. End-of-Course Examinations (Given after the eight (8) Learning Hours of each course); and

2. Final Comprehensive Examination (Given after the last course of the Program).

The passing rate for the End-of-Course Examination is 75% while the Final Comprehensive Exam is
70% or the equivalent Quality Point Index rating.

C. Concept Application and Dynamics

Participants of the Program are given Concept Application and Dynamics activities like case studies,
simulations, group work, as well as site visits, to complement classroom lectures that are theoretical in
nature. This will ensure participant’s full comprehension of the topics being discussed.
 VI. GRADING SYSTEM

Participants will be graded according to the following:

Activity Percentage
(%) to Total
Attendance 10%
Class participation / Recitation 20%
Activities/Projects/Assignments/ 20%
End-of-Course Examination
Certification Examination 50%
TOTAL 100%

The passing rate for the End-of-Course Examination is 75% while for the Final Comprehensive or
Certification Exam is 70% or the equivalent Quality Point Index rating.

The PSE Securities Course follows the Quality Point Index (QPI) for its grading system. For PSE-UST
CCPED runs, the QPI Grading System of UST shall apply.

The PASSING RATE of the Program for the Final Grade is 75% (or its QPI equivalent).

VII. FACULTY

The PSE Securities Course houses a topnotch pool of faculty and experts from the academe and the
capital market industry. Lecturers of the Program are master’s and/or doctorate degree holders and
industry practitioners with solid experience in the capital market. Among its lecturers* are:

1. Organization and Functioning of Financial Markets

Francisco Liboro
President, PCCI Securities Brokerage Corporation

The Philippine Stock Market

PSE Market Education Department

2. Review of Statistics
Rey Nograles
Chairman, Capital Markets Institute of the Philippines

3. The Analysis and Use of Financial Statements

Gavin Lee
Assistant Professor, Department of Accounting and Finance
University of the Philippines College of Business Administration

4. Macroeconomic and Industry Analysis

Aaron Say
Bangko Sentral ng Pilipinas

5. Company Analysis and Stock Valuation

Gonzalo Bongolan
Former President, Home Guaranty Corporation
6. Relative Valuation Techniques and Measures of Value Added
Raul Ruiz
Chief Financial Adviser, Consortium Builders’, Inc.

7. Technical Analysis
Leo Quinitio
Assistant Vice President, Capital Markets Development Division
The Philippine Stock Exchange, Inc.

8. Equity Portfolio Management and Performance Evaluation

April Lynne Tan
Vice President for Research, Citiseconline.com, Inc.

9. Modern Portfolio Theory and Practice

10. An Introduction to Derivative Markets and Securities
Tommy Tiu
Professor, UST College of Commerce and Business Administration

11. Ethics in the Professional Asset Management Industry

Ernesto Francisco
Social Security System

12. The Securities Regulation Code

Atty. Buenaventura Sanguyo Jr.
Office of the General Counsel,
The Philippine Stock Exchange, Inc.

*Pool of lecturers is still subject to change. Participants will be informed if there is any.