Hey there, future finance gurus! Are you prepping for a PSE PSEi Finance viva? Feeling the pressure? Don't sweat it! This guide is designed to equip you with the knowledge and confidence you need to ace those questions. We'll dive into the core concepts, common questions, and provide you with solid answers. So, buckle up, grab your coffee (or your beverage of choice!), and let's get you ready to shine! The Philippine Stock Exchange (PSE) and its components, like the PSEi (Philippine Stock Exchange index), are key players in the country's financial landscape. Understanding the intricacies of these topics is crucial for any aspiring finance professional. This guide will help you understand the most critical aspects. We'll be going through possible questions, giving you the best answers, and providing you with the confidence that you need to answer. Remember, the key to success in a viva is not just knowing the answers, but also being able to articulate them clearly and concisely. Let's make sure you nail this! This guide will cover everything from the basic definitions to some of the more complex market dynamics. We will cover the most common topics, and get you familiar with some questions. Let's get started!

Understanding the Basics: What You Need to Know

Before we jump into specific viva questions, let's build a solid foundation. Understanding the core concepts of the PSE and PSEi is essential. The Philippine Stock Exchange (PSE) is the primary stock exchange in the Philippines. It's where companies list their shares and where investors buy and sell them. The PSEi, also known as the Philippine Stock Exchange Index, is a benchmark that tracks the performance of the top 30 companies listed on the PSE. It's essentially a snapshot of the overall health of the Philippine stock market. Understanding these things is critical. Knowing the definitions, and what they mean, is a starting point for doing well in your viva. You should familiarize yourself with the basic terminology. Learn about market capitalization, which represents the total value of a company's outstanding shares. Understand what a bull market and a bear market are. A bull market is when the market is rising, and a bear market is when the market is falling. It is that simple. Also, learn about different types of financial instruments, like stocks, bonds, and derivatives, and their respective roles in the market. Knowing this should help you understand any viva question that they throw at you. Remember, a strong grasp of these fundamental concepts will give you a significant advantage when answering viva questions. These concepts are the bread and butter of finance. Make sure that you know these. Knowing these things is a great step in your preparation for the viva.

Key Terms and Definitions to Master

Let's break down some essential terms you'll likely encounter:

• Stocks: Represent ownership in a company.
• Bonds: Debt instruments where investors lend money to an entity (government or corporation).
• Market Capitalization: The total value of a company's outstanding shares.
• Index: A measure of the performance of a group of assets.
• Bull Market: A market characterized by rising prices and investor optimism.
• Bear Market: A market characterized by falling prices and investor pessimism.
• Dividends: A portion of a company's profits distributed to shareholders.
• Earnings per Share (EPS): A measure of a company's profitability per share of stock.

Make sure that you are familiar with these terms and their meanings. Understanding these is the basis for a good performance in the viva, and will give you a great foundation. Going through these terms and familiarizing yourself with them should make you feel confident when answering questions during your viva. Don't underestimate the importance of definitions. It will provide a base for more complicated concepts. Definitions will provide you a good foundation.

Common PSE PSEi Finance Viva Questions and Answers

Alright, let's get to the main course! Here are some common viva questions you might face, along with some suggested answers. Remember to adapt these answers to your own understanding and experiences. Let's get to these questions! The purpose is to provide you with a good understanding of what might be asked, and how to answer. We will go through various questions, and give you answers. You will get an idea of what is asked during the viva. The more you are prepared, the more confident you will be. Knowing these questions will help with your preparation.

1. What is the Philippine Stock Exchange (PSE)?

Answer: The Philippine Stock Exchange (PSE) is the official stock exchange of the Philippines. It's where publicly listed companies can issue shares, and where investors can buy and sell these shares. The PSE is a vital part of the Philippine economy, facilitating capital formation and providing opportunities for investment. It is the primary market in the Philippines.

2. What is the PSEi, and how is it calculated?

Answer: The PSEi is the Philippine Stock Exchange Index. It's a weighted index that tracks the performance of the top 30 companies listed on the PSE. The index is calculated based on the market capitalization of these companies, with adjustments made for free float (the portion of shares available for trading) and other factors. It is a way to measure the market.

3. Explain the difference between primary and secondary markets.

Answer: The primary market is where new securities are issued by companies for the first time, like in an IPO. The secondary market is where existing securities are traded between investors. The PSE is a secondary market. New shares are offered in the primary market, and then they are traded in the secondary market.

4. What are the benefits of investing in the stock market?

Answer: Potential benefits include capital appreciation (the value of your investment increases), the possibility of dividend income, and the opportunity to participate in the growth of the economy. However, it's also important to acknowledge the risks involved, such as market volatility and the potential for losses. The benefits far outweigh the risks.

5. What factors can influence the PSEi?

Answer: Many factors can influence the PSEi, including: changes in interest rates, economic growth figures, corporate earnings reports, investor sentiment, and global market trends. Economic developments, politics, and company performance all play a role.

6. What are the risks of investing in the stock market?

Answer: The main risks include market volatility, the chance of losing money if stock prices decline, company-specific risks (e.g., poor financial performance), and economic risks (e.g., a recession). Investors also face risks due to global events.

7. What is diversification, and why is it important?

Answer: Diversification is spreading your investments across different assets (stocks, bonds, etc.) to reduce risk. It helps to ensure that if one investment performs poorly, your overall portfolio isn't severely impacted. It is an important strategy to reduce risk.

8. Explain the concept of a bull market and a bear market.

Answer: A bull market is characterized by rising stock prices and investor optimism, typically associated with economic growth. A bear market is characterized by falling stock prices and investor pessimism, often linked to economic contraction or uncertainty.

9. What is fundamental analysis?

Answer: Fundamental analysis involves evaluating a company's financial statements, management, competitive landscape, and the overall economic environment to determine its intrinsic value. It is used to determine if the company is a good investment.

10. What is technical analysis?

Answer: Technical analysis involves studying historical price charts and market data to identify patterns and predict future price movements. Technical analysts use indicators and other tools to time their trades. They don't look at the fundamental information of the company.

11. What are some of the main sectors in the PSE?

Answer: The PSE is divided into different sectors, such as financials, industrials, property, services, and mining and oil. Each sector represents a different segment of the economy. Different companies can be found within these sectors.

12. How do you stay informed about market trends?

Answer: Stay informed by reading financial news, following reputable financial websites and analysts, and staying up to date with company reports and economic data releases. You should also follow market trends by watching the ticker and the news.

13. What is a dividend?

Answer: A dividend is a portion of a company's profits that is distributed to its shareholders. Dividends are usually paid out quarterly or annually. These are the earnings of the company.

14. What is the role of the Securities and Exchange Commission (SEC)?

Answer: The SEC regulates the securities market in the Philippines. The SEC ensures that the market is fair, efficient, and transparent. They protect investors from fraud and other illegal activities.

15. What are your investment goals?

Answer: (This is a more personal question, be prepared to talk about what you are going to do). Be prepared to discuss your investment goals. This could include things like long-term growth, retirement planning, or generating income. Be prepared to talk about this.

Tips for Acing Your Viva

Besides knowing the answers, here are some pro tips to help you shine during your viva:

• Prepare in Advance: Don't cram the night before! Start studying early and review the material regularly.
• Practice Answering Questions: Ask a friend or family member to quiz you, or practice answering the questions out loud.
• Be Confident: Even if you don't know an answer perfectly, try to remain calm and confident. It's okay to say