One of the concerns of those wanting to open a stock market trading account is the instrument's
liquidity. Are stocks liquid assets? To someone who's contemplating on getting into the stock market, the question that readily comes to mind is
will they be able to get their money back should they need it? Can they easily withdraw their funds should they decide that the stock market is not the instrument they'd wish to use to grow their money?
What are LIQUID ASSETS?
Collins' dictionary defines LIQUID ASSETS as things that one owns
which can be quickly turned into CASH if necessary. Given this definition, I'm quite certain that stocks are very liquid. That is,
you can easily sell your shares and get the cash. Compared to owning real estate, or a rare book collection, the chance of you being able to find a buyer easily (ex. within the day) for your shares is higher compared to finding a buyer to purchase your house and lot or that rare book collection. In the stock market, all one has to do to convert the asset to CASH is TO MATCH a BID PRICE.
As in the picture above, if you wish to sell IMMEDIATELY and ensure that your transaction gets matched readily, all you have to do is check the BID column, and set your ASK price TO MATCH the BID price. In the BID column shown, some buyers are willing to pay PhP17.08 for a CNPF share. IF you are willing to SELL your CNPF shares for that amount, then simply type in the said price when you make your SELL ORDER. Of course, as we are here to make a profit, we all wish to SELL at a much higher price. NOW, selling for a much higher price is an entirely different matter if your concern is disposing of your stocks immediately. It is when you need the cash badly that you will probably end up selling at a loss. While you don't want that, it still covers your concern on the ease of turning back your stocks to cash. When your SELL order becomes successful, then the amount from that sale will go directly to your Cash Balance.
So, you want to withdraw your COL Funds?
Withdrawal of your COL funds is relatively easy. All you have to check first is availability of amount in your CASH BALANCE. If you have funds available, and you make your withdrawal request before 12 noon of a trading day, you'll likely get your cash the next day. HOWEVER, if you don't have available cash in your CASH BALANCE, then you need to SELL your position/s. Upon your sale, amount is credited to your CASH BALANCE the same day, but you have to wait for 3 days to get your cash from the proceeds of your stock sale.
To process fund withdrawal, simply fill out a
Withdrawal Request Form.
You can download the form by simply going to "Forms" under the HOME page.
Completely fill out the needed details and send form via
fax at (632) 634-6958, or
e-mail to withdrawals@colfinancial.com addressed to COL's Accounting Department. If you prefer to pick up the check in COL's business center, simply submit the original filled out form. As for me, my preference is via e-mail. As soon as you send the request via e-mail, you'll receive a Notice of Receipt of Withdrawal Request e-mail from COL.
In the e-mail, you will be notified when your Payout Date will be. You'll get the cash the next day if you have readily available Cash Balance, or 3 days after a stock sale. Once payout is made, you'll receive another e-mail from COL informing you that CASH has been debited(deducted) from your COL account.
That same day you received the Debit Adjustment Notice e-mail from COL, you should see the same amount of cash credited to your bank account of choice (the one you enrolled with COL usually).
See, how simple it is? I hope that this put you at ease regarding access to your hard-earned money, and hopefully you can now decide to finally open a stock market trading account with COL Financial Inc. From the same link given above, you can download the required application forms for account opening. Initial funding can be as small as PhP5,000.
Note that there are other online stock trading platforms that you can use, such as Philstocks or the trading platforms of BPI and Metrobank. I'm only presenting COL as because it's the one I'm currently using and NO, I'm not getting paid to endorse COL.
Anyway, HAPPY STOCK INVESTING FOLKS!
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