This Presentation covers the Share Market / Stock Exchange / Stock Market's History, Functions and Working in Pakistan

1. TOPIC
STOCK MARKET

2. In the 1600s,
The Dutch East India Company employed hundreds of ships to trade
goods around the globe.

3. In order to fund their voyages, the company turned to private
citizens to invest money to support trips in exchange for a
SHAREof the profits.

5. STOCK MARKET IN
MODERN DAYS

6. Stock market is an organized market, where
securities of government , semi government
bodies and corporate enterprises are brought
or sold.
STOCK MARKET

7. Stock Market and Stock Exchange are used
interchangeably, the latter term is generally
a subset of the former. If one says that she
trades in the stock market, it means that
she buys and sells shares on one of the
stock exchange that are part of the overall
stock market
Is the Stock Market and Stock Exchange
same?

8. • The primary market consists of the issuer and the first buyers of the issue.
• The primary market can be a time more volatile than the secondary market
because it is difficult to determine the underlying value of new issues.
Primary Market
Shares
Money
Company Sells to Investor
The first group of investors to whom a new issue of a security is sold.

9. A market where investors purchase securities or assets from
other investors, rather than from issuing companies themselves.
Secondary Market
MONEY SHARES
STOCK EXCHANGE
Investor Sells to Investor

10. Market Conditions
Bull Market Bear Market

11. SELL OR BUY? BUT WHY?

12. Types of Stocks
Shares of Large, established firms with a long
record of profit growth, dividend
payout and a reputation for quality
management, products and
services are referred to as Blue Chip
companies and their stocks are
Blue Chip stocks.
The blue chips carry the highest value.
BLUE CHIPS

13. These stocks are generally issued by the
type of companies with a short or erratic
history of revenues and earnings.
PENNY STOCKS
Penny stocks are low-priced, speculative stocks that are very risky.

14. These above average
dividends tend to be paid
by large, established
companies with stable
earnings
INCOME STOCKS
Income stocks are stocks that pay higher-than-average
dividends over a sustained period.

15. Companies that have good earnings and growth
potential but whose stock prices do not reflect this
are considered value companies.
Investors who buy value stocks believe that these
stocks are only temporarily out of favor and will
soon experience great growth.
VALUE STOCKS
A value stock is a type of stock that is currently selling
at a low price.

16. Why Companies Put Their
Share in Stock Market?
 Paying off debt
 Launching new products
 Expanding into new markets or regions
 Enlarging facilities or building new ones

17. How Do Companies Get
Listed?
 Companies Get Listed by Applying to SME and Full Filling Theirs Requirement.
 A Company having a post issue Paid Up Capital PKR 25 -200 Million.
 At least 20% of post issue paid up capital to be offered ONLY to QIBs and HNWIs
through private placement.
 Minimum five initial subscribers
 Minimum Bid size of each initial subscriber: PKR 1 Million

18. Mandatory requirements for The Company
Financial Statements SME Website Operational Requirements
• Must prepare periodic
Financial statements
• Must audit statements
by CA
• Must publish on the
website
• Must contain basic
business information
• Must contain
Information
Memorandum
• Must post annual, half-
year quarterly
accounts
• Must be in business
for at least three
years
• Must be profitable
for at least two
preceding years
before getting listed

19. COMPANY VALUE & SHARE
A company's total value, is called its market capitalization.
it is represented by the company's stock price multiplied by the
number of shares outstandingGreater the Company Value Greater its Stock Price Will Be

20. Why do People Buy Stocks?
Capital appreciation
which occurs when a stock rises in price
Dividend payments
which come when the company distributes some of its earnings to stockholders
Ability to vote shares and influence the company
Less Liability

21.  Step 1 : Open an account with Stock Broker. And The Requirements are;
 CDC & Sub Account
 Opening Amount Minimum 25 thousand.
 Step 2: Look For The Sector Market You Want To Invest.
 Step 3: Chose the Company , and Look at Its Fundamentals and Debt Ratio.
How a Person can buy Stock?

22. Two Type of Persons in Stock market
INVESTORS TRADERS
• Traders jump in and out of stocks
within weeks, days, even minutes,
with the aim of short-term profits.
• They often focus on a stock’s
technical factors rather than a
company’s long-term prospects.
• Investors have a longer-term
outlook.
• They think in terms of years and
often hold stocks through the
market’s ups and downs.

23.  A dividend is a cash payment from a company's earnings.
 It is announced monthly, quarterly and yearly basis by a company's board of
directors and distributed among stockholders.
 Dividends are a shareholder's share of a company's profits and are given to him
as a part-owner of the company.
 It is transfer to Investor’s Account.
How the Stokeholder take
Benefit?

24. STOCK EXCHANGES IN THE WORLD
• PSX , Pakistan
• Bombay Stock Exchange , India
• NYC Stock Exchange, USA
• Shanghai Stock Exchange, China
• London Stock Exchange, UK

25. SHARE MARKETS IN
PAKISTAN
ISLAMABAD STOCK EXCHANGE
LAHORE STOCK EXCHANGE
KARACHI STOCK EXCHANGE

26. ISLAMABAD
STOCK EXCHANGE
Type Stock exchange
Location Islamabad, Pakistan
Founded 1989
Closed January 11, 2016
Owner Public Limited Company Owned
By Members
Key people Mian Fiaz Afzal, MD
Currency Pakistan Rupee PKR
Commodities Shares & rights, corporate
participation
certificates, futures
No. of listings 261 companies

27. Type Stock exchange
Location Lahore, Pakistan
Founded 1970
Closed January 11, 2016
Owner Lahore Stock Exchange
Key people Aftab Ahmed Khan, CEO
Currency Pakistani rupee
Commodities Shares & rights, corporate
participation
certificates, futures
No. of listings 671 companies
Market cap ₨555.67
Billion (US$5.3 billion)
LAHORE STOCK
EXCHANGE

28. Type Stock exchange
Location Karachi, Pakistan
Founded August 14, 1947; 71 years ago
Closed January 11, 2016
Owner Pakistan Stock Exchange
Key people Nadeem Naqvi, Managing
Director
Currency Pakistani rupee
Commodities Shares & rights, corporate
participation certificates, futures
No. of listings 576 companies
Market cap ₨9.2 trillion (US$87 billion)
Volume ₨1.3 trillion (US$12 billion)
Website psx.com.pk
KARACHI STOCK
EXCHANGE

29. Type Stock exchange
Location Karachi, Pakistan
Founded January 11, 2016; 3 years ago
Owner Government of Pakistan
Key people Mr. Sulaiman S. Mehdi
(Chairman) Mr. Richard Morin
(Managing Director)
Currency Pakistani Rupee
No. of listings 545 (April 04, 2019)
Website www.psx.com.pk
dps.psx.com.pk
PAKISTAN STOCK
EXCHANGE
 Established on 11 January 2016 after
the merger of individual stock
exchanges of Karachi, Lahore and
Islamabad.
 As of February 23, 2018, there are 559
companies listed in PSX and the total
market capitalization is $84 billion