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Stock Exchange

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Stock Exchange

  1. 1. Stock Exchange of Pakistan
  2. 2. WHAT IS STOCK EXCHANGE? Definition of Stock Exchange: The securities regulation act of 1956 defined stock exchange as “an association , organization , or a individual which is established for the purpose of assisting , regulating , and controlling business in buying ,selling and dealing in securities.”
  3. 3. HISTORY OF STOCK EXCHANGE The stock exchange was established by “East India company” in 18th century . In India it was established in 1850 with 22 stock brokers opposite to town hall Bombay .This stock exchange is known as oldest stock exchange of Asia.
  4. 4. Largest stock exchanges IN THE WORLD  LONDON STOCK EXCHANGE  NEW YORK STOCK EXCHANGE  SHANHAI STOCK EXCHANGE  AUSTRALIA STOCK EXCHANGE  TOKYO STOCK EXCHANGE  HONG KONG STOCK EXCHANGE  TORONTO STOCK EXCHANGE  DEUTSCHE BORSE  BM&F BOVESPA  KARACHI STOCK EXCHANGE
  5. 5. FEATURES OF STOCK EXCHANGE It is an organized market It is a securities market It is an important constituent of capital market i.e., market for long-term finance It is a voluntary association of persons desirous of dealing in securities Stock exchange is a voluntary association, its membership is not open to everybody
  6. 6. Different Terms Used in Stock Exchange Bull Bear Stage (Deer) Lame Duck
  7. 7. BULL He is speculator who expects the future raise in price of securities he buys the securities to sell them at future date at the higher price. He is called as bull because his activities resembles as a bull , as the bull tends to throw its victims up in the air through its horns. In simple the bull speculator tries to raise the price of securities by placing a big purchase orders.
  8. 8. BEAR He is speculator who expects future fall in prices , he does an agreement to sell securities at future date at the present market rate . He is called as bear because his altitude resembles with bear , as the bear tends to stamp its victims down to earth through its paws . In simple the bear speculator forces of prices of securities to fall through his activities.
  9. 9. STAG {DEER} He operates in new issue of market . He is just like a bull speculator . He applies large number of shares in the issue market only by paying , application money , allotment money. He is not a genuine investor because , he sells the allotted securities at the premium and makes profit. In simple he is cautious in his dealings . He creates an artificial rise in prices of new shares and makes profits.
  10. 10. LAME DUCK He is speculator when the bear operator finds it difficult to deliver the securities to the consumer on a particular day as agreed upon , he struggles as a lame duck in fulfilling his commitment . This happens when the prices do not fall as expected by the bear and the other party is not willing to postpone the settlement to the next period.
  11. 11. Stock Exchanges In Pakistan There are three stock exchange in Pakistan:  Karachi Stock Exchange(KSE)-Sep 18, 1947  Lahore Stock Exchange(LSE)-October 1970  Islamabad Stock Exchange(ISE)-October 25, 1989
  12. 12. KSE Introduction  The Karachi Stock Exchange (KSE) was established on Sep 18, 1947.  Its Started work with 5 companies with a paid-up capital of Rs. 37 million Rupees.  The Karachi Stock Exchange (KSE), Pakistan's largest Stock Exchange.  The Karachi Stock Exchange (KSE) is the premier stock exchange of the country.
  13. 13.  There are 580 companies listed in KSE.  The total market capital is US$73.1 billion - (22.01.2015).  Current Managing Director is Nadeem Naqvi.
  14. 14. Vision  To be a leading financial institution, offering efficient, fair and transparent securities market in the region and enjoying full confidence of investors and listed securities issuers.  To strive to provide quality and value-added services to the capital market in an efficient, transparent and orderly manner, compatible with international standards and best practices. Mission
  15. 15. Top Associated Companies of KSE  Atlas Battery Limited  Atlas Honda Limited  Murree Brewery Company Limited  Shezan International Limited  Agritech Limited  Allied Bank Limited  Standard Chartered Bank Limited  Akzo Nobel Pakistan Limited  Attock Cement (Pakistan) Limited
  16. 16. Lahore Stock Exchange  It is Pakistan's second largest stock exchange in the country.  There are 671 companies is enlisted in LSE.  The market capitalization stood at $ 36.44 billion.
  17. 17. History of LSE  Lahore Stock Exchange is Pakistan's second largest stock exchange after the Karachi Stock Exchange (KSE). It came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore. The LSE was the first stock exchange in Pakistan to use the internet and currently 50% of its transactions are carried out via internet.
  18. 18. VISION To be a leading financial institution, offering efficient, fair and transparent securities market in the region and enjoying full confidence of the investors. Mission To strive to provide quality and value-added services to the capital market in an efficient, transparent and orderly manner, compatible with international standards and best practices.
  19. 19. LSE – Associated Companies Associated Companies Central Depository Company of Pakistan Sole depository of shares National Clearing Company of Pakistan Clearing & settlement company in Pakistan for the three exchanges National Commodities Exchange Ltd. First automated and regulated commodities Exchange Pakistan Credit Rating Agency First credit rating agency of Pakistan formed as joint venture of IFC & LSE Facilities Management Co. Operating company for LSE’s buildings
  20. 20. Islamabad Stock Exchange  ISE is the youngest of the three stock exchanges of Pakistan  There are 261 companies is enlisted in ISE.  The market capitalization stood at Rs. 2,275.00 billion.
  21. 21. History of ISE  Islamabad Stock Exchange is the youngest of the three stock exchanges of Pakistan. The Islamabad Stock Exchange (ISE) was incorporated as a guarantee limited Company on October 25, 1989 in Islamabad Capital territory of Pakistan with the main object of setting up of a trading and settlement infrastructure, information system, skilled resources, accessibility and a fair and orderly market place that ranks with the best in the world. The purpose for establishment of the stock exchange in Islamabad was to cater to the needs of less developed areas of the northern part of Pakistan. It was licensed as a stock exchange on January 7, 1992.
  22. 22. Vision “ To develop ourselves into a dynamic and prominent multi product trading place, a well respected corporate entity and a valued contributor to the economy. ” 23 Mission “ To deliver sustainable value and offer best possible satisfaction to all stakeholders associated with our Company. ”
  23. 23. Top 10 Associated Companies  Auto Mobile Parts and Accessories  AUTOMOBILE ASSEMBLER  BONDS  CABLES & ELEC. GOODS  CEMENT  CHEMICAL  CLOSE-END MUTUAL FUNDS  COMMERCIAL BANKS  ENGINEERING  FERTILIZER
  24. 24. Registration Process of New Investor

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