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.”
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.
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
KARACHI STOCK EXCHANGE
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
Different Terms Used in Stock Exchange
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.
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.
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
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.
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
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
The Karachi Stock Exchange (KSE),
Pakistan's largest Stock Exchange.
The Karachi Stock Exchange (KSE) is
the premier stock exchange of the
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.
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.
Top Associated Companies of KSE
Atlas Battery Limited
Atlas Honda Limited
Murree Brewery Company Limited
Shezan International Limited
Allied Bank Limited
Standard Chartered Bank Limited
Akzo Nobel Pakistan Limited
Attock Cement (Pakistan) Limited
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.
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.
To be a leading financial institution, offering efficient,
transparent securities market in the region and
enjoying full confidence
of the investors.
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.
LSE – Associated Companies
Sole depository of
Pakistan for the
First credit rating
as joint venture of
IFC & LSE
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.
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.
“ To develop ourselves into a dynamic and prominent
multi product trading place, a well respected
corporate entity and a valued contributor to the
“ To deliver sustainable value and offer best
possible satisfaction to all stakeholders associated
with our Company. ”
Top 10 Associated Companies
Auto Mobile Parts and Accessories
CABLES & ELEC. GOODS
CLOSE-END MUTUAL FUNDS