Pakistan stock exchange

1. STOCK EXCHANGE
AND
ITS FUNCTIONS

2. CONTENT
1. MARKET STRUCTURE
2. FINANCIAL MARKETS
3. STOCK EXCHANGE
4. BULL AND BEAR MARKET
5. PAKISTAN STOCK EXCHANGE (PSX)
6. FUNCTIONS OF STOCK EXCHANGE

3. MARKET STRUCTURE
Market
Infrastructure
Clearing and
settlement
Education and
training
Investors
predictors
Rating agency
Financial market
Money market Capital market
Security market
Stock exchange
Non-security
market

4. FINANCIAL MARKETS
 MONEY MARKET
The money market is the global financial market for short term borrowing and
lending. The money market where short term obligations such as treasury bills ,
commercial paper etc. are bought and sold.
 CAPITAL MARKET
The market for relatively long term financial instruments. For example shares ,
bonds/TFCs.
Types of capital market:
• Primary market: a market where shares are bought and sold for the first
time (a new issues market).
Initial Public Offering(IPO)
• Secondary markets: are those where already issued shares are bought
and sold. i.e. Pakistan Stock Exchange(PSX)

5. WHAT IS STOCK EXCHANGE
 The stock exchange is an organized
second hand market for the purchase
and sale of corporate securities.
 In this regulated market, securities
are bought and sold for investment
and speculation.
 The securities traded on a stock
exchange consist of shares,
debentures, and bonds issued by
companies and government to the
public.

6. BULL AND BEAR MARKET
BULL MARKET BEAR MARKET
 ECONOMY EXPANDING
 UNEMPLOYMENT FALLING OR
STABLE
 PRICES GOING UP
 OPTIMISM
 STOCKS RISING
 ECONOMY CONTRACTING
 UNEMPLOYMENT RISING
 PRICES GOING DOWN
 PESSIMISM
 RECESSION APPROACHING

7. PAKISTAN STOCK EXCHNAGE (PSX)
The Pakistan Stock Exchange (PSX) came into inception in January 11, 2016 when
the Government of Pakistan decided to merge the three large exchange markets of the
country into one combined market.
Karachi Stock Exchange
• FOUNDED: August 14, 1947; 72 years ago
• CLOSED: January 11, 2016
• OWNER: Pakistan Stock Exchange
• No. Of Listing Companies: 576 companies
Lahore Stock Exchange
• FOUNDED: 1970
• CLOSED: January 11, 2016
• OWNER: Lahore Stock Exchange
• No. Of Listing Companies: 671 companies
Islamabad Stock Exchange
• FOUNDED: 1989
• CLOSED: January 11, 2016
• OWNER: Public Limited Company owned by members
• No. Of Listing Companies: 261 companies

8. PAKISTAN STOCK EXCHNAGE (PSX)
Type Public
Location Karachi, Pakistan
Founded January 11, 2016; 3 years ago
Owner China Financial Futures Exchange (17%)
Key people Sulaiman Mehdi (Chairman)
Rafiq Umar (CEO)
Currency Pakistani Rupee
No. of listings 545 (April 04, 2019)
Market cap ₨7.6 trillion (US$54 billion) (April 04, 2019)
Volume ₨3.37 billion (US$24 million) (April 04, 2019)
Indices KSE 100 Index
KSE-30 Index
KMI 30 Index
Website www.psx.com.pk
dps.psx.com.pk

9. FUNCTIONS OF STOCK MARKET
1. Economic Barometer
2. Pricing of Securities
3. Safety of Transactions
4. Contributes to Economic
Growth
5. Spreading of Equity Cult
6. Providing Scope for
Speculation
7. Liquidity
8. Better Allocation of Capital

10. THE END
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