57306663-Stock-Exchange.ppt

Topics to be CoveredDefinitionImportanceRolesOrigin and History of Stock ExchangeStock market in the subcontinentLahore Stock ExchangeKarachi Stock ExchangeIslamabad Stock ExchangePerformance of Stock Market in Pakistan.

Definition

Stock Exchange is a market where shares and securities are bought and sold by the members/brokers on behalf of their clients and also on their accounts.

Importance of Stock ExchangeMobilizing national resources

Promote economic development

Promoting investment climate

Capital formation

Importance of Stock Exchange

Growth and expansion of industries

Considered as the barometers of economy of their countries

Roles Raise capital for businesses.

Mobilizing savings for investment

Facilitating company growth

Redistribution of wealth

Roles Regulatory role leading to improve standards of corporate governance management standards and efficiency

Create investment opportunities for small investors.

Raising Goverment Capital.

Barometer of the economy as the share prices rise and fall depending on market forces

Origin & HistoryEurope: Trading centers occurred in late 16th century.

USA : Started around early 1780s

Stock Markets In Subcontinent

East India Company started this business.

Bombay Stock Exchange (1850)

Lahore Stock Exchange in (1934)

Stock Exchange in Pakistan

Lahore Stock ExchangeSecond largest Stock Exchange

Initially 83 members & now 152

Market share 12-16%

Lahore Stock ExchangeOffers trading in equities & derivatives through:Regular Markets

CFS Markets

Odd Lot Markets

IPO Markets

Future Market (Deliverable & Cash Settled fixtures)

Important Developments of LSE1st to take automation of trading

Direct investment in : (PACRA),(CDC),(NCCPL),(NCEL)

Active member of (FEAS) & (SAFE)

Interest based trading

Enhanced geographical outreach

Important Developments of LSEIncreasing number of corporate members

I.T infrastructure

LSE training institute

Karachi Stock Exchange Biggest & most Liquid Stock Exchange of Pakistan

754 companies were listed in 2007

Foreign buying have been very active

Growth & Progress of KSE 2009 Listed companies are 654

Listed capital is Rs.705.873 billion (US$ 10,388.90 million).

Membership strength at 200

Market capitalization of Rs. 2.561trillion (US$ 30.5 billion)

Islamabad Stock ExchangeIncorporated on 25th October 1989

119 members

93 are Corporate

26 Individual

241 Listed companies

PerformanceBasic component of strong Financial System

In economy it has great role

KSE-100 index share gained market capitalization of Rs.4791 Billion