Stock Exchange

Stock Exchange of Pakistan

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 Indiacompany” in 18th century . In India it was establishedin 1850 with 22 stock brokers opposite to town hallBombay .This stock exchange is known as oldest stockexchange of Asia.

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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

Bull

Bear

Stage (Deer)

Lame Duck

BULLHe 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.

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.

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.

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.

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

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.

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.

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

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

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.

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.

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

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.

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. ”

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Mission

“ 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

AUTOMOBILE ASSEMBLER

BONDS

CABLES & ELEC. GOODS

CEMENT

CHEMICAL

CLOSE-END MUTUAL FUNDS

COMMERCIAL BANKS

ENGINEERING

FERTILIZER

Registration Process of New Investor