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Stock Exchange

Stock Exchange

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Published by Xahra Mir

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Published by: Xahra Mir on Jun 07, 2011
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10/30/2012

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‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Definition Importance Roles Origin and History of Stock Exchange Stock market in the subcontinent Lahore Stock Exchange Karachi Stock Exchange Islamabad Stock Exchange Performance 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 Exchange
‡ Mobilizing 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 & History
‡ Europe: Trading centers occurred in late 16th century. ‡ USA : Started around early 1780 s

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 Exchange
‡ Second largest Stock Exchange

‡ Initially 83 members & now 152

‡ Market share 12-16%

Lahore Stock Exchange
Offers trading in equities & derivatives through: ‡ Regular Markets ‡ CFS Markets ‡ Odd Lot Markets ‡ IPO Markets ‡ Future Market (Deliverable & Cash Settled fixtures)

Important Developments of LSE
‡ 1st 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 LSE
‡ Increasing 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 Exchange
‡ Incorporated on 25th October 1989 ‡ 119 members ‡ 93 are Corporate ‡ 26 Individual ‡ 241 Listed companies

Performance
‡ Basic component of strong Financial System

‡ In economy it has great role

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

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