HISTORY OF KARACHI STOCK EXHCHANGE:

Karachi Stock Exchange is the biggest and most liquid exchange and has been declared the Best
Performing Stock Market of the World for the year 2002. As on March 31, 2006, 663 companies
were listed with A market capitalization of Rs. 3,257.062 billion (US $ 54.28) having listed
capital of Rs. 486.489 billion (US $ 8.11 billion). The KSE 100 Index closed at 11485.90 on
March 31, 2006.

KSE is well into the 4th year of being one of the Best Performing Markets of the world as
declared by the international magazine “Business Week”. Similarly the USA newspaper, USA
Today, termed Karachi Stock Exchange as one of the best performing bourses in the world.

Interesting to note that on google trends when you type in the term "stock exchange" the most
popular place for typing the term stock exchnage is the city of Karachi.

Disputes between investors and members of the Exchange are resolved through deliberations of
Arbitration Committee of the Exchange.

KSE began with a 50 shares index. As the market grew a representative index was needed. On
November 1st, 91 the KSE-100 was introduced and remains to this day the most generally
accepted measure of the Exchange. Karachi Stock Exchange 100 Index (KSE-100 Index) is a
benchmark used to compare prices overtime, companies with the highest market capitalization
are selected. To ensure full market representation, the company with the highest market
capitalization from each sector is also included.

In 95 the need was felt for an all share index to reconfirm the KSE-100 and also to provide the
basis of index trading in future. On August the 29th, 95 the KSE all share index was constructed
and introduced on September 18, 1995.

http://www.kse.com.pk/ official website of stock exchange

Karachi is the capital of the province of Sindh, and the most populated city in Pakistan. It is
located on the coast of the Arabian Sea in southeastern Pakistan, northwest of the Indus Delta.
The city is the financial and commercial centre as well as the largest port of Pakistan. Population
- Census (1998) 9,339,023, Estimate (2006) 11,969,284. Karachi is located in south Pakistan,
directly north of the Arabian Sea. The city covers 3527 Square KMs. Karachi mostly comprises
flat or rolling plains with hills on the western and northern boundaries of the urban sprawl. Two
rivers pass through the city: the Malir River and the Lyari River.

Karachi is the financial capital of Pakistan. It accounts for a lion's share of Pakistan's GDP and
generates about 65 per cent of the national revenue. Most of Pakistan's public and private banks
have head offices in Karachi. Nearly all of these are located on I.I Chundrigar Road (the Karachi
Wall Street) which is fast becoming home to the high rise headquarters of major corporations.
The most notable of these are the Habib Bank Plaza, the tallest building in Pakistan before it was
surpassed by Muslim Commercial Bank's MCB Tower. The Port of Karachi and nearby Port
Qasim are the two main seaports of Pakistan, and Quaid-e-Azam International Airport is the
largest airport in Pakistan.

HISTORY OF KARACHI STOCK EXCHANGE BY WIKIPEDIA:

The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh, Pakistan. Founded in
1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings.
Its current premises are situated on Stock Exchange Road, in the heart of Karachi's Business District.

History
Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared the
“Best Performing Stock Market of the World for the year 2002”. As of Dec 8, 2009, 654
companies were listed with a market capitalization of Rs. 2.561 trillion (US$ 30.5 billion) having
listed capital of Rs. 705.873 billion (US$ 10.615 billion). The KSE 100TM Index closed at
9645.71 on June 19, 2010.By 30 july total market capitalisation of the KSE reached Rs2.95
trillion,approximately 35 billion dollars.

Business
Trading

The exchange has pre-market sessions from 09:15am to 09:30am and normal trading sessions
from 09:30am to 03:30pm. The karachi stock exchange has undergone a considerable deal of
downturn partly due to global financial crisis and partly on account of domestic troubles. It
remained suspended in excess of 4 months and resumed normal trading only on December 15,
2008. The KSE 100 Index and KSE 30 Index after hitting the low around mid January has now
rebounced and recovered 20-25% till March 12, 2009. By 30 july 2010 total market
capitalisation of the KSE reached Rs2.95 trillion,approximately 35 billion dollars.

Growth
The KSE is the biggest and most liquid exchange in Pakistan and in 2002 it was declared as the
“Best Performing Stock Market of the World” by Business Week. As of December 8, 2009, 652
companies were listed with the market capitalization of Rs. 2.561 trillion (US$ 30.5 Billion)
having listed capital of Rs. 717.3 billion (US$ 12 billion). On December 26, 2007, the KSE 100
Index reached its highest value ever and closed at 14,814.85 points.

Foreign buying interest had been very active on the KSE in 2006 and continued in 2007.
According to estimates from the State Bank of Pakistan, foreign investment in capital markets
total about US$523 Million. According to a research analyst in Pakistan, around 20pc of the total
free float in KSE-30 Index is held by foreign participants.

KSE has seen some fluctuations since the start of 2008.

Karachi stock exchange Board of Directors has recently (2007) announced plans to construct a
40 story high rise KSE building, as a new direction for future investment.

Disputes between investors and members of the Exchange are resolved through deliberations of
the Arbitration Committee of the Exchange.

KSE began with a 50 shares index. As the market grew a representative index was needed. On
November 1, 91 the KSE-100 was introduced and remains to this day the most generally
accepted measure of the Exchange. Karachi Stock Exchange 100 Index (KSE-100 Index) is a
benchmark used to compare prices overtime, companies with the highest market capitalization
are selected. To ensure full market representation, the company with the highest market
capitalization from each sector is also included.

In 1995 the need was felt for an all share index to reconfirm the KSE-100 and also to provide the
basis of index trading in future. On August the 29th, 1995 the KSE all share index was
constructed and introduced on September 18, 1995.

2008 and 2009 Karachi Stock Exchange Crisis

 April 20 : Karachi Stock Exchange achieved a major milestone when KSE-100 Index crossed the
psychological level of 15,000 for the first time in its history and peaked 15,737.32 on 20 April
2008. Moreover, the increase of 7.4 per cent in 2008 made it the best performer among major
emerging markets.
 May 23: Record high inflation in the month of May, 2008 resulted in the unexpected increase in
the interest rates by State Bank of Pakistan which eventually resulted in sharp fall in Karachi
Stock Exchange.
 July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani
share prices.
 July 16 : KSE-100 Index dropped one-third from an all-time high hit in April, 2008 as rising
pressure on shaky Pakistan's coalition government to tackle Taliban militants exacerbates
concern about the country's economic woes. [9]
 August 18: KSE 100 Index rose more than 4% after the announcement of the resignation of
President Pervez Musharraf but Credit Suisse Group said that Pakistan's Post-Musharraf rally in
Stock Exchange will be short-lived because of a rising fiscal deficit and runaway inflation. [10][11]
 August 28 :Karachi Stock Exchange set a floor for stock prices to halt a plunge that has wiped
out $36.9 billion of market value since April.[12]
  December 15: Trading resumes after the removal of floor on stock prices that was set on August
28 to halt sharp falls.

LAHORE STOCK EXCHANGE :

Lahore Stock Exchange (Guarantee) Limited is Pakistan's second largest stock exchange after the
Karachi Stock Exchange. It is located in Lahore, Pakistan.

History
The Lahore Stock Exchange (Guarantee) Limited 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 number of listed
companies has increased to 519 since its inception. With 37 sectors of the economy and 519
listed companies with total capital of Rs. 555.67 billion having market capitalization of around
Rs. 2.51 trillion . The LSE has 152 members of which 81 are corporate, and 54 are individual
members. The LSE was the first stock exchange in Pakistan to use the internet and currently 50%
of its transactions are via the internet.

The Lahore Stock Exchange has opened branches in the industrial cities of Faisalabad and
Sialkot for trading. The Sialkot branch is referred to as the "Sialkot Trading Floor"

LSE Index
LSE-25: The Lahore Stock Exchange Twenty Five company index also calculates the
performance of stocks assuming that all rights issues and bonus share issues only increase the
listed capital. In the case of bonuses or rights the prices of the shares are not adjusted as they are
in the case of the LSETRI. However, the LSE25 assumes that dividends paid out by a component
company are not reinvested. In summary, in the LSE25, no price adjustments are made when any
component company issues cash dividends.

The Lahore Stock Exchange Total Return Index calculates the performance of stocks assuming
that all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if a
component company issues bonus shares or announces a rights issue it will increase the listed
capital. Additionally, the LSETRI also assumes that all pay-outs by a component company are
100% reinvested in the index. Therefore, the LSETRI is adjusted against such payouts
announced by any of index constituents on its ex-date allowing the index value to remain
comparable over time. Some of the most notable Stock Brokers in Lahore Stock Exchange
include: Mubashar Latif (President), Azan Mubashar (Executive Vice-President), Abubakar
Mubashar (C.E.O),

BIDDING:

Bid price
From Wikipedia, the free encyclopedia

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This article is about financial bidding. For other uses, see Bid (disambiguation).

A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It is usually
referred to simply as the "bid."

In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference
between the two is called the bid/ask spread.

An unsolicited bid or offer is when a person or company receives a bid even though they are not
looking to sell. A bidding war is said to occur when a large number of bids are placed in rapid
succession by two or more entities, especially when the price paid is much greater than the ask
price, or greater than the first bid in the case of unsolicited bidding.

In the context of stock trading on a stock exchange, the bid price is the highest price a buyer of a
stock is willing to pay for a share of that given stock. The bid price displayed in most quote
services is the highest bid price in the market. The ask or offer price on the other hand is the
lowest price a seller of a particular stock is willing to sell a share of that given stock. The ask or
offer price displayed is the lowest ask/offer price in the market (Stock market).