Professional Documents
Culture Documents
Submitted to;
Sir Sohail Rizwan
Submitted by;
Kainaat Zulfiqar
BSAF 2K16A
Investors can rely on PSX and can buy and sell listed companies common stocks and other
securities from their efficient markets. PSX has set a standard according to the legal framework of
Pakistan. They have set rule for eligibility criteria, obligations, procedures etc for all the investors
and companies to follow, who are a part of the Pakistan Stock Exchange.PSX gives all the
necessary information on their website. They provide annual reports which are uploaded. The
following figure is just a graphical example of the top sectors of shares which was published in
May 2017.
Trading Rights Entitlement Certificate Holders of the stock trades are additionally subject to the
discipline of self-regulation Rule Book of the stock trades.
Trading exercises are being followed through the supervision to ensure that there are no illicit
postings and dealings made in any of the issues recorded in the Exchange.
One can purchase shares when an organization initially comes to market, or can get them through
the share trading system once they are being exchanged and are available for use. Organizations
which need to issue shares regularly promote in an every day daily paper. On the off chance that
a man chooses to purchase these offers, they can look for more data from the organization's site
or can top off the application frame at the subsidiary bank or approach the organization for a plan.
Most offer dealings happen in what is known as the secondary market. This is the place existing
investors offer and new financial specialists purchase.
Dealing is not allowed of the securities of the company in PSX if it isnt listed and no company
is listed if its minimum paid up capital is 200 million. PSX has released a new set of rules and
regulations to approve or reject applications of listing companies.
Market Capitalization
Value Turnover
Traded Volume
Composite Index
A number of factors influence the sentiment of the market which includes- economic, political,
fiscal, etc Interest rates, foreign exchange, growth rates, and inflation; are few other economic
indicators that affect the performance of the Stock Market. I n f l a t i o n rates, commending
growth, stabilized interest rates and foreign exchange are great news for the stock market.
These uplift the market performance. The investor might face a number of risks in their
investing activities such as market risks as there is constant market crash risk, Liquidity risk
arises when an investment cant be bought or sold quickly enough to prevent or minimize a loss
or an inflation risk etc
Tax:
Foreign investors are openly permitted to work in the capital market. There is no restriction for
holding shares for exchanging purposes and besides no limitations on remote. Assets contributed
are unreservedly transferable with the dividend. Foreign Investors are dealt with at standard with
local investors in tax treatment. Though the dividend of local investor is liable to withholding
charge at 12.5 %. Dividend income is taxed as a different piece of income in the hands of
individual investors.