pakistan stock exchange (psx)

PAKISTAN STOCK EXCHANGE

(PSX)

Ahmad Zia3816-FMS/BBA/F13

Mohammad Sajjad3809-FMS/BBA/F13

Matiullah3811-FMS/BBA/F13

Presented By:

PSX Introduction

Functions of Pakistan stock exchange

Trading Procedure on Stock Exchange

1) Selection of Broker:

2) Placing the Order:3) Preparing the contract note:4) Settlement:

Links between Saving, Capital Market and the Economy

PSX Products & Services Role Listing in PSX:

LAYOUT:

PSX Introduction

– Pakistan Stock Exchange PSX 2016 - Pakistan Stock exchange is the merger of all three stock exchanges(ISE, LSE, KSE) of Pakistan. Entities which provide "trading" facilities for stock brokers and traders, to trade stocks and other securities.

Market

Infrastructure

Clearing & Settlement

Education & Training

Investors Predictor Rating Agency

Financial Market

Money Market Capital Market

Security Market

Stock Exchange

Non Security Market

Functions of PSX

Main Activities Function as

As Organization

In favour of Investor

In favour of companies

Functions of Pakistan stock exchange

Main Activities: To promote the savings and pave the way for the investment To provide the liquidity for the investors

As Organization: To guarantee the legal and economic

securities To provide official information To fix the prices of the securities

In Favour of Investor: It permits him the access to the profitable activities of the big companies It offers liquidity to the security investments

In Favour of Companies: It supplies them with the obtaining of

long term funds that permits the company to make profitable activities

The securities quoted in the stock exchange market have more fiscal purpose advantages for the company

It offers to the company’s free publicity

Trading Procedure on Stock Exchange

In order to purchase or sell securities on stock exchange the following steps have to be taken

1)Selection of Broker:A broker is a member of stock exchange and securities can only be purchased and sold through him

2) Placing the Order:

There are three parties involved in the dealing of shares: The stock Broker The client The jobber The stock broker simply acts as agent and contacts the particular jobber in the stock exchange on behalf of the client

3) Preparing the contract note:

The stock broker prepares the contact note that contains the following information:

Name and the address of the stock broker The name and address of the jobber The type and price of the share The commission of the broker The date of transaction

4) Settlement:

In case of ready delivery contract, the buyer pays the money and the seller delivers the securities one same day

In the case of forward delivery contract settlement are done in a week or once in a month.

Links between Saving, Capital Market and the Economy

PSX Products & Services

Government debt market Market making Market indices Company Services Data services Investor awareness services

Fully automated trading, clearing and settlement system. Internet routed trading facility. Gateway trading (Order Management System). Investors and fund managers can also access information through Display Only

Terminal Internet trading facilities available. Brokers connectivity to PSX through VPN (to ensure security of data).

Company services

TV channels also display PSX ticker through live feeds from PSX system.

Investors provided customized data packages for trading and assessment of their portfolio on a real time basis.

PSX website offers data of market on real time basis, including listed company profiles, snap shot of financials, press releases and summary of market activities on real time basis.

Data Services

Role Stock exchanges have multiple roles in the economy such as

Raising capital for businesses.

Mobilizing savings for investment.

Facilitating company growth.

Profit sharing.

Opportunities for small investors.

Listing in PSX: As on March 25th, 2016 there are 580 companies listed in PSX and the total market

capitalization is Rs. 6,793.053 billions. The listing is done on the basis of strict rules and regulations laid out by (SECP) & the management of (PSX).

All the listed companies are categorized in various main business sectors. As on March 25th, 2016 there are total 35 sectors listed on Pakistan Stock Exchange which contribute towards the market capitalization and all the listed companies (excluding their future contracts) are divided among these.

Rest of the non-contributory sectors are allocated for indexes, futures, bonds etc.