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Presented to:

Sir Tahir Mehmood

Presented By:

Ali Aoun(1648)

Hamza Anwar(1639)

Waleed Ajmal(1656)

Mubashar Mukhtar(1599)

Hajvery university euro campus

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STOCK EXCHANGESTOCK EXCHANGESTOCK EXCHANGESTOCK EXCHANGE

Astock exchange orsecurities exchange is

a corporation or mutual organization which provides

"trading" facilities for stock brokers and traders,to trade stocks and other securities.

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History OfHistory Of

STOCK EXCHANGESTOCK EXCHANGE

History OfHistory Of

STOCK EXCHANGESTOCK EXCHANGE In 11th century French were concerned with managing and

regulating the debts of agricultural communities on behalf ofthe banks. As these men also traded in debts, they could becalled the first brokers

In the middle of the 13th century, Venetian bankers began totrade in government securities

The Dutch later started joint stock companies, which letshareholders invest in business ventures and get a share of

their profits or losses In 1602, the Dutch East India Company issued the first shares

on the Amsterdam Stock Exchange. It was the first company toissue stocks and bonds. In 1688, the trading of stocks began ona stock exchange in London

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The role of stock exchangesThe role of stock exchangesThe role of stock exchangesThe role of stock exchanges

Raising capital for businesses

Mobilizing savings for investment

Facilitating company growth

Redistribution of wealth Corporate governance

Creating investment opportunities for small investors

Government capital-raising for development projects

Barometer of the economy

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Stock Exchanges in PakistanStock Exchanges in PakistanStock Exchanges in PakistanStock Exchanges in Pakistan

Karachi Stock Exchange (KSE)

Lahore Stock Exchange (LSE)

Islamabad Stock Exchange (ISE)

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KarachiKarachiStock Exchange (KSE)Stock Exchange (KSE)

KarachiKarachiStock Exchange (KSE)Stock Exchange (KSE)

Founded in 1947

November 1, 1991 the KSE-100 was introduced

The KSE-100 is a capital weighted index and consistsof 100 companies

Represents about 86 percent of market capitalization

of the Exchange

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Established in October 1970.

Lahore Stock Exchange is the second largest and

first automated stock exchange of Pakistan

Second largest stock exchange in the country with amarket share of around 12-16% in terms of daily

traded volumes.

LahoreLahoreStock Exchange (LSE)Stock Exchange (LSE)

LahoreLahoreStock Exchange (LSE)Stock Exchange (LSE)

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Incorporated as a guarantee limited Company on 25thOctober, 1989 in Islamabad

The purpose for establishment of the stock exchangein Islamabad was to cater to the needs of lessdeveloped areas of the northern part of Pakistan

ISLAMABADISLAMABADStock Exchange (ISE)Stock Exchange (ISE)

ISLAMABADISLAMABADStock Exchange (ISE)Stock Exchange (ISE)

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Stock Market Effects on the EconomyStock Market Effects on the EconomyStock Market Effects on the EconomyStock Market Effects on the Economy

An increase in stock prices causes an increase inwealth, and consequently an increase in consumer

spending.

Investment is also affected by higher stock prices.With a higher stock price, a firm can raise more

money per share to finance investment projects.

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Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

April 20:

KSE-100 Index crossed the psychological level of15,000 for the first time in its history

Moreover, the increase of 7.4 per cent in 2008made it the best performer among major emergingmarkets

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Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

May 23:

Record high inflation in the month of May, 2008.Resulted in sharp fall in Karachi Stock Exchange

July 16 :

KSE-100 Index dropped one-third from an all-time high hit inApril, 2008 as rising pressure on shaky Pakistan's coalitiongovernment to tackle Taliban militants

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Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008July 17 :

Angry investors attacked the Karachi StockExchange in protest at plunging Pakistani shareprices

August 18:

KSE 100 Index rose more than 4% after theannouncement of the resignation of PresidentPervez Musharraf

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August 28 :

Karachi Stock Exchange set a floor for stock pricesto halt a plunge that has wiped out $36.9 billion of

market value since April

Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

October 23: The government has also given Rs 30 billion guarantee to foreign

investors, who would avail put options.

October 27: The government has established a Rs 20 billion open-end fund to be

injected into the stock market for providing a soft landing to themarket on its opening on October 27, 2008.

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Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 2008

Pakistan Stock Exchange Ups andPakistan Stock Exchange Ups and

Downs 2008Downs 200812th November

KSE-100 index remained unchanged at9183.14 points

26TH November

The KSE-100 index remained at a stand still at9,187.10. The low trading activities could have

resulted that 3 participating banks have shownreluctance to forward their promised share.

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1st Dec:KSE-100 index remained unchanged at 9187.10 points

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EX2RA