TOPIC:TOPIC:

STOCK EXCHANGESTOCK EXCHANGE

BY:BY:

AKHTARAKHTAR

My presentation consists of three parts.My presentation consists of three parts.

INTRODUCTIONINTRODUCTION

MARKET TERMSMARKET TERMS

MARKET TRENDSMARKET TRENDS

INTRODUCTIONINTRODUCTION

It is a place where securities (shares) are It is a place where securities (shares) are sold and purchased.sold and purchased.

In Pakistan there are three stock exchanges:In Pakistan there are three stock exchanges:1- Karachi Stock Exchange (KSE)1- Karachi Stock Exchange (KSE)2- Lahore Stock Exchange (LSE)2- Lahore Stock Exchange (LSE)3- Islamabad Stock Exchange (ISE)3- Islamabad Stock Exchange (ISE)

MARKET TERMSMARKET TERMS

For better explanation we have to read this For better explanation we have to read this Business news.Business news.

The KSE-The KSE-100 Index100 Index gainedgained 15.84 15.84 points points, or , or 0.14 0.14 percentpercent, to close at , to close at 11,539.26 points11,539.26 points. .

Shares of 370 companies were traded, out of Shares of 370 companies were traded, out of which 177 which 177 advancedadvanced, 176 , 176 declineddeclined and 17 and 17 remained unchanged. remained unchanged.

SOME QUESTIONSSOME QUESTIONS

After reading that news some questions arise After reading that news some questions arise in our minds. These are:in our minds. These are:

100 Index = ?100 Index = ?Gain / Loss = ?Gain / Loss = ?Points = ?Points = ?Advanced = ?Advanced = ?Declined = ?Declined = ?

100 Index100 Index

The stock exchange index is a relative measure The stock exchange index is a relative measure of the performance of top 100 companies or a of the performance of top 100 companies or a number of stocks that are traded on a stock number of stocks that are traded on a stock exchange exchange

i.e. shares of top 100 companies are selected i.e. shares of top 100 companies are selected and after their evaluation market result is and after their evaluation market result is announced.announced.

Advance / Decline = ?Advance / Decline = ?

If there is increasing trend in the If there is increasing trend in the prices of share then we said prices of share then we said that the market gain the index that the market gain the index or points and vice versa.or points and vice versa.

Points = ?Points = ?Points shows the Points shows the OverallOverall worth of the market. worth of the market.There are many factors that influence the market points and due There are many factors that influence the market points and due

to these factors market’s point increases or increases. These to these factors market’s point increases or increases. These factors consists of formulae of capital structure and other factors consists of formulae of capital structure and other related things. In Pakistan value of 1 point is approximately related things. In Pakistan value of 1 point is approximately equal to 2 crors and it changes due to inflation and other equal to 2 crors and it changes due to inflation and other economic factors.economic factors.

When an individual invest an amount equal to 2 Crors then 1 point When an individual invest an amount equal to 2 Crors then 1 point increases and when he/she pull back his investment then 1 increases and when he/she pull back his investment then 1 point decreasespoint decreases

1 point = 2 Cror1 point = 2 Cror

MARKET TRENDSMARKET TRENDS

Bullish TrendBullish Trend

Bearish TrendBearish Trend

Satta BaaziSatta Baazi

Bullish TrendBullish Trend

Bullish mean Strong like a Bull. When there Bullish mean Strong like a Bull. When there is a huge capital in the market and is a huge capital in the market and everyone want to invest in the market then everyone want to invest in the market then we say that there is we say that there is Bullish TrendBullish Trend

Bearish TrendBearish Trend

This term is used in opposite of the Bullish This term is used in opposite of the Bullish trend i.e. when people want to pull back trend i.e. when people want to pull back their investments then we say that there is their investments then we say that there is a a Bearish TrendBearish Trend

Satta BaaziSatta Baazi

This term is broadly used in Pakistan. When This term is broadly used in Pakistan. When people purchase shares more than their people purchase shares more than their own money or investment, is called they own money or investment, is called they are doing are doing Satta BaaziSatta Baazi. .

This term is used on buying the shares This term is used on buying the shares on credit basis.on credit basis.

This is my search on stock This is my search on stock exchange. If anyone find any exchange. If anyone find any

mistake then please inform memistake then please inform me

THANXTHANX