tag:blogger.com,1999:blog-91777842561039878992024-03-13T13:18:38.366-07:00Stock Exchange | World Stock Exchange Information | Stock Exchange RatesUnknownnoreply@blogger.comBlogger32125tag:blogger.com,1999:blog-9177784256103987899.post-60444978285810262092009-04-15T05:07:00.000-07:002009-04-20T13:12:10.626-07:00Watch Live KSE LSE and ISE Index Trading Online<iframe border="0" name="I3" align="top" marginwidth="0" marginheight="0" src="http://www.live-tradeonline.com/Falcon/WebForms/streamingquotes.aspx" frameborder="0" width="842" scrolling="no" height="735"></iframe><br /><br /><span style="font-family:arial;color:#ff0000;"><strong>PLEASE NOTE ! You can change any Company's name to your require Compnay name. For Example: "APL" you can remove it and type " JSCL" . This will automatically change into your favorite Company name.</strong></span> <div><span class="Apple-style-span" style="FONT-WEIGHT: bold;font-family:arial;" ><span class="Apple-style-span" style="COLOR: rgb(51,102,255)"></span></span> </div><div><span class="Apple-style-span" style="FONT-WEIGHT: bold;font-family:arial;" ><span class="Apple-style-span" style="COLOR: rgb(51,102,255)"></span></span> </div><div><span class="Apple-style-span" style="FONT-WEIGHT: bold;font-family:arial;" ><span class="Apple-style-span" style="COLOR: rgb(51,102,255)"><span style="color:#3333ff;">YOU CAN WATCH IT ONLY ON</span> </span><span class="Apple-style-span" style="COLOR: rgb(255,0,0)"><span style="color:#009900;">INTERNET EXPLORER <a href="http://1.bp.blogspot.com/_6pyfPMPuHbM/SezV20znoyI/AAAAAAAAAJw/VCOl_nEy_xQ/s1600-h/ie.png"><img id="BLOGGER_PHOTO_ID_5326867597137257250" style="WIDTH: 39px; CURSOR: hand; HEIGHT: 32px" alt="" src="http://1.bp.blogspot.com/_6pyfPMPuHbM/SezV20znoyI/AAAAAAAAAJw/VCOl_nEy_xQ/s200/ie.png" border="0" /></a><span style="color:#ff0000;"> &</span> OPERA <a href="http://1.bp.blogspot.com/_6pyfPMPuHbM/SezV3D-umBI/AAAAAAAAAJ4/j4LXjgJnDRs/s1600-h/op.png"><img id="BLOGGER_PHOTO_ID_5326867601210382354" style="WIDTH: 36px; CURSOR: hand; HEIGHT: 34px" alt="" src="http://1.bp.blogspot.com/_6pyfPMPuHbM/SezV3D-umBI/AAAAAAAAAJ4/j4LXjgJnDRs/s200/op.png" border="0" /></a></span></span></span></div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9177784256103987899.post-14524451599934496392009-04-15T05:00:00.000-07:002009-12-10T12:33:54.587-08:00IntroductionThis guide is provided for individuals and beginner traders who do lack a basic understanding of investing in stock.<br /><br /><strong><span style="color:#ff0000;">What is the Stock Exchange?</span></strong><br /><strong><span style="color:#ff0000;"></span></strong><br />The stock exchange can be best defined as:<br />An organized marketplace for securities featured by the centralization of supply and demand for the transaction of orders by member brokers for institutional and individual investors.<br />The Stock Exchange can be also seen as a control to regulate the Marketplace where listed public companies and traders buy and sell shares.<br /><br /><strong>Types of Stock Exchanges in Pakistan</strong><br /><br />There are three Stock Exchanges in Pakistan, namely<br /><br />1. Karachi Stock Exchange; formed in 1947,<br />2. Lahore Stock Exchange; formed in 1971,<br />3. Islamabad Stock Exchange; formed in 1989.<br /><br />Out of all the three Exchanges, the Karachi Stock Exchange is the premiere Stock Exchange of the country, with over 700 listed companies. It was established soon after the creation of Pakistan.<br /><br /><strong>Trading and Settlement<br /></strong><br />The stock exchanges have introduced a computerized trading system to provide a fair, transparent, efficient and cost effective market mechanism to facilitate the investors.<br /><br />The trading system comprises of four distinct segments, which are:<br /><br /><strong>i) T+2 Settlement System</strong><br /><br />In the T+2 settlement system, purchase and sale of securities is netted and the balance is settled on the second day following the day of trade.<br /><br /><strong>Benefits of T+2 Settlement System </strong><br /><strong><br /></strong>It reduces the time between execution and settlement of trades, which in turn reduces the market risk. It reduces settlement risk, as the settlement cycle is shorter.<br /><br /><strong>ii) Provisionally Listed Counters</strong><br /><br />The shares of companies, which make a minimum public offering of Rs.100 million, are traded on this segment from the date of publication of offering documents. When the company completes the process of dispatch/credit of allotted shares to subscribers, through CDC it is officially listed and placed on the T+2 counter. Trading on the provisionally listed counter then comes to an end and all the outstanding transactions are transferred to the T+2counter with effect from the date of official listing.<br /><br /><strong>iii) Spot/T+1 Transactions </strong><br /><strong><br /></strong>Spot transactions imply delivery upon payment. Normally in spot transactions the trade is settled within 24 hours.<br /><br /><strong>iv) Futures Contract</strong><br /><br />A Futures contract involves purchase and sale of a financial or tangible asset at some future date, at a price fixed today<br />6TWWHJ5GTCX9Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-9177784256103987899.post-71405213138649933552009-04-15T04:58:00.000-07:002009-04-15T05:00:21.712-07:00What are Shares?The term ‘shares’ can be best defined as ‘represented ownership in part of a company. When you buy a share in a company you become a joint owner of the business and share in the future of that business. This is also known as equity’.<br /><br /><strong>Why Do Companies Issue Shares?</strong><br /><br />Companies issue shares to raise money from investors. This money is used for the development and growth of businesses of companies.<br />A Company can issue different types of shares such as ordinary shares, preference shares, shares without voting rights or any other shares as are permissible under the law. These give shareholders a stake in the company’s equity as well as a share in its profits, in the form of dividends, and a voting right at general meetings of shareholders.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-70169995575254831052009-04-15T04:53:00.000-07:002009-04-15T04:58:25.766-07:00Tips for Investing WiselyWhen trading in the Stock Market, one should <strong>avoid,</strong><br /><br /><span style="color:#ff0000;">1.</span> Greed; being greedy can be a problem as it corrupts wisdom,<br /><span style="color:#ff0000;">2.</span> Making the same mistake twice,<br /><span style="color:#ff0000;">3.</span> Following the crowd, as the loss at the end is of the individual and not the crowd itself,<br /><span style="color:#ff0000;">4.</span> Putting all your ‘eggs in one basket’. You should diversify and spread your investment,<br /><span style="color:#ff0000;">5.</span> Using rumors as tips, as this can result in losses. A tip can end up as a ‘pit’,<br /><span style="color:#ff0000;">6.</span> Emotions; being emotional can effect reasoning. Traders should use research backed by fundamental reasoning.<br /><span style="color:#ff0000;">7.</span> Impatience; patience pays, perseverance gains,<br /><span style="color:#ff0000;">8.</span> Over borrowing; loan repayment is not an investment.<br /><br />When trading in the Stock Market, one should <strong>remember,</strong><br /><br /><span style="color:#ff0000;">1.</span> Information; it must be checked. Opinion, facts or fiction? Act accordingly,<br /><span style="color:#ff0000;">2.</span> Knowledge; Stock Market principles and practices are unique. Master its cycles, its ups and downs,<br /><span style="color:#ff0000;">3.</span> Wisdom; success depends on your discipline and self improvement,<br /><span style="color:#ff0000;">4.</span> Action plans; plan a scheme, act and follow through. Have options and tactics to win the Stock Market game,<br /><span style="color:#ff0000;">5.</span> Shrewd and Thrifty; be prudent with your money. Avoid stocks that are overvalued but keep the cash or save for other investments,<br /><span style="color:#ff0000;">6.</span> Stock Value; be aware of stock’s true value, despite its ups and downs,<br /><span style="color:#ff0000;">7.</span> Risk Vs. Reward; minimize your risk, maximize your returns,<br /><span style="color:#ff0000;">8.</span> Investment protection; safety of your portfolio and Share Capital is more important.<br /><br />A good example of understanding the above can be in the case of Hershey’s. Just because the chocolate tastes good does not mean that the position of the company is strong. A point should be made that the product of a company does not provide merit to its strength in the index.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-50770049022196584372009-04-15T04:51:00.000-07:002009-04-15T04:53:08.446-07:00Investor's Protection<strong><span style="color:#ff0000;">>></span> For security reasons, AKD Trade insists that all users, existing and new, should not show their Passwords to other individuals. The same is said for the PIN Code.<br /></strong><br /><br /><strong><span style="color:#ff0000;">>></span></strong> Investors should also not enter into transactions that involve financing and irregular Badla amounts that are not stated within the rules and regulations of the Karachi Stock Exchange.<br /><br /><br /><strong><span style="color:#ff0000;">>></span></strong> All payments made to brokers and/or company staff should be crossed cheques (Payee’s Account Only) and obtain proper receipts of the payments made duly signed by the authorized persons.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-24878614084351954602009-04-15T04:47:00.000-07:002009-04-15T04:51:32.594-07:00Ownership of SharesEach share represents a small stake in the equity of a company. You can buy large or small lots to match the amount of money you want to invest. A company’s share price can rise or fall as a result of its own performance or market conditions.<br /><br />Once the shares are brought and transferred in your name your name will be entered in the company’s share register, which will entitle you to receive all the benefits of share ownership including the rights to receive dividends, to vote at the company’s general meetings and to receive the company’s reports.<br /><br />If you decide to sell your shares you will need to deliver share certificates to the broker in time for the transaction to be completed.<br /><br />With the introduction of the Central Depository System (CDS), an investor can have shares in paper form or can own shares in an electronic book- entry form at the Central Depository Company (CDC).<br /><a name="BuyShares"></a> <br /><strong>Why Do Investors Buy Shares?</strong> <br /><br />Studies have shown that over a twenty-year span, investment in shares has provided greater returns than most other forms of savings. Shares can provide you with a regular stream of income through dividends as well as the potential for your investments to grow in value. If the prices of shares go up, you can sell them for more than you paid. This is called capital gain.<br /><a name="Dividends"></a> <br /><strong>What are Dividends?</strong><br /><br />Dividends are returns paid to shareholders out of the profits of the company. Returns can be in the form of cash or additional shares of the company called bonus shares. Dividends are usually paid once or twice a year depending upon the company’s profit distribution policy.<br /><a name="CapitalGrowth"></a> <br /><strong>What is Capital Growth?</strong><br /><br />This is one of the ways in which shares differ from deposit accounts. The principal amount of money you put in a bank or any fixed income savings scheme always stays the same e.g. if you start with Rs.100,000 you will always have Rs.100,000 (other than any interest earned).changes in value according to the performance of the company. With good management, the value of your investment in shares of a company can grow over time so that your shares are worth more than you paid for them. This is capital growth.<br /><a name="Rewards"></a> <br /><strong>Risks and Rewards</strong><br /><br />Buying shares can offer advantages over saving in deposit accounts: your investment may increase in value besides paying you dividends. You share the rewards when the company does well and the price of the shares goes up. But if the company performs badly, the share price may go down and the value of your investment will be reduced. Other factors, such as the performance of the stock market as a whole and the general economic climate, may also affect the price of your shares. Investment in shares is therefore investment in ‘risk capital’. The shareholders can be rewarded for taking this risk and the potential return on your money can be higher than that on other investments. You can reduce your risks with careful planning.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-58509136263118153092009-04-15T04:45:00.000-07:002009-04-15T04:47:36.365-07:00Things You Should Know Before You Buy a Stock<p><span style="color:#ff0000;">>></span><strong> </strong>What Does the Company Do?<br /><br /><span style="color:#ff0000;">>></span><strong> </strong>Is the Company Profitable?<br /><br /><strong><span style="color:#ff0000;">>></span></strong> What Is the Company's Earnings History and Outlook?<br /><br /><strong><span style="color:#ff0000;">>></span></strong> How Richly Is the Company's Stock Valued?<br /><br /><strong><span style="color:#ff0000;">>></span></strong> Who Are the Company's Competitors?<br /><br /><strong><span style="color:#ff0000;">>></span></strong> Who Runs the Company?<br /><br /><span style="color:#ff0000;"><strong>>></strong> </span>Have You Read the Company's Annual Reports?</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-76134712220144775592009-04-15T04:44:00.002-07:002009-04-15T04:45:09.420-07:00Why Stocks are Vital for Superior GrowthEquities are mainly growth investments, and can include things like real estate, art, and gold. However the most popular equity investments that people rely on for growth are stocks. But stocks can also serve purposes other than growth.<br /><br />In addition to potential capital gains, stocks also have the potential to pay dividends. If you have equity in a business you are an owner, and if your company makes money, you are rewarded with dividendUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-38664697863416480972009-04-15T04:44:00.001-07:002009-04-15T04:44:42.957-07:00Expert OpinionFinancial experts have many opinions on many things, but there is one fact on which they will all agree. You need to have stocks in your portfolio to provide the growth you need to stay ahead and have a secure future over the long-term.<br /><br />They also agree on the best way to invest in stocks is with a long-term view in mind. Over the long run, equities do go up and have proven to be the most profitable investment by far. But the key phrase here, the vital strategy for success is “over the long run”.<br /><br />When you hold stocks for the long run you get good days and bad days. If you are a short-term trader, unless you have a crystal ball working for you, you are going to miss most of those good days. The simple secret to success is to stay invested.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-11819769334094788242009-04-15T04:40:00.002-07:002009-04-15T04:44:07.722-07:00How Do you Decide when a Stock is Attractive to Purchase?There are two general ways of determining a stock's potential as an investment. You can look at the “fundamentals” or you can look at “technical analysis” and of course you can look at both.<br />Fundamental analysis looks at factors such as earnings, cash flow, debt, strength in its industry, outlook for the industry, general economic factors, interest rates, and so on. If these factors are good, then even if there are short-term setbacks, over the long run, the stock should do well.<br />Technical analysis looks at factors like volume of trading, cyclical behavior, trends, moving averages and many others.<br />Some investors use both approaches. They use fundamentals to determine the long-term potential of a company and technical analysis to decide when to buy. For example, you may believe that a certain company has great potential over the long-term and will be worth much more in years to come.<br />However, it could be that the current market for this company’s product is temporarily weak and that as a result, the stock price could fall. Technical analysis could be helpful in determining how far the price might fall and could provide help in indicating a good time to buy.<br /><a name="Shareholder"></a><br /><strong>How to Become a Shareholder</strong><br /> <br />Shares of a particular company are offered by the following methods.<br /><a name="PublicOffering"></a> <br /><strong>Initial Public Offering</strong> <br /><br />An initial public offering (IPO) is the sale of equity in a company, generally in the form of shares of common stock. These shares trade on a recognized stock market. A company goes public; to raise capital for project funding, business planning and implementation; for marketing purposes.<br /><a name="RightsIssue"></a> <br /><strong>Rights Issue</strong><br /><br />A rights issue gives the existing shareholders the right to subscribe for new ordinary shares at an issue price lower than the prevailing market price and at a ratio equivalent to their existing shareholding. Companies carry out a rights issue when they want to raise additional funds to finance their capital requirements.<br /><a name="StockMarket"></a> <br /><strong>The Stock Market</strong><br /><br />Stocks in publicly traded companies are bought and sold at a stock market also known as a stock exchange. This is the most common way of buying and selling shares.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-19772567110729225712009-04-15T04:40:00.001-07:002009-04-15T04:40:55.385-07:00Things you should know about EquitiesStocks and shares are the most volatile asset class in terms of price movements and thus, the most risky. Hence, do not invest directly in the stock market unless you can bear a fall in price without it having any impact on your day-to-day living standard. Remember the saying: “the greater the reward, the higher the risk”.<br />The aim of investing in stocks and shares is to buy at a low and sell at a high, but knowing when, is the problem. Many investors attempt to time the market: they try to figure out when the market is going up and buy into it before it does, and then figure out when it is going to crash and sell everything just before it does. Unfortunately such spot on accuracy is usually impossible to achieve, so what you can do is try to catch a portion of each big swing. You buy when the upswing has begun, and sell as the downswing starts. But for this to work, you must be able to control your greed, as you do not know exactly when the top or bottom is reached.<br /><br />The stock market can be said to be driven by two emotions: greed and fear. People get caught up in the boom fever and pay silly prices for unworthy shares - this is greed driving bull markets. In bear markets, people get carried away with the ruling negativity and are overeager to believe the worst rumors - this is fear dominating bear markets. You must step away from the crowd and not let them take over your rational reasoning and action.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-87608194194029497232009-04-15T04:37:00.000-07:002009-04-15T04:40:15.911-07:00How to spot Scams<p>Minimize the risk of losing your savings to scams by recognizing the different types of illegal investment schemes that are plaguing our society. Here are some typical characteristics and promises made by scams:<br /><br /><strong>>></strong> For every investment that you make, you will receive a high return, for instance, 20-30% per month, every month.<br /><br /><strong>>></strong> You are told that the offer is for a limited time and that you MUST join or buy today.<br /><br /><strong>>></strong> You receive unsolicited phone calls offering investment opportunities and you have no idea how the company has obtained your phone number.<br /><br /><strong>>></strong> You receive unsolicited e-mails asking you for your bank account number because they want to send you money.<br /><br /><strong>>></strong> You are offered an investment product that guarantees large profits with no financial risk.<br /><br /><strong>>></strong> It is hard to find any information about the company’s license or physical existence in any regulator or authority’s website.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-4003493273308659592009-04-15T04:30:00.000-07:002009-04-15T04:37:29.109-07:00What is the CDCCentral Depository Company of Pakistan Limited (CDC) started in 1993 to manage and operate the Central Depository System. CDS is an electronic book entry system to record and transfer securities. Electronic book entry means that the securities do not physically change hands and the transfer from one client account to another takes place electronically. CDC is to operate as a central securities depository on behalf of the financial services industry to support an effective capital market system that will attract institutional and retail level investors from Pakistan and abroad. Its basic purpose is to operate and maintain an electronic book entry settlement system for equity, debt and other financial instruments.<br /><br /><strong>Capital Markets prior to CDS</strong><br /><strong></strong><br />The capital markets of Pakistan have witnessed a rapid growth resulting in increased trading volume. This in turn has led to difficulty in handling the share certificates. The custody and safe keeping of physical certificates required maintenance of huge vaults by the individuals and institutions and the physical settlement of certificates were no longer feasible. Moreover, the manual system was also plagued by long delays, risks of damage and considerable time delays. Following are some highlighted problems faced before CDS was in place,<br /><br /><br />1. Increased volume of book keeping and paper work.<br /><br />2. Problems in settlement due to increased volume.<br /><br />3. Maintenance of huge vaults for safe keeping of certificates.<br /><br />4. Long share transfer procedure taking up to 45 days.<br /><br />5. Payment of stamp duty on share transfers which ranged from 0.1% to 1.5% of the face value.<br /><br />6. In case of new issues the issuers would take more than 2 months for the dispatch of certificates.<br /><br />7. Risks of damaged, lost, forged and duplicate certificates.<br /><br />8. Capital and time investment required for issue and dispatch of share certificates, cash dividend, bonus and right issues.<br /><br /><strong>Benefits after CDS was incorporated</strong><br /><strong><br /></strong>Following are some of the benefits of electronic settlement of securities through CDS:<br /><br />1. Reduced workload due to paperless settlement environment.<br /><br />2. Reduced manpower requirements.<br /><br />3. Instantaneous transfers of ownership.<br /><br />4. No stamp duty on transfers in CDS.<br /><br />5. No risk of damaged, lost, forged or duplicate certificates.<br /><br />6. No impact in case of sudden increase of settlement volumes.<br /><br />7. Instant credit of bonus, rights and new issues.<br /><br />8. Substantial reduction of paperwork during book closure.<br /><br />9. Convenient pledging of securities.<br /><br />10. Substantial reduction in time & capital investments.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-54582841773217269922009-04-12T14:53:00.000-07:002009-04-15T04:30:30.449-07:00Tracking stocksTo track how your stocks are doing, you have to look at stock listings. Stock listings are published in most of the newspaper (e.g. Dawn). The listings look confusing at first, since they look like a mixture of numbers, but can be a very useful tool when tracking your stock's progress. The listings are organized into many columns, including the following information:<br /><br /><strong>Company name:</strong> This field is usually abbreviated in the listings, and listed alphabetically.<br /><br /><strong>Symbol:</strong> This field is a one to five character symbol used as a sort of nickname for the company.<br /><br /><strong>Volume:</strong> The volume is the amount of stocks that were traded the day before.<br /><br /><strong>High, Low and Close:</strong> These are the highest and lowest price of the stock the day before, and the closing price for the day before. This is an indicator of how much the price of the stock fluctuated throughout the previous day.<br /><br /><strong>Net change:</strong> This is the change of the price of the stock from the previous day. This gives you an idea whether the price is dropping or rising.<br /><br />In addition to the stock listings, other useful information about companies is available in the Annual Reports that reflects the balance sheet, income statement and cash flows and states the reasons for changes in these financial statements during the year.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-84666207839316966942009-04-12T14:45:00.000-07:002009-04-12T14:57:26.004-07:00Key considerations for investment in equities<strong>Goals</strong><br /><br />Understanding why you are investing is the first step in structuring a portfolio. There are few questions investors need to ask themselves and review with their broker before starting to invest.<br />Specifically, What are my investment objectives? What is this money for? What kind of risk am I willing to take? What is my time horizon? It is important that you work closely with your advisor so you both have a clear understanding of your specific needs and goals.<br /><br /><strong>Risk</strong><br /><br />Understanding risk is an integral factor that is required to be evaluated before making any investment. You can view risk as portfolio volatility, as the risk of not achieving your goals, or as the risk of permanent capital loss. When you are assessing risk, questions to ask yourself include: How much volatility am I willing to accept? What are the consequences if I do not achieve my investment objectives? How large a loss can I sustain? Do I want to use leverage?<br />Risk and returns are generally related. Over the long term, increasing your risk typically leads to higher expected returns, while lowering your risk leads to lower expected returns. However, this is not always so. For some occasions, which may occur for an extended period of time, higher levels of risk may lead to lower returns, and vice versa.<br />Goals and risk tolerance should be the basis for establishing investment guidelines for your portfolio. These guidelines will enable you to structure your portfolio and provide you with a framework that allows you to review and understand your investment performance.<br /><strong></strong><br /><strong>Investment Climate</strong><br /><br />Whenever you hire a broker to invest in the stocks it’s not necessary that your results would be same as the market movements. In some cases brokers advise to invest in stocks that are not highly correlated with stock index due to the small capitalization of that particular scrip in the market.<br /><br /><strong>Maximization of Return</strong><br /><br />The goal of the investor, in most cases, is to maximize return. Higher returns are often related with higher degree of risk. Investor should not take unnecessary risk to earn higher profits because it posts a great deal of threat to its basic equity and investments. Investors could avoid risk by diversifying its portfolio in different sectors, which usually pays off in terms of better returns.<br /><br /><strong>Compnay Profile</strong><br /><br />Information regarding companies invested in and their economic profile should be exposed to the investor. Investor should be well aware of the financial background, management style and the nature of business of the company to make an adequate investment. Investing in the stock market requires looking ahead to anticipate future events in the company's life and changes in its business environment, to minimize risk and maximize return on investment.<br /><strong></strong><br /><strong>How much Money can you afford to Invest?</strong><br /><br />Investors should be aware of the fact that investments in the stock usually do not result in immediate profits. A sound investment strategy avoids speculative moves. An investor should have excess reserves with its broker to protect himself against frequent fluctuations in stock.<br /><strong></strong><br /><strong>Investment Avenues<br /></strong><br />Investors can invest in their money in stock in following ways:<br /><br />Shares: It is the direct mode of investment in which investor directly sell and purchase stocks of various companies through the brokers or dealers.<br /><br /><strong>Own Investment Strategy VS. Professional’s Advice<br /></strong><br />Sound strategy for investment in stock market requires either professional’s advice or own stock dealing decisions, which are often, time consuming. Despite the time consideration it is advisable to pursue own investment strategy because it is more rewarding than seeking broker’s opinion.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-47760282343789392152009-04-12T14:43:00.000-07:002009-04-12T14:56:49.388-07:00Costs<p align="left">Costs that are associated with stock dealing usually fall under the following heads:<br /><br /><br />1. Daily trade charges cost incurred by the investor for intra day transactions.<br /><br /><br />2. Badla charges are the charges incurred by the clients for carry over transactions commonly known as COT.<br /><br /><br />3. Delivery charges cost incurred by the investor for delivery transactions. </p><br />It is highly recommended that the investors should have a proper understanding of the commission structure of the brokerage service. The structure varies from broker to broker in most cases. It is advisable that the investor should ask his broker about all the cost associated with stock dealings to arrive at his net profit positionUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-56921786407185272452009-04-12T14:33:00.000-07:002009-04-12T14:57:09.484-07:00Concept of ‘Badla’<strong>What is Badla</strong><br /><br />Badla is a mechanism to carry forward a speculative trade. It is also known as the Carry Over Transaction (COT).<br /><br />Badla Finance in simple terms means putting money on interest. The mechanism is very easy for the stockbroking society but complex for the ordinary investor. History says Badla was born in the nineteenth century. Then, till today, the purpose has remained the same, the mechanism has hardly changed but the process has. These changes have made Badla Finance safer, more secure and transparent to clients besides a fair business practice for the stockbrokers<br /><br /><strong>Machanism of Badla<br /></strong><br />A person buys shares with the intention to make profits but without blocking money. The purchase at the end of the settlement is carried forward to the next settlement. Here is where the client / Badla financiers steps in. The financier's block the money for taking delivery of shares purchased by the speculators. He gives the money to the exchange for shares bought. For this facility the speculator pays interest to the financiers. This interest is known as Badla.<br /><br /><strong>Badla financing is done through stockbrokers</strong><br /><br />The financier gives money to his broker who in turn, hands over the same to the Exchange. The shares are retained by the Exchange under custody, on behalf of the broker's client. Since the shares and the money lie with the Exchange, broker's risk is also eliminated.<br />Example: If "A" has purchased 1000 shares of MCB @ Rs. 50 per share in Settlement 1, he has to take delivery from "B" who has sold the same. "A" would like to carry forward his position to the next settlement by letting "C" (Badla Financier) take delivery at the prevailing interest rate.<br /><br />In settlement 2 "A" will have to purchase the shares at a higher badla rate as determined by the Exchange. If the Badla was Rs. 0.20 in settlement no.1, "A" will have to buy MCB @ Rs. 50.20 per share from "C".<br /><br />The difference in purchase price in settlement no.1, and sale price in settlement no.2, is the earning for the Badla Financier.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-9417738649717192602009-04-12T14:07:00.001-07:002009-04-12T14:07:23.418-07:00Key Terms To Stock MarketThe selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.<br />Market Capitalization A company's market capitalization (or "market cap") is calculated by taking the number of outstanding sgare multiplied by the current price-per-share. It is the amount of money you would have to pay if you bought every share of stock in a company.The price that an investor pays for a security. This price is important, as it is the main component in calculating the returns achieved by the investor.For example, if an investor buys XYZ at 35 Rs, then this would be the purchase price. When looking at the return on the investment, the investor would compare the purchase price of 35 Rs to the price the investment was sold at or the current market price for XYZ.Share Certificates representing ownership in a corporation. Shares are also known as stocks or equities.P/E RatioThe P/E ratio is how much money you are paying for 1 of the company's earnings. If a company were currently trading at a P/E of 20, an investor would be paying 20 Rs for 1 Rs of earnings.The P/E looks at the relationship between the stock price and the company's earnings. You calculate the P/E by taking the share price and dividing it by the company's EPS.In other words, if a company is reporting a profit of 2 Rs per share, and the stock is selling for 20 Rs per share, the P/E ratio is 10 because you are paying ten-times earnings [20 Rs per share dividend by 2 Rs per share earnings = 10]In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, or to the market in general, or against the company's own historical P/E.It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.Price / Earnings To Growth - PEG RatioA ratio used to determine a stock's value while taking into account earnings growth. The calculation is as follows:PEG Ratio = Price to Earnings ratio / Annual EPS GrowthPEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued.Keep in mind that the numbers used are projected and, therefore, can be less accurate. Also, there are many variations using earnings from different time periods (i.e. 1 year vs. 5 year). Be sure to know the exact definition your source is using.Short SellingThe selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-84731032266897027892009-04-12T14:06:00.001-07:002009-04-12T14:06:53.073-07:00Stock market investing tipsThere have 12 stock tips of how to avoid losing and start making money from the stock market.<br /><br />Tips 1: WHY DO YOU INVEST?<br />Make more money, this is the answer to most people. If your reason is to make more money, then ask yourself these three questions: 1.Is your strategy making money? 2.Is your strategy safe? 3.How to increase the profit and minimize the risk?<br />Tips 2: HOW TO CREATE WEALTH IN STOCK MARKET WITH JUST $1,000<br />Let say we invest some lower price stocks with just $1,000 Rupees in the stock market, invest twice a year for short-to-medium term. If each time the return is double, you will make Two million rupees cash within 5 years. If your starting capital is $20,000, after 3 years you will make two million Rupees cash. If you are using the same $1,000 capital, invest twice a year, but the return is only 50%, you will make two million rupees cash after 9 years. So we can always start small. However, it is very important that we know how to select high profit and low risk stocks.<br />Tips 3: DON'T GET OBSESSED WITH STOCKS<br />Sitting and monitoring the market whole day long will not bring you profit. Instead, it increases pressure and misleads your judgment.<br />Tips 4: NEVER GAMBLE<br />95% of the people always buy at the highest price. They don’t really know when to buy, just relying on news, rumors and tips. Only 5% of the people knows how to trade at the lowest price. That’s why 95% are losing money, only the 5% are making money.Investment Builds Wealth, Gambling Definitely Lose !<br />Tips 5: SAY GOODBYE TO NEWS<br />News used to be able to predict the market trend. But not anymore, it is difficult to judge which news could actually influence the market nowadays.<br />Tips 6: DO YOUR OWN ANALYSIS, FORGET ABOUT TIPS<br />Before investing, ask yourself these four questions:<br />1.How many people have already heard about the tips before you?If many have heard about it before you, this news is already obsolete. The price is already high.<br />2.How long have the tips been spreading before it reaches you?The next day?<br />3.Who told you?Listed company director? Or friends?<br />4.Assuming that the tip is true, would you possibly know about it?Normally insider news is not disclosed. RULE<br />Tips 7: SELL YOUR STOCKS EVEN LOSING MONEY<br />It is easier to be said than done.Sell at a loss is a difficult decision. Your heart will object, and your feeling will say "It is going to rebound, don't sell." Eventually price dropped further, causing a much tragic lost.<br />Tips 8: DON'T JUST FOCUS ON MAKING MONEY<br />How to protect your capital is much more important. Don’t try to make 100% profit. It is already good enough to have a 60% profit margin.<br />Tips 9: HISTORY WILL NOT ALWAYS REPEAT<br />Everyone expects to make some money from the stock market before Christmas, New Year, annual budget announcement or election, but the stock market is not always bullish during these events. We can say history is not always repeated.The best way is “Let the Market Lead us”.<br />Tips 10: QUOTES FROM WARREN BUFFET<br />There are only two rules to maket money in stock market:The first rule: Never lose your money. The second rule: Never forget the first rule.<br />Tips 11: TURN BAD STOCKS INTO GOOD STOCKS, DON’T JUST HOLD YOUR STOCKS Don’t hold your stock too long, there is a value when stocks are sold.How long have you been holding your stocks until now? Since Year 1993? 1997? Or Year 2000? Why didn't you exercise your stocks? long term investment strategy is not practical anymore. Even the blue chips also crash when the market collapses.The best strategy is to sell the stocks that are not earning money, and reselect some good counters. Buy low, sell high for several times will earn you more than enough to compensate the lost.<br />Tips 12: WAKE UP FROM MISTAKES<br />Stop investing if you are not sure of when to buy or sell. Without the knowledge of investment, you are bound to lose again. This is an age of information. Investors are using knowledge, techniques and strategies to make money. Without investment knowledge, how do you protect your money? Building wealth through investing starts with securing your capital.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-83461295743374415482009-04-12T14:05:00.000-07:002009-04-12T14:06:06.639-07:00how to work in stock?Before you can begin trading stocks, you need to have an understanding of how the system works. We specialize in training you for the stock market<br />Does stock trading interest you? If it does, here are a few items to consider before jumping into the stock trading arena. First and foremost, what exactly is a stock? A stock trading system is a representation of a share in the ownership of an incorporated company, you essentially own a piece of the company. When you purchase a stock, you are given the opportunity to watch the company and stock grow or decline.<br />This is why research is needed before you begin purchasing stocks. You should always research the company , look at the trends of the company and the industry that the company is in. If you completed your research thoroughly, you can stand to earn a profit, given the industry that you picked is growing. Always be aware, the industry could turn at any moment and you could end up losing money.<br />Essentially the goal of stock trading is to earn a profit, this is done by purchasing stocks when they are low and trading them when the stock grows. Here are four different ways to go about trading stocks;<br />Scalping - Scalping involves buying large quantities of shares in a stock, and you are just looking for a small move in the stock price.<br />Day trading - Day trading is similar to scalping but you are looking for bigger moves in the price, and you do not hold the stock overnight.<br />Swing Trading - Swing trading is when you buy a stock and hold it for a short period of time looking for a substantial move in the price.<br />Buy and Hold - Buy and hold is when you plan on holding on to the stock for a long time. You believe the company is going to grow in value and the price is going to go much higher.<br />When you enter into the stock trading arena, you need to decide which kind of stock trader you would like to be. They all have their good and bad attributes, it just depends if you are looking for short term gains or long term gains in the stock market.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-40837902717865512082009-04-12T13:55:00.001-07:002009-04-12T14:29:27.316-07:00Karachi Stock ExchangeMARKET HIGHLIGHTS<br /><br /><br /><br /><br />KSE-30 Index 10003.99<br />KSE-100 Index 9182.88<br />All Share Index 6639.06<br />KSE-30 Index 11224.18<br />KSE-100 Vol 1,800<br />KSE-100 Val (M) 0.09<br />KSE-100 Change 0.00<br />LATEST NEWS: Proposal: Shares KSE to be sold to Singapore, Dubai<br />27-10-08<br />KARACHI: A senior official of KSE has proposed to sell out shares of Karachi Stock Exchange to Singapore and Dubai to prevent floor from crisis.Meanwhile, Dubai, Singapore, and New Zealand have shown their interests in buying KSE shares while Chairman Securities said that the hegemony of some of the high-class figures working with government would keep demolishing small investors.His statement came after the MQM chief Altaf Hussain urged Sunday to open trade in KSE however brokers and dealers failed to accomplish dialogues to open trade here.He added that KSE might remain frozen for several weeks.<br />Banks offer fresh financing to local bourse. 20-10-08<br />KARACHI: Commercial banks operating in Pakistan have offered to provide fresh financing to local bourse. This was agreed after a meeting between commercial banks and the State Bank of Pakistan (SBP) here on Monday.Talking to Geo News, President Muslim Commercial Bank (MCB) Atif Bajwa also confirmed the news.He said the announcement of Rs270 billion bailout package by SBP has resolved the problem of liquidity crunch in the banking system. This amount is sufficient to last till March next year, he added.<br /><br />HISTORY OF KARACHI STOCK EXCHANGE<br /><br /><br />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. Karachi Stock Exchange is the biggest and most liquid stock exchange and has been declared as the “Best Performing Stock Market of the World for the year 2002”. As on March 31, 2006, 663 companies were listed with the 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 has been 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 US newspaper, USA Today, termed Karachi Stock Exchange as one of the best performing bourses in the world<br />The outgoing financial year ending June 2008 (FY08) turned out to be a difficult year for Pakistan Market, which after witnessing a bull run for 6 consecutive years (FY02-07), ended with a negative return of 11% (21% in US$ terms) and closed at 12,289 points level. Market Capitalization trimmed by 17% from US$ 66.5 bn to US$ 55.3 bn.<br />The market gained a 2.2% in first half (Jul-Dec) FY08 as against a negative return of 12.7% in second half (Jan-Jun) FY08. KSE-100 touched its all time high of 15,676 on 18 April, 2008, yet closed the fiscal year at 12,289 levels, down 22% from its peak. Weak Macro-economic fundamentals at the back of persistently high international oil prices amidst a less than perfect and a rather tumultuous transition towards perfect ‘Democratization’ led to a downgrading of the sovereign rating, capital outflows and, subsequently, a major tightening in monetary policy were the major reasons behind this massive correction. Moreover, rumors regarding implementation of Capital Gains Tax before the budget, also led to the prevalence of a negative sentiment in the market during the same time period.<br />In FY08, the average daily volume in ready market stood at 241.6 mn shares (up 14%), whereas average volumes in futures market fell by 10% and stood at 53.6 mn shares. In terms of value, average daily volumes were US$ 411mn in cash market up by 11% while in futures it was US$143 mn up 0.6%. On WoW closing basis, the market witnessed 27 positive closings with remaining weeks ending in red zone.<br /><br />POLITICS AND ECONOMY DRIVE MARKET DOWN 11%<br /><br /><br />In FY08, the market posted a negative annual return of 11% in local currency terms (21% in US$ terms) against 6-year (FY02-07) average annual return of 48% in Rupee terms (50% in US$ terms). However, comparing the market’s performance on a half yearly basis, we can observe contrasting performance.<br />Despite fall in most of the regional markets, KSE’s performance was rather unimpressive as MSCI Emerging Asia (ex Japan) fell by only 6.6%. However, it still out-performed peers such as Taiwan, Malaysia, China and Philippines..<br /><br /><br /><br />FERTILIZERS & E&P OUTPERFORM, BANKS UNDER PERFORM <br /><br /><br />Among key sectors, fertilizers and E&P sectors remained top performers with returns of 18.5% and 5%, respectively in their capitalization. Performance of the two index heavyweights was more than offset by dismal performances by banking and telecom sectors, which registered a decline of 40.6% and 30.8%, respectively. Banking sector came under pressure after the removal of Forced Sale Value benefit which resulted in higher NPL’s for the sector. Moreover, continued monetary tightening from the central bank which increased discount rates by 250bps during FY08 also had an adverse effect on the sector’s performance. Similarly, telecom sector’s under performance was mainly attributed to one off huge VSS cost of Rs 23 bn borne by the sector’s giant PTCL<br /><br /><br />FUTURE OUTLOOK <br /><br /><br /><br />The medium term change in economic fundamentals for equities around emerging markets now appears to be more than adequately priced in. Moreover, the emerging economies have started to adjust to the new reality of high oil price and hence at the back of an expected slowdown in oil demand growth, any further major spike in oil prices can be ruled out. We’d like to reiterate the fundamental risk and return feature of the equities and the fact that equities have outperformed most other investment classes over the last century around the globe, even after incorporating the various oil prices shocks that the world went through. Pakistan market is still offering a PE discount of 32% as against comparable Asian emerging markets. Going forward, Pakistan market is expected to stabilize around current levels once this ‘over reaction’ to the weakened economic fundamentals settles down. In the short to medium run, a softening in international oil prices, improvement in domestic politics, and softening in monetary policy stance remain the key triggers.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-84695711228226101432009-04-12T13:54:00.001-07:002009-04-12T14:29:55.789-07:00Lahore Stock Exchange<a href="http://1.bp.blogspot.com/_S8-30R4CQxU/SQWVG5Tud3I/AAAAAAAAAb0/eOKqS7FT_oE/s320/lhe.png"><img style="cursor:pointer; cursor:hand;width: 240px; height: 239px;" src="http://1.bp.blogspot.com/_S8-30R4CQxU/SQWVG5Tud3I/AAAAAAAAAb0/eOKqS7FT_oE/s320/lhe.png" border="0" alt="" /></a><br />LSE-25: 2824.86 Change +0.26%<br /><br />Beginning of the Lahore Stock Exchange was founded in October 1970 in the busy area of Bank Square in Lahore, Pakistan. It was formed under the Securities and Exchange Ordinance in Pakistan. There were originally 83 Punjab members but 25 years later, in 2004, there were a total of 650 members. The Lahore Stock Exchange has in fact become so popular that they have now opened 2 further branches in Faisalabad and Sialkot. At first the Lahore Stock Exchange had very few active members and there were only two opportunities to trade; the first was to trade through the Karachi Stock Exchange or trade only in Bonus, Vouchers and Bonds. This was mainly due to constraints from the size of the building and in just under 20 years, the Lahore Stock Exchange was moved to its present location at 19-Khayaban-e-Aiwan-e-Iqbal, Lahore. Since then both the industry of Pakistan and the Stock Exchange itself have gone from strength to strength, due to the coincidental time of the move; the relocation coincided with the Pakistan government accepting a market economy and heightened deregulation. The advance of the Lahore Stock Exchange. In recent years there have been a great many advances in the Lahore Stock Exchange. Business has seen a steady boom, a new Management Information System has been introduced and electronic clearing house activities as well as electronic purchasing are now being used. The future of the Lahore Stock Exchange. Many believe that this modernization and increasing growth will eventually take its toll on the Lahore Stock Exchange and managers have only just been able to keep control of it through the introduction of modern technologies. The fact is, a greater physical space will need to be introduced again in the near future and a ‘Construction Committee’ has been introduced to this end. Day trading only began at the Lahore Stock Exchange back in 1993 and the owners of the stock exchange along with the Construction Committee now aim to transform it from a local organization into a global player in the stock market. They began to implement large scale modernization in 1994 in order to keep up with the growth of the stock exchange and so far they have completed this admirably; they aim to keep expanding and improving until they<br />are stable and technologically advanced enough to take part in the world stock exchange. The Lahore Stock Exchange. Because of the already improved technology and implementation of new techniques coupled with the expected and planned growth the Lahore Stock Exchange is set to become a serious player and many areas of the world are already sitting up and paying attention to their progress. They offer the usual statistics and services that many of the world’s larger and longer established stock exchanges can offer, so it only seems a matter of time before they are competing but all of this is assuming that they can cope with the changes and growth they will need to go through.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-24896605478492820522009-04-12T13:53:00.001-07:002009-04-12T14:30:17.250-07:00Islamabad Stock ExchangeIslamabad Stock Exchange<br /><br />Market highlights<br /><br />ISE 10: 1687.25<br />ISE Volume: 1000<br />ISE Value: 3,500<br />Change: -8.18<br /><br />LATEST NEWS: SECP resolves Rs. 50 bln Support Fund for stock markets<br />ISLAMABAD: Security and Exchange Commission of Pakistan (SECP) has held a meeting here concluding the resolve to provide Rs. 50 billion Support Fund for stock exchanges to cope with ongoing financial crisis on Wednesday.Director KESC Sohail Walia told Geo News that during the meeting, it was resolved to release Rs. 50 billion Support Fund to emancipate state’s stock markets from crisis.Market Support Fund would be available after October 27 and added that Rs. 20 billion Support Fund would be available straightaway while remaining Rs. 30 billion would be provided to stock markets through “Pit Option”.<br /><br /><br />Islamabad Stock Exchange or ISE. It was launched on the 25th day of October 1989 but it was only until the 10th day of August 1992 when it commenced operations altogether.<br /><br />When the Islamabad Stock Exchange was inaugurated on 1989, it was recognized as a guarantee limited company. Although it is not the pioneer stock exchange in Pakistan, it is founded with an ultimate goal of being one of the leading securities market around the globe. ISE believes that this objective can be realized through a good trading and settlement foundation working side by side with a cutting-edge information system combined with experienced human resources.<br /><br />Also, the ISE mainly ministers to the demands of companies in some areas in the northern side of the country that are considered underdeveloped. Even though it helps companies in the less developed parts of Pakistan, ISE still maintains an inimitable touchstone in relation to the productivity of its operations. This serves as an encouragement for both major and minor league companies who are reputed to be lucrative to be a part of the exchange. ISE is indeed portraying an indispensable part involving the economic progress of the developing areas which eventually leads to the general advancement of Pakistan's economy.<br /><br />Currently, the ISE have 119 members actively participating. Out of those 119 members, 93 are corporate organizations. This encompasses investment banks as well as commercial banks, brokerage houses, and DFIs. The remaining number of members are individuals who are experienced, have inventive ideas, and are liberal-minded when it comes to the securities market industry.<br /><br />A Board of Directors oversees every negotiation and issue involving the Islamabad Stock Exchange. The Board has ten directors all in all. Five out of the ten members are handpicked from the stock exchange's registered members. The Securities Exchange Commission of Pakistan, or SECP, elects the other four members. The last member of the Board is the managing director in honor of his appointment. Along this line, the ISE launched an Investors Protection Fund so as to secure the concernment of the financing public.<br /><br />In order to further advance its operations, the ISE adopted a fully electronic trading system, known as the ISECTS. As a result, the volume of the exchange's trade continually doubled in a regular basis. Around this time, the typical turnover every day reached the one million shares mark. Presently, most, if not all, negotiations involving the securities listed in the market are done through the ISECTS. The manual approach in dispensing shares and securities has been abolished in favor of the automated trading system. A larger part of the scripts are verified through the Central Depository Company of Pakistan Limited.<br /><br />Now, the Islamabad Stock Exchange has an overall number of 241 listed companies and securities. The collective capital amounts to Rs. 389.512 billion. On the 4th day of April 2007, ISE's market capitalization crossed to Rs. 2,275.00 billion. However, the rate of listing is directly affected by the country's economic crisis which is due to several inherent, and sometimes external, factors.<br /><br />If ranked with the world's leaders in securities market, the Islamabad Stock Exchange has a long way to go before it can play in the major league. With this in mind, ISE never cease to elevate its operations by advancing the technology it utilizes and by adopting the International trading system and practices.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-18528122255961849722009-04-12T13:52:00.001-07:002009-04-12T14:30:40.917-07:00New York Stock Exchange<a href="http://2.bp.blogspot.com/_S8-30R4CQxU/SP71gSwUaHI/AAAAAAAAAa0/q66pXNbjYrg/s320/nyse.bmp"><img style="cursor:pointer; cursor:hand;width: 193px; height: 101px;" src="http://2.bp.blogspot.com/_S8-30R4CQxU/SP71gSwUaHI/AAAAAAAAAa0/q66pXNbjYrg/s320/nyse.bmp" border="0" alt="" /></a><br />NYSE:<br />value: 6051.34<br />Change: -236.26<br /><br />NewYork Stock Exchange (NYSE) one of the world’s largest marketplaces for securities and other exchange-traded investments. The exchange evolved from a meeting of 24 men under a buttonwood tree in 1792 on what is now Wall Street in New York City. It was formally constituted as the New York Stock and Exchange Board in 1817. The present name was adopted in 1863. For most of the NYSE’s history, ownership of the exchange was controlled by members—limited to 1,366 (since 1953)—and the only means of obtaining a membership was by purchasing (since 1868) a seat from an existing member. Greater commercial activity in the United States after the War of 1812 and speculation in railroad stocks in the 1830s increased demand for capital and stimulated trading at the exchange. After the Civil War, the exchange provided the capital for the accelerating industrialization of the United States.<br />After the Panic of 1837, when many investors suffered heavy losses, the exchange began to demand that companies disclose to the public information about their finances as a condition of offering stock. The Stock Market Crash of 1929, which signaled the start of the Great Depression, led to investigation by the federal government and regulation by the Securities and Exchange Commission.<br />A corporation must meet defined requirements in order to be listed on the NYSE, and it must meet continued listing criteria to maintain its place there. Corporate governance standards that require the listed company boards to have a majority of independent (nonemployee) directors were introduced in 2003; audit, compensation, and nomination committees must be composed entirely of independent directors. A shift from fractional to decimal pricing occurred in 2001 The ownership structure of the NYSE changed in March 2006 with the formation of the NYSE Group, Inc., a publicly held company. In anticipation of that change, the last seats on the exchange were sold in December 2005 (some selling for as much as $4 million). All seat holders became shareholders of the NYSE Group. A merger with Euronext N.V., a group of European securities exchanges, created the holding company NYSE Euronext in 2007. In 2008 NYSE Euronext agreed to acquire the American Stock Exchange.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-9177784256103987899.post-12192569726414586062009-04-12T13:51:00.000-07:002009-04-12T14:30:58.053-07:00American Stock Exchange[American stock market (amex)]<br /><br />major U.S. stock exchange that also handles trades in options, exchange-traded funds (ETFs), corporate bonds, and other investment vehicles. Trading on the Amex—formerly known as the “Curb” (because its transactions took place outdoors during much of its existence)—is believed to have started about 1849 in New York City. By 1908 it was known as the New York Curb Agency, and it was called the New York Curb Exchange from 1929 to 1953, at which time it changed its name to its present form. The market first moved indoors in 1921. For a number of years it was a marketplace for securities not considered reputable enough for listing on the New York Stock Exchange, but it came to be considered an equally respectable exchange with its own listing requirements for securities and admissions requirements for membersUnknownnoreply@blogger.com0