Pakistan Stock Exchange & What is BROKERAGE ACCOUNT ?

Pakistan Stock Exchange

(pakistantravelerspk)The PSX has trading floors in Karachi, Islamabad, and Lahore.PSX was reclassified as an MSCI Newly appearing Market in May 2017, PSX as a Secondary Emerging Market in FTSE Classifies.

The PSX was established on 11 January 2016 after the merger of the Karachi, Lahore, and Islamabad.PSX's origins were laid with (the creation of/the beginning of the existence of) the Karachi stock market in 1947, the Lahore stock market in 1970 then the Islamabad stock market in 1992. As of February 23, 2018, there are 559 companies listed in PSX and also the entire market capitalization is $84 billion.

The (people or businesses who give money to assist start businesses) on the exchanges include 1,886 foreign institutional (people or businesses who give money to assist start businesses) and 883 domestic institutional (people or businesses who give money to assist start businesses) alongside about 0.22 million retail (people or businesses who give money to assist start businesses). There are about 400 (company that buys and sells things for clients) houses which are members of the PSX also as 21 valuable thing management companies.PSX performs excellent available markets, between 2009 and 2015 it delivered 26% a year. In December 2016, PSX sold 40% (related to an idea to succeed in a goal) shares to a Chinese group of companies for $85 million.

Karachi stock exchange

KSE Founded on 18 September 1947, Karachi stock exchange Limited (KSE) was registered in Pakistan.KSE was located at the stock exchange Building (SEB) on stock exchange Road, Karachi. within the guts of Karachi's downtown, I. I. Chundrigar Road, Karachi, Sindh Area of control/area of land of Pakistan. it had been Pakistan's largest and one of the oldest stock exchange in South Asia. Karachi stock exchange was also listed among 10 best stock markets within the planet in 2015. agreeing with/matching up with/working regularly with Bloomberg, the Pakistani benchmark stock market index is that the third-best performer within the planet since 2009. In June 2015, Khaleej Times reported that since 2009, the Pakistani equities delivered 26 percent a year for US dollar (people or businesses who give money to assist start businesses), making Karachi the best-performing stock exchange within the planet. As of 10 July 2015, total market capitalization reached Rs. 7.33 trillion (US$72 billion about).

Lahore stock exchange

Now PSX shifted to in old Islamabad stock exchange tower, Lahore stock exchange is found in Lahore, Pakistan. it had been formally admitted entry into the national Pakistan stock exchange on 11 January 2016. The Lahore stock exchange ((promise that something will certainly happen or that something will certainly work as described)) Limited came into existence in October 1970, under the Securities and Exchange Rule of 1969 by the govt. of Pakistan in response to the needed things of the (related to an area) big city of the world of control/area of land of Punjab. It initially had 83 members and was housed during a rented building within the crowded Bank Square area of Lahore.

Islamabad stock exchange

Islamabad stock market or ISE was the youngest of the three stock exchanges of Pakistan and is found within the capital of Pakistan. Islamabad stock market (ISE) was incorporated as a guarantee-limited company on 25 October 1989 in Islamabad. ISE tower maybe a 22-story building, which makes it the second-highest building of Islamabad after the Telecom Tower. the world covered by the building is 562,629 square feet (52,269.9 m2), it consists of three levels of basements and ground plus 18 floors above.

How can We trade in the Pakistan stock market?
(Written by Pakistantravelerspk-pktraveler)
Open an Account & Invest

OPEN YOUR BROKERAGE ACCOUNT:

After the choice of your brokerage, you'll open an account. you want to make sure that the said Account is opened in your name. you'll tend a Client number or an Account Number against this account. Read the terms & conditions prescribed within the Account Opening Form and confirm that they match with the quality Account Opening Form available on the PSX website.

Subsequently, you'll open a CDC Sub Account. The CDC Sub Account is the account through which you'll actually trade the stock exchange.

You should open a CDC Investor Account. account opened at the CDC, thereby adding to high safety and individual custody of your shares. 

You must confirm that you simply are assigned a singular Identity Number (UIN). it's this number against which all of your brokerage accounts and transactions are going to be recorded.

You will also get to deposit initial funds to get shares. confirm that it's not a cash deposit.

Once you've got decided which companies’ shares to shop for, you ought to place your orders through your stock-broker (or through the web application provided by your brokerage firm)

After placing the order and execution of an equivalent, you ought to get a Trade Confirmation against your executed order.

SETTLEMENT OF TRANSACTIONS & stock exchange ECOSYSTEM: The shares purchased or sold are settled-payments made or received, through NCCPL (National Clearing Company of Pakistan Limited). exchanged shares happen through the CDC (Central Depository Company Limited). These two organizations and therefore the brokerage firms/ TREC holders form the main a part of the ecosystem of PSX.

ONLINE TRADING FACILITY: Many brokerage firms offer a web Trading facility for its customers. this enables you as an investor to trade by yourself on the stock market through the web application or software.

BASIC TAXES & CHARGES: There are several taxes and charges applicable on shares trading at PSX; the essential ones are listed as follows:
CGT (Capital Gains Tax) [Tax Return Filers: 15%, income tax return Non-filers: 20%], Brokerage Commission [Varies amongst brokerage firms], CVT, IPF, SECP Fee etc.

SEQUENCE OF STEPS to start out INVESTING IN STOCKS: Define your investment objectives.
A shortlist variety of registered and licensed brokerage firms supported your preferences.
Select a brokerage that matches your requirements.
Open an account, CDC Sub Account, and a CDC Investor Account.
Deposit funds in your account through cheque.
Select the businesses to take a position in support of some or all of the parameters mentioned within the Basic Guidelines for Stock Investment, your preferences and discussing an equivalent together with your stock-broker. Thereby building your portfolio.
Start investing.