5. Table of Content
• Stock Exchange & History of stock exchange
• Purpose of stock exchange
• Role of stock Exchange
• Stock Exchange as a part of financial markets
• Hierarchy of stock exchange
• Top listed stock exchanges and listing requirements
• Stock exchanges in Pakistan
• KSE & types of KSE indexes
• Objectives of KSE100 index & performance of KSE
• KSE 30 index
• KMI 30
• KMI 30 sectors & companies
• NO of companies in sectors
• How to calculate KSE 100, KSE 30 ,& KMI 30 INDEX
6.
7. History
• Stock exchanges can be traced to 12th century
France, when the first brokers are believed to
have developed, trading in debt and
government securities.
• Unofficial share markets existed across Europe
through the 1600s, where brokers would meet
outside or in coffee houses to make traders.
• The Amsterdam stock exchange created in
1602, became the first official stock exchange.
8. • By the early 1700s there were fully
operational stock exchanges in France and
England , and America .
• Today ,stock exchanges operate around the
world, and they have become highly regulated
institutions .
• Most stock exchanges began as floor
exchanges , Where traders made deals face-
to-face.
• The largest stock exchange in the world, the
New York stock exchange.
9. Purpose Of Stock Exchange
• Established for the purpose of assisting
regulating and controlling business of buying ,
selling , and dealing in securities .
• Provides a market for the trading of securities
to individuals and organizations seeking to
invest their saving or excess funds through the
purchase of securities .
10. The Role Of Stock Exchange
• Raising capital for business.
• Mobilizing saving for investment .
• Facilitating company growth .
• Profit Sharing .
• Creating Investment opportunities for small
investors .
• Government capital-raising for development
projects .
11.
12.
13. Investment in Financial Markets
• There are a wide variety of markets in which
one can invest money
• Bonds
• Forex
• Derivatives
• Physical Assets
• Stock Market
19. Vision Statement
“To be a leading financial institution , offering
efficient , fair and transparent securities in the
market and enjoying full confidence of the
investors.”
20. Mission Statement
“ To reflect country’s economic health and
behaviour and play its role for the growth ,
Development and prosperity of Pakistan “
23. Objectives of KSE 100 Index
The primary objective of the KSE 100 index is
to have a benchmark by which the stock price
performance can be compared to over a
period of time . In particular, the KSE 100 Is
designed to provide investors with a sense of
how the Pakistan equity market Is performing
Thus the KSE 100 is similar to other indicators
that track various sectors of the Pakistan
economic activity such as the gross national
product ,consumer price index , etc.
31. Methods To Calculate KSE 30 Index
• Launched on full market capitalization and is
now being shifted to free floated market
capitalization.
• BASE Previous day Index
• SUM OF COMPANIES 30
• BASE as New Divisor on day next
32. Calculation of KSE 30 Index
• Formula for calculating KSE 30
New Divisor = Revised Market Cap.
Index as on Day 3
Index = Market Capitalization
New Divisor
