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Explanation:

The index analysis of Automobile parts and Accessories sector has


following findings:

1. Only Free Float shares are working in the market and all buying & selling
occur on those shares. Moreover, I found Market Capitalization as per Floating share
multiply by Market Price per share.

2. There is a change in market when company announce the divided. Basically,


it has two aspects. Firstly, MPS may be raise upside and may be down side.
Likewise, in my case Thal Limited announced the divided at 7 Mar and next day the
MPS increase more than 10 rupees. So dividend effects on MPS and MPS
capitalization.

3. Many companies which are enlist in Pakistan Stock Exchange would not pay
dividend to shareholders. Similarly, in my case two companies did not pay dividend
to shareholders for last two years.

4. Last but not least, the Market Capitalization and MPS change as per dividend
paid by companies. Meanwhile, any change in companies share would also change
the Market capitalization. On the other hand, after dividend would be announced a
new divisor came into existence for new calculation onward till next change.

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