Log in Sign up

  Center
Knowledge

HOW TO TRADE IN THE

STOCK MARKET?
The most common way of buying/selling shares in
stock market is via trading through exchanges,
where buyers and sellers meet and decide on a
trading price. Through a stockbroker you can buy
shares from existing investors who wish to sell
them and vice versa.

There are also some exchanges which are physical

location known as trading floors, where often
trading is carried out. You might have come across
in pictures where traders are yelling, waving up
their arms wildly in air. The other means of
exchange is virtual and is carried out via a network
of computers where trading can be done
electronically.

The aim of a stock market is to simplify the

exchange of securities between buyers and sellers
which can in turn reduce the risks associated with
investing. So a stock market can be considered as
a super-sophisticated market providing a linkage
between buyers and sellers.

It’s important to have a sound knowledge between

Primary and Secondary Market if someone wishes
to trade.

Primary Market
Primary market is where the securities are made via
an IPO.

Secondary Market
Secondary market is where investors trade the
already-issued securities without involving the
issuing companies. It is what people refer to when
they are talking about the stock market.

An investor or stake holder have to trade through

registered brokers/brokerage houses of the stock
exchanges and it doesn’t require the direct
involvement of the company. Each stock exchange
has a number of brokers/brokerage houses which
a re registered with the commission. Registered
Brokers/brokerage houses are allowed to engage in
execution of trade on others' behalf as per the laws,
rules and regulations. The following points are of
key importance if you are opting for trade.

To ensure protection against fraud and

misrepresentation an investor should trade only
through registered brokers/brokerage houses
and agents.
To verify authenticity of brokerage
house/brokers/agents registration, SECP has
uploaded a list of registered brokers and agents
of the Stock Exchanges on its website
(www.secp.gov.pk). It is important to note that
the registration of all the brokerage
houses/brokers and agents are valid for a period
of one year which is subject to annual renewal.
Make regular enquiries from your broker/
If you come across any unregistered/illegal
broker/agent, please report the same
immediately to the SECP as it is in your own
interest and in the general interest of other
investors.
The list of registered brokerage houses/brokers
and agents can also be found on respective
websites of the Exchanges.

RELATED TOPICS
What are Shares?
Types of shares
What is a Stock Market Index?
Why do companies issue shares?
How shares are made public for the first time?
How to trade in the Stock Market?
How to Open an Account with the Brokerage
House
How to Open an Account with CDC?
Roles and Responsibilities of Brokerage
House
Costs Associated with Brokerage Services
Return on Investment in Shares
Key points for Investing in Shares
Risks Associated with Investment in Shares
Benefits of Investment in Shares

Previous Next

Games

Mobile Apps

Download JamaPunji from

APP STORE

Download JamaPunji from

ANDROID MARKET

Related Links
Guide for Shareholders

Issue of Shares

Guidebook on Issue of Preference Shares

Guideline on Issue of Shares

Risk Profiler

Scam Meter

Calculators

Quizzes

Checklists

Stock Trading Simulator

 Home
 Financial Planning
 Knowledge Center
 Protect Yourself
 Verify Companies
 Publications
 News

 Events
 Audio/Video
 Training
 Tools
 Contact Us
 About JamaPunji
 About SECP

Jamapunji - An initiative of Securities and

Exchange Commission of Pakistan. NIC
Building, Jinnah Avenue, Islamabad. 44000,
Pakistan.

 
0800 88008 info@jamapunji.pk

   
DISCLAIMER: Please be informed that
“Jamapunji” is an investor education
initiative of the Securities and Exchange
Commission of Pakistan. We do not sell or
recommend any investment product.
Jamapunji main purpose is to educate and
aware public enabling them to avoid scams
and frauds in financial market.

Privacy Policy Terms of Use Sitemap Feedback

Copyrights © 2018 SECP. All rights reserved.

Page Views 6689115

Powered by: CyberVision International