STOCK EXCHANGE

Presenter
M Waseem Reg No 1252fms-bbait/s17

Adil Aslam Reg No 1202fms-bbait/s17

 Contents

1. Introduction To Stock Exchange

2. Demutualization
3. Functioning Of Stock Exchange
4. Need of Company to be in Stock Exchange
5. Kinds Of Investors
6. Investing Options
7. Requirements To Register With Broker
8. Central Depository Company (CDC)
9. National Clearing Company of Pakistan Limited (NCCPL)
10. Question Answers Session
 Stock Market

Market Buyers & Sellers

A market in which securities are

Listed Securities  bought and

prices governed
sold at
by
the forces of demand and supply

Bought And Sold Prices Governed By

The Forces Of D/S
 Demutualization

When a mutual company owned by its users/members converts into a company owned by
different kind of ownership.

 All the three exchanges had separate management, trading interfaces, indices, listing
criteria etc and thus had no mutual links to each other.
 All three exchanges were previously operating as a non-profit organizations with
mutualized structure wherein there respective members had trading as well as
ownership rights.
 This structure inherently created conflict of interest and perceived to jeopardize the
investors' interest.
 Functions of SE

In In
ves ves
tor Stock Exchange
tor
/B /Se
uy lle
er r
NCCPL
(National Clearing
Broker 1 Company Of Broker 2
Pakistan Limited)

Bank/CDC
(Central
Depository
Company)
 Company’s Need

Needs money to
COMPANY
expand business

Raises Money For Gets A Seed Investors Buy

IPO Stock Shares
A Start-up Round From A VC

Company Makes
A Quick Buck

The Stock Market Is About Predicting Effect On Share

What Investors Will Do In The Future. Price Because Of
Trading Of Stock
Past Performance Does Not Guarantee Demand, Supply
Future Results And Other Factors
 Kind of Investors

Active
Investors

Bargain
Passive
Hunter
Investors
Investor
 Kind of Investors

Active Investors:

They read everything on investing, study the stocks, and subscribe to magazines,
associations, or newsletters. Their motivation can be to flip stocks and make money fast
These investors prefer stocks that are rising and promise to be a forerunner for future
outperformance. They have one focus, accelerating earnings, from a company which has
tapped into a new product or innovation that promises to hit the market hard.

Passive Investors:
These people are often interested in investing their money, but they do not want to spend
their weekends studying financial statements, markets, and even weather reports.
They are often happy to put their money in the hands of a broker and walk away.
They are not aggressive, or looking for a quick gain.
 Kind of Investors

Bargain Hunter Investor:

These investors circle like eagles waiting for the weak and wounded to fall, then they
pick up the pieces. Many companies owe their survival in hard times to the bargain
hunter. Kmart is one company that pulled through and recovered after Wall Street left it
for dead

Symbol LDCP Open Rate High Rate Low Rate Closing Rate Turnover

1 April 2008
ULEVER 2350 2350 2379 2350 2375 220
1 April 2009
ULEVER 1843 1843 1854 1854 1854 120

Unilever buy back there shares @18000

 Investing Options

Investing
Options

Real Estate Other

Options

Financial
Stock
Intermediaries
Exchange
 Registration Requirements

Documentation/
Registration

National Clearing Central Depository

Broker Company of Pakistan Company of
(NCCPL) Pakistan (CDCPL)
 Registration Requirements for Broker

 CNIC

 SOAF (Standardized Account Opening Form)

 KYC Form (Know Your Customer form)

 Signature Card

 Bank Verification

 Valid mailing address

 From Submission

 CDCPL and NCCPL Verification

6-8 Days Process

 Account Holders in CDS

 Participants: They are allowed to keep their beneficially owned securities in CDS and
provide custody services to their clients as well.
 Account Holders: They are only allowed to keep their beneficially owned securities in
CDS.

All the members of Stock Exchanges, Banks (Both Commercial and Investment) can
open their account as a Participant whereas, Corporate Bodies and Qualified Private
Investors can open their account as an Account Holder
 Transactions Handled by CDS

 Deposit of Securities

 Withdrawal of Securities

 Transfer of Securities

 Pledging of Securities

 Pledge Release

 Corporate Action

 Partial Action
 Transaction & Custody Fee

 Transaction fee for shares is 0.004%

 Custody fee for shares is 0.01125%

 National Clearing Company of
Pakistan Limited

National Clearing Company of Pakistan Limited (NCCPL) is a significant institution of

Pakistan's Capital Market providing clearing and settlement services to the Pakistan Stock
Exchange Limited.
National Clearing & Settlement System (NCSS) was established to replace the separate
and individual Clearing Houses of three Stock Exchanges, namely Karachi Stock
Exchange, Lahore Stock Exchange and Islamabad Stock Exchange by a single and
centralized entity.
Thank
You