Exchanges are of various kinds – commodities, company shares, currencies, etc. Stock exchanges are places where SHARES of public limited companies (companies formed by people pooling cash together) are traded daily. The idea behind creation of stock exchanges is to allow people to invest /disinvest within companies/industrial sectors of their choice, without having to approach each public limited company/investment avenue separately. Thus a common platform is provided for all those who are interested in investments. It deals with the public sector limited business/industries, not the private ones.
2. Regularized System ensuring transparency
Its processes are transparent, automated, and guaranteed by several fiscal departments made by the government of Pakistan. Some of the institutions facilitating stock trading in Pakistan are the Central Depository Company (CDC), The Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP). All companies listed at the KSE produce regular announcements and public earnings reports on a quarterly basis. There is no exception to this rule. Shareholders are kept up to date by giving them all the notifications regarding every activity that is to take place.
On the contrary, investing in stocks is the easiest, most hassle free, and foolproof business model which promises most return on investment with the least amount of individual effort.
A few examples of renowned companies operating within the Karachi Stock Exchange (KSE) are Pakistan state Oil (PSO), Unilever Pakistan (ULEVER), Karachi Electric Supply Corporation (KESC), Pakistan Telecommunication Company Limited (PTC), Muslim Commercial Bank (MCB) etc.
3. Halal Transactions
Shares you buy are placed within your depository accounts within 48 hours, implying that a REAL, HALAL transaction of each trade takes place for every transaction within the ready market. This is contrary to FOREX, wherein most profits/losses are just settled by brokerage firms and actual buying and selling of the commodity does not take place.
4. More Rewarding
Certain brokers allow you to take inter day leverage positions at percentages that cannot be offered in any other financial market. It has been observed that people having no more than PKR 100,000 (one hundred thousand) take market positions of more than PKR 10,000,000 (ten million) during inter day trade(1% margin). This makes Stock trading the most rewarding, as well as the most risky business model ever, as ALL PROFIT (as well as ALL LOSS) made on the margin position is given to the client/investor, settled within 48 hours.
There is NO going back on a ready market transaction. Unlike options trading in the US, our exchange is free from such products wherein you can choose to go back on a trade by paying a premium.
5. Real Success
Despite the fact that most people claim that some of them have ‘scammed ‘ to get to the top (mostly success envy), facts show that these people have created business empires out of the Karachi Stock Exchange, using various business models (origins). Details of some of successful entrepreneurs at Karachi Stock Exchange are given in Pakistan’s top 50, 2008, at the given link.
- Aqeel Kareem Dhedhi– Chairman AKD securities. Origin: Securities, Brokerage.
- Jahangir Siddiqui– Owner JS group, Origin: Finance, Banking
- Khadim Ali Shah Bokhari- Owner KASB group, Origin: Banking
- MianMansha– Mansha Group Creator, Origin: Textiles.
- Arif Habib– Creator, Arif Habib Group, Origin: Securities, Brokerage.