Securities

Shares, bonds, Modaraba Certificates of listed companies, Unit trust schemes, mu

tual funds certificates, futures, indices.

KSE
History of the Karachi Stock Exchange :
The Karachi Stock Exchange, the oldest exchange in Pakistan, was established in
1947 and became a registered company limited a few years later. Since then it ha
s experienced a remarkable progress with only 5 companies listed and 90 members
on the Exchange in the 1950s and 663 listed companies and 200 members in 2006.
In 2002, the Karachi Stock Exchange was recognized internationally by the magazi
ne 'Business Week' as one of the best performing stock markets in the world.
The Karachi Stock Exchange has started trading through the computerized trading
system KATS (Karachi Automated Trading System) since 1997. As the demand for Tra
ding Workstations installation has been significant during the consecutive years
, today over 1000 KATS workstations are already installed. In 2005, trading in t
he Internet was also initiated.
Since 1990, corporate entities can become members on the Karachi Stock Exchange.
However, they have to meet stringent requirements of the Board of Directors and
own a minimum capital of Rs. 20 million (approximately UK ?181,000). At the beg
inning of 2006, 120 corporate members were registered in the Exchange.
The Karachi Stock Exchange introduced KSE 50 Index at the end of the 20th centur
y. However, because of the growth in the stock market, the Index did not represe
nt the stock market performance anymore. Thus, in 1991 a capital weighted KSE 10
0 Index launched. At the moment, the Exchange successfully trades two world-famo
us indices - KSE 100 Index and KSE All Share Index, which was introduced in 1995
.

History Of LSE
Lahore Stock Exchange€was established in October 1970 and is the second largest st
ock exchange in the country with a market share of around 12-16% in terms of dai
ly traded volumes. LSE has 519 companies, spanning 37 sectors of the economy, th
at are listed on the Exchange with total listed capital of Rs. 555.67 billion ha
ving market capitalization of around Rs. 3.64 trillion. LSE has 152 members of w
hom 81 are corporate and 54 are individual members.
Activities of€Lahore Stock Exchange (LSE)€have increased significantly in all operat
ional areas since its inception. Over the years, LSE has successfully met variou
s challenges and has now emerged, fully geared and positioned to aggressively co
mpete with its fellow Exchanges, contributing towards the growth of Capital Mark
ets in Pakistan.

Q: What is the history of the exchange?€

A: Islamabad stock exchange (ISE) was incorporated as a guarantee limited compan
y on 25th October, 1989 in Islamabad capital territory with the main object of s
etting up of a trading and settlement infrastructure, information system, skille
d resources, accessibility and a fair and orderly market place that ranks with t
he best in the world. The exchange started its operations in 1992.
Initially an outcry method of trading in shares was adopted which was replaced w
ith the automated trading system in 1997. The automated system (ISE-ETS) which w
as indigenously developed was also upgraded last year and now expert trading sys
tem (ISE-ETS) is in operation. Since the inception of automated trading system t
he trade volume is multiplying day by day and the average daily turnover has now
crossed the figure of 7.5 million shares. Now all the listed securities are tra
ded through the ISE-ETS. The system of physical handling of shares and securitie
s is being phased out and almost all of the scrips are settled through central d
epository company of Pakistan limited.€

A€stock exchange€is an€entity€which provides "trading" facilities for€stock brokers€and€tra

s, to trade€stocks€and other€securities. Stock exchanges also provide facilities for t
he issue and redemption of securities as well as other financial instruments and
capital events including the payment of income and€dividends. The securities trad
ed on a stock exchange include€shares€issued by companies,€unit trusts,€derivatives, poo
led investment products and€bonds.
To be able to trade a security on a certain stock exchange, it has to be listed
there. Usually there is a central location at least for recordkeeping, but trade
is less and less linked to such a physical place, as modern markets are€electroni
c networks, which gives them advantages of increased speed and reduced cost of t
ransactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to€investors€is by definition done in the€pri
mary market€and subsequent trading is done in the€secondary market. A stock exchange
is often the most important component of a€stock market. Supply and demand in sto
ck markets is driven by various factors which, as in all€free markets, affect the
price of stocks (see€stock valuation).
There is usually no compulsion to issue stock via the stock exchange itself, nor
must stock be subsequently traded on the exchange. Such trading is said to be€off
exchange€or€over-the-counter. This is the usual way that€derivatives€and€bonds€are traded.
Increasingly, stock exchanges are part of a global market for securities.