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INTRODUCTION

Stock exchange:

A stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include shares issued by companies, trusts, derivatives, pooled investment products and bonds.

History of the Karachi Stock Exchange:

Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared the “Best Performing Stock Market of the World for the year 2002”. As of Dec 8, 2009, 654 companies were listed with a market capitalization of Rs. 2.561 trillion (US$ 30.5 billion) having listed capital of Rs. 705.873 billion (US$ 10.615 billion). The KSE 100TM Index closed at 9645.71 on June 19, 2010.By 30 July total market capitalization of the KSE reached Rs2.95 trillion, approximately 35 billion dollars.

Nature of KSE:

Although initially the Karachi Stock Exchange was a physical exchange where trading took place by an open outcry system, now the Karachi Stock Exchange is fully automated.

Vision:

To be a leading financial institution, offering efficient, fair and transparent securities market in the region and enjoying full confidence of the investors.

Mission:

* To strive to provide quality and value-added services to the capital market in an efficient, transparent and orderly manner, compatible with international standards and best practices.

* To provide state-of-the-art technology and automated trading operations, driven by a team of professionals in accordance with good corporate governance.

* To protect and safeguard the interest of all its stake holders. i.e. members listed companies, employees and the investors in large.

* To reflect the country’s economic health and behavior and plays its role for the growth....