An Internet trading account is a special type of account designed specifically for individual investors who prefer to use the Internet to place their orders themselves rather than through the broker by telephone.
Online Trading allows investors to place orders on their own through the internet without having to call up a broker and place an order through them. Online trading gives investors greater control over their decisions. They can view real time market activity from anywhere they wish. A single keystroke or click-of-a-mouse executes a buy or sell order. Also, when the order has been completed you receive an instant confirmation of your trade via email.Our site also has research tools available, so customers can get real-time price quotes, news and market analysis, price charts, earnings estimates and historical prices.
Absolutely. All trade confirmations, margin calls, and other correspondence will be sent to your e-mail address which you provide us.
Equity is the ownership of shares in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value.
A limit order is when the user enters the order into the system with a specific price, while in a market order the system will execute the order irrespective of price. The system will search for the quantity of order to be completed at any available price. In a rapidly moving market, a market order may be executed at a price higher or lower than the quote displayed on the ticker at the time of order entry.
A Margin account is an account where an investor only needs to keep a portion of the funds as a margin of the total amount with the stockbroker to process his/her trades at the Exchange. This means that the customer places a decided percentage (mutually agreed upon between the investor and the broker prior to operating the account) of the funds with the broker against the net total value of his/her trades carried out through that broker at the stock exchange. The margin amount in essence along with the shares purchased serve as collateral that the investor maintains with the broker to carry out his/her transactions. The Margin amount varies from broker to broker. At HPB all customers are required to maintain 50% margin against his/her outstanding trades/exposure for the purpose of trading in his/her/their account.SECP regulations allows brokers to revise their margin requirements for their account holders if they inform their customers at least 3 days prior to the implementation of the revised margin requirements. The use of margin accounts provides investors to buy and hold more stock without paying for it in whole. This can provide investors the advantage to generate higher profits, but it also exposes them to the potential of higher loss.Cash accounts are different from margin accounts in the way that the amount deposited by the account holder is fully used and the funds deposited stipulate the amount of trading activity that can be conducted in that account.This means that the Account Holder can only buy/sell shares equal to the funds deposited by him/her with the broker.
A symbol is a unique, market-approved code that identifies a particular security on an exchange. The symbol generally reflects the name of the security. For example, the symbol for the Karachi Electric Supply Corporation stock is PSX. This is also known as the 'ticker symbol'.
IF YOU WANT TO FIND OUT THE SYMBOL OF A PARTICULAR COMPANY THEN GO TO PSX.COM.PK AND GO TO ‘MARKET INFORMATION’ THEN CLICK ON “SYMBOL LOOK UP/QUOTE”
In 1991, the secondary market was opened for foreign investors on an equal basis with the local investors. This measure along with the government policy of privatization has resulted in rapid growth of the market since 1991. It may also be mentioned that "privatization" has been adopted as a philosophy and most of the business & finance activities which were previously reserved for the public sector have now been opened for the private sector. The change of policy is most visible in the financial sector where a number of commercial banks, investment banks, discount houses, leasing companies, modarabas, life insurance companies and mutual funds have been allowed in the private sector.
Liberalization policy has led to rapid deregulation of the national economy and the impediments to private initiative have been speedily removed. Foreign exchange holdings and transfers have been liberalied, industrial sanctioning has been done away with except for few sectors where, for strategic reasons, prior permission of the government is necessary.
The securities market and the corporate sector are regulated by the provisions of the Companies Ordinance 1984.
The Securities and Exchange Ordinance 1969 and Rules framed there under in 1971.
The Securities & Exchange Commission Act 1999.
There are also Federal legislations relating to specific areas like
- Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970.
- Investment Companies and Investment Advisors Rules 1971.
- Modaraba Companies and Modaraba (Flotation and Control) Ordinance, 1980.
- Companies (Issue of Capital ) Rules 1996.
- Leasing Companies (establishment and Regulation) Rules 1996.
- Asset Management Companies Rules 1996.
- Insurance Companies Ordinance 2000.
- Guidelines for insiders trading.
In addition to above, the listed companies are also subject to the PSX Regulations prescribed under Rule Book of the Pakistan Stock Exchange Limited (formerly: Karachi Stock Exchange Limited).
The regulatory authority for the securities market and corporate sector in Pakistan is the Securities and Exchange Commission of Pakistan. The Commission was established on January 01,1999 by dissolving the corporate Law Authority which was formed in 1981 under a Special Law. The Commission administers the compliance of the Corporate laws in the country. The Commission is run by the Commissioners under a Chairman.
The Asian Development Bank's Capital Market Development Programmed envisaged the conversion of CLA into Securities and Exchange Commission of Pakistan, as an autonomous regulatory authority. The new system provides administrative, operational and financial autonomy to the Commission and at the same time provides an accountability mechanism through establishment of a Securities and Exchange Policy Board. All policy decisions are made by the Board on the recommendations of the Commission which is also empowered to take suo moto action. The Board is directly answerable to the Parliament.
Trading Rights Entitlement Certificate Holders of the stock exchanges are also subject to the discipline of self-regulation Rule Book of the stock exchanges. Self-Regulation is the essence of market regulation and for this purpose the legal framework has been amended to facilitate the attainment of SRO status by the stock exchanges.
Pakistan Stock Exchange Limited - PSX (formerly: Karachi Stock Exchange Limited) has drafted a booklet to help Non Resident Pakistanis (NRPs) and/or Foreign Investors (FIs) to use the said booklet as a reference document while seeking to invest in Pakistan’s Equity Markets through opening a Special Convertible Rupee Accounts (SCRA) with SBP authorized dealers in Pakistan. The aforementioned draft can be accessed from the following link below. Comments on the booklet are welcomed at: email@example.com and must be submitted latest by August 15, 2016.
The regulatory authority for the securities market and corporate sector in Pakistan is the Securities and Exchange Commission of Pakistan (SECP). The SECP administers the compliance of the corporate laws in the country and is run by commissioners under a chairman.
The Securities and Exchange Commission of Pakistan, is an autonomous regulatory authority, and at the same time provides an accountability mechanism through establishment of a Securities and Exchange Policy Board. All policy decisions are made by the board on the recommendations of the commission and the board is directly answerable to the Parliament.
Trading Rights Entitlement Certificate Holders (TREC Holders) of the stock exchange and trading at the Exchange are also subject to the discipline of self-regulation under PSX Rule Book of the Stock Exchange.
Trading activities are being monitored through the surveillance terminal to ascertain that, there are no illegal postings and dealings made in any of the issues listed in the Exchange. Through the Compliance and Surveillance Group, compliance of TREC Holders with applicable regulatory framework is monitored.