A country's stock market is a sign of how well the companies and the economy that form the economy work. In the long term, stock prices reflect how well the company is operating in terms of profit which then affects the overall earning of the economy. Pakistan stock exchange is a popular choice for investors in Pakistan. Pakistan stock market is one of the best stock markets in the world to invest and earn good money.
The stock market is the most profitable business, but in Pakistan, most people are resistant to invest in the stock exchange. The basic issue of investing in the Pakistan stock exchange is the political situation of the country. Many people earn good money because of the share they bought in stock market.
Stock exchange is the place where you can buy shares from the companies for investment. There are two types of companies, one is private limited which own by the individual, and the other is public limited companies that are listed in the stock market.
How does Pakistan stock exchange works
Stock markets all over the world work the same way you can buy a stock and, if their value goes up, sell them. In this regard we can understand with this example that you bought a stock for the PKR 10 and after few days their value increase to PKR. 11 which means you earn profit of PKR 1 and remember that if you have bought 500 shares then your profit will be 500*1= 500. But consider the down fall also it can be profit and the same way it can be a loss also.
Types of investment
1. Short term investments
2. Long term investments
Short Term Investments
In this kind of investment people are buying and selling the stocks on daily basis by analyzing the market trends. In this type investor can win or lose their investment daily.
Long Term Investment
In this kind of investment you have to keep the stock shares for long enough to sell it at the highest price, or you get dividends every 3 months. This type of investment is good for the people who are busy and have less money, like students, doctors, engineers, and the working community. But prior to invest analysis are key to success.
Why should I invest in Stocks????
So here is the answer! there are many benefits of investing in stocks some of them I'll mention below
1. Dividends
At the each end of the financial year company will pay the part of profit to the shareholders so the more interest in your investment, the more money you will earn.
2. Liquidity
Listing shares are a very liquid product and can be quickly bought and sold through an exchange. There is no need to engage a broker or purchase at relatively low price compared to other financial products. In the trading you can also sell a part of your share rather than selling the entire.
3. Capital Gain
Selling a stock share for more than you paid is called capital gains. For example if you bought a share worth PKR 10 and the share value goes up by the time and you sell it for PKR 15 so the your PKR 5 is your capital gain. And it happens in long term investments mostly.
4. Share Holder Benefits
Some limited shareholder companies in various market sectors like entertainment, retail and hotels offer shareholders discounts when purchasing goods or services from the companies or their subsidiaries. To get this benefit, many stock shares had to be owned.
How to avoid fraud and problems?????
Follow the below points and stay safe!
The stock market is the most profitable business, but in Pakistan, most people are resistant to invest in the stock exchange. The basic issue of investing in the Pakistan stock exchange is the political situation of the country. Many people earn good money because of the share they bought in stock market.
Stock exchange is the place where you can buy shares from the companies for investment. There are two types of companies, one is private limited which own by the individual, and the other is public limited companies that are listed in the stock market.
How does Pakistan stock exchange works
Stock markets all over the world work the same way you can buy a stock and, if their value goes up, sell them. In this regard we can understand with this example that you bought a stock for the PKR 10 and after few days their value increase to PKR. 11 which means you earn profit of PKR 1 and remember that if you have bought 500 shares then your profit will be 500*1= 500. But consider the down fall also it can be profit and the same way it can be a loss also.
Types of investment
1. Short term investments
2. Long term investments
Short Term Investments
In this kind of investment people are buying and selling the stocks on daily basis by analyzing the market trends. In this type investor can win or lose their investment daily.
Long Term Investment
In this kind of investment you have to keep the stock shares for long enough to sell it at the highest price, or you get dividends every 3 months. This type of investment is good for the people who are busy and have less money, like students, doctors, engineers, and the working community. But prior to invest analysis are key to success.
Why should I invest in Stocks????
So here is the answer! there are many benefits of investing in stocks some of them I'll mention below
1. Dividends
At the each end of the financial year company will pay the part of profit to the shareholders so the more interest in your investment, the more money you will earn.
2. Liquidity
Listing shares are a very liquid product and can be quickly bought and sold through an exchange. There is no need to engage a broker or purchase at relatively low price compared to other financial products. In the trading you can also sell a part of your share rather than selling the entire.
3. Capital Gain
Selling a stock share for more than you paid is called capital gains. For example if you bought a share worth PKR 10 and the share value goes up by the time and you sell it for PKR 15 so the your PKR 5 is your capital gain. And it happens in long term investments mostly.
4. Share Holder Benefits
Some limited shareholder companies in various market sectors like entertainment, retail and hotels offer shareholders discounts when purchasing goods or services from the companies or their subsidiaries. To get this benefit, many stock shares had to be owned.
How to avoid fraud and problems?????
Follow the below points and stay safe!
- Verify the legality of the broker and brokerage house before investing.
- always use a cross cheque to make payment in the name of the broker or brokerage house.
- Never sign any cheque or blank document at any cost.
- Keep the evidence of account opening form duly signed
- Must ensure date of order execution, Type of transaction (bought or sold and ready, forward, or spot), and the price at which the transaction is made and the commission that broker or brokerage house charged.
- Account statement
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