Pakistan Stock Exchange Glossary

  • An investor who anticipates a falling market and, therefore, sells the security in the hope of buying it back at a lower price.
  • A large well-established company with a history of profitable operation.
  • Fixed-income securities, which entitle the holder to a pre-determined return during their life and repayment of principal at maturity.
  • An investor who anticipates a rising market and, therefore, buys the security in the hope of selling it later at a higher price.
  • Tax payable on profit arising from appreciation in value of investment, realized at the time of selling or maturity of investment.
  • Equity repurchase transactions, better known, as “Badla”; these are an established form of transactions used in the stock market for temporary financing of trades by speculators and jobbers.
  • That part of a company’s profits which is distributed among shareholders, usually expressed in rupee per share or percentage to paid up capital.
  • A profitability indicator calculated by dividing the earnings available to common stockholders during a period by the average number of shares actually outstanding at the end of that period.
  • The owners’ interest in a company’s capital, usually referred to by ordinary shares.
  • The occasion when a company’s shares are offered on the stock market for the first time.
  • A company, which invests and manages investors’ money, with the aim of maximizing capital growth.
  • The offering of equity shares of a company to the general public for the first time.
  • The purchase or sale of shares by someone who possesses ‘inside’ information on a company’s performance which information has not been made available to the market and which might affect the share price. In Pakistan, such deals are a criminal offence.
  • A company, which issues shares and uses its capital to buy securities and shares in other companies.
  • A company whose securities are admitted for listing on a stock exchange.
  • When an individual purchases securities of a company he is said to have a long position in the company’s shares. For example an owner of shares in PTCL is said to be “long PTCL” or “has a long position in PTCL.” If you are long, you would like the share price to go up.
  • The total value of a company’s equity capital at the current market price.
  • A person or company holding securities on behalf of others, but who is not the owner of such securities.
  • The right (but not the obligation) to buy or sell securities at a fixed price within a specified period.
  • The most common form of shares, which entitle the owners to jointly own the company. Holders may receive dividends depending on profitability of the company and recommendation of directors.
  • A collection of investments
  • The P/E ratio is a measure of the level of confidence (rightly or wrongly) investors has in a company. It is calculated by dividing the current share price by the last published earnings per share.
  • Where a company issues new shares, either for the first time, or at the time of issuing additional securities.
  • Conversion of a state-owned company to a public limited company (plc) status.
  • A company that is not a public company and which is not allowed to offer its shares to the general public.
  • A company whose shares are offered to the general public and traded freely on the open market and whose share capital is not less than a statutory minimum.
  • The issue of additional shares to existing shareholders when companies want to raise more capital.
  • A broad term for shares, corporate bonds or any other form of paper investment in capital market instruments.
  • Once a deal has been made, the settlement process transfers stock from seller to buyer and arranges the corresponding exchange of money between buyer and seller.
  • The act of borrowing stock to sell with the expectation of price reduction with the intention of buying it back at a cheaper price..
  • A member of the stock exchange who deals in shares for clients and advises on investment decisions.
  • The market place where shares of publicly listed companies are bought and sold.
  • An open-ended mutual fund that invests funds in securities and issues units for sale to the public. It can repurchase these units at any time.
  • The aggregate return earned on an investment taking into account the dividend/interest income and its present capital value.
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