The stock market is like any other market, except that no tangible things (such as clothes or food items) are sold. Instead, the stock market facilitates the buying and selling of shares of the company. Like an apparel market where a person is selling a piece of cloth, the other person is buying that piece of cloth. Similarly, some people are selling the shares in the stock market, and some are buying these shares. The price at which the seller is selling the shares is called the ‘Ask Price,’ and the price at which the buyer wants to buy that shares is called the ‘Bid Price.’ Similar to any usual trading experience, there is always a gap between these two prices, where the Ask Price is always a little higher than the Bid Price.
In the case of Pakistan, as mentioned in the previous video, we have the Pakistan Stock Exchange, where all the stocks of the public listed companies of Pakistan are traded. However, till 2015, Pakistan had three different stock exchanges, i.e., Karachi Stock Exchange, Lahore Stock Exchange, and Islamabad Stock Exchange. In December 2015, the government at the time merged all three Exchanges to form Pakistan Stock Exchange. But one thing that has remained the same throughout this transition is the market index, KSE-100, where KSE means Karachi Stock Exchange and 100 represents the top-performing 100 companies of Pakistan based on the market capitalization of free float shares. Index refers to a mathematical calculation that reflects the average performance of the overall market. Since the companies in the index are the top performing companies based on market capitalization, looking at their activity through an index can generally measure the market performance. You may have often heard that KSE-100 has moved up by X number of points; this means that the stock market is typically moving up and performing well.
For a new investor, the most critical stock market player is a broker, as he is responsible for facilitating the trading of stocks. Traditionally, the investor was required to go to a broker and open their trading account with the brokerage firm. However, with the FinPocket app, investors no longer need to visit the branch for physical verification and open their trading account digitally from anywhere in Pakistan. FinPocket is a mobile application that is easy to use and works from anywhere in the world.
Following are the documents that you will need to open an account with FinPocket:
If you are confused about opening an account, you can contact us at
+92 21 32400705