xchange mechanism ku

8/12/2019 xchange Mechanism Ku

1/13

The Stock ExchangeMechanism

Ideas for Today and Tomorrowby Fahim Ahmed.


2/13

The agenda of discussion.

What actually is an stock exchange.

Benefits for corporations. E.g. Pizza PLC.

What is an IPO

How we should invest in shares.

How index works.

How different economic indicators effects theindex.

How money works. Not taught in any university.


3/13


4/13

History of Stock exchanges.

First stock exchange 1792

NYSE began in 1817. rented room on Wall

street.

East India company established the first stock

exchange in south Asia.

NASDAQ was created in 1971, it was the firstelectronic stock exchange.

The KSE was formed in September 1947.


5/13

What we get in stock exchanges.

How it helps the listed companies.

We buy and sell shares of listed entities.

Every company needs money to grow . They have

just two options.

DEBT and EQUITY

Stock Exchanges help them getting money by

selling shares to investors. How equity is better then debt????

How investors value shares??


6/13

PIZZA PLC

Lets say you want to open a PIZZA co. you do the

following numbers.

Building + equipment's costs 500,000.

Other running expenses . 250000

Annual earning 325000 so profit of 75000. not bed.

But a small problems arises. You dont have750,000. what you would do. What options you

have,

Lets discuss them on next slide.


7/13

PIZZA PLC

You can get a loan BUTTTTTTTTTTT ????

Why not inviting people to invest in your PIZZA

PLC and they can get pieces of ownership in yourcompany.

They invest 750,000 and get 75000 per arum. A

solid 10 percent return. Wait. Why not I double the share price to

1,500,000 the investors will still get 5 %....think of

an IPO now.


8/13

IPO ??

Initial public offering.

Famous 3 global IPOs

VISA raised 17.9 billion dollars.

GOOGLE raised 35.4 billion dollars.

FACEBOOK 104 billion dollars.

Overnight millionaires and billionaires

Tech IPOs are in fashion now.


9/13

Factors which should be

considered before investing in

shares. Young lad or old man?

Risk appetite?

Duration of investment?

Dont put all eggs in one basket

be fearful when others are greedy, be greedy

when others are fearful Review your investments constantly and dont

panic..


10/13

Economic and social factors

which effects index performance.

Political instability

Economic crises i.e recession

Poor job reports or negative industrial figures

The fiscal and monetary policy

Law and order

Performance of the stock market

Other investment opportunities in the country.


11/13

How index works.

It measures the value of market capitalization in

the stock market.

Blue chips KSE 100

DOW JONES INDUSTRIAL AVERAGE

FTSE 100 NASDAQ


12/13

ASK NOW


13/13

I HOPE YOU LEARNED SOME

THING NEW TODAY

YOU CAN ADD ME ON

FACEBOOK, [email protected],

THANKYOU
mailto:[email protected]:[email protected]

xchange mechanism ku

Documents