How To Invest in Pakistan Stock Exchange? All You Need To Know

How ToHow To Invest in Pakistan Stock Exchange? All You Need To Know

Stock exchanges can bring great fortune to investors. But, this fortune does not depend upon luck. Rather, it requires a great deal of knowledge about the stock market. So, if you are new to invest in Pakistan Stock Exchange and looking forward to making a profit out of your investment, you are at the right place. This article will guide you about all the basics that you need to know about the stock market. 

What is a Stock Exchange?

Stock exchange trades stock. Stock exchanges have shares of companies registered and the investors can buy or sell them anytime they want. This is where a lot of people are making profits. Companies sell their shares through stock exchanges and raise capital from the investment. Stock exchanges provide anonymity to the buyers and sellers, so they can easily make profits. 

The short and long term investment

Short-term stock traders buy and sell shares daily and they are called day traders. They analyze day-to-day market situations and take quick actions in buying and selling the shares whenever they think it is profitable. 

Long-term investment traders keep their shares for a long time. They trade in the long run and wait for shares to reach their peak so they can sell at much higher prices. They also benefit from dividends from the company.

Criteria for stock trading

For Pakistani nationals, to invest in the Pakistan Stock Exchange, you need to have a brokerage account, national identification documents, and a Pakistani-funded bank account. 

For overseas residents, they have to create a Pakistani bank account with custodial services.

Steps to invest in Pakistani Stock Exchange

The most important requirement is the opening of a brokerage account. Then you need to provide the following documents:

  • CNIC
  • A Pakistani bank account
  • Salary slip

You need to have a Trading Right Entitlement Certificate which allows the official trading of stocks. 

You must be aware of a trading platform which is mainly an online app where you can analyze market situations, fluctuations in price, and trade accordingly. On a trading platform, you find indicators and charts that help to evaluate the market. 

Duaa Naeem
Duaa Naeem
Dua is a seasoned writer who loves to write on Pakistani Entertainment and Infotainment while having her Masters in English literature

Must read

Recent News

USD to PKR: USD Dollar Rate in Pakistan Today – 24 July 2024

The US Dollar (USD) was being bought and sold at Rs 278.5 and Rs 280 in the Open Market against the Pakistani Rupee (PKR)...

Gold Price in Pakistan Today – 24 July 2024

On Wednesday (July 24, 2024), the gold rate for one tola of 24-karat in Karachi, Pakistan, is Rs 251,750.000.It's important to note that gold...

Digital, physical, and economic terrorism launched at Pakistan are clogs of the same chain

Islamabad, Pakistan: Pakistan is going through a complex phase of its history where it is the target of foreign-funded digital terrorism led by elements...

President Zardari signs Christian Marriage (Amend) Act into law

President calls for further enhancing job quota for minorities The age of marriage for Christians raised to 18 yearsISLAMABAD, Pakistan: President Asif Ali...

PM Shahbaz stresses need for Pakistan-Turkmenistan enhanced trade, economic, investment & cultural ties

ISLAMABAD, Pakistan: The Deputy Chairman of the Cabinet of Ministers and Minister for Foreign Affairs of Turkmenistan Rashid Meredov called on Prime Minister Shahbaz...