Stock Exchanges - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

Download Stock Exchanges - E-Commerce - Lecture Slides and more Slides Fundamentals of E-Commerce in PDF only on Docsity! The Stock Market and Stock Exchanges • Stock market—a network of exchanges and brokers – Exchange—a physical marketplace (NYSE, AMEX, regional exchanges) – Broker—individual whose job is to assist people in buying and selling securities • Work for brokerage firms • Members of stock exchange Docsity.com Trading—The Role of Brokers • What brokers do… – An investor will open an account with a broker and place trades via telephone or online – Local broker will forward order to floor broker on trading floor of exchange – Floor broker trades on the floor of the exchange • Each stock is traded in a particular spot on the exchange floor using an auction-like process – Trading is supervised by a specialist » Specialists make markets in designated securities – Confirmation of trade is forwarded to local broker and investor Docsity.com Online Stock Trading Model Customer (trader) Online Broker Market- maker Clearing- house Stock Exchange customer’s account Docsity.com Stock Trading in Pakistan • Pakistan has 3 Major Stock Exchanges. While Karachi Stock Exchange (KSE) catering more than 70% of stock market transactions • KSE was established on Sep 18, 1947 • Initially started with 90 Members out of which only 6 were active brokers. • Only 5 companies were listed with paid up capital of Pak Rs 37 Million Docsity.com