If you’re interested in investing in Pakistan Stock Exchange (PSX), this is the right place for you. We have made a roadmap for new investors who want to learn about stocks and want to invest in Pakistan Stock Exchange.
What to know about Pakistan Stock Exchange?
We will first talk about what is Stock Exchange and how it works. A stock exchange is a market where the shares of many companies are bought and sold. Stock Exchange provides a platform for companies to raise capital by selling their shares to investors. The investors can buy and sell those shares among themselves.
In a stock exchange, investors can buy shares of a publicly traded company and become partial owners of the company. They can earn a return on their investment through dividends, which are payments made by the company to its shareholders, and through capital gains by increments in the price of shares over time.
All trades in the PSX are made electronically, which means that all trading is done through computer networks. The registered brokers in PSX help the public to invest in securities.
How to invest in PSX
Investors can buy or sell shares through their brokers, who execute those orders on their behalf. PSX also maintains a stringent check on its registered brokers, involving other companies and institutions e.g., CDC, and NCCPL, in maintaining the related services.
The price of a share in PSX is determined by the forces of supply and demand. If there are more buyers in the market than sellers for a particular stock, the price will tend to rise, and vice versa.
Role of Stock Brokers in PSX
- The stock brokers help you open an investment account in PSX. They also assist you in the basics of buying and selling.
- The stock brokers have expert market traders and certified research analysts that help you in taking trades.
- Stock brokers assist you in understanding the fundamentals and keep you up to date with daily shoutouts.
- Some stock brokers also provide free training for clients to understand the fundamentals and technical analysis.
- For these services, the Stockbrokers charge a minimum amount of commission. RT Securities charges XX amount of charges in every trade the client takes.
- Stockbrokers also keep the record of the clients up to date and assure to run the trading process transparently, smoothly and under compliance.
The account opening charges in RT Securities is completely free. The commission charges for the share price of 0-20 pkr per share is 3paisa. The commission charges for shares of price more than 20pkr is 0.15paisa per share.
Learn about Pakistan Stock Exchange from our youtube channel
For your ease, we have made a YouTube video about what is the Pakistan stock exchange:
For any queries about investment in Stock Exchange, please do not hesitate to ask. We have also made a separate page for Frequently Asked Questions about Pakistan Stock Exchange.