Stock Exchange

Introduction:

The stock market is divided into two categories ie. primary market and secondary market. The primary market is that market where the new issue of shares bonds and securities is made and funds from the sale of these securities go to the hands of the issuer. But secondary market is that market where the second hand shares debentures, bonds and other securities of every type are sold and purchased These secondary stock markets are also named as stock exchange. The shares, debentures, bonds of the public limited companies and most of the government Securities are freely transferable. The market where the shares, debentures and securities can be sold by one person and purchased by another person is known as stock exchange.
At present, there are three stock exchanges working in Pakistan i.e. Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.

Definitions:

S.E. Thomas says:

“A stock exchange is a market for the purchase and sale ofand shares”.

Robert J. Hughes says:

“A securities exchange is market place where member brokers meet to

buy and sell securities”.

Garg says

“A stock exchange is an association of persons engaged in the buying and selling of stocks, bonds, shares of the public on commission and are guided by certain rules and regulations”.

From the above definitions we find that Dfa Ho stock exchange is a market where the second hand securities of the government and second hand shares, debentures and deposit certificates of the limited companies are regularly transacted. Here listed companies mean the companies, which have got their securities and shares, listed with the stock exchange.