The Securities and Exchange Commission Pakistan believes that a well-informed investor is a well-protected investor. In order to achieve this objective, the SECP has published a series of guide booklets under its Investor Education Programme (IEP). The IEP is aimed at educating investors to protect themselves, raising public awareness on various available investment options and at reinforcing good corporate governance. The series of guide booklets broadly aim at giving investors insights into the capital market and its players, rights and responsibilities of investors, key characteristics of various investment products available in the market, role of the SECP as the apex regulator and avenues for redress available to investors in case their rights are infringed. The guides cover the insurance sector, Modarbas, Voluntary Pension Funds, registration of companies, real estate investments trusts (REITs) and stock market. The SECP hopes that these guides would not only improve the corpo...

Investor Guide ALL YOU NEED TO KNOW (Vol: I) 1. INTRODUCTION 03 2. WHAT IS THE STOCK EXCHANGE? 03 2.1 What is the Role of the stock exchange?Stock Exchanges in Pakistan 03 2.2 Trading and Settlement 04 2.3 T+3 Settlement System 04 2.4 Benefits of T+3 Settlement System 04 2.5 Provisionally Listed Counter 04 2.6 Spot/T+1 Transactions 04 2.7 Futures Contract 04 3. WHAT ARE SHARES? 05 3.1 Why Do Companies Issue Shares? 06 3.2 Why Do Investors Buy Shares? 06 3.3 What are Dividends? 06 3.4 What is Capital Growth? 07 3.5 Risks and Rewards 07 4. TIPS FOR INVESTING WISELY 08 4.1 Know What Investment Products are Available 08 4.2 Know Your Investment Profile 08 4.3 Do Your Homework Before You Invest 08 4.4 Think Long-term 09 4.5 Avoid Putting All Your Eggs In One Basket 09 4.6 Beware of Scams 09 5. INVESTOR PROTECTION 10 6. GLOSSARY OF STOCK MARKET TERMS 11 1. INTRODUCTION Everyone today appreciates the need to save whether for a house, for children’s education, a wedding, or for use after retir...