Preview

Financial Markets in Pakistan

Powerful Essays
Open Document
Open Document
1516 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Markets in Pakistan
Financial Markets in Pakistan

A financial market is a place for buying and selling of financial securities such as stocks and bonds. It facilitates: * The raising of capital (in the capital markets) * The transfer of risk (in the derivatives markets * In matching those who want capital to those who have it.
Financial Market in Pakistan consists of (i) Money Market which provides short term funds and (ii) Capital Market which makes long terms funds available to businesses and industries.
The Financial market can be reclassified into (i) Primary Market in which new shares or bonds are issued and (ii) Secondary Market in which securities previously issued are traded such as Shares, Bonds, Commercial Papers, Options and Mutual Fund.
Of this, the banking sectors and non-banking sectors are regulated by the central bank, State Bank of Pakistan. While rest of the market (lease, stock exchanges, modarba, mutual funds and insurance) is regulaled by Secruities and Exchange Commission of Pakistan.
FINANCIAL MARKETS AND THEIR ROLES:
COMMERCIAL BANKS
A type of bank providing checking and saving accounts, credit cards and business loans. Such a bank induces general public to deposit their savings in the banks and offers a wide range of services such as: * Deposit Mobilization * Money transfer * Financing Working Capital * Financing other trade related mode (import and export) * Investing in government securities * Call money operations
These banks are of three categories (i) Public Sector Banks, (ii) Private Bank and (iii) Foreign Banks.

LEASE -FINANCE EQUIPMENT
INVESTMENT BANKS
Investment banks perform a variety of functions. Primarily, they assist corporations to raise equity-capital by underwriting the public issues. They also assist companies desiring of mergers and acquisition and derivatives. In addition, they provide services like trading of derivative, foreign exchange, fixed income instruments and shares listed on the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Fin 370 Week 2 Problems

    • 430 Words
    • 2 Pages

    Financial markets are institutions and procedures that facilitate transactions in all types of financial claims. Financial markets perform the function of allocating savings in the economy to the ultimate demander(s) of the savings. Without these financial markets, the total wealth of the economy would be lessened. Financial markets aid the rate of capital formation in the economy.…

    • 430 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Fin370 Week Definitions

    • 487 Words
    • 2 Pages

    * Where new security are bought and sold into the financial market. Having a primary stock market allows companies to gain revenue and for investors to buy into a company.…

    • 487 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Week 2 Study Questions

    • 562 Words
    • 3 Pages

    What are financial markets? What function do they perform? How would an economy be worse off without them?…

    • 562 Words
    • 3 Pages
    Good Essays
  • Better Essays

    * The financial market where previously issued securities such as stocks and bonds are bought and sold.…

    • 895 Words
    • 4 Pages
    Better Essays
  • Better Essays

    “A financial market is a market in which individuals and businesses are given the opportunity trade financial securities, commodities, and other fungible items of value at low costs and at prices that reflect the current supply and demand. Securities include stocks and bonds. Commodities include precious metals or agricultural goods.”…

    • 837 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Primary Market- The market in which new, as different to be had, securities are sold. Investors who pay for shares in a new security issue are purchasing them in the main market. The depositor who buy stocks and bonds in the most important market usually are not engage to pay brokerage charge because cost for selling the issue are built into its value and are absorbed by the issuer.…

    • 1253 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Marketing In Canada

    • 482 Words
    • 2 Pages

    Financial markets consist of markets for money, bonds, equities, derivatives, and foreign exchange. It is the channel through which savings become investments, and through which money and financial claims are transferred and settled.…

    • 482 Words
    • 2 Pages
    Powerful Essays
  • Satisfactory Essays

    Bonds Market in Pakistan

    • 404 Words
    • 2 Pages

    Government is very keen to develop Capital Market in Pakistan. SBP and SECP, the two…

    • 404 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Banking is one of the most sensitive businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. It influences and facilitates many different but integrated economic activities like resources mobilization, poverty elimination, production and distribution of public finance. It is purchase of car or building of home banks is always there to serve you better. It is playground or any educational or healthy societal activity the money of banks nurtures them. It is an industrial project or agricultural development of the country the sponsor-ship of banks is very much involved. Banks play very positive and important role in the overall economic development of the country.…

    • 12120 Words
    • 49 Pages
    Powerful Essays
  • Powerful Essays

    Banking sector of Pakistan

    • 3485 Words
    • 14 Pages

    Financial Sector in Pakistan owns a number of financial institutions -Commercial banks, specialized banks, national savings schemes, insurance companies, investment banks, stock exchanges, leasing companies, micro-finance institutions and Islamic banks etc. They offer so many products and services of assets and liabilities side. Financial developing has increased during the last several years instead of commercial banks. Commercial banks (12 foreign and 20 domestic banks) hold 80Percent of the banking system assets. Facility policies for the foreign banks are same as the domestic banks and there is no superior treatment for domestic organizations. Not like several countries, in Pakistan foreign banks can have 100 percent ownership. Not only the foreign banks but the foreign companies are also provided the complete freedom as they can raise finances of all types and tenures from the domestic banking system.…

    • 3485 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

     The head office of only One Pakistani owned bank was located in Pakistani territory…

    • 1829 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Indian Financial System

    • 429 Words
    • 2 Pages

    They are business organisations serving as a link between savers and investors and help in credit allocation process. They provide three transformational services…

    • 429 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The government and monetary authorities like the central bank, prudential regulation authorities and other similar organisations of the country are responsible for market regulations and supervision.…

    • 858 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    and their nature. It may be of interest to you now to know about the…

    • 3363 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Financial Market

    • 350 Words
    • 2 Pages

    -stock markets: which providing financing through the issuance of shares or common stock, and enable subsequent trading.…

    • 350 Words
    • 2 Pages
    Satisfactory Essays