Impact of 9/11 and Bin Laden’s Death on Pakistan and United States Stock Exchange Market and the Consequent Changes in the Economic Sector
CHAPTER 1
STOCK EXCHANGE
1.1 Key Terms in Stock Exchange
• Shares: A company divides its capital into units of equal denomination which are offered for sale to raise capital.
• Stock: The capital stock (or just stock) of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to harm the creditors. The stock of a business is divided into shares, the total of which must be stated at the time of business formation.
• Bonds: A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure.
• Securities: A security is generally a negotiable financial instrument representing financial value such as, banknotes, bonds and debentures and common stocks.
• Dividends: Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.
• Derivative: In finance, a derivative is a financial instrument whose value depends on other, more basic, underlying variables.
• Trader: In finance, a trader is someone who buys and sells financial instruments such as stocks and bonds.
• Stock broker: A broker is a party or person that arranges transactions between a buyer and a seller and gets a commission when the deal is executed. A stock broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors.
1.2 What is Stock Exchange?
• A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide
STOCK EXCHANGE
1.1 Key Terms in Stock Exchange
• Shares: A company divides its capital into units of equal denomination which are offered for sale to raise capital.
• Stock: The capital stock (or just stock) of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to harm the creditors. The stock of a business is divided into shares, the total of which must be stated at the time of business formation.
• Bonds: A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure.
• Securities: A security is generally a negotiable financial instrument representing financial value such as, banknotes, bonds and debentures and common stocks.
• Dividends: Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.
• Derivative: In finance, a derivative is a financial instrument whose value depends on other, more basic, underlying variables.
• Trader: In finance, a trader is someone who buys and sells financial instruments such as stocks and bonds.
• Stock broker: A broker is a party or person that arranges transactions between a buyer and a seller and gets a commission when the deal is executed. A stock broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors.
1.2 What is Stock Exchange?
• A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide