How does the Pakistan Stock Exchange work?

The Pakistan Stock Exchange (PSX) is where shares of listed Pakistani companies are bought and sold. When you buy a share, you own a small part of that company and may receive a share of its profits as dividends.

You cannot trade on the PSX directly. You open an account with a licensed broker, who places your orders. Your shares are held for you in the Central Depository Company (CDC), and trades are settled through the National Clearing Company (NCCPL). The SECP regulates all of them.

The KSE-100 index tracks the 100 largest companies by value and is the usual measure of how the market is doing. Prices move every second during trading hours as buyers and sellers meet.

Before investing, decide how long you can leave the money untouched, spread it across several companies or use a fund, and never borrow to buy shares. SECP's Jamapunji portal has a simulator where you can practise with pretend money first.