Understanding the Pakistan Stock Exchange (PSX)

The Pakistan Stock Exchange (PSX) is a vital part of the country's financial system. It is where stocks (shares of companies) are bought and sold. Just like markets where you buy goods, the stock market is where people and businesses buy and sell ownership in companies. What is the PSX? The PSX was formed in 2016 when three older stock exchanges in Karachi, Lahore, and Islamabad merged. This merger helped create a more unified and efficient market. How Does It Work? The PSX operates like other stock exchanges worldwide. Companies list their shares on the PSX, and investors can buy and sell these shares. The price of shares fluctuates based on supply and demand. If many people want to buy a stock, its price goes up. If many want to sell, the price goes down. Why is the PSX Important? Investment Opportunities: It provides a platform for investors to buy shares and potentially earn profits. Raising Capital: Companies can raise money by selling shares. This capital can be used for ex...