33-405: KSE may mean: Karachi Stock Exchange , now Pakistan Stock Exchange Kuwait Stock Exchange Korea Stock Exchange Kyiv School of Economics Kroenke Sports & Entertainment Killswitch Engage , an American heavy metal band Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
66-413: A tradable security ." Agreements, often written, among a group of traders to delegate authority to a single manager to trade in a specific stock for a work period of time and then to share in the resulting profits or losses. In Australia section 1041B prohibits pooling. When an advisor enters into a trade for the sole purpose of earning commission. For example buying and selling the same stock either on
99-495: A method known as open outcry . The advent of foreign investors in the early 1990s catalyzed a push for modernization, supported by a $ 125 million loan from the Asian Development Bank for capital market reforms. This led to the replacement of the traditional open outcry system with the automated Karachi Automated Trading System (KATS). Securities and Exchange Commission of Pakistan was founded in 1999 with
132-636: A strong case for attracting strategic partnerships necessary for providing technological expertise and assistance. The integration of the three exchanges has completed the second phase of the Stock Exchanges Demutualization and Integration Act 2012, passed by a joint session of the Parliament . The Shanghai Stock Exchange became a major shareholder with a 40% stake in the PSX. PSX is integrated with China's stock market through
165-496: A trading card. The value of these cards had experienced volatility, rising from slightly more than one million rupees before 1990 to approximately 40 million rupees in the mid-1990s, before settling at around 27.5 million rupees in 2002. From its founding up until May 27, 1998, the Karachi Stock Exchange (KSE) trading hall was characterized by the vocal trading cries of "La-oo" from buyers and "Lay" from sellers,
198-713: Is a stock exchange based in Karachi , Pakistan . PSX was classified by MSCI as a frontier market on 8 September 2021. Pakistan Stock Exchange was founded in 1947 as Karachi Stock Exchange, In January 2016, Karachi Stock Exchange was renamed as Pakistan Stock Exchange after the merger of the Lahore Stock Exchange and Islamabad Stock Exchange . Investors on the exchanges include 1,886 foreign institutional investors and 883 domestic institutional investors along with about 220,000 retail investors. There are also about 400 brokerage houses which are members of
231-470: Is a disruptive algorithmic trading entity employed by traders to outpace other market participants and to manipulate commodity markets. Spoofers feign interest in trading futures, stocks and other products in financial markets creating an illusion of exchange pessimism in the futures market when many offers are being cancelled or withdrawn, or false optimism or demand when many offers are being placed in bad faith. Spoofers bid or offer with intent to cancel before
264-523: Is a very simple type of fraud where the principals who publish a price or indicator conspire to set it falsely and benefit their own interests. The Libor scandal for example, involved bankers setting the Libor rate to benefit their trader's portfolios or to make certain entities appear more creditworthy than they were. High closing is an attempt to manipulate the price of a security at the end of trading day to ensure that it closes higher than it should. This
297-410: Is rare. (see Stock Bashing) Actions designed to artificially raise the market price of listed securities and give the impression of voluminous trading in order to make a quick profit. Filtering out or disregarding false and misleading social media posts that are posted for the sole purpose of artificially inflating a stock price can prevent investor losses. In a wash trade the manipulator takes both
330-418: Is usually achieved by putting in manipulative trades close to closing. In cornering the market the manipulators buy sufficiently large amount of an asset, often a commodity, so they can control the price creating in effect a monopoly . For example, the brothers Nelson Bunker Hunt and William Herbert Hunt attempted to corner the world silver markets in the late 1970s and early 1980s, at one stage holding
363-446: Is very distressed on paper , with impossibly high debt, consistently high annual losses but very few assets, making it look as if bankruptcy must be imminent. The stock price gradually falls as people new to the stock short it on the basis of the poor outlook for the company, until the number of shorted shares greatly exceeds the total number of shares that are not held by those aware of the lure and squeeze scheme (henceforward "people in
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#1732772374930396-751: The Corporations Act 2001 , and in Israel under Section 54(a) of the securities act of 1968. In the US, market manipulation is also prohibited for wholesale electricity markets under Section 222 of the Federal Power Act and wholesale natural gas markets under Section 4A of the Natural Gas Act . The US Securities Exchange Act defines market manipulation as "transactions which create an artificial price or maintain an artificial price for
429-549: The Government of Pakistan decided to merge the three large exchange markets of the country (based in Karachi, Lahore, and Islamabad) into one combined market. The PSX was launched on 11 January 2016. Prior to the formal launch, the Karachi Stock Exchange held a two-day pre-production mock trading session for all certificate holders of the three exchanges. The integration is expected to help reduce market fragmentation and create
462-486: The China Connect Interface, allowing Chinese investors to more easily enter Pakistan's stock markets. Notable companies in which PSX owns controlling or significant minority stakes include: Market manipulation In economics and finance , market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market ;
495-618: The PSX as well as 21 asset management companies. Founded on 18 September 1947, Karachi Stock Exchange Limited (KSE) was registered in Pakistan . It was located at the Stock Exchange Building (SEB) on Stock Exchange Road, in the heart of Karachi 's business district off I. I. Chundrigar Road (then known as McLeod Rd). Since its establishment, the number of members at the KSE had been capped at 200, with each member possessing
528-675: The SECP issued the Companies (Buy-back of Shares) Rules, 1999, which established detailed regulations and procedures for corporate share repurchases, commonly known as treasury stock . In 2002, Alhamd Textile Mills, a textile company based in Multan , became the first company in the history of stock exchange to buy back shares from its shareholders under these new regulations. The Pakistan Stock Exchange (PSX) came into existence in January 2016 when
561-772: The aim to reform the capital markets . Khalid Mirza was appointed as SECP Chairman in March 2000. Upon taking office, Mirza found the Karachi Stock Exchange characterized by extensive market manipulation and unethical practices. Despite a market capitalization of only $ 6 billion, it exhibited extreme volatility and high turnover, with trading concentrated in just 30 of the 765 listed stocks. Malpractices such as fund diversion, absence of margin requirements, and predatory lending were common, disadvantaging small investors. Commercial banks were involved in lending to brokers who engaged in exploitative practices like "cornering." Shareholder meetings were often delayed or not held, and there
594-401: The buy and the sell side of a trade, often using a third party as a proxy to trade on behalf of the manipulator, for the purpose of generating activity and increasing the price. This is more involved than churning because the orders are actually fulfilled. In a bear raid there is an attempt to push the price of a stock down by heavy selling or short selling . This works with a company that
627-458: The company and move quickly to ensure they profit on a classic Pump & Dump scheme to liquidate their ill-gotten shares. (See pump and dump.) A pump and dump scheme is generally part of a more complex grand plan of market manipulation on the targeted security. The perpetrators (usually stock promoters) convince company affiliates and large position non-affiliates to release shares into a free trading status as "Payment" for services for promoting
660-476: The duped investors who are left holding a stock whose price subsequently falls. When a group of traders create activity or rumours in order to drive the price of a security up. An example is the Guinness share-trading fraud of the 1980s. In the US, this activity is usually referred to as painting the tape . Runs may also occur when traders are attempting to drive the price of a certain share down, although this
693-521: The exchange, controlling 60 percent of its board of directors even after new SECP regulations aimed to limit their management role. The SECP was granted authority to regulate accountants, but penalties for misconduct remained minimal, at $ 30 per offense. Mirza and his team faced entrenched vested interests resistant to reform, and challenges in enforcing transparency and accountability in Pakistan's financial markets continued. On December 14, 1999,
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#1732772374930726-436: The know"). In the meantime, people in the know increasingly purchase the stock as it drops to lower and lower prices. When the short interest has reached a maximum, the company announces it has made a deal with its creditors to settle its loans in exchange for shares of stock (or some similar kind of arrangement that leverages the stock price to benefit the company), knowing that those who have short positions will be squeezed as
759-485: The lower the bid or ask price is; thus the lower these Bashers can drive a stock price down by trying to convince shareholders they have bought a worthless security, the more shares the Investor Relations firm receives as compensation. Immediately after the stock conversion is complete and shares are issued to the Investor Relations firm, consultant, attorney or similar party, the basher/s then become friends of
792-450: The market, thereby gaining an advantage over slower market participants. Cross-market manipulation occurs when a trader trades in one market for the purpose of manipulating the price of an asset in another market, capitalizing off the price-moving effects thus generated, instead of with the bona fide intent of profiting off the trade itself. A type of manipulation possible when financial instruments are settled based on benchmarks set by
825-782: The most blatant of cases involve creating false or misleading appearances with respect to the price of, or market for, a product , security or commodity . Market manipulation is prohibited in most countries, in particular, it is prohibited in the United States under Section 9(a)(2) of the Securities Exchange Act of 1934 , in the European Union under Article 12 of the Market Abuse Regulation , in Australia under Section 1041A of
858-413: The orders are filled. The flurry of activity around the buy or sell orders is intended to attract other high-frequency traders (HFT) to induce a particular market reaction such as manipulating the market price of a security. Spoofing can be a factor in the rise and fall of the price of shares and can be very profitable to the spoofer who can time buying and selling based on this manipulation. Price-fixing
891-496: The price of the stock sky-rockets. Near its peak price, people in the know start to sell, and the price gradually falls back down again for the cycle to repeat. Quote stuffing is made possible by high-frequency trading programs that can execute market actions with incredible speed. However, high-frequency trading in and of itself is not illegal. The tactic involves using specialized, high-bandwidth hardware to quickly enter and withdraw large quantities of orders in an attempt to flood
924-522: The rights to more than half of the world's deliverable silver. During the Hunts' accumulation of the precious metal, silver prices rose from $ 11 an ounce in September 1979 to nearly $ 50 an ounce in January 1980. Silver prices ultimately collapsed to below $ 11 an ounce two months later, much of the fall occurring on a single day now known as Silver Thursday , due to changes made to exchange rules regarding
957-528: The same day or over multiple days with no consideration for the benefit of the client This scheme is usually orchestrated by online message board posters (a.k.a. "Bashers") who make up false or misleading information about the target company in an attempt to get shares for a cheaper price. This activity, in most cases, is conducted by posting libelous posts on multiple public forums. The perpetrators sometimes work directly for unscrupulous Investor Relations firms who have convertible notes that convert for more shares
990-428: The security. Instead of putting out legitimate information about a company the promoter sends out bogus e-mails (the "Pump") to millions of unsophisticated investors (Sometimes called "Retail Investors") in an attempt to drive the price of the stock and volume to higher points. When the stock price and volume has reached a target level the promoter sells their shares (the "Dump") at the now elevated prices, taking money off
1023-565: The title KSE . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=KSE&oldid=948858527 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Karachi Stock Exchange The Pakistan Stock Exchange ( PSX ) ( Urdu : پاکستان اسٹاک ایکسچینج ), founded as Karachi Stock Exchange ( KSE ),
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1056-490: The trading of physical commodities, for example in United States Natural Gas Markets. The manipulator takes a large long (short) financial position that will benefit from the benchmark settling at a higher (lower) price, then trades in the physical commodity markets at such a large volume as to influence the benchmark price in the direction that will benefit their financial position. Spoofing
1089-404: Was a trend of companies delisting and liquidating assets, contributing to economic decline. His efforts to reform the capital markets faced significant resistance, including public protests from stock exchange brokers who labeled him an "American agent." Despite efforts to clean up the market, significant issues persisted. Manipulation continued, and brokers maintained substantial influence over
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