TAILIEUCHUNG - Analyzing the Stock Markets Role as a Source of Capital Formation in Pakistan

The job will come out better in either case if you can first truly flatten the face of the stock that contacts the fence. This is particularly true of the point location fence, which acts like a planer because it follows the shape of the face against the fence. A long fence has more of a jointing effect to it that is if the face touching the fence is not flat the stock still moves in a straight line at the blade so long as the fence is flat and the same points on the stock always contact the fence | Pak. J. Commer. Soc. Sci. 2011 Vol. 5 2 273-282 Analyzing the Stock Markets Role as a Source of Capital Formation in Pakistan Hakim Ali Kanasro Corresponding Author Associate Professor Institute of Commerce University of Sindh Jamshoro Pakistan E-mail hkanasro@ Mumtaz Ali Junejo Professor Department of Commerce Shah AbdulLatif University Khairpur Pakistan E-mail omumtazali@ Mansoor Ahmed Junejo Lecturer Sukkur Institute of Business Administration Sukkur Pakistan E-mail mm@ Abstract This paper is to examine the stock markets role in the capital formation in Pakistan from the period 1st January 2001 to 31st December 2008. This analytical study is based on the data collected from the secondary sources such as State Bank of Pakistan and three stock exchanges Karachi Lahore and Islamabad Stock exchanges. The stock market size of capital number of listed companies and liquidity positions has been examined in the study. The study reveals that Karachi Stock exchange is the oldest and biggest Stock exchange of Pakistan and it is the first mover to adapt institutional developments new policies and procedures in the business of securities exchange and shares a big role in the capital formation in Pakistan. In recent years all stock exchanges have implemented the advanced technology and fully automated trading systems. This has changed the stock markets role in the capital formation as great boom has been observed during the study period. Keywords Stock Exchange Investment Capitalization Economic growth Financial Institutions. 1. Introduction Stock markets are crucial in mobilizing domestic and foreign capital resources and channeling that capital efficiently to the most productive usage for a country. The role of stock markets as major component of financial market is very high in economically developed world but its need is even more felt in the developed economies. As economies grow the specialized financial intermediaries and .

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