Account Opening

How can I sign up for Khadim Ali Shah Bukhari Securities (Pvt) Ltd.?

You can download our Account Opening Form from our website www.kasb.com. Our forms are also available at our offices of Khadim Ali Shah Bukhari Securities (Pvt.) Ltd

Can my account be refused to be opened?

Khadim Ali Shah Bukhari Securities as it ranks amongst the top brokerage houses in the industry. It has been in the market since 1952 and has created goodwill for itself.

Yes, Khadim Ali Shah Bukhari Securities (Pvt.) Ltd reserves the right to refuse any account without assigning any reason.

What is the minimum amount required for opening an account?

The minimum amount required to set up an account is Rs. 5,000

How long does it take Activate/Open an account?

It depends on how quickly information is sent in. The registration process usually takes:
4 – 6 working days for cheque
OBC (Outbound Cheque) may take up to 15 working days
Depositing cash will take 3 – 4 working days after receiving the original bank deposit slip. Kindly mention “New account” on the bank deposit slip. You may also make the deposit through Online Bank Transfer

How can I deposit initial amount in Khadim Ali Shah Bukhari Securities (Pvt.) Ltd account?

You may send your cheque / Pay order/DD in favor of ” Khadim Ali Shah Bukhari Securities (Pvt.) Ltd – Client Account” by mail or drop it personally at offices of Khadim Ali Shah Bukhari Securities (Pvt.) address is as following;
Khadim Ali Shah Bukhari Securities (Pvt.) Ltd
4th Floor,  Bukhari TOwer,
16C, Khayaban-e-Bukhari, Phase VI,
Karachi
Pakistan

Can I open an account with shares/securities?

Yes, you can open your account with Physical shares and you can also transfer your shares from CDC Investor account or from your account with any other broker as well. The minimum amount of Rs.5000/- through cash or cheque is also required for opening of account through shares

Do you offer mutual funds?

No. We do not offer mutual funds.

How can I close my Khadim Ali Shah Bukhari Securities (Pvt.) Ltd account?

You will need to write a letter addressed to Khadim Ali Shah Bukhari Securities (Pvt.) Ltd requesting the closure of your account. If you have any debt balance you will be required to clear it first. Khadim Ali Shah Bukhari Securities (Pvt.) Ltd will send a letter to concerned authorities of NCCPL ( National Clearing Company of Pakistan) in order to get clearance. The account will be closed subject to clearance letter from NCCPL as per regulation. The Account Closing Request can be submitted at any of our branches or can be sent through Fax or courier

General Inquiries

Who can sign up for Khadim Ali Shah Bukhari Securities (Pvt.) Ltd?

Any individual having a Bank account in Pakistan can sign up for Khadim Ali Shah Bukhari Securities (Pvt.) Ltd.

Can I trade electronically with Khadim Ali Shah Bukhari Securities (Pvt.) Ltd?

Yes, if you are signed up for Khadim Ali Shah Bukhari Securities (Pvt.) Ltd and have received a user ID and password from us. Please note that after signing up for Khadim Ali Shah Bukhari Securities (Pvt.) Ltd, you can place trades online.

Yes, Khadim Ali Shah Bukhari Securities (Pvt.) Ltd reserves the right to refuse any account without assigning any reason.

Is an e-mail address necessary to open an account with Khadim Ali Shah Bukhari Securities (Pvt.) Ltd?

Yes for all Khadim Ali Shah Bukhari Securities (Pvt.) Ltd clients Email Address is a mandatory requirement, because we send the trade confirmations and other important notices related to Khadim Ali Shah Bukhari Securities (Pvt.) Ltd account holders through email.

How do I contact customer service if I reside outside Pakistan?

Clients residing outside Pakistan can send an email detailing your query to us or by dialing 0092-336-1115272 or 0092-21-35171461 from outside Pakistan.

When can I start placing orders?

Once the account has been opened and the funds have been received, your account will be activated and you will be able to place an order yourself.

Is there a time limitation for my access to the market data?

Real-time data is available on the Khadim Ali Shah Bukhari Securities (Pvt.) Ltd website.

Can I trade bonds?

No, at this time you cannot trade bonds through Khadim Ali Shah Bukhari Securities (Pvt.) Ltd account.

How is this different from dealing with a broker?

When using Khadim Ali Shah Bukhari Securities (Pvt.) Ltd Software you are in total control of your transaction. You can view real-time market activity. A single keystroke or click of a mouse executes a buy or sell order. Also when the order has been completed you will receive instant confirmation of your trade via email.

Do I have to trade on a regular basis to keep my account activated?

No, it’s completely up to you how often you would want to trade.

Who is a broker?

An individual in the business of facilitating stock trades for a client at the stock Exchange. Brokers usually charge a fee or receive a commission for their services.

Who is an investor?

A person whose principal concern in the purchase of a security is the minimizing of risk, compared to the speculator who is prepared to accept calculated risk in the hope of making better-than-average profits, or the “gambler” who is prepared to take even greater risks. More generally it refers to people who invest money in investment products.

What are Odd Lots?

The quantity below the market lot of shares are termed as ODDLOT. For instance the market lot of OGDC is 100 and if you have below 100 shares then it means that you have shares in ODD LOT form. You can trade by selecting ODL through Drop Down Menu in Market in BUY/SELL Order window in trading terminal.

Can I trade in Futures?

Yes, you can trade in all active futures scripts

What are Trading Lots?

Trading lot is an acceptable ‘number of shares’ that an investor can buy or sell during the open market timing at the Pakistan Stock Exchange.

What is Market Lot?

A market lot concept applies to the ready market counter only, it is an acceptable ‘number of shares’ that an investor can buy or sell at the Pakistan Stock Exchange

What is a 'Symbol?'

A symbol is a unique, market-approved code that identifies a particular security on an exchange. The symbol generally reflects the name of the security. For example, the symbol for the K-Electric Limited stock is KEL. This is also known as the ‘ticker symbol’.

What is a 'Limit Order?'

When you instruct your broker to buy shares for you at or below a certain price or sell shares at or above a certain price, you’ve entered a limit order. Limit orders reduce the risk that an order will be filled at a price you don’t like, and best suit the investors’ interests in volatile markets. The down side, of course, is that by waiting for your price the stock you want gets away from you, or the stock you want to unload just keeps falling. The opposite of a limit order is a market order, in which the broker is instructed to execute the trade at any market price available.

How long does it take to complete a normal order?

Under ‘normal conditions’ orders are placed and confirmed within two (02) seconds, but it is important to understand that the time to execute an order will vary depending upon market conditions, type of order being placed, order size, internet connection, etc.

I already have a CDC Investor's A/C, what is the procedure to transfer shares from my CDC Investor's A/C to my Khadim Ali Shah Bukhari Securities (Pvt.) Ltd A/C?

You will have to provide a CDC cheque (Transfer Order) in favor of “Khadim Ali Shah Bukhari Securities (Pvt.) Ltd”, our participant ID is 14746. Submit the cheque directly in the CDC and email us at info@kasb.com mentioning the details of shares, your CDC Investor account Title name, and CDC Investor account number from where the shares have been transferred positively till 4.00 PM on the day of transfer or you may directly transfer the shares by CDC Online. As soon as your shares are received your Khadim Ali Shah Bukhari Securities (Pvt.) Ltd account will be updated.

Can I transfer my securities from my KASB A/C to another member's A/C or to another CDC investor's A/C?

Yes, you can transfer to your own CDC Investor account or your CDC sub account with another member. We will need the CDC account holder’s participant name and ID and also a signed written request to transfer the security. However, you must ensure that your account isn’t in debt and you maintain Rs. 5,000 in your Khadim Ali Shah Bukhari Securities (Pvt.) Ltd account.
The Account Title(s) information should be the same in both accounts (Transferring From and Transferring To).

What are the charges for the conversion and transfer of shares?

Physical Share Conversion into CDC – 6 paisa/share for 5000 shares or less. 4 paisa/share for more than 5000 shares

Does KASB accept physical shares? What is the procedure to convert physical shares into CDC shares?

Yes, physical shares are acceptable at Khadim Ali Shah Bukhari Securities (Pvt.) Ltd. The physical shares should be in the name of the Account holder. You will deposit your physical shares along with verified transfer deeds and a covering letter at Khadim Ali Shah Bukhari Securities (Pvt.) Ltd office. KASB will transfer these shares into CDC tradable shares through the Central Depository Company of Pakistan Limited (CDC)

Can I withdraw amount from my account?

Yes. However, you can request payment for a minimum of Rs. 5,000 and at the time of request you must maintain balance Rs. 5,000.

Where are the proceeds from stock transactions deposited and how are those funds accessed?

All proceeds will remain in your account until you request a cash withdrawal. All cash withdrawals are requested through your KASB terminal

How do you notify clients of trade executions?

Once the trade has been completed, you will receive a confirmation via email not later than the start of the next trading day after the contract was entered into. Orders placed through Phone will also be confirmed via email.

What is cash dividend?

Money paid to stockholders, normally out of the corporation’s current earnings or accumulated profits. All dividends must be declared by the board of directors and are taxable as income to the recipients.

What are bonus shares?

A dividend payment made in the form of additional shares, rather than a cash payout.

What are rights shares?

A rights share is the issuance of new shares to existing shareholders. These are not free however they are usually below the current market price. Issuance of these new shares to existing shareholders is known as Right shares.

Why does a Company issues Right Shares?

A rights issue occurs when a company needs to raise extra capital or a company requires liquidity.

How can a KASB Account holder be entitled to receive these shares?

If the share holder holds the shares in his security holding during the spot period, till the date of book close, then one is entitled to receive the Right shares.

How many shares will you get?

If you have 1000 shares of a certain company which announces 25 % rights then you will receive 250 Right shares.

How can a right share be beneficial for the shareholders?

The major benefit a shareholder gets is that the rights issued, are usually below the current market price, which leads them to obtain profits.

When to or when not to subscribe your right shares?

The under stated scenario will help you to decide, whether to subscribe your right shares or sell them in the market. Remember, you may always buy more right shares from the market if required.

Example.

You receive a right share of XYZ and the market price for that right share is Rs.3.00 per share. If you wish, you may sell the rights in the market.

But if you subscribe the right share at Rs.10 per share, and if the market price of ordinary XYZ is 15.00 and you sell it after the conversion, then you have a benefit of Rs.5.00 per share.

NOTE: If the company’s ordinary shares are traded in the market below the par value and the company offers the right at the rate of par value, then ordinary shares are usually purchased from the market rather than subscribing the rights.

What is a dividend disbursement?

The payment of dividend to clients holding marked deliveries is known as dividend disbursement. This payment is made by the appointed a registrar of the company through Dividend Warrants sent to the share holder’s address or they are directly transferred to the client’s bank account. The registrar uses the contact & bank details of shares holders through the information provided in the CDC Sub Account Form.

What are Stop Loss Orders?

Stop Loss trading is a form used to prevent an unusual and large amount of losses. It allows the client to place a rate below current market price if there is a drop expected. In this manner, a client can minimize losses by placing a rate as a maximum loss.

What is the Procedure to cancel pending orders during a system failure?

In case of system failure, you may call to your assigned trader or KASB Customer Services at 0336-1115272/ 021-35141461 and request to cancel pending order (s) or you may also email at info@kasb.com

How many types of accounts KASB offers?

Khadim Ali Shah Bukhari (Pvt.) Ltd. Offers Individual accounts with unique features, here you may trade at very low commissions while availing the Premium facility of Trader

What is Market Order?

When you instruct your broker to execute the buy/sell trade at any market price available. Market orders increase the risk that an order will be filled at a price you don’t like, and does not suit the investors’ interests in volatile markets. The up side, of course, is that by waiting for your price the stock you want gets away from you, or the stock you want to unload just keeps falling. The opposite of a Market order is a Limit order, in which the broker is instructed to buy or sell the share at your desired price.

Market Order always contains a risk of being executed at a price above or below the last scene rate because of the quick fluctuations of share prices.

What are the other methods to reach my trading account if my system is not working?

There are multiple ways to connect to your stock trading account even when your KASB Trading System is not accessible. You can either log in to your account through www.ktrade.pk or you can contact our customer services at 0336-1115272 / 021-35171461. You can utilize these channels to know your portfolio, place and cancel your orders and a host of other services.

Why my order didn’t execute and remained pending?

There can be a number of reasons for your order not being executed. The order will not be executed if the share price didn’t reach the limit specified in your placed order if you place a market order to buy a share trading at Upper Lock or to sell a share trading at Lower lock. Please note that all the orders placed at Karachi Stock Exchange are valid for a session.

How the orders are accepted, processed, settled and cleared via the internet?

Whenever you will place an order through an online trading system, the message board view window shows the time and details of the order placement, cancellation, and execution. The Margin window also shows the status of order placement through pending order, updation of custody balance in case of execution and cash balance accordingly. You can also view the details of outstanding orders as well executed transaction through your terminal.

Is there a restriction to place any particular type of Order?

Yes, there is a restriction on two types of orders. Short Sell orders for regular market are not allowed to be placed and also Wash Trades (executing a day trade of a particular share where buying and selling is at the same rate) are prohibited

How can I cancel outstanding/pending order (s)?

Outstanding/pending orders can be canceled through cancel order window available on ECLIPSE/Trading Terminal. To open the cancel order window, You just press the F11 key and click the cancel button. All of the order fields appear as read-only in the cancel order window. The order will be canceled only if it has not been traded yet.
You may also cancel the order by open outstanding order window (Ctrl+O). This window displays all outstanding orders which are placed in the market and have not been traded yet. By selecting a particular order and clicking the right button, the order can be canceled.

Technical Assistance

Are the market quotes real-time or delayed?

The market quotes and order placement quotes are real-time for KASB clients.

Is account information on KASB secure?

Absolutely! When you visit the KASB site and provide your ID and password your session is encrypted at the X-bit secure level – even if your browser is a Y-bit browser.

Yes, Khadim Ali Shah Bukhari Securities (Pvt.) Ltd reserves the right to refuse any account without assigning any reason.

What is an Internet trading account?

An Internet trading account is a special type of account designed specifically for individual investors who prefer to use the Internet to place their orders themselves rather than through a broker by telephone.

What are the minimum system requirements?

Pentium III 800MHz
Windows 2000 Professional or Windows XP
40 GB Hard Drive
256 MB RAM
56 kbps Modem
Any ISP can be used

What is an ISP and why should it matter which service provider I use?

A very important part of the quality of your connection to us will depend on your Internet Service Provider or ISP. Your choice of ISP should be made very carefully. The determining factors should be how quickly you get connected during peak times and consistency of service.

Who can I contact with all my questions?

If you require assistance, please call 0336-1115272 or 021-35171461 and our KASB Helpline will answer your questions.

I have just registered, but I cannot log in?

Check your login and password, as they may be case-sensitive and retry. Otherwise, please contact our Help Line at 0336-1115272 or 021-35171461.

What can I do to increase the security of my account?

The best way to safeguard your account is to never reveal your password to anyone. You should not write it down where anyone can find it or possibly figure out what it is. When choosing your password, be sure that you do not use words that can be found in a dictionary, or numbers in a series.

When can I get real-time quotes and how much will they cost?

All of the data on our system utilizes real-time information. This is a basic feature and critical for the active investor. Once you setup an account with KASB you have access to real-time quotes for free of charge.

Which securities can I trade through my account?

All securities listed and tradable on the Karachi Stock Exchange can be traded through your account

How long does it take to execute an order?

Under ‘normal conditions’ orders are placed and confirmed within two (02) seconds, but it is important to understand that the time to execute an order will vary depending upon market conditions, type of order being placed, order size, internet connection etc.

Do I need to fill an application to receive real-time data?

No, this service is available to all our customers.

How do I find rates for particular scrip?

They are displayed real-time on your Ktrade screen. The KASB virtually replicates the KATS screen.

Which version of Internet Explorer or other browsers should I use?

Any Internet Browsing Software can be used. The software is not dependent on the Browser. However, it is dependent on the speed of your Internet connection.

How do I enable Java or JavaScript in my browser?

When using Internet Explorer, go to the “Tools” menu on your browser’s toolbar. Select “Internet Options” and then select “Advanced”. In the Java VM section, place a checkmark in both the “Enable Java JIT Compiler” and “Enable Java Logging” boxes.

Which operating system should I use?

Windows 2000 Professional or Windows XP. Please check Minimum Requirements in the help center.

I can't log in. Error message shows ``Connection failed``. What should I do?

Connection to our server may fail because either our server is down due to some technical reasons, in which case you will have to wait, or because you are behind a firewall. Change your firewall settings to allow the software to access the Internet. Similarly, if you are using a Local Area Network (LAN) connection, you may need to open certain ports (TCP/IP).

How do I verify my operating system?

If you have windows 95/98, XP or 2000:
i. From the “Start” menu select “Settings” and then “Control Panel”
ii. In the “Control Panel” menu double click on “System”
iii. Verify the Operating System, processor type and the KB of RAM memory

How do I verify my hard disk space?

If you have Windows 95, 98 or 2000:
i. Double-click on the “My Computer” icon on the Windows desktop
ii. Single right-click on the Hard Drive (Local Disk C:) icon
iii. Select “Properties” from the drop-down menu and check the available hard disk space

How do I adjust my system resolution?

If you utilize Windows 95, you will need to:
i. Click the “Start” button to display the “Start” menu
ii. Select “Settings” and select “Control Panel.” (The “Control Panel” window will appear)
iii. Double-click “Display.” (The “Display Properties” dialog box appears)
iv. Change the amount of desktop area displayed
v. Click the “Settings” tab
vi. Move the slider in the “Desktop area” section to the right or the left until it reads 800 by 600 pixels. (An example of the desktop size appears in the sample monitor)
vii. Click “Apply”
viii. When the “Display Properties” prompt appears click “OK” and the new desktop settings will take effect

 

If you utilize Windows 98 or Windows 2000, you will need to:
i. Right-click the Windows 98 desktop and select “Properties.” (The “Display Properties” dialog box will appear)
ii. Click the “Settings” tab
iii. In the “Screen area” group, move the slider display until it reads 800 by 600 pixels. The available options will depend upon the type of monitor you are using, but the following resolutions are generally available: “640 x 480 pixels,” “800 x 600 pixels,” and “1024 x 768 pixels”
iv. Click “OK” and then click “OK” again
v. To keep the newly selected setting, click “Yes”

What is ``cache memory``?

Cache memory allows you to store previously viewed web pages. This information is stored on your hard drive within the browser’s cache directory. When you navigate from one web site to another, your browser can first check to see if the web page is stored in its cache memory. While cache memory can enable you to quickly load web sites that have been stored, it may also cause some problems:
• Error messages may be stored in your cache
• If your cache size has reached its capacity, your browser may become sluggish or unstable

What size cache should I use?

Cache size should be set no higher than 32 MB of RAM or 10% of the entire hard drive, whichever is greater.

What are ``cookies?

Cookies are pieces of information that a web site transfers to your computer’s hard drive for record-keeping purposes. Cookies can make the web more useful by storing information about your preferences on a particular site, such as your preferred chart settings. Many major web sites use cookies to provide useful features for their customers. Most browsers are initially set to accept cookies. You can set the browser to refuse cookies. However, this may keep you from taking full advantage of a site.

How do I enable cookies?

To access your stock portfolio successfully, you may have to enable your browser to accept cookies.

If you utilize Internet Explorer 4.0, follow the instructions below:
i. Go to the “View” menu and select “Internet Options” followed by the “Advanced” tab
ii. Scroll down to the “Security” header
iii. Click on “Always Accept Cookies”
If you utilize Internet Explorer 5.0 or 5.1, follow the instructions below:

i. Choose “Tools” and then “Internet Options”
ii. Select the “Security” tab. In the white box at the top, you will have 4 options:
a. Internet
b. Local Intranet
c. Trusted Sites
d. Restricted
iii. Each of these is a category in which you may place sites. If you have never changed your security settings before, choose “Internet.” Otherwise, choose the category in which you have placed KASB
iv. Make sure the “Security level for this zone” is at “Medium” or lower. If it is set to “High”, you will not be able to accept cookies
v. If your security level says “Custom,” choose the “Custom Level” button and make sure you have selected “Enable” under the heading “Allow per-session cookies”
vi. If you have already set the security level at “Medium” or lower and still cannot get cookies, choose the “Custom Level” button and make sure you have selected “Enable” under the heading “Allow per-session cookies”
vii. Click “OK”

What is an ActiveX control?

ActiveX is a Microsoft version of Sun Microsystems’ Java Technology. An ActiveX control is roughly equivalent to Java applet. Java Script and ActiveX controls can be used within a web site to do such things as:
• Cause a linked page to appear in its own pop-up window
• Enable text or graphic image to change in appearance when the mouse is held over them

How do I clear temporary Internet Files?

If you utilize Internet Explorer 4.0, you will need to do the following:
i. Go to the “View” menu and select “Internet Options.” Select the “General” tab
ii. Under “Temporary Internet files” click “Delete Files”
iii. Check “Delete all offline content” and click “OK”
iv. Click “OK”
v. Restart browser

If you utilize Internet Explorer 5.0, you will need to do the following:
i. Go to the “Tools” menu and select “Internet Options.” Select the “General” tab
ii. Under “Temporary Internet files” click “Delete Files”
iii. Check “Delete all offline content” and click “OK”
iv. Click “OK”
v. Restart browser

How do I clear my history?

If you utilize Internet Explorer 4.0, you will need to do the following:
i. Go to the “view” menu and then to the “Internet Options” item followed by the “General” tab
ii. Under “History,” click “Clear History.” At the dialog window, click “OK”
iii. Close the “Internet Options” window by clicking “Apply” then “OK” at the bottom of the window
iv. Restart browser

If you utilize Internet Explorer 5.0 or 5.1, you will need to do the following:
i. Go to the “Tools” menu and select “Internet Options.” Following this, select the “General Options” tab
ii. Under “History” click “Clear History.” At the dialog window click “OK”
iii. Close the “Internet Options” window by clicking “Apply” then “OK” at the bottom of the window
iv. Restart browser

How do I delete the cookies that have been created?

i. Click on “Start” and then on “Settings” and “Control Panel.” Find “Internet Options” and select the “General” tab
ii. Press the “Delete Files” button then click on “Settings” and “View Files” This will open a new window containing all of the cookie files
iii. Locate the KASB cookie. The file will be displayed as “name”@kasb.com. Highlight this file
iv. Select “File” and then “Delete”
v. Restart your browser

Your site seems slow. Is there anything you can recommend to speed it up?

There are several potential causes for the delays, which you are experiencing. Clearing the cache every few days will greatly improve your browser’s performance. In addition to your computer’s processor and modem speed (we recommend a Pentium II processor and a 56 KBPS modem), factors such as your choice of Internet Service Provider (ISP) and phone connection may result in slower downloading speeds. In addition, the speed at which the site loads may vary depending on the time of day during which you are accessing the site. Different levels of traffic on the Internet, both at our site and through your Internet Service Provider, may affect the loading speed.

What is an Adobe .PDF file and how do I view it?

Certain documents on our site (such as the User Manual) have special formatting needs and appear on our site as “.pdf” (page document formatted) files. These files provide the highest level of document-quality formatting and can be printed exactly as shown.

In order to view “.pdf” files, you will need the Adobe Acrobat Reader plug-in software. You may download this program for free from Adobe’s Internet site at http://www.adobe.com. After you have downloaded the Adobe Acrobat Reader, you will have to install it. This usually involves exiting your Internet browser and double-clicking on the file you downloaded. More detailed instructions for installation are located on the download page of http://www.adobe.com

What is a firewall?

A firewall is made up of a combination of hardware and software which is designed to securely separate the Internet from internal computer systems and databases. At KASB data coming from customer computers via the Internet flows through a series of safety checkpoints on its way to our internal systems. Data is encrypted between your system and internal systems to protect it from unauthorized disclosure or modification. Due to the existence of a Firewall on most networks, there may be certain instances when a customer cannot gain access to the system. Once this has been determined the customer will need to contact their System Administrator in order to gain access.

How do I verify my security level?

If you are utilizing Internet Explorer 4.0 or 4.1, follow the instructions below:
i. From the menu on the top click on “Help”
ii. Select “About Internet Explorer.” You will notice the current version information (IE 4.0) and the cipher strength. 40 or 56-bit indicates lower encryption. 128-bit represents the highest security standard.
To upgrade please go to http://www.microsoft.com.

Why are the market rates displaying incorrectly on the website?

The market rates window operates as a java applet. Please make sure you have a java enabled Internet Browser. To install java software, please contact your system vendor/service provider, or if you are experienced in the installation of software, purchase a software CD in this respect.

Please check your Internet connection, pc operating system, and software for errors before contacting us.

Portfolio Inquiries

What is the difference between 'Margin' and 'Cash' Accounts?

SECP regulations allow brokers to revise their margin requirements for their account holders if they inform their customers at least 3 days prior to the implementation of the revised margin requirements.

The use of margin accounts provides investors to buy and hold more stock without paying for it in whole.

This can provide investors the advantage to generate higher profits, but it also exposes them to the potential of higher loss.

Cash accounts are different from margin accounts in the way that the amount deposited by the account holder is fully used and the funds deposited stipulate the amount of trading activity that can be conducted in that account. This means that the Account Holder can only buy/sell shares equal to the funds deposited by him/her with the broker.

What is your margin requirement?

You must keep at-least 30% margin against your outstanding exposure for the purpose of trading in your account.

Yes, Khadim Ali Shah Bukhari Securities (Pvt.) Ltd reserves the right to refuse any account without assigning any reason.

How do I get to know my current margin maintenance?

Your current maintenance margin is shown in the Margin Report in the Available Margin column. Margin Report can be accessed from the Account Status menu of KASB software.

What is Equity?

Equity is the ownership of shares in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder’s equity or net worth or book value.

What is the difference between Delivery Versus Payment (DVP) and Margin Trading?

Delivery Versus Payment refers to where stocks are purchased and marked for delivery with the total value of the trade deducted from the Customer’s account thus reducing the corresponding cash balance in his/her account. In this manner, he/she can only purchase and sell stocks that are less than or equal to the amount of cash deposited by him. Margin trading is used to provide clients with additional funds as a multiple of their cash deposited. If a client places the basic account opening requirement of Rs.100,000, he/she is provided a trading limit that is 100/30 or approx 3.33 times the amount i.e. Rs.333,000. The margin amount is calculated as 30% of the trading limit.

What is a Margin Call?

Margin call can be simply explained as a message sent to the client when his/her margin deposit falls below 30% of his exposure. Margin calls are sent to client via email.

How can I calculate my 'Return on Investment' (ROI?)

Return on investment is calculated by taking the value of the investment held at the beginning of the ROI period compared to the current value. In other words:

((Current Value) – (Beginning Value) + (Income))
________________________________________________, where
(Beginning Value)

(Current Value) = (the current total shares) x (the last price),

(Beginning Value) = [(Number of shares held prior to the period – any shares sold) x (the closing price prior to the period)] + the “Cost Basis” of any shares added in this period (Buys, Reinvest, Add Shares, etc), and

(Income) = any income events such as Dividends/Interest (not Reinvested) and Realized gain/loss from Sells in this period.

For example, assume that on 1/1/99 you owned 1000 shares of XXYY (which had been purchased prior to this date), the last price (on 12/31/98) was Rs.69 11/32, and you still own the 1000 shares and the current price is Rs.90 1/8. The ROI (YTD) for XXXX Script would be calculated:

[(1000 x 90.125) – (1000 x 69.34375)] / (1000 x 69.34375) = 20781.25/69343.75 = 29.968%

If you had purchased 200 additional shares at Rs.75 each during this period, the formula would be modified as follows:

[(1200 x 90.125) – (1000 x 69.34375 + 200 x 75)] / (1000 x 69.34375 + >200 x 75) = 23806.25/84343.75 = 28.225%

Research

Is there any research material available to review for trading?

KASB clients receive Research Reports prepared by KASB Research.

What is 'Market Capitalization'?

Price per share multiplied by the total number of shares outstanding; also the market’s total valuation of a public company.

Yes, Khadim Ali Shah Bukhari Securities (Pvt.) Ltd reserves the right to refuse any account without assigning any reason.

What is 'Working Capital'?

Working capital can be calculated as current assets minus current liabilities.

A firm’s working capital is the money it has available to meet current obligations (those due in less than a year). A firm with a great deal of working capital is in little danger of failing in the near future, but enormous working capital over a prolonged period could also imply excessively conservative management. Working capital, after all, is short-term in nature and hasn’t been put to work in the company’s profit-making business operations. As with most measures of corporate well being, this one varies by industry and even by season.

What does 'Earning per Share' mean?

Net income divided by common shares outstanding. A company that earns Rs.1 million for the year and has a million shares outstanding has an EPS of Rs.1. This EPS figure, which represents how much of earnings each share is entitled to, is important as the basis for various calculations an investor might make in assessing a stock’s price. The most widely used indicator of whether a stock is over- or undervalued, for example, is the price/earnings (P/E) ratio, which relates share price to earnings per share.

What is 'Total Annualized Return?

An investment return projected over a one-year period, compounded daily. For example, if an investment returned 1% over one month, it would have an annualized return of approximately 12%. Total annualized return can be useful in assessing the performance of an investment held for a brief period.

What is 'Turnover Ratio?

A measure of a fund’s trading activity, computed by dividing the lesser of purchases or sales (excluding all securities with maturities of less than one year) by average monthly assets. A turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio’s holdings that have changed over the past year.

What is 'Real Return'?

Real return can be defined as the return on an investment after taking inflation into account. To calculate the real return, simply subtract the inflation rate from the stated return. For instance, a 12 percent annual return in a year of 5 percent inflation results in a 7 percent real return.

What is Relative 'Strength?'

Measures the price performance of a stock in comparison to all other stocks. Many analysts believe that stocks with strong and improving relative strength tend to continue to outperform all other stocks, all other things being equal.

The figure is obtained by calculating the percent price change of a stock over a particular time period and ranking it against all other stocks on a scale of 1 to 100, with 100 being best. Stocks that are ranked from 70 to 100 are considered to have good relative strength, while stocks ranked less than 50 are considered to have poor relative strength

What is ‘Revenue?

All the money (or other items of value) that came into the company during the given period. Revenue includes everything: sales, interest income, proceeds from the sale of a subsidiary and so forth. Revenue is thus one of the most reliable items on the income statement, as opposed to net income, which is subject to various accounting and managerial judgments. But the all-inclusive nature of revenue can make it misleading. If 50 percent of revenue in a given year came from the one-time sale of some land, clearly one shouldn’t assume that the business will have similar revenue in future years.

What does 'Quick Ratio' mean?

The sum of cash and receivables from the most recent quarter divided by the total current liabilities from the most recent quarter. This assessment of a company’s ability to meet short-term obligations is also known as the acid test. In general, the quick ratio should be 1 or better. A high quick ratio is usually a sign of a solid, conservatively run company in no danger of imminent demise even if for some awful reason sales immediately ceased. A firm’s quick ratio might be of special interest to investors anticipating some kind of downturn in the firm’s business or the economy at large.

What does YTD stand for?

YTD is an abbreviation for year-to-date.

What does YoY stand for?

YoY is an abbreviation for year-on-year.

What does QoQ stand for?

QoQ is an abbreviation for quarter-on-quarter.

What does MFY & QFY stand for?

MFY is an abbreviation for Month Financial Year i.e. 9MFY10 would mean 9 Month Fiscal Year 2010.

QFY is an abbreviation for Quarter Financial Year i.e. 3QFY10 would mean 3rd Quarter of Fiscal Year 2010

What does FY stand for?

FY is an abbreviation for Fiscal Year i.e. FY10 would mean Fiscal Year 2010.

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