How to Invest your money in Pakistan Stock Exchange?
Best Time to Invest Money in Pakistan Stock Exchange
Everyone has a dream to invest their money in a good place so that they can earn a good amount of money. But they can’t find the place or department where they should invest the money. Finding the safest place is very difficult but there is an option for you that you can invest your money in the Pakistan Stock exchange.
PSX Pakistan Stock Exchange offers two types of investment which are following:
- Short-term investment
- Long-term investment
What is a short-term investment in Pakistan Stock Exchange?
Short-term investment means the investors sell and buy the shares every day when they see the market is going up. It is considered a short-term investment if you invest your money for less than 5 years. It is also known as day traders.
People can win or lose their investments as it all depends on their forecasting. Investors mostly analyze the market first and then invest their money.
What is a long-term investment in Pakistan Stock Exchange?
Long-term investment means investing your money for a long time and later you sell them at higher prices. Here you can also get dividends every three months. The long-term investment is good for those who are busy and have less money.
This type of investment can be good for doctors, students, engineers, and other people with less investment.
There are a lot of benefits to investing in the Pakistan Stock exchange. But it is better to know a bit of knowledge of the stock exchange market of Pakistan before investing your money.
So, if you want to invest your money in Pakistan Stock Exchange PSX but don’t know how to do it then here’s here how you can invest in Pakistan Stock Exchange:
How to Start?
If you want to start the trading then you have to go to a third party broker person that will issue a brokerage account for Stock Exchange in Pakistan.
Here are some of the requirements you need to complete to create the account:
- Your original CNIC
- Your bank account number and information.
- If you are an employee then provide the salary slip and if you are self-employed then provide a bank statement.
- Other documents can also be required according to the company and the situation.
How to invest in the Pakistan Stock exchange?
Here’s how to invest money in Pakistan Stock Exchange:
- First of all, you need to go to the nearest Brokerage Firm in your city.
- Now, provide them with the required documents and information.
- You need to finish the paperwork now.
- Your broker account will be opened between 1 – 2 weeks in your selected firm.
- You will also get a license for trading on Pakistan Stock Exchange.
The process of creating an account and investing money is very easy and straightforward. You have to visit the broker’s house physically on starting days of investment, there you have to submit all the identifying and investment documents. You also have to submit the application form that the firm provided to you while opening the account.
When you received your license then you don’t have to visit the broker’s house daily. You can also handle trading and other deals online by sitting at home.
The local trading software looks like this:
Benefits to Invest in Stock Exchange in Pakistan:
there are a lot of benefits to investing money in the Stock market. Here’s how it gives you benefits to invest in the Stock market:
1: Capital Gain
It helps you to increase your capital. this will happens when any person experiences an increase in-stock rates. It is one of the long-term goals to invest in the stock market.
2: Liquidity
stocks can be bought and sold very quickly and this is the reason why it is known as a very liquid product. Everyone can buy or sell stocks as there is no need for a broker. You can also sell some parts of your stocks without selling the whole stock.
3: Dividends
Dividends are basically rewards, cash, or any other type of company gift any gives to its shareholders. it can issue in different forms like cash payments, gifts, stocks, or any other form. the more you invest the more you get money.
4: Shareholders Benefits
Shareholders of the company also take many benefits from the company. Some companies like entertainment, retail, hotel, and financial services offer many discounts to their shareholders.