Internship Report On Cliktrade

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PREFACE

The pre-requisite of internship program is to make the students of M.B.A, aware of the practical expertise and to acquaint them with the real management process. With an intention of grooming the best executives of the future, the Comsat institute of information technology campus (sahiwal) has organized a comprehensive internship-training program. All of us were placed in leading organizations of business arena to gain first hand knowledge and insight into their management and working. So, when I was given the chance of selecting an organization, I opted for ClikTrade Company. Getting a chance of working in ClikTrade proved to be very beneficial for me. I think that I gained comprehensive insight into the working of a Company. But nothing could have been possible without the cooperation and guidance of my respected teacher Mr.Mazhar Javed and the Branch Manager Mr.Adnan who is the Branch Manager of ClikTrade Company. After the completion of internship program, internship report has been prepared just in accordance with the practical exposure. It has been my endeavor to stipulate my experience in a way that the reader may clearly understand the core concepts.

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ACKNOWLEDGEMENT

I would like to express my gratitude to the CIIT campus (Sahiwal) for giving me the opportunity and arranging such an extensive internship program. First of all I would like to say thanks to my parents who brought me up and made me able to face challenges of this dynamic environment. Their love and guidance is with me like a torch throughout my life. No doubt, I m nothing without my teachers. These are the personalities who polished all my abilities such as Mr.Mazhar Javed all other my teachers who are a source of inspiration and torch bearer in my career path throughout my life. I would also like to acknowledge my debts to those Trade Executive of ClikTrade who have been extremely helpful for me.

Thank you all! M.Qasim Abubakar

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Table of Contents 1. Executive Summary

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2. History of Stock Exchanges

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3. History of Karachi Stock Exchanges

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4. Karachi Stock Exchange

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5. Introduction of CLIKTRADE

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6. Mission Statement & Business Principle

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7. Objectives of ClikTrade

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8. CLIKTRADE Product & Services

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9. CLIKTRADE Investment Philosophy 10. MANAGEMENT TEAM OF CLIKTRADE LIMITED

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11. Bull or Bear Market 12. Stock Types

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13. Fundamental Analysis - Analyzing Financial Statements

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14. Risks 15. SWOT Analysis 16. Competitive Strategies

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17. Research & FAQ’s

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18. Future Outlook

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19. Learning As an Intern

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Executive Summary

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My department requires this report. The purpose of report is to write down all the major activities that I performed in that particular branch during my internship training. In this report I briefly explain about the stock and stock exchange operation including that how the ClikTrade is doing business and what are the different aspects of the company. I also explained my work in the company and what I learned in my whole internship. Following are the key points about this report. • • • • • • • • • • • • • • •

Karachi Stock Exchange Introduction of CLIKTRADE Mission Statement & Business Principle Objectives of ClikTrade CLIKTRADE Product & Services CLIKTRADE Investment Philosophy Bull or Bear Market Stock Stock Types Fundamental Analysis - Analyzing Financial Statements Risks SWOT Analysis Competitive Strategies Research & FAQ’s Future Outlook

History of Stock Exchanges The history of stock exchanges can be traced to 12th century France, when the first brokers

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are believed to have developed, trading in debt and government securities. Unofficial share markets existed across Europe through the 1600s, where brokers would meet outside or in coffee houses to make trades. The Amsterdam Stock Exchange, created in 1602, became the first official stock exchange when it began trading shares of the Dutch East India Company. These were the first company shares ever issued. By the early 1700s there were fully operational stock exchanges in France and England, and America followed in the later part of the century. Share exchanges became an important way for companies to raise capital for investment, while also offering investors the opportunity to share in company profits. The early days of the stock exchange experienced many scandals and share crashes, as there was little to no regulation and almost anyone was allowed to participate in the exchange. Today, stock exchanges operate around the world, and they have become highly regulated institutions. Investors wanting to buy and sell shares must do so through a share broker, who pays to own a seat on the exchange. Companies with shares traded on an exchange are said to be 'listed' and they must meet specific criteria, which varies across exchanges. Most stock exchanges began as floor exchanges, where traders made deals face-to-face. The largest stock exchange in the world, the New York Stock Exchange, continues to operate this way, but most of the world's exchanges have now become fully electronic.

History of Karachi Stock Exchange The Karachi Stock Exchange, the oldest exchange in Pakistan, was established in 1947 and became a registered company limited a few years later. Since then it has experienced a remarkable progress with

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only 5 companies listed and 90 members on the Exchange in the 1950s and 663 listed companies and 200 members in 2006. In 2002, the Karachi Stock Exchange was recognized internationally by the magazine 'Business Week' as one of the best performing stock markets in the world. The Karachi Stock Exchange has started trading through the computerized trading system KATS (Karachi Automated Trading System) since 1997. As the demand for Trading Workstations installation has been significant during the consecutive years, today over 1000 KATS workstations are already installed. In 2005, trading in the Internet was also initiated. Since 1990, corporate entities can become members on the Karachi Stock Exchange. However, they have to meet stringent requirements of the Board of Directors and own a minimum capital of Rs. 20 million (approximately UK ?181,000). At the beginning of 2006, 120 corporate members were registered in the Exchange. The Karachi Stock Exchange introduced KSE 50 Index at the end of the 20th century. However, because of the growth in the stock market, the Index did not represent the stock market performance anymore. Thus, in 1991 a capital weighted KSE 100 Index launched. At the moment, the Exchange successfully trades two world-famous indices - KSE 100 Index and KSE All Share Index, which was introduced in 1995.

Karachi Stock Exchange Profile (KSE) Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan with the average daily turnover of 525.15 million shares and market capitalization of US $ 54.28 billion. The international magazine

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'Business Week' announced the KSE as the best performing world stock market in 2002. Since then the KSE continuously maintains the reputation as one of the best performing markets in the world. Since 1991, foreign investors have an equal opportunity together with local investors to operate in the secondary capital market on the Karachi Stock Exchange. The establishment of the new policy for foreign investors and initiated privatization in Pakistan has accelerated the development of the KSE, which had even 663 companies listed in 2006. In addition, companies have a choice to be listed on one of the two markets - the ready market and the over-the-counter (OTC) market, which has lesser listing requirements. While the ready market requires listing companies to have minimum paid up capital of Rs 200 million (about UK ? 1.8 m), the companies with minimum of Rs 100 million can be listed on the OTC market. The Karachi Stock Exchange trades the KSE-100 Index. It is a highlydiversified index of 100 largest capitalization companies' stocks from all sectors of Pakistan economy. A constantly revised index is a good indicator of the overall Exchange performance over a period of time. In 2005, 88% of the KSE total market capitalization was represented by the KSE-100 Index. The membership in the Karachi Stock Exchange is limited. Only 200 individual and corporate entities can register as members in the KSE. In 2005, 162 members traded actively on the Exchange. In addition, foreign corporate entities may also become the members of the KSE with the

condition that the nominee member of the company is a citizen of Pakistan. Introduction of CLIKTRADE COMSATS Institute of Information & Technology

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As an advanced-technology securities brokerage firm of the new millennium, CLIKTRADE is committed to making available state-of-the-art tools. Tools that give our customers the best opportunities for realizing success in their trading strategies. Each trading platform that we offer is geared toward a specific trading style. We have selected our trading applications with one goal in mind – To Meet the needs of Our Customers and to offer them a choice. Whether that’s offering a basic web trading application for its simplicity, ease to use and at minimal cost, or providing a system that enhances their trading experience completely with the necessary tools for making informed decisions. Regardless of the choices made, our customers are always assured that the benefits, convenience and service far exceed the commissions they’ll pay at any other level of trading sophistication . Technology changes rapidly and so does the market. CLIKTRADE is committed to the future, having laid the foundation for incorporating the far-reaching technological advances we expect in the years to come. Our firms products have been engineered, and continue to be re-engineered to meet this agenda. We pride ourselves on customer satisfaction. Customer satisfaction is the highest priority at CLIKTRADE. We believe our dual focus on Advanced Technology and Customer Satisfaction provides an excellent recipe for success. At CLIKTRADE, a customer is not a number. Customers’ trading needs are met with Courtesy, Efficiency and Thoughtfulness. Our Group offers the ideal relationship for the hemispheric business community requiring broad competency and experience, cost-effective execution, superior engagement management, multilingual capability, and proven facility in dealing with multiple interested parties.

CLIKTRADE is registered and is a corporate member of the KARACHI STOCK EXCHANGE. It is monitored and diligently followed by SECP.

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And now we are offering Traditional trading for our clients in our Brokerage Company.

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Vision To be a world-class Organization dedicated to excellence, and to surpass the highest expectations of our customers and all other stakeholders.

Mission Statement Our Clients’ interests will always come first. If we serve our clients well, our own success will follow.

Business Principles

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To provide retail investors maximum access to Pakistan’s capital markets. Businesses adhere to certain principles, which, while frequently unstated in company literature, in fact, make up the essence of the company. Together these principles provides an unchanging focus and guides the company in its pursuit of excellence. • Our Clients’ interests will always come first. Experience has shown that if we serve our clients well, our own success will follow. • Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore. We will be dedicated to complying fully with the letter and sprit of the laws, rules and ethical principles that govern us. Our continued success would depend upon unswerving adherence to this standard. • We will take great pride in the professional quality of our work. We will have an uncompromising determination to achieve excellence in everything we undertake. Though we may be involved in a wide variety and heavy volume of activity; we would, if it came to a choice, rather be the best than the biggest. •The dedication of our people to the firm and the intense effort they give their jobs are greater than one finds in most other organizations. We think that this is an important part of our success. •Our Profits are a key to our success. They replenish our capital and attract and keep our best people. It is our practice to share our profits generously with all who helped create them.

• We constantly strive to anticipate the rapidly changing needs of our clients and to develop new services to meet those needs. We know that COMSATS Institute of Information & Technology

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the world of finance will not stand still and that complacency can lead to extinction. • Our business is highly competitive and we aggressively seek to expand our client relationships. However, we must always be fair competitors and must never denigrate other firms. • Integrity and honesty are at the heart of our business. We expect our people to maintain high ethical standards in everything they do, both in their work for the firm and in their personal lives. • We stress teamwork in everything we do. While individual creativity is always encouraged, we have found that team effort often produces the best results. We have room for those who put their personal interests ahead of the interests of the firm and its clients.

Objectives of ClikTrade

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Our objective will be to provide wealth management with a preservation of capital, diversification and asset allocation. We believe the critical capabilities our clients would need to consider when deciding to use CLIKTRADE consist of the following: • Customize portfolio structures to minimize capital gains taxes maximize after-tax income. • Flow of non-traditional investment ideas. • Continuing education to clients and their “next generation” through seminars, conferences and tailored programs.

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CLIKTRADE Product & Services At CLIKTRADE, we provide, investors easy accessibility to a wide variety of investment products and resources made available today to aid you in making better, more informed investment decisions and react to market changes faster than ever before. We offer a full range of investment styles and choices that you may choose from. Start by SIGNING UP NOW. No matter how you choose to access your account. Your account allows you to diversify your portfolio with various types of investments. We encourage you to take the first step towards financial independence by opening an account with CLIKTRADE. Whatever the amount you have to invest or your age, the important thing is to Get Started Today! The people of CLIKTRADE develop and execute a broad range of strategies and transactions for our clients. This substantial and diversified client base includes Corporations, Financial Institution, Governments and High net-worth Individuals. Trade shares at the Karachi Stock Exchange; stay updated with the latest market activity; Place orders and receive confirmation instantly; View activity reports, portfolio positions and receive alerts on accounts on a real-time basis. CLIKTRADE has entered the market in a short span of time we wish to establish ourselves ranked as the “Highest in investor satisfaction” with Online Trading Services. With our centralized customer services center, CLIKTRADE provides the access to service every online customer wants and needs. • Trade shares directly at the Karachi Stock Exchange. • Place orders and receive confirmation instantly. • Stay updated with the latest market activity.

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• Capital stock, business, and intellectual asset support. • View activity reports, portfolio positions and receives alerts on account on a real-time basis. • Superior engagement management. • Hemispheric and global capability. • Senior staff with professional designation and continuing education requirement.

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CLIKTRADE Investment Philosophy Our investment philosophy will be the basis for our management of wealth. Our goal in the management of wealth will be to ensure the preservation and enhancement of our client’s capital in a manner consistent with their investment objectives. We look to achieve this in the following ways: • Define individual investment objectives and risk characteristics. • Manage assets for tax-efficient, long-term gains. • Diversify assets among a broad group of asset classes and recommend the asset mix most likely to provide the highest return for selected level of risk. •Increase the real purchasing power of assets net of inflation and taxes. • Minimize excess risk. • Work with tax and other advisors on the overall investment as it relates to tax minimization, estate planning, wealth transfer objectives and philanthropy. • Provide complete custody services. • Provide consolidated performances reports and review progress towards

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Organization Hierarchy

CHAIRMAN

NOMINEE DIRECTOR/CHIEF EXECUTIVE OFFICER MANAGING DIRECTOR CHIEF FINANCIAL OFFICER/DIRECTOR CHIEF OPERATING OFFICER/COMPANY SECRETARY HEAD EQUITY SALES REGIONAL DIECTOR AREA MANAGER BRANCH MANAGER

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MANAGEMENT TEAM OF CLIKTRADE LIMITED

Mr. MUHAMMAD HANIF PEERANI

Chairman

An entrepreneur par excellence. He has more than thirty years experience which include eight hardcore years in stocks and shares trading. He has managed successful businesses of Post Production House, Electronics, Mobile Phones, Construction and Real Estate. Under his excellence of supervision and administrative skills all the business he has managed had become the success stories and followed suit by his business competitors.

Mr. SHAHBAZ ISLAM

Nominee Director / Chief

Executive Officer Goal-driven professional with eleven years insignificant, areas namely Human Resources, Information Technology, Sales and Marketing. His experience and expertise is highly applicable to management, including his ability to deliver superior, personalized human resources functions, cultivate strong employee relationships, make real-time decisions, and resolve issues in a way that propels innovation and growth. A natural and versatile team player with a proven record of outstanding achievement, focused on accelerated result, team building strategic business plan development and execution. A quick thinker with broad knowledge, strong, creativity, relentless drive and a personable nature. He has seven years of extensive experience in trading of securities and managing accounts, operations and marketing of Corporate Member at Muhammad Anas Kapadia and CLIKTRADE.

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Mr. SHAHID ALI KHAN

Managing Director

He is through-bred professional. Starting his professional career as a jute broker with his late illustrated father, Salamat Ali Khan (The King of Jute) in the late 70s at a mere age of 19 he has a world of experience. Being an entrepreneur at heart he takes helms of issues by the horns, resolving them and delegating within his team. A team player he has strategize various businesses including marketing at KSE, wealth management at ABN AMRO, re-launching daily The Leader, relaunching H M Idrees H Adam on a corporate platform, restructuring and resolving AKD Securities and Safe Deposit Co Ltd., establishing ML Securities and transforming it into Eastern Capital Limited

SYED JAWAID WAJID

Chief Financial Officer /

Director He has more than twelve years working experience in Finance and Fund management at senior level position with The Habib Group. To further his career he switched to the Equity side and joined Fortune Securities as the Head of Equity. He has extensive experience in trading of securities for investment houses discretionary accounts, financial institutions and retail investors since early 1992. SYED WAHAS UL HUSAINI

Chief Operating Officer /

Company Secretary Engaged with the business of Securities and Exchange with the KSE since 1995. Mr. Husaini started his career with Deutsche Bank where he was intricately involved with the management of Securities and Custody Division for a number of years. He reported directly to Deutsche Bank regional head quarters in Singapore. To further groom and establish a well diverse portfolio, he joined a highly reputable member of the Karachi Stock Exchange, M/s Jahangir Siddiqui and Company limited for

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them Mr.Husaini achieved and targeted special assignments with a highly qualified and professional team such as (IPO’s) Initial Public Offering. SYED HARIS-BIN-SAEED,

Head of Equity Sales

In November 1995 Mr. Haris started his carrier as an Equity trader from the country’s Leading Brokerage House KASB. Since then he has been associated with the share trading business in Pakistan. Mr. Haris bring extensive relationship with the Investment Consulting Community, Institutional Investors and Retail Investor. He managed investment in Securities, Bonds, Term Finance Certificate (TFC) and other Capital Market products in Pakistan. He has additional experience in Management, Financial Modeling, Risk Management and Trading System.

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Bull or Bear Market

Most people who have been investing in or following the stock market for some time are probably well familiar with the terms bear and bull market. What does it really mean? A bull market refers to a market that is on the rise. It is indicated by a sustained increase in stock market share prices. In such times, investors are convinced that the uptrend will continue in the long term. Typically, the country's economy is strong and employment levels are high. A bull market is a rising market. On the other hand, a bear market is one that is in decline. In bear market stock share prices are continuously dropping, resulting in a downward trend that investors believe will continue in the long-run, which, in turn, perpetuates the spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying-off workers. Generally speaking, since the market is determined by investing parties’ attitudes, these terms also denote how investor's feel about the market and the ensuing trend. There are several characteristics that are particular to whether a market is a bull or a bear overall. In a bull market, there is strong demand and weak supply for stocks. As a result of this, stock prices will rise as competition will drive the prices up. The opposite holds true for the bear market. There is a strong relationship between the market and overall

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economic conditions. Since the companies whose stocks are trading on the exchanges are the participants of the greater economy, the stock market and the economy are strongly connected. A bear market is associated with a weak economy as most companies are unable to record huge profits because consumers are not spending nearly enough —this decline in profits, of course, directly affects the way the market valuates stocks. In a bull market, the reverse occurs as people have more money to spend and are willing to spend it, which, in turn, drives and strengthens the economy.

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STOCK TYPES BLUE CHIP STOCKS The stock market term "blue chip" comes from poker, where the blue chips carry the highest value. Large, established firms with a long record of profit growth, dividend payout and a reputation for quality management, products and services are referred to as Blue Chip companies. These firms are generally leaders in their industries and are considered likely candidates for long-term growth. Because Blue Chip companies are held in such high esteem, they often set the standards by which other types of companies in their fields are measured. Well-known blue chips include IBM, Coca-Cola, General Electric and McDonald's. Blue chip stocks are included in the Dow Jones Industrial Average, an index comprised of 30 companies that are all major players in their respective industries. Popular among individual and institutional investors alike, the 30 stocks listed on the Dow account for about one fifth of the total market value (over $8 trillion) of all U.S. stocks. The types of Investors blue chip stocks attract are the ones who seek investments that pay moderate dividend yields and grow. These types of stock are usually priced high because of their demand, have relatively low volatility and deliver a steady stream of dividends. The main downside is that, since they are so large, they have little room to appreciate, compared to smaller, up-and-coming types of stock. VALUE STOCKS A value stock is a type of stock that is currently selling at a low price. Companies that have good earnings and growth potential but whose stock prices do not reflect this are considered value companies. Both the stock market and people investing in it are largely ignoring their stocks. Investors who buy value stocks believe that these stocks are only

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temporarily out of favor and will soon experience great growth. Any number of factors such as new management, a new product or operations that are more efficient may make a value stock grow quickly. Many companies alternate between value and growth types of classification. It is a normal aspect of the business cycle. Investing in value stocks is attractive for those who watch markets carefully for undervalued stocks they feel will move upward. OTHER TYPE OF STOCKS Defensive stocks are those whose prices stay stable when the market declines and are issued by industries that naturally do well during recessions. Food and utilities companies are defensive stocks. Debt collection companies also tend to perform well when the market turns sour. Cyclical stocks are a type of stocks that move up or down in sync with the business cycle. Examples include the housing industry and industrial equipment companies, because these companies serve the needs of growing economies. Investors who do not mind buying and selling as the market fluctuates tend to like cyclical stocks. Individuals who prefer to hold a stock for a long time may not like them unless they can weather ups and downs in the stock's value. Gold stocks are the stocks of gold-mining companies. Their value moves up or down with the price of gold. Treasury stock is a type of stock that has been bought back by the company that issued it. Companies may buy their stock back from investors when they believe it is underpriced on the market. The company can then set aside the stock for future uses such as debt payment or the awarding of stock options.

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IPO When investing in stock market, one of the common market terms you are likely to run into is “IPO”. IPO stands for Initial Public Offering, and it is the first (initial) sale of the stock by a company to the public. There is a typical course of action that takes place for the company to go public and issue stock. First thing a company does when it wants to go public is to hire an investment bank, an underwriter. An underwriter is an interface between companies and investing public. The big names involved in the underwriting process include companies like Merrill Lynch and Morgan Stanley. Once the company and the investing underwriter negotiate the details, such as the type of stock to be issues (see above), amount of stock shares an underwriter promises to buy before reselling it to the public and so forth, the investment bank will create a registration to be filed with SEC. After SEC reviews the information and approves the offering, a date is set for the first public offering. Before the IPO release date a price is negotiated between the company and the investing firm (underwriter). If underwriters believe that an IPO will be “hot”, they’ll first offer the stock to their favorite large institutional investors (i.e. Fidelity) and to active individual investors, who trade frequently. Most often, the only way for an average person interested in investing in IPO stock is to have a large account with one of the investment banks that have acted as an underwriter. In other words, your chances of getting early stock shares in an IPO are slim to none unless you’re on the inside, and if you get them it is probably because these are the unpopular ones. It is when the IPO market is slow, individual investors can reap the best returns. This is because institutional investors demand low prices for their participation and individuals can benefit. Individuals can trade IPOs in the aftermarket online or via their traditional full-service brokers. The

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first several weeks of aftermarket trading are critical times for IPOs and often the stock jumps considerably in the beginning of its public life.

Mutual Funds A simplified market definition of a mutual fund is that it is just a collection of stocks and/or bonds. One can look at a mutual fund as a company that brings together a group of people interested in investing and pools their money in stocks, bonds, and other securities. Mutual fund is a stock that gives small investors access to a well diversified portfolio of equities, bonds, and other securities. Each investing shareholder participates in the gain or loss of the fund. Mutual fund portfolios are organized to meet the investing objective stated in prospectus. The net asset value (NAV) of a mutual fund is calculated daily. Parties interested in investing in some mutual funds (no-load) can do so by contacting the fund companies directly. Other funds are sold on the market through brokers, banks, financial planners, or insurance agents. Mutual funds were commonly sold by third party participants at a price of a sales fee, also known as a load. Today, however, more and more funds can be purchased through no-transaction fee programs that offer funds of many companies. Sometimes referred to as a "fund supermarket," this service lets you consolidate your holdings and record COMSATS Institute of Information & Technology

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keeping, and it still allows you to buy funds without sales charges from many different companies. Some of the big names in mutual funds include companies like Schwab's OneSource, or Fidelity's FundsNetwork. There are several key factors that make investing in the mutual fund market attractive to investors. For those individuals who do not have time or experience in investing in stock market, mutual fund offers professional management of their money. Furthermore, by owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out and your investment is less volatile. The concept is that by diversification, an investor’s loss in one stock is offset by gains in others. It would be very expensive for an individual to build his own portfolio of this kind. Just as with an individual stock, mutual funds are liquid and can be turned into cash at any time.

Short Selling A large number of investors make money on a decline in an individual stock or during a bear market, thanks to an advanced investing technique called “short selling.” In general, people think of investing as buying an asset, holding it while it appreciates in value, and then eventually selling to make a profit. Short selling is in fact the exact opposite of the normal process of investing by purchasing shares on COMSATS Institute of Information & Technology

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margin (taking a long position) and selling them at a later time in the market. In case of short selling the investor first sells the security with the intent to later buy it back at a lower price. When an investor goes long on an investment, it means he has bought a stock believing its price will rise in the future. Conversely, when getting into the market by investing short, an investor is anticipating a decrease in share price. Shorting stocks allows you to enter the market as a seller and profit when a stock declines. Short selling is the selling of a stock that the seller doesn't own. Your broker "borrows" the stock from someone else's margin/short account and sells it in the market for you. As long as you buy back the shares at a lower price, you will profit. To short stocks you must first establish a margin/short account with your broker. Because you are buying on margin, you must pay interest and follow the rules of margin trading. The shorter is responsible for paying the lender any dividends or rights declared over the course of the loan. The stock you wish to short must be available to borrow and you must maintain at least 50 percent or more of the stock's value in your account. The primary reasons for shorting are to speculate and to hedge your investment. One danger of investing by short selling is the theoretical possibility of an unlimited loss. As opposed to a long or regular purchase of shares in the open market on which you can only lose the amount of money you originally invested, there is no maximum loss that a short seller can occur. This is, of course, due to a fact that there is no limit to how high a stock can go up in value. For instance, if you were to short a stock trading at $5.00 and, due to some unforeseen occurrence, the stock grows to the $100 level and keeps on climbing; you will at some point be forced to cover your short position by buying back the shares somewhere past the $100 level (costing you over 20 times the original short sale proceeds).

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Short selling contributes to the market by providing liquidity, efficiency, and acting as a voice of reason in bull markets.

Stop Loss Order A relatively simple, yet commonly underemployed market investing strategy is the stop loss order. It is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop loss is designed to limit an investor's loss on a security position. For instance, setting a stop loss order for 10% below the price at which you bought the stock will limit your loss to 10%. In any form of long-term investing and shortterm trading, knowing the right time to exit is just as important, if not more importan than, determining the best time to enter the market. The most basic technique for establishing an appropriate exit point is the trailing stop technique. Very simply, the trailing stop maintains a stoploss order at a precise percentage below the market price (or above, in the case of a short position). The stop-loss order is adjusted continually based on fluctuations in the market price, always maintaining the same

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percentage below (or above) the market price. The trader is then "guaranteed" to know the exact minimum profit that his position will garner. An obvious advantage of a stop order is you don't have to monitor on a daily basis how a stock is performing. This is especially useful when you are on vacation or having a full time job that prevents you from watching your security for an extended period of time. A stop loss orders have most often been employed as a way to minimize and prevent major losses. It could also, however, be used as a tool to secure profits, in which case it is sometimes referred to as a trailing stop. A stop order is a unique way to minimize emotional responses, which often interfere with execution of a good investing strategy. It is a great compliment to discipline necessary for successful investing plan. The disadvantage is that the stop price could be activated by a shortterm fluctuation in a securities price. The key is picking a stop-loss percentage that allows a security to fluctuate day-to-day while preventing as much downside risk as possible. Setting a 5% stop-loss on a security that has a history of fluctuating 10% or more is not the best strategy: you will most likely just lose money on the commissions generated from the execution of your stop-loss orders. There are no hard and fast rules for the level at which stops should be placed. This totally depends on your individual investing style: an active trader might use 5% while a long term investor might choose 15% or more. Another thing to keep in mind is that once your stop price is reached, your stop order is a market order, the price at which you sell may be much different from the stop price. This is especially true in a fastmoving market where stock prices can change rapidly. Investing your money into the stock of the company that you know about only through the word of mouth is an ill-informed investing strategy.

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Maybe you've read about a company stock that interests you, or one of your friends is excited about a particular stock. Perhaps you keep seeing a stock on various "buy" lists and wonder what makes it so appealing. To make a well-informed, rational decision about your potential investment it would be beneficial to be able to judge whether circumstances, not just psychology, have changed. A strong fundamental analysis can become the most important key to making a good decision.

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Fundamental Analysis - Analyzing Financial Statements Fundamental analysis means conducting basic research on a company. Fundamental market analysis examines of the underlying forces that affect the interests of the economy, industrial sectors and companies. As with most analysis, the goal is to derive a forecast for the future. A well conducted fundamental analysis focuses on creating a clear picture of a company, identifying the intrinsic or “fundamental” value of its stock shares, and assists in making wise investing decisions based on that information. When analyzing a company, there are several key features that one might want to consider. A competitive advantage of the company, such as patents, rate of growth of customer base and other relevant factors might need to be looked at. A record of consistently growing revenues could be a strong indicator of future growth. Examining the balance sheet, could reveal a great deal of information about the company such as debt standing and cash flow. Fundamental analysis is good as a long-term investing strategy. It will help identify companies that represent good value. Performing fundamental analysis can be a lot of hard work. But that is, arguably, the source of its appeal. By taking the time and making an effort to dig into a company's financial statements and assess its future prospects, investors can learn enough to know when the stock price is wrong.

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Risks We understand that there are numerous risks associated with investing in the stock markets. We try to understand and then classify these risks based on the behavior of stock prices in the financial markets. Knowing that investing in stock carries a certain amount of risk is probably one of the first things you should be aware of. This is because the returns on stock are not guaranteed; not by the government, not by the company issuing the stock, and certainly not by your broker. That means that there is a chance that your actual revenue will be different than what you had expected. For instance, you might purchase stock under the expectation that its price will rise steadily over time and that it will pay you annual dividends. However, if the company experiences financial problems, you may not receive the price appreciation or the dividends that you expected. Moreover, the company could even go out of business, in which case you could lose your entire investment. Because there is uncertainty regarding which of the various possible outcomes will occur, you bear a certain amount of risk when purchasing the equity. How much of a risk does a stock carry in your overall portfolio? That depends upon what other investments are in your portfolio. In general, the risks associated with investing in stocks are greater than the risks associated with investing in bonds or money markets. At the same time, however, the risks associated with investing in stocks are less than the risks associated with investing in options or futures. Of course, not all stocks pose the same level of risk: some (such as internet stocks) are much higher risk than others (such as utilities), so it's important to understand the amount of risk you would be taking on with any given investment. The other variable that will influence the amount of risk in your stock portfolio is your time horizon. Over long term, history has shown time and again that stock prices outperform almost all other investing options.

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However, in the short run stock prices often go down (about half the time, if the time period is sufficiently short). That means that if you are at a point in your life when you may need to sell your stocks in the short run, then you may want to think twice about investing in stocks. There is a definite possibility that the stocks that you buy now may be worth significantly less one or two years in the future. Most likely, however, they will be worth significantly more ten or twenty years in the future. So before you investing in stocks, you should sit down and examine both your own time horizons and those of the market in order to see whether or not you can take the risks associated with short term stock investing. The most recognisable of all risks is the continual adjustment of a stock's price to new information entering the market. We recognize that there exists a strong relationship between new information and the price movements observed for a particular stock. People refer to this particular risk an investor faces from a potential movement in a stock's price, as 'idiosyncratic risk'. It is a risk that affects a very small number of assets, and can be almost eliminated with diversification On closer examination of the behavior of stock prices, we also notice that there are relationships between stock price movements indicating inter-dependence. This is because when information pertaining to one stock is released to the market, it affects other stocks. There exists a correlation between movements in the stock prices. As a consequence there exists correlation between stock returns. Let us assume that this risk is called 'correlation risk'. On a macro-level, we can also say that when information pertaining to all stocks is released to the market, certain stocks behave differently from others, and hence we can deduce that there must exist some relationship between stocks and the market as a whole. We refer to this risk as 'market risk or systematic risk'. Systematic risk cannot be diversified away, it can only be hedged, and is thus known as

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Undiversifiable or market risk. This type of risk, associate with the market or market segments differs from the risk accompanying stocks in that systematic risk effects a broad range of securities whereas unsystematic risk affects a very specific group of securities or individual security. In order to manage the risks associated with investing in stocks, most investors turn to a practice diversification or numerous other risk reducing strategies. Once you've thought about the risks associated with stock investing and figured out your plans for diversification, the next issue to consider when adding stocks to your portfolio is which stocks to add. As an investor one must consider their risk tolerance. Risk tolerance is a person’s emotional and financial capacity to ride out the ups and downs of the investing market without panicking when the value of investments goes down. To do so you'll first want to take a look at your particular investing objectives. If you're looking for steady income with low risk, you may want to consider investing in income stocks. On the other hand, if you're looking for opportunities that may result in a big payoff and you're not too concerned about the risks involved, you might want to try investing in growth stocks

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The very thing that makes investing in stock a risky business also makes it a lucrative investment. It’s all about risk and return, and because your money is at more risk in the stock market than if you park it in a savings or CD (by the way, the money you invest in a CD is probably reinvested by the company offering the CD), the potential return is higher. It’s true that the gyrations in the stock market can cause both large losses and large gains, but if your investment time horizon is long enough, these short-term fluctuations will result in relatively high returns. It is generally accepted, that the average long term return from investing in stocks is 10-12%. Another latest trend that has added to the popularity of investing in stock market is the creation of IRA and 401K plans. Most people have by now set up a Roth IRA, 401(k), or other qualified retirement program. For some of them, it may be the only stock market investment they own. Regardless, they have made a wise move. These plans offer immediate or long-term tax advantages, and relieve the owners from depending on paltry Social Security payments for their retirement years. The money that you put into a 401k plan is not included in your taxable wages. So you pay less taxes on your income this year. Plus, no taxes are due on any interest or growth within the 401k until you take the money out of the account. Social Security, on the other hand, is a system which many economists have predicted to fail in the near future. Internet has made investing and participating in stock market an accessible affair for most at low costs. Trades can be placed almost instantaneously and your market standing can be assessed at any time. Before the Internet, stock investing meant phone calls or visits to brokers and evaluating their advice on the latest stock options. After the Internet, we now have direct access up-to-the-minute stock reports, investment research, and the ability to trade stocks on our own. This translates into more personal control over our financial future where we no longer need brokers to advise and monitor our accounts.

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It is a great way to own a piece and share in growth of a company whose concept or strong future you strongly believe in. Shareholders maintain an influence in the company's future growth and development through their right to vote. In addition to owning part of a company, you have the potential to receive monetary benefits when you own stock shares. A good example of that would be investing in income stocks. Owning stock may allows you the opportunity to earn money on money. Day trading Day trading is an attempt to micro-manage the market by capitalizing on stock market fluctuations over a short period of time. Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits. Day traders usually buy on borrowed money, hoping that they will reap higher profits through leverage, but running the risk of higher losses too. It is not unusual for an investor to buy and sell a stock within one hour. Day traders sit in front of computer screens and look for a stock that is either moving up or down in value. They want to ride the momentum of the stock and get out of the stock before it changes course. They do not know for certain how the stock will move, they are hoping that it will move in one direction, either up or down in value. True day traders do not own any stocks overnight because of the extreme risk that prices will change radically from one day to the next, leading to large losses. Day traders must watch the market continuously during the day at their computer terminals. It's extremely difficult and demands great concentration to watch dozens of ticker quotes and price fluctuations to spot market trends. Since, fundamental analysis is a tool more useful in the long-term investing, technical analysis is a more popular tool with day traders.

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There are materials out there that range from books and newsletters, to computer programs. Some of the programs are complicated computer models which are designed to analyze data and automatically generate buy and sell recommendations. There are several disadvantages to the day trading investing strategy. One is that most day trading companies/services make a significant portion of their revenues from the commissions they charge for transactions. This amount could be quite high in case of day trading, where high frequency and volume of trades takes place. Borrowing money to trade in stocks is always a risky business. Day trading strategies demand using the leverage of borrowed money to make profits. This is why many day traders lose all their money and may end up in debt as well. Because each day trade brings realized gain or loss, the cost of investing is the government short-term capital gain tax. Finally, day trading carries a heavier risk because of the unpredictability of the stock market in the short run. The smallest economic, political, or market factor might cause a stock to dip unexpectedly resulting in a potential loss. Although there are successful day traders, these people are more the exception than the rule. The biggest profit takers in this particular industry are the so called "experts" who market the books, websites and materials. Because their livelihood is attached to selling their products, they are obviously going to make day trading sound as attractive as possible. However, in general people tend to loose more than they make, which doesn't translate into a very good investment.

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Bonds Just like people need money, so do companies and governments. A company may need funds to expand into new markets while governments need money for everything from infrastructure to social programs. The problem large organizations run into is that they typically need far more money than the average bank can provide. The solution is to raise money by issuing bonds (or other debt instruments) to a public market. Thousands of investors then each lend a portion of the capital needed. In a nutshell, investing in a bond is nothing more than issuing a loan of which you are the lender. The indebted entity issues investing members a certificate, or bond, that states the interest rate (coupon rate) that will be paid and when the loaned funds are to be returned (maturity date). Interest on bonds is commonly paid every six months (semiannually). Bonds are also called fixed-income securities because the cash flow from them is fixed. The main types of bonds people are investing in today are the corporate bond, the municipal bond, the treasury bond, the, treasury note, treasury bill, and the zero-coupon bonds. The higher rate of return the bond offers, the more risky the investment. There have been instances of companies failing to pay back the bond (default), so, to entice investors, most corporate bonds will offer a higher return than a government bond. It is important for investors to research a bond just as they would a stock or mutual fund. The bond rating will help in deciphering the default risk. A common risk with investing in a bond is the risk that a bond’s total return will not outpace inflation. Because the "coupon" or interest payment is fixed until maturity, an inflationary environment will cause these payments to lose value relative to other investments. When

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interest rates rise in the economy, a bond’s price will usually drop, and vice versa. Interest-rate risk is common to all investing in bonds. It is more appropriate to look at bonds as a contributor to portfolio’s diversification. Because bonds generally may not move in tandem with stock investments, they help to offset some of the volatility risk involved in investing in stocks and provide diversification in an investor’s portfolio. They also seek to provide investors with a steady income.

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SWOT Analysis Strength • Clients Focus: Our success will be built on the satisfaction and success of our clients. The cornerstone of our service will be the commitment to placing the interest of our clients first and applying every resource at our disposal to achieve their long-term objectives. • Performances: We will strive to provide clients with superior long term performance within the context of each investor’s individual investment portfolio. This effort will be supported by our preeminent research coverage. • Access: Private clients will receive the same access to the firm’s professionals, board financial expertise and products as will major institutions worldwide. •Global Leadership: CLIKTRADE limited will strive to become leader in every aspect of global investing. Highly skilled teams of professionals will harness the firm’s resources to bring our clients the best investment opportunities from aro Weakness Fiscal year 2007-08 will always be recalled as one of the most turbulent years in Pakistan’s economic history. Amid this year several records were broken not in terms of progress or development but rather in increased double figure inflation which was recorded 12% illustrious since 1990-91. Productivity crisis in manufacturing sector was another addition in this record. Oil crisis, emanating water predicament; all these factors accelerated Pakistan’s coarse towards economic devastation adversely affecting all sectors.

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Amid 2007-08 Karachi Stock Exchange 100 index and its capitalization market endured a decline of more than 10% over the previous year. The current account gap and trade gap were recorded at 14.1 of GDP in 2007-08 and 15.3% highest ever. Continuation of this trend in economic sector can emerge as single most undermining factor for economic nonplus. Trade deficit in 2007-08 remained 53% on account of rising prices of petroleum products and decline of textile industry in Pakistan. All these indicators of economic distress have cultivated the sense of deprivation and insecurity. Today the low income groups and the poor are highly concerned and worried about the socio-economic substitutes as there is no silver lining for them. The rising unemployment is now compatible in the minds of every individual. In order to counter all these challenges the main objective of government should be to achieve self reliance and improve productivity. Problem areas that need urgent consideration are low industrial productivity, falling foreign investments, rising tariffs, electricity generation, and declining exports. For rapid development agriculture, small scale industry, forestry, livestock production and fishery should be inaugurated at various levels. To achieve these goals the government must establish a special fund. Unemployed, educated and young individuals should be included on priority basis in such schemes. Crisis in Stock Market The unwarranted and unabated decline of the KSE-100 share index and magical decrease in the quantum of trades during the previous days have denied the claims of the government, which has been portraying the stock market rise as a witness to its economic development. Shedding of the index by 2549 points in seven days has raised many questions about the validity of the Capital Market Reform Program initiated and completed under the auspices of Asian Development Bank. As the rise of KSE-100 share index form 7500 points to 10,356 has been

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unprecedented in the stock market history, so is its free fall to 7964 points on Friday, the last day of the trading week. SECP’s chairman’s declaration to investigate into the current down trend at stock market that caused heavy losses, also speaks volumes about the unnatural happening at the KSE. Over the last one week, the share index has lost 27 percent in value and more than 2500 points, pulling the market down from all times peak-level of 10,356 to 7965. It was neither expected nor could happen, under the influence of the market mechanism. All the market filters and shock absorbers could not avert the crisis in the market, Gulfam Khan Sherwani, CE of YS securities Pvt Ltd, said in response to a question regarding the market situation. Market Situation While commenting on the market situation, Group Capt (R) Naeem A Khan, former chairman of the LSE and South Asian Federation of Exchange, said with a mega issues like PTCL, HUBCO, PPL, PSO and others, Pakistani stock market has taken new dimensions. The rise of market share index to the level of 10,000 is not a natural phenomenon. The SECP has taken effective measures to guard and regulate the emerging market in Pakistan. Rules and regulations are there but enforcement side needs to be strengthened. Sharp rise in the market is an act of predator market participants, playing with the sentiments of the market.

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Ups & Downs (KSE 100 Index)

Ups & Downs (KSE 30 Index)

Market at 7000 points was natural outcome of market mechanism but sharp rise of KSE 100 share index to the level of 10,000 was not sustainable. The SECP has professionally put the market on the track regulatory framework but its enforcement side needs to be strengthened more. Investment Corporation of Pakistan’s former Chief Manager Fazal Rahim Sabir said regulator cannot check and regulate each and every transaction taking place in the market. Investors have also duty to protect their money. The SECP had warned the investors on March 4, 2005 to be cautious. Institutional buyers and some big investors have been playing safely. But those who opted to catch the “band wagon” have been ruined as they have lost their money.

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Ch Akram, a well established Real Estate dealer and developer, said, “No doubt stock market has attracted a reasonable chunk of local and foreign money, the privatization of mega projects through stock market has given impetus to the stock market activities. Some IPO’s have allured a large number of small investors to the market. und the globe. Opportunities Geo-strategic Location Located in the heart of Asia , Pakistan is the gateway to the energy rich Central Asian States, the financially liquid Gulf States and the economically advanced Far Eastern tigers. This strategic advantage alone makes Pakistan a marketplace teeming with possibilities. Trained Workforce Here the people are mostly English proficient, hardworking and intelligent. They have ….lesser costs. Economic Outlook Pakistan is one of the fastest growing economies of the world having touched a GDP growth rate of 8.4% in 2005. Today Pakistan has 160 million consumers with an ever growing middle class. Foreign investment has risen sharply from an average of $400 million in the 1990s to over $ 3.5 billion in 2005-06. Fiscal deficit has declined from an average 7% of GDP in the 1990s to around 3% in recent years. And FOREX reserves have increased from $3.22 billion in 2000-1 to $13.14 billion in 2005-6. Investment Policies Current investment policies have been tailor made to suit investor needs. Pakistan 's policy trends have been consistent, with liberalization,

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de-regulation, Privatization, and facilitation being its foremost cornerstones. Financial Markets The capital markets are being modernized, and reforms have resulted in development of infrastructure in the stock exchanges of the country. The Securities and Exchange Commission has improved the regulatory environment of the stock exchanges, corporate bond market and the leasing sector. Whilst the Central Board of Revenue has facilitated structural reform in tax and tariffs and the State Bank of Pakistan has invigorated the banking sector into high returns on investment. Emerging market Pakistan being among the developing economies of the world has the benefit of holding the status of emerging markets i.e. The stock markets in Pakistan are classified as emerging stock markets. It is because of these wide range of advantages that Harvest Smartrend Securities (Pvt) Ltd. (HSS), a corporate member of Lahore Stock Exchange, offers investors an opportunity to capitalize on such markets. Introducing the Harvest Group senior Marketing Manager, Mr. Kamran K. Megee said that the group had an international chain which comprised of the following companies, Harvest Topworth International, Harvest Smartrend Securities Pvt. Ltd, First Harvest (Texas) Inc., Harvestrade International Inc., Harvest Global Network Inc., Global Harvest Corp. Harvest Smartland Securities Pvt Ltd (HSS) and Harvest Topworth (HTW) International are securities and forex brokerage arms of the Harvest operating in Pakistan. HTW is in fact the pioneer of forex brokerage in Pakistan with a largest set up with Hi-tech communication and information system. Speaking on securities in Pakistan. Ms. Humaira Jamil Research analyst said that investment in stock market of Pakistan was today much safer because of the various measures taken by the Securities and Exchange Corporation (SECP) which has

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assumed the role of real protector of investors. She recommended investment in Pakistan because of its emerging markets, enhanced and improved performance of capital markets during the past few years. Mr. Akbar Hussain spoke on forex trading which according to him had tremendous potential. He disclosed that trading volume of forex was many time more than investment in share markets. The daily turnover of forex trading which was going on round the clock was about 2 trillion US dollars. The concept was comparatively new in Pakistan but was fast developing. He claimed that HTW of his group was developing forex trading in Pakistan on the most modern lines backed by Hi-tech communication and information system compiled by highly qualified and professional team of researchers. Mr. Mir, in his concluding remarks explained the importance of forex trading in the growing capital market of Pakistan. He said Harvest Topworth International provides professional and efficient Spot Currency trading facilities and customized investment portfolios to sophisticated investors in Pakistan. In association with the Topworth Group and a worldwide network of investment companies, Harvest Topworth puts the largest global investment market within reach of the Pakistan investment community. Harvest Topworth International, work as a large professional team to serve the best interests of the investors. This is a continuous operation from 5:00 a.m. Monday morning Pakistani time when the Tokyo market opens, to 1:00 a.m. Saturday when the New York market closes. This is basically to protect the interests of the investors from the movement of the currency rates in the Forex Market in and outside the country.

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Threats TRADING LIMITED TO A FEW STOCKS Despite the increase in listings, one main problem faced by the stock market is its over-dependence on a few scrip's for a major part of its turnover. This trend has set-in in part due to the introduction of large scrip's like PTCL, Hubco and the massive rights issue by ICI. The top ten liquid stocks account for approximately 80% of the traded volumes on the average. This leaves very little room to maneuver for institutional investors for changing their portfolio allocations if the need arises. A oneoff splitting of large price stocks to level these to double digits would Increase liquidity as well as reduce speculation. An increase in the number of sufficiently liquid stocks will help improve the situation. FREQUENT DEVALUATIONS CAN BE A THREAT Besides fuelling inflation, which is negative for equities in itself devaluation results in foreign investors losing part of the value of their holdings. intermittent devaluations can result in a loss of confidence on the part of foreign portfolio managers who might be inclined to shorten their investment horizons. This could lead to a more volatile market. Foreign fund managers, like anyone, tend to look for investments least affected by the negative impact of devaluation. PUBLIC SECTOR DIVESTMENT WILL HELP BROADEN THE MARKET The ongoing privatisations and divestments of the public sector corporations such as banks and utilities through the stock market will help broaden the market's base. Besides further increasing trade volumes, privatisation will likely help reduce the reliance of the market on a few stocks which currently account for most of its turnover.

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IMF'S LOAN APPROVAL WILL PAVE THE WAY FOR A RE-RATING OF THE MARKET With the expected disbursement of the first tranche of IMF's $1.6 bn loan shortly, we expect international credit rating agencies to take a more positive view of' the country's economic resilience. Approval of the loan, coupled with any improvement in sovereign credit ratings, will be a positive signal and a testament of confidence in the government's policies. This can result in a re-rating of the stock market. Foreign portfolio managers can play a major role in such a re-rating.

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Marketing Strategy of CLIKTRADE CLIKTRADE is using different strategies to excel in the market and enhance its profits. Following are the different strategies which CLIKTRADE is using currently. One to One Marketing In this way different company marketing representative visit the market and meet with different people. The different area and sector is allocated to different representative. These representatives are doing marketing to different persons like bankers, businessman community and employees. Seminars CLIKTRADE is also conducting seminar for their clients as well as conveying the information to new customers on this way. Business Magazine CLIKTRADE is also doing marketing by using print media like different business magazine. By this magazine all type of relevant information is given on this magazine.

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Competitive Strategies FOR INDEPENDENT THINKING PEOPLE - FOR PEOPLE WITH NO FEAR: • To seek what they need. • To Offer what they want. • To Trade what they can. At CLIKTRADE our customers always come first. We encourage new traders to join the online trading community and benefit from its advantages. CLIKTRADE is providing introductory material for individuals and beginners who want to develop an understanding of investing in the stock market. • Personal Touch CLIKTRADE’s approach to service for our online customers sets us apart from other traditional brokers and online brokerage firms. CLIKTRADE’s 111-CTS-111 (111-287-111) local service center provides the access to service every online customer needs. We call it "Online Trading with a Personal Touch" and it comes with every CLIKTRADE online brokerage account regardless of size or volume of the clients trading activity.

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• Just Rs.50,000/- To Get Started! That's right! Open an account in cash or equities with Rs. 50,000/• No-Fees No annual Fees, No Setup Fees, No Inactive Accounts or Termination Fees! Open an Account Now.

• Low Margin Rates Compare CLIKTRADE’s margin rate with other brokers. • Superior Service & Support We want you to be as informed and confident as possible when making financial decisions. That's why we welcome your inquiries and strive to provide you with superior customer service at every turn. We are available to help you from 9am-5pm at Pakistan Standard time everyday except Sundays and Major Holidays. Soon we will be providing 24 hrs 7 day week for our customer satisfaction • Fast Executions Our average market order is executed within seconds. • FREE CLIKTRADER™ When you register with us at CLIKTRADE, you gain access to our active services such as real time, dynamic streaming quotes and charts. CLIKTRADERservices are customizable to meet your needs: check time and sales, view top gainers, volume leaders and much more. Chart online and watch them update every minute! CLIKTRADER customers trade directly. Once you try it, you’ll wonder how you ever traded without us! COMSATS Institute of Information & Technology

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• Low Commission Structure Online market Orders are priced as follows;

Share

Delivery

Day

Future

Trad

Tradin

ing

g

0.05

0.03

0.06

0.01

0.06

0.04

0.07

0.01

0.10

0.05

0.11

0.01

0.15

0.08

0.16

0.02

Price 0.01-

Badla

19.99 2049.99 50.0099.99 100.00 & above

• Real-Time Account Balances CLIKTRADE real-time account balance updates allow you to know your adjusted cash balance, margin balance and purchasing power immediately following a trade! CLIKTRADE.com was designed from top to bottom to process and load quickly, our clients satisfaction is number 1 on our agenda. We strive to provide excellence.

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• Wireless Trading Use your Palm compatible device, WAP enabled cell phone or Pocket PC to place orders, get real-time quotes, check balances, positions, order status and transaction history. All for no additional transaction fee.

RESEARCH AT CLIKTRADE Equities provide an excellent investment opportunity for investors wishing diversification in order to reduce overall portfolio risk as well as raise the overall value and return of your investment. A well-constructed equity portfolio, while having term price risk, in most cases delivers superior returns to almost all of financial instruments over a reasonable time-frame. The Stock Exchange is a place where information is supreme. News and information is necessary, but most importantly, news that is credible. Once you get your hands on credible news, the next critical step is the information and applying it in your decision making process. Investing requires you to have access to information at all times – information that is credible, readily available and pertinent. Investing in stocks means investing in public limited companies whose shares are bought and sold by the general public at the Stock Exchange. Since the company’s shares are bought and sold by the public it is important for investors to be aware about the performance of these companies. In order to keep investors informed about the performance of all listed companies, the SECP has made it mandatory by law for ALL companies to publish their financial statements every quarter. This helps investors to stay updated with the financial performance of each of the companies listed at the Exchange, thus helping them in making sound investment decisions.

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Access to Financial Statements and Latest Earnings To determine the worth of the stock you need to have a fair idea about the worth of the business. This is generally done by assessing the financial statements of the company, commonly known as Fundamental Analysis. Fundamental Analysis is not as simple as the name given to it is. It has various categories and subcategories, which help in the understanding of specific investing philosophy.

Market Statistics provides a feel of the market. Having this information brought to you on your desktop will help you make decisions that you may never regret. FAQ’s 1. Why should I trade with CLIKTRADE online? CLIKTRADE online trading offers you the freedom to trade in stock 24 hours a day through the internet from any place globally thus giving you both flexibility and control. 2. Is it really safe to trade stocks over the internet? For your peace of mind, the state of the art trading engine is completely secure with full back office support to facilitate clients. You also receive a transaction number each time you trade, and you can print it out. We have the state of the art security system. 3. How much money do I need to get started? Right now You can open an account with Rs 50,000only. 4. How much does it cost to trade via the Internet Compared to traditional brokerage? The CLIKTRADE online trade commissions are highly competitive and much lower than traditional brokerage fees. 5. Why should I choose CLIKTRADE.COM for stock trading? CLIKTRADE is NOW the premium online trading site in Pakistan through which you can now buy and sell stocks at the Karachi Stock COMSATS Institute of Information & Technology

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Exchange from any place anytime around the globe. Backed by highly experienced professionals, coupled with the best of technology speed and extremely convenient account access and a secure online trading experience. CLIKTRADE.COM is NOW the fastest way to access the stock exchange.

6. What type of account can I open with CLIKTRADE? You can open an individual / joint account or a corporate account with Cliktrade.com 7. Are there any hidden charge / fees other than the Commission? No there are no hidden charges or fees other than low commission except for CVT & Govt taxes. 8. Can I trade without funds or securities in my account? CLIKTRADE.COM requires you to have funds in your account either in the form of cash or securities before you make a trade. 9. How do I fund my account? You can send your cheque / pay-order by TCS,mail or drop it off personally at any one of our offices.

Future Outlook At CLIKTRADE, we view the Futures Services business as more than providing clients with the standard products and services associated with research, execution and clearing. In our experience, clients are looking for global capabilities, flexible technology solutions and convenient access to information. Our approach to Futures Services is customer driven. With respect to

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technology, we have found that clients are looking for solutions they can integrate into their own systems to reduce manual intervention and increase efficiency. With this in mind, we offer a variety of ways to communicate data. Such options allow our clients to develop at their own pace. As technology has evolved, our clients need for timely and accurate information before, during and after the trade, this has recently become increasingly important. Research and market information are primarily provided online via the CLIKTRADE Research. While the timely delivery of information is critical, perhaps more important to our clients is our knowledgeable and experienced staff. Our clients rely on us to help them stay current in a rapidly changing industry. Our team works hard to assist you with every aspect of trading from account opening to trade settlement.

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Learning as an Intern In my internship at ClikTrade it was wonderful experience and I gained a lot of knowledge about the back bone of economy which is stock exchange. During my internship I learned that how to do marketing of the company and who can be the customers of the company. Due to broachers of the company which is helpful for conveying the information to the people about stocks. There are different categories of expected customers like business community which is the most important target market. Others are bankers and industrial employee and the people who want to invest the money with the low investment with easy way. The main important point due to which people are afraid of investing in stocks is the risk of shares value which can be down in future and our country circumstances at this time are so bad and people are afraid to invest. But there are some ways or techniques which determine that how you can be save from risk. First is that in the months of April, May and June the Cement, Securities and mutual funds sector are the most suitable for investment. And then after the end of July till from the start of September the investor should be draw their investments from these above mentioned sectors. Second is that the months of October, November and December are most suitable months for the investment in the Banking Sector. And then the investor should be draw their investment from the Banking sector in the January and February. The market is usually down in the month of June due to Budget announcement. Our Company is also developing the branch in Fuji Fertilizer Company (FFC). The main target customer of that branch is

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the people of Fauji Fertilizer, Fatima Fertilizer and Engro Fertilizer Company. Duties & Accomplishments I did different duties in my whole internship time span. In start my task was just to watch the market and gain the information about the stock market and its operations. Then afterward I assisted to the Trade Executive and learned that how he performed his work and to do the work on the trading table where the clients came and doing trading. I will take their orders about their stocks. This was a very sensitive work because if there would be the mistake by placing the order then the stock of the respective clients may shifted to the other client.And during my work on the trading table I didn’t any mistake and that is very impressive for my Branch Manager. Then I worked on the market which is the most important experience for me. My work on the market was to meet with different people and convince to open an account in our company. And in this session I performed very well and I got the ten accounts for the company. In the end of my internship Branch Manager Mr. adnan also offer me a job of marketing executive with good salary package and commission. But I preferred to continue my study first. Problems In start I faced some difficulties while understanding the market and its operations. But I am very thankful to my Branch Manager and Trade Executive who trained me in a very good way. Suggestion I have some suggestion to the ClikTrade Company. Right now Company has 26 branches in all over the Pakistan. But I analyze that still these branches are not enough for targeting the customers. So if the company will make their more branches in different cities then it would be very beneficial and profitable for the company. Second the marketing campaign of the company is only limited in Karachi. So the company should also focus on the marketing department and their customer service centre. COMSATS Institute of Information & Technology

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COMSATS Institute of Information & Technology

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