Learn
Guides and plain-language definitions for the Pakistan Stock Exchange — how trading works, how to read this site's own pages, and the terms used throughout.
New to the stock market? Start here
A 20-slide quick start covering everything a beginner needs: what a share is, how to open an account, how PSX trading and settlement work, how to read the numbers, and the mistakes that cost people the most. About ten minutes.
Start the tutorialGuides
- How PSX Trading Works
A plain-language walkthrough of how buying and selling shares on the Pakistan Stock Exchange actually works — sessions, orders, settlement, and where your shares are held.
- How to Read a StockPulse Stock Page
A tour of what each tab on a StockPulse stock page actually tells you, and how the numbers connect to each other.
- Technical Analysis Basics for PSX Stocks
How RSI, MACD, and moving averages are actually meant to be used together — and the limits of what technical analysis can tell you.
- Shariah-Compliant Investing on PSX
What actually makes a PSX stock Shariah-compliant — the KMI-30/PSX-KMI All Share screening criteria, in plain language.
- Corporate Actions on PSX, Explained
How board meetings, AGMs, book closures, and rights issues connect to each other — and where to track each one on StockPulse.
- Dividend Investing on PSX
How PSX dividends are actually declared and paid, what yield does and doesn't tell you, and the timing that determines whether you're entitled to one.
Glossary
Valuation
- Dividend Yield
The annual cash dividend a company pays, expressed as a percentage of its current share price.
- EPS (Earnings Per Share)
A company's net profit divided by its number of shares outstanding — the profit figure P/E, PEG, and most other valuation metrics are built on.
- Free Float
The portion of a company's shares that are actually available for public trading, excluding shares locked in by sponsors, government holdings, or other strategic investors.
- Market Capitalization
The total market value of a company's shares — its share price multiplied by all shares outstanding.
- P/E Ratio (Price-to-Earnings)
A stock's price divided by its trailing twelve-month earnings per share — the most common shorthand for how expensive a stock is relative to its profit.
- PEG Ratio
P/E ratio divided by EPS growth rate — a way of judging whether a stock's valuation is justified by how fast its earnings are actually growing.
Technical Indicators
- 52-Week High / Low
The highest and lowest closing prices a stock has traded at over the past year, and where its current price sits within that range.
- Bollinger Bands
A band drawn above and below a moving average, sized by recent price volatility — price hugging the outer bands suggests an extended move, not necessarily a reversal.
- MACD (Moving Average Convergence Divergence)
A trend-following indicator that compares two moving averages of price to signal whether short-term momentum is turning bullish or bearish.
- Moving Averages (SMA / EMA)
A smoothed average of a stock's closing price over a set period (e.g. 20, 50, or 200 days), used to identify the underlying trend beneath day-to-day noise.
- RSI (Relative Strength Index)
A 0–100 momentum indicator measuring how fast and how much a stock's price has moved recently, used to flag potentially overbought or oversold conditions.
- Signal Score
StockPulse's own -100 to +100 score, mechanically derived from RSI, MACD, and moving-average trend — mapped to a label like Bullish or Bearish.
Corporate Actions
- AGM (Annual General Meeting)
A company's yearly mandatory shareholder meeting, where the board presents annual results and shareholders vote on matters like dividend approval and director elections.
- Board Meeting (Price-Sensitive)
A meeting of a listed company's board of directors, publicly notified in advance when it will consider financial results, dividends, or other price-sensitive matters.
- Book Closure
A window during which a company closes (freezes) its shareholder register to determine exactly who is eligible for an upcoming dividend, bonus, or rights issue.
- Face Value (Par Value)
The nominal par value printed on a share certificate — commonly Rs. 10 for PSX-listed companies — used as the base for how dividends are conventionally announced.
- Rights Issue
An offer letting existing shareholders buy additional new shares, usually at a discount to the market price and in proportion to what they already hold.
Index & Market Structure
- KSE-100, KSE-30 & KMI-30
PSX's three headline benchmark indices — KSE-100 (broad market), KSE-30 (most liquid large caps), and KMI-30 (Shariah-compliant top 30) — each free-float-weighted.
- Sector Weight
The share of a stock index's total market capitalization contributed by a given sector (e.g. banks, cement, oil & gas) — a gauge of how much that sector moves the index.
- Shariah-Compliant Stock
A stock that passes Islamic finance screening — both on the nature of its business and on a set of financial ratio tests — and is included on the officially published list of Shariah-compliant PSX securities.