Internship Report On ClikTrade

COMSATS Institute of Information & Technology 4
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 co-
operation 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.

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

Table of Contents
1. Executive Summary 5
2. History of Stock Exchanges 6
3. History of Karachi Stock Exchanges 7
4. Karachi Stock Exchange 8
5. Introduction of CLIKTRADE 8
6. Mission Statement & Business Principle 10
7. Objectives of ClikTrade 11
8. CLIKTRADE Product & Services 12
9. CLIKTRADE Investment Philosophy 13

10. MANAGEMENT TEAM OF CLIKTRADE LIMITED 14
11. Bull or Bear Market 16

12. Stock Types 17
13. Fundamental Analysis - Analyzing Financial Statements 25
14. Risks 26
15. SWOT Analysis 30
16. Competitive Strategies 42
17. Research & FAQ’s 45
18. Future Outlook 47
19. Learning As an Intern 48
Executive Summary

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

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

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

'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 highly-

diversified 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

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.

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

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

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

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

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.

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.

• 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.

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

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

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.

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, re-
launching 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

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.

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

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.

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

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.

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

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

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

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).

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 short-
term 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 stop-
loss 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

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 short-

term 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 fast-
moving 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.

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.

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.

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.

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

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

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.

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.

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.

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

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.

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.

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

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.

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.

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,

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

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.

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 one-
off 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.

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.

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.

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.

• 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!

• Low Commission Structure
Online market Orders are priced as follows;
Share Delivery Day Future Badla

Price Trad Tradin
ing g
0.01- 0.05 0.03 0.06 0.01
19.99
20- 0.06 0.04 0.07 0.01
49.99
50.00- 0.10 0.05 0.11 0.01
99.99
100.00 0.15 0.08 0.16 0.02
&
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.

• 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.

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

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

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.

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

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.


Internship Report On ClikTrade

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COMSATS Institute of Information & Technology 4

The pre-requisite of internship program is to make the students of

COMSATS Institute of Information & Technology 4

I would like to express my gratitude to the CIIT campus (Sahiwal) for

No doubt, I m nothing without my teachers. These are the personalities

Thank you all!

COMSATS Institute of Information & Technology 4

2. History of Stock Exchanges 6

3. History of Karachi Stock Exchanges 7

4. Karachi Stock Exchange 8

6. Mission Statement & Business Principle 10

8. CLIKTRADE Product & Services 12

9. CLIKTRADE Investment Philosophy 13

11. Bull or Bear Market 16

17. Research & FAQ’s 45

18. Future Outlook 47

19. Learning As an Intern 48

COMSATS Institute of Information & Technology 4

• Karachi Stock Exchange

History of Stock Exchanges

The history of stock exchanges can be traced

COMSATS Institute of Information & Technology 4

By the early 1700s there were fully operational stock exchanges in

History of Karachi Stock Exchange

The Karachi Stock Exchange, the oldest exchange in Pakistan, was

COMSATS Institute of Information & Technology 4

In 2002, the Karachi Stock Exchange was recognized internationally by

The Karachi Stock Exchange has started trading through the

Since 1990, corporate entities can become members on the Karachi

Karachi Stock Exchange Profile (KSE)

COMSATS Institute of Information & Technology 4

Since 1991, foreign investors have an equal opportunity together with

The Karachi Stock Exchange trades the KSE-100 Index. It is a highly-

The membership in the Karachi Stock Exchange is limited. Only 200

condition that the nominee member of the company is a citizen of

COMSATS Institute of Information & Technology 4

We believe our dual focus on Advanced Technology and Customer Satisfaction

CLIKTRADE is registered and is a corporate member of the KARACHI

COMSATS Institute of Information & Technology 4

COMSATS Institute of Information & Technology 4

To be a world-class Organization dedicated to excellence, and to

COMSATS Institute of Information & Technology 4

Businesses adhere to certain principles, which, while frequently unstated

• We constantly strive to anticipate the rapidly changing needs of our

COMSATS Institute of Information & Technology 4

• Our business is highly competitive and we aggressively seek to expand

• We stress teamwork in everything we do. While individual creativity is

COMSATS Institute of Information & Technology 4

We believe the critical capabilities our clients would need to consider

• Customize portfolio structures to minimize capital gains taxes maximize

COMSATS Institute of Information & Technology 4

We encourage you to take the first step towards financial independence

The people of CLIKTRADE develop and execute a broad range of

CLIKTRADE has entered the market in a short span of time we wish to

• Trade shares directly at the Karachi Stock Exchange.

COMSATS Institute of Information & Technology 4

COMSATS Institute of Information & Technology 4

Our investment philosophy will be the basis for our management of

Our goal in the management of wealth will be to ensure the preservation

• Define individual investment objectives and risk characteristics.

COMSATS Institute of Information & Technology 4

NOMINEE DIRECTOR/CHIEF EXECUTIVE OFFICER