New investor-skills guides: EV/EBITDA, free cash flow, the dividend discount model, DuPont analysis, PEG, EPS, beta, the Sharpe ratio, CAPM and the Altman Z-score. Educational content only, not financial advice. Continue with the previous page, the first market guides or the 44 Learn guides.
Book building sets IPO prices through a Dutch auction of institutional bids within a regulated band. How the PSX strike price is discovered, and how to read the result.
MTS and margin financing let investors buy PSX shares with borrowed money through NCCPL's systems. The margin ratios, daily settlements and risks, explained carefully.
Odd lots are the share quantities left over after bonuses, splits and partial sales. How the PSX odd-lot market trades them, why prices differ, and your three options.
Book closure freezes the shareholder register to decide who receives a PSX dividend, and the ex-date is the true deadline. The calendar behind every payout, explained.
In a share buyback a PSX company buys its own shares with distributable profits. The SECP rules, treasury shares, and how to tell value creation from EPS dressing.
Free float counts only the shares that can trade, once sponsors, government and strategic holders are excluded. Why the PSX weights indices and judges stocks by it.
Negotiated deals are pre-agreed trades reported to the PSX and settled through the clearing house. How the off-market crossing room works, and how to read its prices.
Every PSX order is shaped by the marketable lot it must be built from and the tick size its price must step by. The mechanics that set tickets, queues and trading costs.
When an investor buys control of a listed Pakistani company, takeover law forces a public offer to everyone else. Here is how the trigger, price and process work.
Wash trades, spoofing and front-running fake the signals honest investors trade on. What each abuse is, how Pakistan's Securities Act treats it, and the penalties.
Listing turns a private Pakistani company into a public ticker: prospectus, SECP approval, book building, allotment and listing day. The whole journey, step by step.
EV/EBITDA compares what a whole company costs with the cash earnings it generates before financing. How it is built, how to read it, and where its blind spots lie.
Profit is an opinion but cash is a fact: free cash flow is the money left after a company pays to run and maintain itself. How to calculate it and read its story.
The dividend discount model values a share as the present value of every dividend it will ever pay. Its logic, its formula, its uses — and its very sharp limits.
DuPont analysis splits return on equity into margin, asset turnover and leverage — showing whether profits come from pricing power, efficiency, or simply debt.
The PEG ratio divides the price-to-earnings multiple by the earnings growth rate — a rough test of whether you are paying a fair price for a company's growth.
Earnings per share divides a company's profit among its shares — the number behind P/E ratios, headlines and forecasts. How EPS is built, and how it can mislead.
Book value is a company's assets minus its liabilities — its accounting net worth. What book value per share can tell you, and why market prices so often ignore it.
Every mutual fund unit has one honest price: the net asset value. Learn how Pakistani funds calculate it, why cut-off times matter and where the traps hide.
Beta tells you whether a share amplifies the market's mood or shrugs it off. Learn how it is calculated, what 0.7 or 1.4 really means, and where it misleads.
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