ASSIGNMENT # 02

SUBJECT:

FINANCIAL DECISION MAKING

SUBMITTED TO:

SIR. SHOAIB

SUBMITTED BY:

BEENISH ABDULLAH
FA14-MBI-005
MBA 1.5 YEAR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

SAHIWAL

New York Stock Exchange

1. How is the NYSE Structured?
The NYSE is one of the three main American Stock Exchanges located at 11 Wall Street in lower
Manhattan, New York, USA. The New York Stock Exchange started humbly in 1792. The NYSE
uses a Hybrid Market Concept for trading. This combines both electronic trading and traditional,
auction market trading. Buyers and sellers meet directly in a fair, open and orderly market to
compete for the best possible price dictated by supply and demand. NYSE has

11 exchanges
7 clearing houses
12000+ listed contracts and securities

2. Describe the two types of members of the NYSE that work the exchange floor?
There are two members of NYSE that work the exchange floor
Floor Brokers: These are stock brokers who represent public orders to buy or sell shares. Their
goal is to work to get their customers the best price. Brokers participate both in person and
electronically on the Trading Floor and have advanced tools to assist them in handling trades on
behalf of their clients.
Specialists: Each stock listed on the NYSE is allocated to a specialist, a market professional who
acts as the contact point between brokers with orders to buy shares and brokers with orders to
sell shares.
3. How many firms are traded on the NYSE and what is their approximate total market
value?
There are currently around 2800 companies listed on the NYSE. And their approximate total
market value is $18.8 trillion.
4. Describe the initial public offering by Huntsman Corporation?
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated
chemicals with 2013 revenues of approximately $13 billion including the acquisition of

Rockwoods performance additives and TiO2 businesses. Our chemical products number in the
thousands and are sold worldwide to manufacturers serving a broad and diverse range of
consumer and industrial end markets. We operate more than 100 manufacturing and R&D
facilities in more than 30 countries and employ approximately 15,000 associates within our 5
distinct business divisions.
Huntsman Corporation announced that it has filed a registration statement with the Securities and
Exchange Commission for a proposed initial public offering of its common stock. Huntsman
expects to raise approximately $1.25 billion in net proceeds from the offering, which it intends to
use to repay indebtedness. Existing stockholders are also expected to participate in the offering.
Huntsman Corporation is the holding company that will own the existing Huntsman companies.
Huntsman is a global manufacturer of differentiated and commodity chemical products
5. Describe the following listing requirements for firms to be traded on the exchange: Daily
trading volume, number of shareholders, aggregate earnings, and aggregate operating cash
flow?
The NYSE is arguably the oldest and most prestigious stock exchange in the world, and trades
still take place on the exchange floor. To be listed on the New York Stock Exchange, the
company must have in excess of 2,200 shareholders, with an average daily trading volume of at
least 100,000 shares. Generally, the company must have a total capitalization of at least $750
million or pretax earnings in excess of $10 million. There are several combinations of these
requirements, but the bottom line is that a company needs to be either very big or very profitable
to be listed.
Security Exchange Commission of Pakistan
What is the primary concept that drives SECP laws and regulations?
The primary concept that derives SECP laws and regulations is to protect the investors and
maintaining the integrity of the securities markets.
2. How does the SECP ensure that investors have this information?

The "truth in securities" law, the Securities Act has two basic objectives: 1) require that investors
receive financial and other significant information concerning securities being offered for public
sale; and 2) prohibit deceit, misrepresentations, and other fraud in the sale of securities.
A primary means of accomplishing these goals is the disclosure of important financial
information through the registration of securities. This information enables investors, not the
government, to make informed judgments about whether to purchase a company's securities.
While the SECP requires that the information provided be accurate, it does not guarantee it.
Investors who purchase securities and suffer losses have important recovery rights if they can
prove that there was incomplete or inaccurate disclosure of important information.
3. The SECP also enforces their regulations. Approximately how many cases does the SECP
bring annually against individuals and companies who break their laws?
SECP takes action against the individuals and companies who break their law in the last year
approximately they take action against 23 organizations which violated their rules and
regulations.
4. What are common SECP violations that require civil enforcement actions?
Here are some common SECP violations that require the civil enforcement actions, these include,
Manipulation in share price and matter relating to unresolved investors complaints against
Prudential Securities Limited with respect to non-transfer of shares and non-payment of funds.
The Securities and Exchange Commission of Pakistan conducted an enquiry under Section 21 of
the Securities & Exchange Ordinance, 1969 and Section 29 of SECP Act, 1997 violations
regarding the handling of securities entered in the sub-accounts maintained under its account
without authority of the sub-account holders and violations of SE Ordinance, SECP Act, Central
Depository Act 1997 (the CDC Act) and rules and regulations made thereunder and to inspect
the books and records.
5. When was the SECP established?
It was established in January 1, 1999. The Securities and Exchange Commission of Pakistan
(SECP) is the financial regulatory agency in Pakistan whose objective is to develop a modern

and efficient corporate sector and a capital market based on sound regulatory principles, in order
to encourage investment and foster economic growth and prosperity in Pakistan.
6. How is the SECP organized?
The SECP has been organized into following Divisions:

Company Law Division;

Securities Market Division;
Specialized Companies Division;
Finance & Admin Division;
HR& Training Division;
Insurance Division;
Information System & Technology Division.

7. What are the four divisions of the SECP?

Company law division

Securities market division
Specialized companies division
Insurance division