Completing a trade between brokers acting as agents or between a salesperson and the client. A trade is settled when the required payment is made for securities purchased or the correct documentation has been delivered and the client receives the proceeds from the sale.

Ownership interest of common and preferred stockholders in a company. That is, it represents the difference between the assets and liabilities of a company.

Shall mean any activity that is in accordance with the Islamic Shariah, as may be advised to the Pension Fund Manager by Shariah Advisor.

Means divine guidance as given by the Holy Quran and the Sunnah of Prophet Muhammad (Peace Be Upon Him) and embodies all aspects of the Islamic faith.

(1) The difference between the bid and ask price of a security.

(2) The difference in yields between two bonds or debentures.

(3) The buying and selling of puts or calls on the same underlying security, but with different strike prices and/ or expiration dates.

Means Karachi Stock Exchange, Lahore Stock Exchange, Islamabad Stock Exchange or any other stock exchange registered under section 5 of the Securities and Exchange Ordinance.

Means every Business Day provided that the Management Company may with the prior written consent of the Trustee and upon giving not less than seven days’ notice in at least one newspaper, either English or Urdu, declare any particular Business Day not to be a Subscription Day.

A method of evaluating future security prices and market directions, based on statistical analysis of variables such as trading volumes (historic) and price changes, in order to identify patterns.

To calculate the return from open-ended mutual funds Investors can apply the following equation and guidelines:

Profit from investment can be calculated as follows:

(RP+D-PP)

Symbol stands for:

a    =    Date of investment
b    =    Date of calculation of return or date of redemption
x    =    (b-a) means period of investment holding
PP =    Purchase Price or NAV at the beginning of relevant year
RP =    Redemption Price or NAV at the end of relevant year
D   =    Dividends received during the investment holding period or relevant year

The return can be worked out by dividing the profit from investment by the PP and then be annualized. Investors can work out the return for the entire holding period (i.e. x), or separately for each year.

Open-ended funds recover a sales charge (called sales load) from unit/ shareholders. Sales load is a certain fixed percentage of NAV. Some mutual funds recover the sales load when investors purchase the units, whereas others do when investors redeem the units. Mutual funds generally do not charge sales load on reinvestment of dividend. The shorter the period of investment, the greater will be the impact of the sales load. Maximum benefit can be derived from mutual fund investment by regularly investing, reinvesting the dividend and holding the investment for a longer period.