M

Glossary · PSX term

Material information.

Material information is any fact that could reasonably influence a stock's price or an investor's decision.

Definition

Companies must disclose material information promptly and equally to all investors, and insiders must not trade on it before it is public. Examples include earnings surprises, mergers, large contracts, and regulatory actions.

Worked example

News that a company won a contract doubling its capacity would likely be material information.

Related on PSX Clarity

Insider trading

Securities and Exchange Commission of Pakistan (SECP)

More glossary terms

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Market capitalization

Market capitalization is the total market value of a listed company. It is calculated by multiplying share price by shares outstanding and helps investors compare company size.

Market breadth measures how many stocks are rising versus falling, beyond just the index level.

Market sentiment

Market sentiment is the overall mood of investors toward the market, ranging from fearful to greedy.

A market halt is a temporary, exchange-wide pause in trading triggered by a large index move.

A market order buys or sells immediately at the best available current price.

Margin financing

Margin financing lets you buy shares using borrowed money, putting up only part of the value yourself.

A margin call is a demand to add funds when your leveraged position loses value past a limit.

A mutual fund pools money from many investors to buy a managed portfolio of assets.

Margin of safety

Margin of safety is the gap between a stock's estimated intrinsic value and a lower price you pay.