P

Glossary · PSX term

Primary market.

The primary market is where new shares are first sold by a company to investors.

Definition

When a company raises capital through an IPO or right issue, that sale happens in the primary market and the money goes to the company. Afterward, those shares trade among investors in the secondary market.

Worked example

A company selling fresh shares in its IPO is raising money in the primary market.

Related on PSX Clarity

Secondary market

Initial Public Offering (IPO)

More glossary terms

Browse all 199 terms →

Price-to-earnings ratio

The price-to-earnings ratio compares a company's share price with its earnings per share. It is a valuation shortcut, not a complete investment case, and should be compared within the same sector.

Price-to-book ratio

Price-to-book ratio compares a company's market price with its book value per share. It is often used for banks, insurers, and asset-heavy PSX companies.

Price return measures how much a share price has moved over a period, excluding dividends and other income. It is different from total return.

Payout ratio shows how much of a company's earnings are distributed as dividends. It helps investors assess whether the dividend appears conservative or stretched.

Proxy voting lets a shareholder authorise someone else to vote their shares at a company meeting.

A price band is the allowed range between the highest and lowest price a stock can trade at in a session.

Pakistan Investment Bonds (PIBs)

PIBs are longer-term government bonds issued by Pakistan, typically 3 to 30 years.

The policy rate is the benchmark interest rate set by the State Bank of Pakistan.

The PEG ratio divides the P/E ratio by the company's earnings growth rate.