Who is Foundation Securities and why invest with them?

Foundation Securities is a well-established brokerage house in Pakistan, affiliated with the Fauji Foundation. The firm has built a solid reputation for integrity, transparency, and a strong research-driven trading experience.

At Foundation, you can invest in stocks, IPOs, mutual funds, fixed income instruments, and other structured financial products. Their research wing offers detailed reports and recommendations for smarter investing.

Opening an account is straightforward — fill out the application on their website or visit their office, submit KYC documents including CNIC and income proof, and once verified, you can start trading immediately.

Foundation Securities is a trusted choice for investors who value strong governance, professional research, and long-term financial strategy in the local capital markets.

How do Brokers work

Tradable Instruments on the Pakistan Stock Exchange

PSX offers investors access to a wide range of tradable financial instruments. It serves as a platform for companies to raise capital and for individuals and institutions to invest in Pakistan’s economic growth through regulated and transparent market mechanisms.

Regulated by the Securities and Exchange Commission of Pakistan (SECP), the PSX offers multiple asset classes suitable for both long-term investment and short-term trading. Below is an overview of the key tradable instruments available on the PSX:

• Equities (Shares): Ordinary shares of listed companies are the most actively traded instruments on the PSX. Investors can buy and sell shares of firms across sectors such as banking, cement, textile, energy, fertiliser, and pharmaceuticals. These shares offer ownership, potential dividends, and capital gains.

• Preference Shares: Some companies issue preference shares, which carry fixed dividend rights and priority over common shares during dividend payouts and liquidation. These are attractive for investors seeking stable income with lower volatility.

• Debt Instruments (TFCs & Sukuks): Term Finance Certificates (TFCs) and Sukuks (Islamic bonds) are listed on the PSX to provide fixed or profit-based returns. TFCs are conventional corporate debt, while Sukuks comply with Shariah principles. Both are suitable for income-seeking investors with moderate risk tolerance.

• Government Bonds (via secondary market): Although primarily issued through auctions managed by the State Bank of Pakistan (SBP), selected government securities like Pakistan Investment Bonds (PIBs) and Treasury Bills may be traded through brokers or in secondary markets regulated by PSX and NCCPL.

• Mutual Funds: Open-end and closed-end mutual funds managed by licensed Asset Management Companies (AMCs) are listed or offered through PSX brokers. These funds invest in equities, money markets, or hybrid portfolios and are ideal for investors seeking diversification.

• Exchange-Traded Funds (ETFs): PSX has introduced ETFs to allow investors to track indices such as the KSE-100 or sector-specific baskets. These instruments offer diversification, low fees, and are traded like regular stocks during market hours.

• Futures Contracts: Stock and index futures are available through PSX’s derivative market. These contracts allow investors to speculate on price movements or hedge their existing portfolios. Futures are cash-settled and have monthly expiry cycles.

• Initial Public Offerings (IPOs): Companies can raise equity capital by offering new shares through IPOs, which are listed and traded on the PSX. Retail and institutional investors can subscribe to IPOs electronically through the PSX eIPO portal or via authorised banks.

• Rights Shares: Existing shareholders are occasionally offered rights shares, which allow them to buy additional shares at a discount. These rights are often traded on the PSX for a limited time before expiry.