Abstract:
Stock market volatility has always been of great concern to the investors in stock exchanges all over the world. In the past lot of research has been done on this. Researchers have tried to find out it causes, impact and remedies using various methodologies and tools. But still there is lot to be done as the dynamics of volatility keeps on changing with the changing geopolitical and socio economic scenario.
Stock markets in Pakistan are still in the growing phase. Karachi Stock Exchange experienced high growth in the past few years under the policies of the current government. There were certain stages when the stock market crashed badly and investors lost billions of rupees. The stock market has been experiencing very volatile situation and the trend is still not over.
This thesis is aimed at carrying out a detailed study on the Karachi stock exchange’s volatile situation. Effort is being made to figure out the various factors that cause inefficiencies in the functioning of the Karachi Stock Exchange. Then a link is established between these inefficiencies that result in market volatility. This has been tested with the help of some statistical test which were carried out on the prominent KSE-100 Index companies that have a fair representation of the Index movements.
