Effect of Political Events on Pakistan Stock Market

Abstract

Pakistan Stock Exchange is one of the biggest sectors of Pakistan. The evolution of the share market and its influence on economic development is a critical area of study in the financial economy. In recent years, significant theoretical and empirical research on this topic has been published. Stock markets serve the purpose of channelling funds transferred from bank deposits to investors. Independent share market investments are pooled to fund large investment projects. Stock markets, according to theory, promote long-run Economic growth can be achieved through both investment and consumption. Larger asset prices, according to cycle income theory, rise an individual's entire life wealth, resulting in greater consumer spending. If personal shareholding is high, this argument would hold water. (Iqbal, 2012)