Abstract:
The focus of this study is to know about the impact of demutualization or corporate ownership structure
on the performance of stock exchange. This study is particularly distinguishing the mutual and
demutualized ownership. Karachi stock exchange (KSE) is chosen in the study because Karachi stock
exchange is one of the important emerging markets in the world. Karachi Stock Exchange has much
bigger in size in terms of shareholders and wealth and it has their issue which has to be solved. The
reason behind to choose the KSE for the study is to see the effects of demutualization process on the
market. This research paper also described the impact of insider trading done by the brokerage which is
solely owner of Karachi stock exchange. It also focuses on their way of manipulating the market and how
they increase their profit. This research paper aim to base its results upon the responses on following
resources primary and secondary resources and interviews is used as the method of analysis, in
association to a profound review of the literature in this area. This research shows that fact that
demutualized stock exchange holds stronger base in terms of operating performance and shareholder’s
return than mutual exchanges. And also some of the theories, research paper and articles included in this
research.
