Friday, 5 June 2015

Investment Analysis & Portfolio Management FIN630 GDB No. 1 Solution 5th June 2015

FIN630 - Investment Analysis & Portfolio Management GDB No. 1 Opening Date: Wednesday, June 03, 2015
Topic for Discussion: “Stock Market and Role of government”
A proposal has been sent to the government by the stock market for the federal budget 2015-16. It is highlighted in the proposal that the gain on disposal of securities was exempt from tax until July 2010. Afterwards, it becomes taxable by the government and the tax is based on the holding period of the securities. Also the corporate tax rate in Pakistan is higher than most of the countries in the same region. Corporate sector is subject to multiple taxes e.g. tax on corporate earnings, workers welfare fund and workers participation fund etc.
Requirement: You are required to discuss the view point of the stock exchange on these two taxes i.e. capital gain tax and corporate tax rate. Also, how the change in these taxes may affect the performance of stock market and investor’s confidence?
Special Note:
  • You can take help from newspapers, articles, talk shows and discussions.
  • Your answer should be to the point and based on logical facts.