chittagong stock exchange

Topics: Stock market, Stock exchange, Financial markets Pages: 18 (4532 words) Published: March 24, 2014
PART ONE

A.Introduction
Capital market is the most important part of national economy of Bangladesh. A well-managed and active capital market may help the development processes in many ways such as growth of savings, ensuring efficient allocation of investment resources and better utilization of existing resources. There is a considerable debate in the academic literature on development as to whether a soundly functioning capital market is precondition for economic development or the former follows the latter. At the early stages of development in most countries, it is the banking sector which plays the leading role in intermediating savings into investment. However, it is generally acknowledged that excessive reliance on the banking system is fraught with serious risks for the financial sector. Such reliance over an extended period inevitably creates a mismatch between assets and liabilities as the banking system typically mobilizes short term deposits to finance long term projects. The risks faced by the financial sector can easily contaminate the real sector with deleterious consequences for economic development. It is, therefore, an imperative that attention should be paid to the development of capital market as an alternative channel for intermediate function. Capital market is also beneficial for the entrepreneurial classes not merely because it provides access to surplus savings of investors, including many small ones, but also because they do not incur fixed repayment obligations, as is the case with bank financing. Besides an orderly and transparent capital market enables the small savers to participate in the fruits of economic development. Capital market is yet to play its potential role in Bangladesh. Against this backdrop, the report provides a brief description of the evolution of capital market in Bangladesh, where it stands now and the measures under way to enhance its role.

B.Statement of the problem

In Capital Market of Bangladesh different types of problems are cropping up which hinder the flow of investment. These problems are stated in below: •Most of the members of CSE, DSE & SEC are not rendering optimum services to the investor’s. •Some stock exchange members also serve as director of listed companies. This can lead to the chance of insider trading especially in such a poorly regulated market. •Some stock exchange members act only at brokers, i.e., they buy and sell on behalf of the clients on receipt of specified trading commission. They do not undertake the market making roles. •Stock market efficiency depends upon the availability of reliable and unbiased information about the capital issue and companies. Though existing provisions in the companies act ensure disclosure of adequate information though prospectus, but several defects are noticed in practice.

C.Rationale of the study

Where the rationality is the answer is prominently dominant in the why we make research? The easiest are follows: 1.Make enable the students to realize the practical field of research. 2.Help to pursue the study in better way.

3.To understand and realize where management practices.
4.To complete in the job sector in vigorously.
5.To deserve the international recognition.
6.To fulfill the condition posed by the BBA program.

D.Objective of the study
Although this study is an academic requisite of my B.B.A. Program, the principal objectives of this study are to get hold of an effectual, proficient contribution & position of capital market in Bangladesh on my part. The objectives of my study are stated in the bellow: •To have a clear idea about the developed and strong platform of capital market of our country. •To know about the full automated trading system with most modern amenities. •To realize the role and importance of Capital Market in the economic development. •To know the characteristics of Capital Market in...
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