Stock Market in Bangladesh

Topics: Stock market, Stock, Stock exchange Pages: 24 (5937 words) Published: April 7, 2014
A Research Paper
On
“Stock Market in Bangladesh”

(An overall research about Stock market includes the reasons of falling down & the recommendations)
Submitted To:
Farhana Zareen Bashar
Lecturer
Department of English
East West University

Submitted By:
Atique Shahariar
I.D. - 2012-2-10-053

Date of Submission:
April 12, 2013

East West University

Table of Content…

Introduction:

Stock market is an important part of the economy of a country. The stock market plays a play a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. That is reason that the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market. The stock market is important from both the industry’s point of view as well as the investor’s point of view. The stock market is one of the most important avenues for companies to raise money. It mobilizes savings of large number of individuals, families and associations and makes the same available for meeting the large capital needs of organized industry, trade and business. In this way it helps in the progress and development of the country and its economy. The stock market is one of the most important avenues for companies to raise money. An economy where the stock market is on the rise is considered to be an up and coming economy. Rising share prices indicate increased business investment. Share prices also affect the wealth of households and their consumption. Stock Market:

A stock market or equity market is a public entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. A stock market is a place where shares are bought and sold. Stock markets list the securities of publicly traded companies. The price of a share at any given stage is dictated by supply and demand within the market, and rises or falls every time a share is bought or sold. Stock markets generally trade over a set duration of hours, usually reflecting the working day in their particular region.

Stock Market of Bangladesh:
Capital Market of Bangladesh is one of the smallest in Asia but the third largest in the South Asia. It has two full-fledged automated stock markets, one is named Dhaka Stock Exchange (DSE) in Dhaka and another one is called Chittagong Stock Exchange (CSE) in Chittagong. A central regulatory agency which is the Securities and Exchange Commission (SEC) overseeing the activities of the entire capital market including issue of capital, monitoring the issue of stocks, and operation of the stock markets. Brief History of Stock Market of Bangladesh:

Year
Remark
1954
East Pakistan Stock Exchange Association Ltd was set up.
1956
East Pakistan Stock Exchange Association Ltd started formal trading. 1962
East Pakistan Stock Exchange Association Ltd was renamed as East Pakistan Stock Exchange Ltd. 1964
East Pakistan Stock Exchange Ltd. was renamed as Dacca Stock Exchange Ltd. 1971
The trading was discontinued for five years due unstable economic situation after liberation war. 1976
The trading restarted in Bangladesh.
1986
DSE All Share Price Index was started.
1993
The Securities and Exchange Commission (SEC) was established. 1995
The Chittagong Stock Exchange (CSE) began its journey.
1998
The automated trading was initiated.
2001
DSE 20 Index was started.
2004
Central Depository System was initiated.
2012
DSE launched an internet-based platform for share transactions.

Categorization of Listed Company:
One of the important indicators of the capital market is the number of listed companies. The rationale of including this measure is that as the number of listed company increases, available securities and trading volume also increases. In basis of the properties of the companies, the companies are...

Bibliography: (a) Bangladesh Bank— http://www.bangladesh-bank.org
(b) Chittagong Stock Exchange— http://www.cse.com.bd
(c) Dhaka Stock Exchange—http://www.dsebd.org/
(d) Newspapers—http://www.onlinenewspapers.com/banglade.htm
(e) Securities and Exchange Commission-- http://www.secbd.org/
(f) Worldwide Business & Financial news site-- www.bloomberg.com
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