Stock Market of Bangladesh

Topics: Stock market, Stock exchange, Stock Pages: 30 (10204 words) Published: September 5, 2013
Introductory Part

1. Background:
A stock market / share market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange. Usually, a stock market is the reflector of its countries economy. The stock market has become an essential market playing a vital role in economic prosperity that fostering capital formation and sustaining economic growth. Stock markets are more than a place to trade securities; they operate as a facilitator between savers and users of capital by means of pooling of funds, sharing risk, and transferring wealth. Stock markets are essential for economic growth as they insure the flow of resources to the most productive investment opportunities. In a growing economy like Bangladesh there are two stock or capital market, these are Dhaka Stock Exchange (DSE) and Chittagong Stock exchange (CSE). Both of these share market is regulated by Security exchange commission (SEC). However in recent times there are some opposite results are occurring in the stock market. That is not only hampering the capital of individual shareholders but also the country’s economy. As such circumstances’ are consistently occurring it has become a serious matter to concern. This paper reflects what are the problems behind stock market are and by considering what determinates such problems can be removed. This report also outlines whether the different factors as internal, external, economic factors etc. has impact on stock marketing. 2. Scope of the study:

The stock market of our country has never faced such problems that they are facing in recent times. The crashes are going larger and larger every time. Thus this a burning issue in our country to take some precautionary steps immediately. Thus our report is entitled to analyze the problems that stock market is currently facing and providing some solutions. 3. Methodology:

The report consists of secondary information and was collected from several books, journals and webpages’. Data are also collected from various issues of annual report of Securities and Exchange Commission (SEC) of Bangladesh, Quarterly Review of SEC, Monthly Review of Dhaka Stock Exchange (DSE), Statistical Year Book of Bangladesh, Website of Dhaka Stock Exchange, and Website of SEC Bangladesh

Stock Market At a glance

1. What is Stock?
Some portion of the company sold to public is called stock. If a company has 200,000 stocks outstanding it means the company has been divided into 200,000 units and different people own some unit. These units are called stocks. When someone purchases any stock or equities he or she becomes the partial owner of the company. It entitles the owner to vote at the shareholders meeting and allows the owner to receive any profit that the company allocates to its owner or shareholders. These profits are referred to as dividends. Stock gives highest return by its appreciation value and dividends. On the contrary stocks also provide high risk while trading. Many companies do not give dividends and there is not obligation for the companies to pay dividends. Hence only way to get return is appreciation (increase in price of stock over time) value of stock which may not happen and the shareholder may lose his money if stock prices goes low or the company goes bankrupt.

2. What is Stock Market?
Stock Market (also called Stock Exchange or Share Market) is one important constituent of capital market. Stock Market is an organized institute for the purchase and sale of security. It is convenient place where trading in securities is conducted in systematic manner as maintain rules and regulations. A stock broker handles all the transactions and makes money off each transaction. It is an investment intermediary and facilitates economic and industrial development of a country. Stock Market is indispensable for the smooth and orderly functioning of corporate sector in a free market economy. A stock exchange...

References: ➢ Asadul. (20 December, 2007). The prospects, possibilities and challenges of Bangladesh Capital market. The Financial Express. Retrieved 27th August from http://www.thefinanciale xpress-bd.com/2007/12/20/20305.html
➢ Moazzem, K. G & Rahman, T. (2007). STABILISING THE CAPITAL MARKET OF BANGLADESH. Addressing the Structural, Institutional and Operational Issues. Retrieved 27th August from http://www.cpd.org.bd/pub_attach/WP95. Pdf
➢ Choudhury, A.H (2013). Stock Market Crash in 2010: An Empirical Study on Retail Investor’s Perception in Bangladesh. ASA University Review. Vol. 7(1, January–June). Retrieved 27th August from http://www.asaub.edu.bd/data/asaubreview/v7n1sl10.pdf
➢ Chowdhury, S.A. (4 July, 2013). Foreign Investors Flock To Stock Market. The Daily Star. Retrieved 27th August from http://www.thedailystar.net/beta2/news/foreign-investors-flock-to-stockmarket/
➢ Md. Noor Solaiman Jewel, N.S. (18 September, 2012). Stock-Crash: An Overview and Raison D`être. Bangla News 24. Retrieved 27th August from http://www.banglanews24.com/ English/detailsnews.php?nssl=d4636a49d4ce00d4cc3a5392795e7ca6&nttl=1709201253212
➢ Dhaka Stock Exchange Limited. (18-22 August, 2013). Weekly Report. Retrieved 27th August from http://www.dsebd.org/weekly_report.htm
➢ BB may consider raising bank loans to stock dealers. (5 March, 2013). The Daily Star. Retrieved 27th August from http://www.thedailystar.net/beta2/news/bb-may-consider-raising-bank-loans-to-stock-dealers/
➢ Taking the economy forward: Chamber leaders speak out. (21 March, 2013). The Daily Star. Retrieved 27th August from http://www.thedailystar.net/beta2/news/taking-the-economy-forward-chamber-leaders-speak-out/
-----------------------
29
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Stock Market in Bangladesh Essay
  • Bangladesh Stock Market Analysis Essay
  • History of Stock Exchanges of Bangladesh Essay
  • Stock Market Crisis in Bangladesh in 2010-11 Essay
  • Literature Review on Bangladesh Stock Market Essay
  • Stock Market and Great Lakes Essay
  • History of the Stock Market Essay
  • Status of Bangladesh Capital Market Essay

Become a StudyMode Member

Sign Up - It's Free