Preview

Capital Market Of Bangladesh

Powerful Essays
Open Document
Open Document
2954 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Capital Market Of Bangladesh
Capital market Of Bangladesh:

Capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. The capital market includes the stock market (equity securities) and the bond market (debt). Bangladesh capital market is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). It also consists of a dedicated regulator, the Securities and Exchange Commission (SEC), since, it implements rules and regulations, monitors their implications to operate and develop the capita market.

Capital market intermediaries:

At present, capital market intermediaries are of following types:

1. Stock Exchanges: Apart from Dhaka Stock Exchange, there is another stock exchange in Bangladesh that is Chittagong Stock Exchange established in 1995.
2. Central Depository: The only depository system for the transaction and settlement of financial securities, Central Depository Bangladesh Ltd (CDBL) was formed in 2000 which conducts its operations under Depositories Act 1999, Depositories Regulations 2000, Depository (User) Regulations 2003, and the CDBL by-laws.
3. Stock Dealer/Sock Broker: Under SEC (Stock Dealer, Stock Broker & Authorized Representative) Rules 2000, these entities are licensed and they are bound to be a member of any of the two stock exchanges. At present, DSE and CSE have 238 and 136 members respectively.
4. Merchant Banker & Portfolio Manager: These institutions are licensed to operate under SEC (Merchant Banker & Portfolio Manager Rules) 1996 and 45 institutions have been licensed by SEC under this rules so far.
5. Asset Management Companies (AMCs):
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    JP Morgan Chase
    • 1665 Words
    • 7 Pages

    JP Morgan Chase

    1. The Securities and Exchange Commission (SEC) functions as a sort of watchdog over Wall Street, responsible for protecting investors, maintaining fair, orderly and efficient markets, and facilitating capital formation. The SEC does this by requiring public companies to disclose “meaningful financial and other information to the public,” so that investors can make informed decisions about whether to buy, sell or hold a particular security. The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisers, and mutual funds. The commission also brings civil enforcement actions against individuals and companies for violating the securities laws, including insider trading, accounting fraud, and providing false or misleading information about securities and companies issuing securities. Two acts enforced by the SEC that directly involve the banking and security industries are Securities Act of 1933 and 1934. Often referred to as the…

    • 1665 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Cross 9e TBB Ch28
    • 2702 Words
    • 13 Pages

    Cross 9e TBB Ch28

    All securities transactions must be registered with the Securities and Exchange Commission—there are no exemptions.…

    • 2702 Words
    • 13 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Inventory Turnover Ratios
    • 657 Words
    • 3 Pages

    Inventory Turnover Ratios

    The New York Stock Exchange (NYSE) has evolved into one of the world's foremost securities marketplaces. It is the oldest and largest stock exchange in the United States, and one of the most important world-wide. The NYSE operates as an auction market, whereas NASDAQ is an example of a dealer market.…

    • 657 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Informative Speech Outline on Investing in the Stock Market
    • 850 Words
    • 4 Pages

    Informative Speech Outline on Investing in the Stock Market

    A.) Online brokerage firms include but are not limited to TD Ameritrade, E-Trade, Scot trade, and Fidelity Brokerage Services.…

    • 850 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Industry Analysis Proposal: Securities
    • 427 Words
    • 2 Pages

    Industry Analysis Proposal: Securities

    Definition: Securities Brokerage industry is made up of the companies that are primarily engaged in providing brokerage services for a commission or a fee. These firms act as an agent for matching buyers and sellers of various investment instruments including stocks, bonds, mutual funds, ETFs and equity or index options. Some of these firms also provide additional services such as investment banking, investment consultation etc.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Stock Market
    • 373 Words
    • 2 Pages

    Stock Market

    The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The largest stock market in the United States, by market capitalization, is the New York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto Stock Exchange. Major European examples of stock exchanges include the Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the Deutsche Börse (Frankfurt Stock Exchange). In Africa, examples include Nigerian Stock Exchange, JSE Limited, etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such exchanges as the BM&F Bovespa and the BMV.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Liquidity Crisis in Bangladesh
    • 11259 Words
    • 46 Pages

    Liquidity Crisis in Bangladesh

    The proponents of stock markets emphasize the importance of having a "developed" stock market in enhancing the efficiency of investment. A well-functioning stock market is expected to lead to a lower cost of equity capital for firms and allow individuals to more effectively price and hedge risk. Finally, stock markets can attract foreign portfolio capital and increase domestic resource mobilization, expanding the resources available for investment in developing countries. Recognizing the importance of stock market on economic growth, prudential authorities such as World bank, IMF and ADB undertook stock market development programs for emerging markets in developing countries during 80s and 90s and the emerging stock markets have experienced considerable development since the early 1990s. The market capitalization of emerging market countries has more than doubled over the past decade growing from less than $2 trillion in 1995 to about $5 trillion in 2005 (Yartey, 2008). As a percentage of world market capitalization, emerging markets are now more than 12 percent and steadily growing (Standard and Poor, 2005). The government of Bangladesh also undertook the Capital Market Development Program (CMDP)…

    • 11259 Words
    • 46 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Investment Banking in Bangladesh
    • 2048 Words
    • 9 Pages

    Investment Banking in Bangladesh

    In any industry there are groups of firms with relatively similar competitive strategies and market niches. Categorizing the dimensions of competition is one way of analyzing the structure and competitive forces within the industry. A firm’s competitive profile may differ along any of a number of dimensions:…

    • 2048 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    Importance of Capital Market for the Economic Development of India
    • 644 Words
    • 3 Pages

    Importance of Capital Market for the Economic Development of India

    Capital Market becomes a necessary infrastructure for fast industrialization,and hence its important for the economy because india is a land if agriculture where more than 70 % of population depends upon agriculture and as India is also an developing nation so,industrialization is must necessary…

    • 644 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Types of Financial Institutions in Bangladesh
    • 384 Words
    • 2 Pages

    Types of Financial Institutions in Bangladesh

    Commercil banks collect funds from the savers by offering wide variety of deposit accounts and mainly provide personal and commercial loans to different individuals, corporations and governments. There are some commercial banks in Bangladesh. They are :-…

    • 384 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Term Paper on Capital Market of Bangladesh
    • 613 Words
    • 3 Pages

    Term Paper on Capital Market of Bangladesh

    We are pleased to submit the report titled “Overview of Capital Market of BAngladesh as requirement of ongoing BBA program. We have tried our best to make this report holistic and informative enough. All the works presented here is done with utmost sincerely and honesty.…

    • 613 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Case Study
    • 2002 Words
    • 9 Pages

    Case Study

    •Money Markets: the market where short-term securities are bought & sold•Capital Market: the market where long-term securities such as stocks & bonds are bought & sold•Primary Market: the market in which new issues of securities are sold to the public•Secondary Market: the market in which securities are traded after they have been issued•Initial Public Offering (IPO)–First public sale of a company’s stock–Requires SEC approval•3 Choices to Market Securities in Primary Market–Public offering–Rights offering–Private Placement •Underwriting the offering: promoting the stock & facilitating the sale of the company’s shares•Prospectus: registration statement describing the issue & the issuer•Red Herring: preliminary prospectus available during the waiting period•Quiet Period: time period after prospectus is filed when company must restrict what is said about the company•Road Show: series of presentations to potential investors•Underwriting the Issue: purchases the security at agreed-on price & bears the risk of reselling it to the public•Underwriting Syndicate: group formed by investment banker to share the financial risk of underwriting•Selling Group: other brokerage firms that help the underwriting syndicate sell issue to the public•Tombstone: public announcement of issue & role of participants in underwriting process•Investment Banker Compensation: typically in the form of a discount on the sale price of the securities•Secondary Market: the market in which securities are traded after they have been issued Role of Secondary Markets–Provides liquidity to security purchasers–Provides continuous pricing mechanism•Securities Exchanges: forums where buyers & sellers of securities are brought together to execute trades•Nasdaq Market: employs an all-electronic trading platform to execute trades•Over-the-counter (OTC) Market: involves trading in smaller, unlisted securities•Broker Markets: consists of national & regional securities exchanges–60% of the total dollar volume of…

    • 2002 Words
    • 9 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Problem of Chittagong Stock Exchange
    • 15379 Words
    • 62 Pages

    Problem of Chittagong Stock Exchange

    (1) The name of the Exchange is “Dhaka Stock Exchange Limited”. (2) The Registered Office of the Exchange will be situated in the Province of Bangladesh. (3) The objects for which the Exchange is established are:(a) To provide, regulate and maintain a suitable building, room or rooms for a Stock Exchange in Bangladesh. (b) To conduct the affairs of the Stock Exchange. (c) To facilitate the transaction of business on the Stock Exchange and to make laws, ByeLaws and Regulations subject to which business on such Stock Exchange shall be transacted and the conduct of the persons transacting the same and generality for the good other and government of the members of Exchange. (d) To promote, support and protect the character, status and common interests of Stock and Share Brokers and Stock Share Dealers. (e) To adjust controversies between its members, to establish just and equitable Principles in the business, to promote honorable practices amongst members and to decide all question of usage or courtesy between or among members of the Exchange. (f) To Purchase, take on lease on tenancy or otherwise acquire for any estate or interest whatsoever and to hold, develop, deal with and turn to account options, leases, property real and personal which the Exchange for the purpose thereof, may from time to time think proper to acquire. (g) To sell, exchange, mortgage let to lease or sublet, dispose of account or otherwise deal with all or any part of the property of the exchange. (h) To borrow or raise or secure the payment of any money in such manner as the Exchange shall think fit and in particular by the issue of debentures or debenture stock perpetual or otherwise charged upon and or any of the property of the Exchange both present and future including…

    • 15379 Words
    • 62 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Capital Market Theory
    • 7477 Words
    • 30 Pages

    Capital Market Theory

    The market for relatively long-term (greater than one year original maturity) financial instruments(e.g. bonds and stocks). It deals with bonds and stocks. Within the capital market there exists both a primary and secondary market. A primary market is a "new issues" market.…

    • 7477 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Good Essays

    Financial Market and Institution
    • 1083 Words
    • 5 Pages

    Financial Market and Institution

    * Is a market for financial assets which have a long or indefinite maturity. Unlike money market the capital market instruments become mature for the period above one year.…

    • 1083 Words
    • 5 Pages
    Good Essays
    Read More

Related Topics