Preview

Stock Market of Bangladesh

Powerful Essays
Open Document
Open Document
10204 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Stock Market of Bangladesh
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



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

You May Also Find These Documents Helpful

  • Best Essays

    Proposal

    • 3044 Words
    • 13 Pages

    It must be understood that Stock Market operates as a small confined stall constricted by physical growth, bequest of financial limitations and grounded to parameters set out by management. Namely, the capping of staff at 13 employees due to the physical confines of the store, and the competitive driven prerequisite to…

    • 3044 Words
    • 13 Pages
    Best Essays
  • Good Essays

    This paper will examine about “worldwide stock market future of 2030”; what it would be in 2030. There are many sections ranging from political, economic, social to cultural side. However, due to its influence to rest of world components, I will focus on financial sector. Why especially stock market is I predict public finance (stock) will get a lot more money than private and conventional finances, thus loan and bond. Briefly, I will argue on stock market that American stock market domination will finish and China's rise as a largest power.…

    • 1426 Words
    • 6 Pages
    Good Essays
  • Best Essays

    There have been various stock market crashes in the past such as the Wall Street crash of 1929, the crash of 1973/74, the 1987 crash; called black Monday, the dotcom bubble of 2000 and the more recent crash in 2008 caused by the subprime mortgage crisis in America. The economic crisis of 2008 which originated in America spread to various economies in the world and their stock markets were affected. It reduced the value of stocks around the world by as much as 41% and affected both major and emerging stock markets. The Nigerian stock market is an emerging market in Africa. After attaining the position of one of the most profitable, efficient and fastest growing equity market in the world, with a return on investment of up to 78% in 2007 the Nigerian Stock Exchange (NSE) was seen as an investment haven.…

    • 3810 Words
    • 16 Pages
    Best Essays
  • Powerful Essays

    As per instruction from the course instructor Proff. Dr. Tanbir ahmed chowdhury to submit a financial analysis report on a public limited company that is currently enlisted in Dhaka Stock Exchange (DSE).…

    • 2774 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Bond Market in Bangladesh

    • 10888 Words
    • 44 Pages

    Broad objective of our report is find the weak regulatory framework, supply-side constraints such as a lack of the benchmark bonds, demand-side constraints such as the limited investor base, a lack of intermediaries with expertise in debt products, a lack of confidence in corporate borrowers, market distortions which are caused by the National Savings Scheme (NSS) offering above-market returns; and A lack of interest from private companies, including financial intermediaries and large business, In launching new debt products due to high fees. We have mainly tried to use our bookish knowledge practically. We have also looked for any further development of the Bond Market in Bangladesh in future which is in need. Finally, the paper offers a roadmap for the development of the Bangladesh bond market.…

    • 10888 Words
    • 44 Pages
    Good Essays
  • Powerful Essays

    In Bangladesh, though no such remarkable corporate scandals emerged yet, the stock market crash of 1996 is worth mentioning part of which is believed to have been caused by the greed of some influential corporate houses. The DSE all share price index rose to 3648.7.5 on 5th November, 1996 starting from 865 on 1st June 1996- 322% increase within a spate of only 158 days. The market capital that was Tk. 56.52 billion by end 1995 reached Tk. 168.11 billion (137)% increase) by the end of 1996. In view of high demand arising out of limited quality script a number of companies capitalized the situation by issuing IPO or right shares. The year 1995 saw the biggest public issue of Tk. 20.63 billion 36% of the total IPOs over last ten years (Majumdar, M. A.K., 2006, p. 24).…

    • 20897 Words
    • 84 Pages
    Powerful Essays
  • Powerful Essays

    The Dhaka Stock Exchange (DSE) is registered as a Public Limited Company and its activities are regulated by its Articles of Association rules & regulations and by-laws along with the Securities and Exchange Ordinance 1969, Companies Act 1994 & Securities & Exchange Commission Act 1993. The major functions of DSE are listing of Companies, providing the screen based automated trading of listed Securities, settlement of trading, gifting of share or granting approval to the transaction or transfer of share outside the trading system of the exchange, market administration & control, market surveillance, publication of monthly review, monitoring the activities of listed companies, Investors Grievance Cell, Investors Protection Fund, announcement of price sensitive or other information about listed companies through online. Ensured that no sponsor or director shares of 'Z' category companies, excluding bank, insurance and financial institutions, are transacted on the stock exchanges or transferred outside the stock exchanges in any other form until further order with a view to facilitating the interest of investors and securities market.…

    • 7112 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This assignment reveals the various aspects of the Capital Market in Bangladesh…

    • 2817 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Equity research paper Bata

    • 10492 Words
    • 42 Pages

    The report starts with a very brief overview of Bata Company and the performance of its stock in the past year. This deals with EPS, P/E ratio and Historical data and return on Bata stock. After this the report delves into a broad discussion on macroeconomic environment of Bangladesh. After discussing the change in the key indicators, an analysis on the future uncertainty of the economic environment of Bangladesh is given. How this environment affects the investors decision is the reason for this discussion.…

    • 10492 Words
    • 42 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Plan for Spenil

    • 6358 Words
    • 26 Pages

    We are obliged to submit the report entitled “Marketing plan on sepnil instant hand sanitizer”, as a partial requirement of the course “Principles of Marketing” under your instruction.…

    • 6358 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    Capital Market of Bangladesh

    • 8634 Words
    • 35 Pages

    This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, volatility in the market index and foreign portfolio investment were considered. The study finds that key indicators are significantly correlated. Stock market growth index is constructed considering market capitalization ratio; turn over ratio, value traded to GDP ratio and volatility in market index. The findings of the study suggest that although Bangladesh stock market is growing over time, the growth has not yet assumed any stable and obvious trend. We conclude that Bangladesh stock market is still at an early stage of its growth path with a small market size relative to GDP and is characterized by poor liquidity and high market concentration.…

    • 8634 Words
    • 35 Pages
    Powerful Essays
  • Good Essays

    The Chittagong Stock Exchange believes that a dynamic, automated, transparent stock exchange is needed in Bangladesh. It works towards an effective, efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements.…

    • 402 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Bangladesh Stock Exchange

    • 15232 Words
    • 61 Pages

    A complete automation project of Chittagong stock exchange is on full swing. Considering the important the role of Chittagong stock exchange in development of capital market of Bangladesh, an attempt, has been in this terms paper to study the contemporary practices of stock trading in Chittagong stock market.…

    • 15232 Words
    • 61 Pages
    Powerful Essays
  • Good Essays

    The Hong Kong stock and commodity markets were hot in the early 1990s. Prices more than doubled in two years. Prices tripled in less than four years. The only topic of conversation upon getting into the taxicab was “The Market.” Yet from January 1994 to the end of that year, the market lost nearly 40 percent. During the 1997 Asian financial crisis, the Hong Kong stock market dropped more than 50 percent. More recently, that stock market fell almost 60 percent from 2007 to 2009.…

    • 771 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Inflation Unemplyment Growth

    • 6745 Words
    • 36 Pages

    We are the student of Department of Finance (3rd batch) of Jagannath University, Dhaka & also from…

    • 6745 Words
    • 36 Pages
    Powerful Essays