Trading Behavior and Investment Decision Making Process of General Investors in Capital Market of Bangladesh
Chapter-1: Introduction
Capital Market mainly refers 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 furlong-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.
The capital market is the market for long-term loans and equity capital. For any developing countries capital market is very important for economic growth. The securities market works as a bridge between the savings and the preferred investment across the business entities and other economic units, specially the general households that in aggregate form the surplus savings units. Especially at times when the banking sector of the country is facing the challenge of bringing down the advance deposit ratio to sustainable level, the economy of the country is unfolding newer horizon of opportunities. Due to overexposure level of the financial system the securities market could play a very positive role, had there been no market debacle. Bangladesh having its target to become a middle income country must have significant level of rise in investment, which at the present state of banking system cannot be met. The securities market could play the key role in meeting these huge investment demands if the secondary market would remain stable. The capital market also helps increase savings and investment, which are essential for economic development. An equity market, by allowing diversification across variety of assets, helps reduce the risk the investors must bear, thus reducing the cost of capital, which in
Capital Market mainly refers 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 furlong-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.
The capital market is the market for long-term loans and equity capital. For any developing countries capital market is very important for economic growth. The securities market works as a bridge between the savings and the preferred investment across the business entities and other economic units, specially the general households that in aggregate form the surplus savings units. Especially at times when the banking sector of the country is facing the challenge of bringing down the advance deposit ratio to sustainable level, the economy of the country is unfolding newer horizon of opportunities. Due to overexposure level of the financial system the securities market could play a very positive role, had there been no market debacle. Bangladesh having its target to become a middle income country must have significant level of rise in investment, which at the present state of banking system cannot be met. The securities market could play the key role in meeting these huge investment demands if the secondary market would remain stable. The capital market also helps increase savings and investment, which are essential for economic development. An equity market, by allowing diversification across variety of assets, helps reduce the risk the investors must bear, thus reducing the cost of capital, which in
References: 1. http://www.dsebd.org/ilf.php 2. http://www.cse.com.bd/mission.php#bg 3. http://www.scribd.com/doc/72464268/Capital-Market-in-Bangladesh-An-Overview-in-the-Present-Context 4. http://www.bdstock.com/ 5. http://allbd.ueuo.com/list_and_address_of_broker_houses.html Chapter-8: Appendix