Moniruzzaman bhuiyan ID: Co265MHMH0813

Submitted to S.A. Palan

Financial Markets and Investment Analysis
PD Limited

Financial Markets and Investment Analysis

Task 1 question answer

Introduction
For any economy stock market is the heart, the entire economy depends on this market. Normally what do we understand by market? Market is a place where some people buy and some people sell their goods, same thing happen in stock market. In any country or economy there is few people who have innovative idea and passion to take risk but no money, on the other hand there is few people who have money but don’t have the passion to do something. Stock market is the place where this two type people meet and utilize each other. Tens of millions of people look in to stock market to get a comfortable retirement and central bankers watch it closely as they set monetary policy. (Smith, 2004)
Now we will try to answer and explain these 3 question bellow…..
The ownership of shares is increasingly in the hands of institutions rather than individuals. Does this matter?
Shares around the world are increasingly owned by institutions rather than individual. In the UK, over 80% of all shares are estimated to be owned by institution such as pension funds, unit trusts and insurance companies; in 1963, the comparable figure was 46% (Arnold, 1998). In the USA, there is a stronger tradition of individual share ownership, with around 50% of the shares still being in private hands in 1997. The trend here too, however, is for intuitional share ownership to grow. The increasing dominance of institutions is in many respects a natural by-product of other social