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The Performance of Capital Market and Its Impact on the Economy of Bangladesh

In: Business and Management

Submitted By shuvojamal
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“The Performance Of Capital

Market And Its Impact On The Economy Of Bangladesh.”

(Based On Recent Unstable Capital Market Situation.)

Assignment on #

Macro-Economices
(Course Code: FIN-2209)

14th February, 2011

►Prepared by,

Anik Ahmed
BBA, 3rd Batch, Department Of Finance Jagannath University, Dhaka.

Capital Market Overview
A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the Bangladesh Bank (BB), and Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties.

Capital Market

Primary Market

Secondary Market

In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. In Bangladesh there are two capital markets in our country. One is Dhaka Stock Exchange (DSE), and another is Chittagong Stock Exchange (CSE).

History of capital market in Bangladesh:
The Dhaka Stock Exchange (DSE) was setup on 28th April, 1954 that started formal trading on early 1956. Post independence government did not promote a capital market during the first five years, and it was activated again in 1976 with 9 issues on board. The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City through the cry-out trading system with the promise to create a state-

of-the art bourse in the country. CSE was...

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