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Bangladesh Stock Market Condition and Solution

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Submitted By tuhin388
Words 9305
Pages 38
Content
Executive Summary
Introduction
Operation
Efficiency
Success
Failure
Recommendation
Conclusion

Executive Summary:

Introduction:
The stock market of Bangladesh is considered to be one of the emerging markets in the context of the global financial system. The market has immense potentials for country’s industrialization, development of infrastructure in particular and economic growth in general. The government and the Securities and Exchange Commission (SEC) have undertaken a good number of initiatives to meet Bangladesh's development financing requirements with a particular focus on developing long term infrastructure financing and strengthening financial stability through promotion of capital market. In this regard formulation of a Master Plan is of crucial importance.
Stock markets or Stock exchanges play an important role in the modern capitalized economy by providing the strength to nation's economic infrastructure. Now the stock market is one of the most important sources for companies to raise capital. Stock market allows businesses to raise additional capital for expansion by transferring the ownership of the company. It provides individuals the opportunity to invest in corporations. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008.
In Bangladesh, there are two stock exchanges, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), DSE was setup on April 28, 1954 that started formal trading in 1956. In 1995, CSE was setup.
However, in its fifty-eight year’s history the stock market of Bangladesh crashed two times, first in 1996 and then in 2011. At first, the market crashed in December of 1996 and the index started to decline significantly since then resulting in a cumulative decline of 83.44 percent from 1996 to 1999 with the annual rate of 27.82 percent. Stock

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