What is stock?
Stock or Share is the smallest
part of ownership of an
asset/company/firm……………
…………
HISTORY OF STOCK EXCHANGE
• The stock exchange was established by “East India
company” in 18th century . In India it was
established in 1850 with 22 stock brokers opposite
to town hall Bombay .This stock exchange is known
as oldest stock exchange of Asia.
Types of stock
Stock typically takes the form of shares of
either common stock and preferred stock.
As a unit of ownership, common stock
typically carries voting rights that can
be exercised in corporate decisions.
Preferred stock differs from common
stock in that it typically does not carry
voting rights but is legally receive a
certain level of dividend payments
before any dividends can be issued to
other shareholders
What is stock exchange?
• Stock exchange is a organized place or
arrangement where the buyer and seller is brought
together so they can buy sale their stocks/share. For
example Dhaka Stock Exchange has a
electronic trading system called TESA and Chittagong
Stock Exchange has an electronic trading
system called VECTOR. These two system work as an
arrangement to help buy/sale of listed securities.
What is Securities and Exchange
Commission (SEC)?
It is the regulatory body of Bangladesh
capital market. For your information stock
exchanges are
called capital market as companies raise
capital from here. SEC defines working
process and
rules and policies under which the stock
exchanges will operate.
.
Dhaka Stock Exchange
ঢাকা স্টক এক্সচেঞ্জ
Type Stock Exchange
Location Dhaka, Bangladesh
Coordinates 23.722302°N 90.421295°E
Founded 1952
Owner Dhaka Stock Exchange Limited
Key people Mr. Md. Rakibur Rahman[president]
Currency Taka (৳)
No. of listings 750
Market cap US$ 50.28billion [1]
Volume US$ 1.43 billion
Indexes DSE 20 Index
Website
dsebd.org (Bangla)
dsebd.org (English)
History
First incorporated as East Pakistan Stock Exchange
Association Ltd in 28 April 1954 and started formal
trading in 1956. It was renamed as East Pakistan Stock
Exchange Ltd in 23 June 1962. Again renamed as Dacca
Stock Exchange Ltd in 13 May 1964. After the liberation
war in 1971 the trading was discontinued for five years.
In 1976 trading restarted in Bangladesh, on 16
September 1986 DSE was started. The formula for
calculating DSE all share price index was changed
according to IFC on 1 November 1993. The automated
trading was initiated in 10 August 1998 and started on 1
January 2001. A Central Securities Depository System
was initiated in 24 January 2004.
Chittagong Stock
Exchange
েট্টগ্রাম স্টক এক্সচেঞ্জ
Type Stock Exchange
Location Chittagong, Bangladesh
Founded 1995
Owner
Chittagong Stock Exchange
Limited
Key people Mr. Al Maruf Khan [President]
Currency Taka
No. of listings 250
Market cap US$ 30billion
Indexes
CSE30
CSCX
CASPI
Website www.cse.com.bd
The Chittagong Stock Exchange : is a stock
exchange based in the port city of
Chittagong, Bangladesh. It is one of the
twin financial hubs of the country,
alongside the Dhaka Stock Exchange.
Established in 1991, the exchange is
located in the Agrabad business district in
downtown Chittagong. It has a combined
market capitalization of US$ 30 billion as of
2013.
Largest stock exchanges
IN THE WORLD
LONDON STOCK EXCHANGE
NEW YORK STOCK EXCHANGE
SHANHAI STOCK EXCHANGE
AUSTRALIA STOCK EXCHANGE
TOKYO STOCK EXCHANGE
HONG KONG STOCK EXCHANGE
TORONTO STOCK EXCHANGE
DEUTSCHE BORSE
BM&F BOVESPA
NASDAQ OMX STOCK EXCHANGE
IMPORTANT FUNCTION OF STOCK EXCHANGE
 Provide central and convenient meeting places for
sellers and buyer of securities
 Increase the marketability and liquidity of securities
 Contribute to stability of prices of securities
 Equalization of price of securities
 Smoothen price movement
 Help the investors to know the worth of their holdings
 Promote the habit of saving and investment
 Help capital formation
 Help companies and government to raise funds from
the investors
 Provide forecasting service
Rule 144 stock
• "Rule 144 Stock" is a common name
given to shares of stock subject SEC
Rule 144: Selling Restricted and
Control Securities. Under Rule 144,
restricted and controlled securities
are acquired in unregistered form
Stock Market Conditions
There are two ways to describe the general
conditions of the stock market:
1)BULL MARKET
2)BEAR MARKET
Bull Market -
A Bull Market indicates the constant upward
movement of the stock market. A particular
stock that seems to be increasing in value is
described to be bullish.
BEAR MARKET
A bear market indicates the
continuous downward movement
of the stock market. stock that
seems to be decreasing in value is
described to be bearish.
CAUSES OF PRICE FLUCTUATION
1.DEMAND AND SUPPLY
2.BANK RATE
3.SPECULATIVE PRESSURE
4. ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL
INSTITUTIONS
5.CHANGE IN COMPANY’S BOARD OF DIRECTORS
6. FINANCIAL POSITION OF THE COMPANY
7. TRADE CYCLE
8. POLITICAL FACTORS
9. SYMPATHETIC FLUCTUATIONS
10. OTHER FACTORS:
A. EXPECTED MONSOON
B. PERSONAL HEALTH OF HEAD OF
GOVERNMENT OR CHAIRMAN OF
THE COMPANY
C. OIL PRICES IN THE INTERNATIONAL
MARKET
.
BROKER AND JOBBER.
BROKER: He is one acts as a intermidiary on
behalf of others. A broker in a stock exchange ,is
a commission agent who transacts business in
securities on behalf of non members.
JOBBER: He is not allowed to deal with the
public directly .He deals with brokers who are
engaged with the investors . Thus, the securities
is bought by the jobber from members and sells
to members who are operating on the stock
exchange as broker…
Problems of Stock Markets in
Bangladesh:
• The unexpected rise and fall in share prices
mostly followed from the general confidence of
the investors about political stability, euphoria of
investment in shares, prospect of quick capital
gains, a vacuum in respect of institutional
presence in the share market, monopolistic
dominance of member brokers, inefficiency of
the SECS to cape with the developments,
existence to Kerb market , absence of proper
application of circuit breaker etc.
Suggestions to improve the activities
of Stock Market
• To introduce automated monitoring system that may control
price manipulation,
• malpractice’s and inside trading.
• To introduce full computerized system for settlement of
transactions.
• To force the listed companies to publish their annual reports with
actual and proper
• information that can ensure the interests of investors.
• To control and abolish kerb market form premises of stock
market.
• To take remedial action against the issues of fake certificates.
• The composite Quotation system(CQS) should be introduced and
implemented that
Share market of bangladesh

Share market of bangladesh

  • 2.
    What is stock? Stockor Share is the smallest part of ownership of an asset/company/firm…………… …………
  • 3.
    HISTORY OF STOCKEXCHANGE • The stock exchange was established by “East India company” in 18th century . In India it was established in 1850 with 22 stock brokers opposite to town hall Bombay .This stock exchange is known as oldest stock exchange of Asia.
  • 4.
    Types of stock Stocktypically takes the form of shares of either common stock and preferred stock.
  • 5.
    As a unitof ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally receive a certain level of dividend payments before any dividends can be issued to other shareholders
  • 6.
    What is stockexchange? • Stock exchange is a organized place or arrangement where the buyer and seller is brought together so they can buy sale their stocks/share. For example Dhaka Stock Exchange has a electronic trading system called TESA and Chittagong Stock Exchange has an electronic trading system called VECTOR. These two system work as an arrangement to help buy/sale of listed securities.
  • 7.
    What is Securitiesand Exchange Commission (SEC)? It is the regulatory body of Bangladesh capital market. For your information stock exchanges are called capital market as companies raise capital from here. SEC defines working process and rules and policies under which the stock exchanges will operate.
  • 8.
    . Dhaka Stock Exchange ঢাকাস্টক এক্সচেঞ্জ
  • 9.
    Type Stock Exchange LocationDhaka, Bangladesh Coordinates 23.722302°N 90.421295°E Founded 1952 Owner Dhaka Stock Exchange Limited Key people Mr. Md. Rakibur Rahman[president] Currency Taka (৳) No. of listings 750 Market cap US$ 50.28billion [1] Volume US$ 1.43 billion Indexes DSE 20 Index Website dsebd.org (Bangla) dsebd.org (English)
  • 10.
    History First incorporated asEast Pakistan Stock Exchange Association Ltd in 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd in 23 June 1962. Again renamed as Dacca Stock Exchange Ltd in 13 May 1964. After the liberation war in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh, on 16 September 1986 DSE was started. The formula for calculating DSE all share price index was changed according to IFC on 1 November 1993. The automated trading was initiated in 10 August 1998 and started on 1 January 2001. A Central Securities Depository System was initiated in 24 January 2004.
  • 11.
  • 12.
    Type Stock Exchange LocationChittagong, Bangladesh Founded 1995 Owner Chittagong Stock Exchange Limited Key people Mr. Al Maruf Khan [President] Currency Taka No. of listings 250 Market cap US$ 30billion Indexes CSE30 CSCX CASPI Website www.cse.com.bd
  • 13.
    The Chittagong StockExchange : is a stock exchange based in the port city of Chittagong, Bangladesh. It is one of the twin financial hubs of the country, alongside the Dhaka Stock Exchange. Established in 1991, the exchange is located in the Agrabad business district in downtown Chittagong. It has a combined market capitalization of US$ 30 billion as of 2013.
  • 14.
    Largest stock exchanges INTHE WORLD LONDON STOCK EXCHANGE NEW YORK STOCK EXCHANGE SHANHAI STOCK EXCHANGE AUSTRALIA STOCK EXCHANGE TOKYO STOCK EXCHANGE HONG KONG STOCK EXCHANGE TORONTO STOCK EXCHANGE DEUTSCHE BORSE BM&F BOVESPA NASDAQ OMX STOCK EXCHANGE
  • 15.
    IMPORTANT FUNCTION OFSTOCK EXCHANGE  Provide central and convenient meeting places for sellers and buyer of securities  Increase the marketability and liquidity of securities  Contribute to stability of prices of securities  Equalization of price of securities  Smoothen price movement  Help the investors to know the worth of their holdings  Promote the habit of saving and investment  Help capital formation  Help companies and government to raise funds from the investors  Provide forecasting service
  • 16.
    Rule 144 stock •"Rule 144 Stock" is a common name given to shares of stock subject SEC Rule 144: Selling Restricted and Control Securities. Under Rule 144, restricted and controlled securities are acquired in unregistered form
  • 17.
    Stock Market Conditions Thereare two ways to describe the general conditions of the stock market: 1)BULL MARKET 2)BEAR MARKET Bull Market - A Bull Market indicates the constant upward movement of the stock market. A particular stock that seems to be increasing in value is described to be bullish.
  • 18.
    BEAR MARKET A bearmarket indicates the continuous downward movement of the stock market. stock that seems to be decreasing in value is described to be bearish.
  • 19.
    CAUSES OF PRICEFLUCTUATION 1.DEMAND AND SUPPLY 2.BANK RATE 3.SPECULATIVE PRESSURE 4. ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS 5.CHANGE IN COMPANY’S BOARD OF DIRECTORS
  • 20.
    6. FINANCIAL POSITIONOF THE COMPANY 7. TRADE CYCLE 8. POLITICAL FACTORS 9. SYMPATHETIC FLUCTUATIONS 10. OTHER FACTORS: A. EXPECTED MONSOON B. PERSONAL HEALTH OF HEAD OF GOVERNMENT OR CHAIRMAN OF THE COMPANY C. OIL PRICES IN THE INTERNATIONAL MARKET
  • 21.
    . BROKER AND JOBBER. BROKER:He is one acts as a intermidiary on behalf of others. A broker in a stock exchange ,is a commission agent who transacts business in securities on behalf of non members. JOBBER: He is not allowed to deal with the public directly .He deals with brokers who are engaged with the investors . Thus, the securities is bought by the jobber from members and sells to members who are operating on the stock exchange as broker…
  • 22.
    Problems of StockMarkets in Bangladesh: • The unexpected rise and fall in share prices mostly followed from the general confidence of the investors about political stability, euphoria of investment in shares, prospect of quick capital gains, a vacuum in respect of institutional presence in the share market, monopolistic dominance of member brokers, inefficiency of the SECS to cape with the developments, existence to Kerb market , absence of proper application of circuit breaker etc.
  • 23.
    Suggestions to improvethe activities of Stock Market • To introduce automated monitoring system that may control price manipulation, • malpractice’s and inside trading. • To introduce full computerized system for settlement of transactions. • To force the listed companies to publish their annual reports with actual and proper • information that can ensure the interests of investors. • To control and abolish kerb market form premises of stock market. • To take remedial action against the issues of fake certificates. • The composite Quotation system(CQS) should be introduced and implemented that