Bangladesh capital market

It has two mature automated simple eye counterchanges namely upper-case letter of the United States of Bangladesh hold step in (DSE) and Chittagong straining alternate (CSE) and an all over-the counter exchange operated by SEC. It similarly consists of a dedicated regulator, the Securltles and Exchange armorial bearing (SEC), since, it implements rules and regulations, monitors their implications to operate and develop the capital commercialise. It consists of cardinal Depository Bangladesh Limited (CDBL), the only substitution Depository In Bangladesh that provides facilities for the congealtlement of proceeding of dematerialized securities In CSE and DSE.capital of Bangladesh deport Exchange was set up on 28th April, 1954 that started orb trading on early 1956. Post-independence authorities did not promote a capital marketplace during the first five years, and it was aroused again in 1976 with 9 issues on board. In 1995, a second bourse, the Chittagong shop Ex change, was set up with sophisticated loglstlc stand and modern management. Two stock exchanges populate in Bangladesh Dhaka stock Exchange (DSE) Chittagong Stock Exchange (CSE) One Investor essential know about these markets before he/she goes for an Investment.To make this report more graspable and specific, we will only focus on Dhaka tock market. The stock market is an serious ingredient of the financial system in Bangladesh. It is an important avenue for channeling funds to investors by means of mobilizing resources from individuals. In view of the rapidly increase role of the stock market, excitableness In stock expenses can have large Implications on the performance of the financial orbit as well as the holy economy. There exists important link in the midst of stock market uncertainty and customary confidence in the financial market.The indemnity makers usually rely on the market estimate of volatility as he barometer of the vulnerablllty of the stock market. St ock produce volatility represents the variability of day-to-day stock footing changes over a period of time, which is taken as a measure of find by the relevant agents. High volatility, solo by any change in the real situation, may lead to a general erosion of Investors confidence In the market and redirect the flow of capital away from the stock market.Excessive volatility too reduces the usefulness of stock price as a reflector of the real expense of the firm. Volatility, however, is not an evidence of rrational market mien or inefficient markets. Stock return volatility is usually asymmetric in its response to past negative price shocks compared with the positive shocks, but what factors drive volatlllty over time Is not clear. Moreover, Increase In firm-specific risk appears to adversely affect its stock valuation.This note analyzes 2003-2007 and draws some policy implications. Dhaka Stock Exchange (DSE) Dhaka Stock Exchange (Generally known as DSE) is the main(prenomi nal) stock exchange of Bangladesh. It is located in MotiJheel at the heart of the Dhaka city. It was integrate in 1954. Dhaka stock exchange is the first stock exchange of the country. As of 9 December 2009, the Dhaka Stock Exchange had 671 listed companies with a combined market capitalization of $34. 2 billion. Dhaka Stock Exchange (DSE) is a public confine company.