Impact of Share Market in Bangladesh

Introduction:

Capital markets such as the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have multiple roles in a nation's economy. They provide avenues for investment and capital acquisition and can provide an indication of overall economic condition. There are several functions of a stock market, but the main function is economic function. Stock markets also provide facility for transfer of capital from investors to users of capital. They allow corporations looking to expand to raise capital from investors in the primary market and facilitate trade between buyers and sellers of stock in the secondary market.

An organized and well-managed stock market prompts economic development by recognizing and financing productive projects that lead to economic activities. An unpredictable stock market causes a lag in financing of productive projects and allocation of capital proficiency; and lacks in diversification of risk, market instrument, domestic saving, corporate governance and facilitation of exchange of goods and services.

Origin of the Study:

This report is undertaken as a learning requirement for identifying the impact of Dhaka stock exchange in economic growth of Bangladesh. This report is instructed under the course named ‘Project (BUS 498)’. The report covers all-important information about the factors which influences stock market and data to measure the impacts quantitatively provided by stock market in both macro and micro economy. It has been prepared in compliance with the instructions of my supervisor, Ms. Quazi Sagota Samina, Assistant Professor of East West University.

Objective of the study:

My primary objective of the study is to present “The Impact of Stock Market (DSE) in the economy of Bangladesh” .By doing this study, I will be able to,

• To present economic overview of Bangladesh.
• To present particular factors of stock market and their performance.
• To present the performance of Dhaka stock market.
• To identify the linkage between stock market and economy.
• To identify the productivity of stock market whether it’s in favor of the economy.
• To illustrate the financial and domestic investment factors and how they take part in economy.
• Last but not least, to evaluate the market capitalization, total traded value and turnover ratio in order to justify stock market’s performance.

Methodology of the study:

Methodology can be termed as underlying principles and rules of organization or the philosophical systems that work at the backdrop of any study. It clarifies the problems involving the research in a very ordered and systematic fashion. Strategic are determined at this stage for future implementation. In this report decisions and calculations have been made basing on past experiences and the available data of past activities. These data can be collected in any one or more of the following ways.