Capital Market of Bangladesh
Abstract
This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, volatility in the market index and foreign portfolio investment were considered. The study finds that key indicators are significantly correlated. Stock market growth index is constructed considering market capitalization ratio; turn over ratio, value traded to GDP ratio and volatility in market index. The findings of the study suggest that although Bangladesh stock market is growing over time, the growth has not yet assumed any stable and obvious trend. We conclude that Bangladesh stock market is still at an early stage of its growth path with a small market size relative to GDP and is characterized by poor liquidity and high market concentration.
PROBLEMS AND PROSPECTS OF BANGLADESH CAPITAL MARKET INCLUDING PROBLEMS SOLUTION FUTURE PLANS
Meaning of Capital Market
The capital market is market for securities, where companies and Governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. The capital market includes the stock market and the bond market. Capital market is the group of interrelated markets, in which capital in financial form is lend or borrowed for medium and long term and, in cases such as equities, for unspecified periods.
Sub-Markets of Capital Market
The Primary Market
The primary market deals with newly issued securities and is responsible for generating new long-term capital.
The secondary
The secondary market handles the trading of previously-issued securities, and must remain highly liquid in nature because most of the securities are sold by investors.
ROLE OF CAPITAL MARKET
The primary role of the capital market is to raise long-term funds for governments, banks, and corporations while providing a platform for the trading of securities. This fund rising is regulated by
This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, volatility in the market index and foreign portfolio investment were considered. The study finds that key indicators are significantly correlated. Stock market growth index is constructed considering market capitalization ratio; turn over ratio, value traded to GDP ratio and volatility in market index. The findings of the study suggest that although Bangladesh stock market is growing over time, the growth has not yet assumed any stable and obvious trend. We conclude that Bangladesh stock market is still at an early stage of its growth path with a small market size relative to GDP and is characterized by poor liquidity and high market concentration.
PROBLEMS AND PROSPECTS OF BANGLADESH CAPITAL MARKET INCLUDING PROBLEMS SOLUTION FUTURE PLANS
Meaning of Capital Market
The capital market is market for securities, where companies and Governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. The capital market includes the stock market and the bond market. Capital market is the group of interrelated markets, in which capital in financial form is lend or borrowed for medium and long term and, in cases such as equities, for unspecified periods.
Sub-Markets of Capital Market
The Primary Market
The primary market deals with newly issued securities and is responsible for generating new long-term capital.
The secondary
The secondary market handles the trading of previously-issued securities, and must remain highly liquid in nature because most of the securities are sold by investors.
ROLE OF CAPITAL MARKET
The primary role of the capital market is to raise long-term funds for governments, banks, and corporations while providing a platform for the trading of securities. This fund rising is regulated by