Initial public offering (IPO), represents an important role in a company’s access to low cost capital for growing company’s & greater access to capital for future expansion of large Companies. The flow of capital to company’s can stimulate growth in an economy. So, regulators are interested in techniques that facilities better functioning Initial public offering (IPO) markets.
The selected techniques by which companies go public vary considerable across the world in the most studied market, historically enjoyed a company grip as the IPO offering techniques of choice, with only infrequent use of alternatives. As a result, it had been used difficult to isolate the impact of book- binding relative to alternative technique that could have been used to take companies public.
Investors select investments that are consistent with enter the exchange market; some consider only low risk investments whereas others welcome high –risk investments. Today, stock investment is the easiest way to earn higher profit within very short time. For this proper information and guideline are needed. The investors need to understand the market. They need to analyze the market before investment. Investors who have no knowledge about market will to earn higher profit. Many investor in our country, invest to the stock by seeing others. They don’t feel necessary to analyze the market. For this one time they loss their money. The method of best use of investor money is shown below.
The Bangladesh stock markets are characterized by a small number of investors with a peculiarity that 80% of total demands for securities emanate from retail investors while the rest of the demands come form institutional investors. Such peculiarity not conductive to the stability of ashore market for the reason that frequency of share transactions by retail investors is high, and most of them invest on a short term basis due to small capital and a desire to earn quick capital gain. The investors in the stock market will increase of they get higher return from their stock investment. For higher return the investors can be increased through countrywide massive education programs on opportunities and risks as well as operations of the stock market.
1.2: Objectives of the Study:
To prepare and determine the best profitable and easy way of entering into stock market by investing the primary issuing shares or by investing the IPO is the main objective of the study. For this reason to achieve main objective, I have to select some specific and important objectives, which are shown below:
1. To know about the IPO.
2. To know about the rules and regulation and procedures of IPO. 3. To know about stock market of Bangladesh.
4. To know about Prospectus & its significance
5. To know about the effect of IPO on capital market.
6. To know about IPO pricing mechanism
7. To know & assess about IPO performance of Bangladesh
8. To identify problems & make suggestion to overcome it.
1.3: Methodology of the study:
The purpose of the Internship report is to identify, evaluate and compare the services and strategic plan of Chittagong Stock Exchange concerning the issue IPO of its present strategies and prospect. The Internship report focused on the services provided by Stock Exchange.
• To collect the primary data the following steps have followed to obtain the term paper report objective. • Interview with key in format that is the senior official of Stock Exchange, in order to collect information about the services of IPO. • Finally to know the customers overall understanding about the quality of service of IPO of Stock Exchange.
To collect the secondary data I had to depend on the various libraries, books internet and other facilities. Thus the secondary data that used in the project was taken form different books on investment...