STOCK EXCHANGE OF BANGLADESH

Presented By Group- C
Raj Kumar Das Aminul Islam Md. Arif Clinton D Silva Lucky Akter

Definition of STOCK EXCHANGE

A Stock exchanges is a regulated market which provides services for stock brokers and traders to trade stocks, bonds and other securities.
According to Husband and Dockerary, "Stock exchanges are privately organized markets which are used to facilitate trading in securities."

Stock Exchange Basically Serve AsPRIMARY MARKETS SECONDARY MARKETS

PRIMARY MARKETS
Here corporations, governments, municipalities, and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures.

SECONDARY MARKETS
Here investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system.

STOCK EXCHANGE IN BANGLADESH

DSE
Dhaka Stock Exchange

CSE
Chittagong Stock Exchange

Dhaka Stock Exchange

Dhaka Stock Exchange (DSE) is the main stock exchange of Bangladesh.

It is located in Motijheel at the heart of the Dhaka city.

It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country.

Legal Control
The Dhaka Stock Exchange (DSE) is registered as a Public Limited Company and its activities are regulated by its Articles of Association rules & regulations and bye-laws along with the Securities and Exchange Ordinance - 1969, Companies Act 1994 & Securities & Exchange Commission Act 1993.

Formation
Dhaka Stock Exchange (DSE) is a public limited company. It is formed and managed under Company Act 1994, Security and Exchange Commission Act 1993, Security and Exchange Commission Regulation 1994, and Security Exchange (Inside Trading) regulation 1994.

Chittagong Stock Exchange (CSE)

HISTORY :
The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City through the cry-out trading system with the promise to create a state-of-the art bourse in the country.

Chittagong Stock Exchange (CSE)

VISION
Aspire a global standard transaction place of securities and financial product.

Chittagong Stock Exchange (CSE)

MISSION
Practice a set of core values to build competency in compliance, diversification and technology so that an accessible platform, market confidence and wealth maximization scope can be ensured.

Chittagong Stock Exchange (CSE)

CORE VALUES
Value for people Transparency Excellence Harmony Commitment Integrity

Objectives of the Stock Exchange

Capital Formation:
One of the most important objectives of a stock exchange is capital formation. This refers to the accumulation of vast quantities of money necessary to start large ventures.

Connecting Traders: The stock exchange also facilitates trading. One of

the advantages of corporate organization is that stakeholders may sell their interest to another party. At any one time, hundreds or even thousands of individuals may wish to sell their shares of stock, while as many investors may wish to purchase the same security.

Objectives of the Stock Exchange

Security:
The operators of stock exchanges, in cooperation with their governments, have designed and implemented laws and regulations determining how the system should function. These rules are intended to protect the investor from unfair advantages

Economic Indicator:

Though not originally intended to function as such, stock exchanges also work as instruments to quantify the state of an economy.

Objectives of the Stock Exchange

Increase business turnover
Modernize trading system Ensure effective relationship management

Achieve high level of confidence & professionalism

Engage in product and market diversification

Contribute to capital market policy development

Ensure exchange related quality services

Functions of Stock Exchange

Stock exchange provides a ready and continuous market for purchase and sale of securities. Stock exchange is useful for the evaluation of industrial securities. Stock exchange serves as a platform for marketing Government securities.

Functions of Stock Exchange

Stock exchange indicates the state of health of companies and the national economy. Listing of Companies Market Administration & Control. Market Surveillance. Investors Protection Fund

STOCK TRADING
OVERVIEW:
The marketing of the securities on the stock exchange can be done through member of the stock exchange. These members can be either individuals or corporate bodies. Broker is the member of recognized stock exchange and helps the customers in buying or selling the securities for the brokerage that he receives.

Trading Method
Negotiate the best price for the trade.
Settle the account, i.e. payment for securities sold on due date.

Take delivery of securities purchase.

TYPES OF TRADING
Trading in stock exchange is conducted in two ways:

1. Ready delivery contract. 2. Forward delivery contract.

BASKET TRADING SYSTEM

The Basket Trading System provides the arbitrageurs an opportunity to take advantage of price differences in the underlying Sensex and Futures on the Sensex. The Exchange has commenced trading in the Derivatives Segment with effect from June 9, 2000 to enable the investors to, inter-alias, hedge their risks. To participate in this system, the member-brokers need to indicate number of Sensex basket(s).

PROCEDURE OF TRADING
1. Select broker

2. Opening an Account with the Broker

3. Placing an Order

4. Selection of Time for Trading

5. Selection of Securities

6. Preparation of Contract Note

7. Settlement

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