Determinants and consequences of crash of the capital market and suggested action for improving the situation
(Chapter – 1: Background Information)
Dr. Khairul Islam Professor Department of Finance University of Dhaka
Group No: Name Md. Khaledi Fahmin Mohammad Wares Uddin Khubaib Md. Golam Muqtadir Md. Shahidul Islam Md. Rashidul Hasan Khan Id No 11-075 11-115 11-169 11-175 11-181
Date of Submission: March 5, 2011
absence of bull cartel.1 Rationale of the Study For a sound economy smooth operation of capital market is necessary.Determinants and consequences of crash of the capital market and suggested action for improving the situation
Chapter – 1: Background Information
1. • To enumerate the association between crash of capital market and presence of bull cartel. contractionary monetary policy etc. concern of both individual & institutional investors.2 Objectives of the Study This study has some objectives. If it happens there will be adverse impacts on the whole economy. If there are significant deviations in the above factors. These are: • To identify the determinants accounted for the crash of the capital market. less inflation.
. share market is going to face a crash. share market is a very important sector of an economy. proper pricing. • To find the actions necessary for overcoming the crash of the capital market. As a source of financing. For the smooth operation of stock market demand supply equilibrium of stocks. shortage of supply of stocks. • To illustrate the consequences of crash of the capital market on the economy. To overcome crash proper maintenance of the above factors are necessary. too much inflation. active presence of regulatory bodies and proper regulations are necessary. 1. expansionary monetary policy.