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General Information

What is the Stock Exchange? The stock exchange provides a sound and stable securities market where shares can be bought and sold.

What is the Role of the Stock Exchange? The stock exchange provides listed companies with a channel seek capital fund from the public and at the same time It provides the investors a place to buy and sell shares of the listed companies. The exchange also monitors the market to ensure that it is working efficiently, fairly and transparently.

How many Stock Exchanges in Bangladesh? There are Two stock exchanges in Bangladesh: 1. Dhaka Stock Exchange Ltd. - Established on 1954 2. Chittagong Stock Exchange Ltd. - Established on 1995 Of these, Dhaka Stock Exchange is the biggest stock exchange in the country.

How do you select the company Before You Invest? Don't put in your money until you have understood all relevant information regarding the investment. Prepare yourself for the vigorous homework of analyzing company's annual reports, EPS (Earning Per Share), accounts and other statements while keeping abreast of what's happening in the industry, country and elsewhere that may affect your investment. Consult your investment adviser/broker to get latest market information about shares you intend to buy or sell. Be skeptical of any thing picked up from rumors, particularly if you cannot rationally explain their choice.

Why Do Investors Think For Long-term Investment?

Bear in mind that even in the best of securities/shares, there can be short-term aberrations. It is important to have the power to hold your investments for longer periods. Studies have shown that investments properly timed and based on strong fundamentals have been very profitable for investors in the longer term. What is 'Book closure' / 'Record Date'? While a company a dividend, right/ bonus shares or intends to hold any AGM/ EGM; it declares a book legislature closer provider/ Record Date to register the name of shareholders. Only shareholders whose names appear on the register after the book closure/ Record Date are eligible to attend in the AGM/ EGM and also to receive dividends & bonus shares and entitlement to right shares, if any.

Market Related Information

What is the trade time of DSE? Generally Trading Time is from 11:00 am to 03:00 pm. Working Days: Sunday to Thursday What are the measures of market performance? There are four indicators of market performance:

Market Capitalization Value Turnover Traded Volume Index

What Investment Products are Available? The following types of securities are available on the stock market for investment:

Ordinary shares of listed companies Mutual funds Debenture Bond

What is 'Share' ? Each share represents a small stake in the total paid up capital of a company. In fact a public limited company is one that is formed to accumulate capital from a large pool of investors. Therefore total capital of such companies is divided into smaller equal denomination units represented by a share/ capital. One may buy large or small lots to match the amount of money that one wants to invest. A company's share price can rise or fall as a result of its own performance or market conditions. Once the shares are bought and transferred to new investors name, the name will be entered in the company's share register, the new investors will then be entitled to receive all the benefits of share ownership including the rights to receive dividends, to vote at the company's general meetings and to receive the company's reports. What is 'Market Capitalization' ? Market Capitalization is the total market value, at the current stock exchange list price of the total number of equity shares issued by a company. Market Capitalization = (No. of Issued Share * Close Price) What is 'IPO' ? Initial Public offering. IPO means while a company wants to raise fund from the general public, it goes for public offering after completing necessary regulatory compliances. What is 'Circuit Filter' ? Circuit Filter is the maximum permissible deviation of the price (specified as percentage), of an aggressor order from the last trade price. What is 'Circuit Breaker' ? Circuit Breaker is the maximum permissible deviation of the price (specified as percentage) of the incoming order from the Circuit Breaker Base Price for that instrument. Orders violating circuit breaker will result rejection of the order. What is 'Market Lot' ? A Market Lot is the smallest tradable unit for an instrument except those traded in the Oddlot book. All order quantities can only be an integral multiple of the Market lot. What is 'Odd Lot' ?

Stock market shares are generally bought and sold in market lots, which are easy to trade. Any number of shares less than the market lot makes an odd lot. Odd lots typically arise from bonus or rights issues. What is 'Touchline Price' ? The Touchline Price for an instrument is the best offer (sell) and best bid (buy) price amongst all orders in the order book. The touchline buy price is the highest price amongst all buy orders and the touchline sell price is the lowest price amongst all sell orders. How orders are queued for trading? Orders are queued and traded according to first on price and then time priorities. Bestpriced orders traded first. If there is more than one order at the same price, the order is placed by time priority. What are the groups of instruments in DSE? The groups of instruments in DSE are: A, B, G, N and Z . Share Categorization: A, B, G, Z & N The prime bourse of the country introduced "Group A" and "Group B" from July 2, 2000 based on its financial strength and performance to give clear information to investors for taking informed decision. DSE has further categorized the securities by introducing "Group Z" which came into effect from September 26, 2000. The Stock Exchange introduced another company category "Group G" on June 30, 2002. The categorization helps a lot the investors in choosing companies before making investment decision. N Category- the newest one was launched through an order of SEC on July 3,2006. Criteria of the Share Category is as follows A Category Companies: Companies which are regular in holding the Annual General Meetings and have declared dividend at the rate of 10 percent or more in a calendar year. (Mutual Funds, Debentures & Bond are being traded in this Category) B Category Companies : Companies which are regular in holding the Annual General Meetings but have failed to declare dividend at least at the rate of 10 percent in a calendar year. Z Category Companies : Companies which have failed to hold the Annual General Meetings or failed to declare any dividend or which are not in operation continuously for more than six months or whose accumulated loss after adjustment of revenue reserve, if any, is negative and exceeded its paid up capital. G Category Companies : Greenfield Companies.

N Category Companies : All newly listed companies except Greenfield companies will be placed in this category and their settlement system would be like B-category companies.