STOCK EXCHANGE

A stock exchange is an entity that to provides and "trading" facilities Stock

for stock brokers and traders,

trade stocks, bonds,

other securities.

exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks (see stock valuation). There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities.

Some of the worlds top stock exchangers are New York Stock Exchange, Tokyo Stock Exchange, London Stock Exchange, Toronto Stock Exchange, Frankfurt Stock Exchange, Madrid Stock Exchange, Hong Kong Stock Exchange.

Organized and regulated financial market where securities(bonds, notes, shares) are bought and sold at pricesgoverned by the forces of demand and supply.S t o c k exchanges basically serve as (1) primary m a r k e t s wherecorporations, governments, municipalities, and otherincorporated bodies can raise capital by channeling savingsof the investors into productive ventures; and (2)secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system. Stockexchanges impose stringent rules, listing requirements, andstatutory requirements that are binding on all listed andtrading parties. Trades in the older exchanges are conducted on the floor (called the 'trading floor') of the exchange itself, by shouting orders and instructions (calledopen outcry system). On modern exchanges, trades are conducted over telephone or online. Almost all exchanges are 'auction exchanges' where buyers enter competitive bids and sellers enter competitive orders through a tradingday. Some European exchanges, however, use 'periodicauction' method in which round-robin calls are made once a trading day. The first stock exchange was opened in Amsterdam in 1602; the three largest exchanges in the world are (in the descending order) New York Stock Exchange (NYSE), London Stock Exchange (LSE), and theTokyo Stock Exchange (TSE). Called also stock market. See also exchange.

Dhaka

Stock

Exchange (Generally It is

known located

as

DSE) the

is heart

the of

main stock exchange of Bangladesh.

in Motijheel at

the Dhaka city. It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country. As of 18 August 2010, the Dhaka Stock Exchange had over 750 listed companies with a combined market capitalization of $50.28 billion. The major functions are: Listing of Companies.(As per Listing Regulations). Providing the screen based automated trading of listed Securities.

Settlement of trading.(As per Settlement of Transaction Regulations) Gifting of share / granting approval to the transaction/transfer of share outside the trading system of the exchange (As per Listing Regulations 42) Market Administration & Control. Market Surveillance. Publication of Monthly Review. Monitoring the activities of listed companies. (As per Listing Regulations). Investors grievance Cell (Disposal of complaint bye laws 1997). Investors Protection Fund (As per investor protection fund Regulations 1999) Announcement of Price sensitive or other information about listed companies through online.

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.

Executive Committee
Mr. Md. Shakil Rizvi President, DSE

Mr. Mohammed Nasir Uddin Chowdhury Senior Vice-President, DSE Mr. Md. Rafiqul Islam Vice-President, DSE Mr. Md. Rakibur Rahman Director, DSE Mr. Ahmed Iqbal Hasan Director, DSE

Mr. Saiful Islam Director, DSE Mr. Md. Feroz Khan Director, DSE Mr. Khwaja Ghulam Rasul Director, DSE Mr. Sharif Ataur Rahman Director, DSE Mr. Md. Shahjahan Director, DSE Ms. Lailun Nahar Ekram Director, DSE Mr. Masudul Haque Director, DSE

DSE Vision 2013

Market-based Targets To increase market capitalization from US$13 billion to US$ 30 billion. Market Capitalisation to GDP ratio shall increase to 35 per cent from its present contribution of 19.74 per cent. Daily trade volume to increase from Tk 300 core to Tk 2,000 crore. Trading facilities to expand across the country. Introduction of Book Building Method

Introduction of Financial Derivatives Fixed income investment market to be activated. Introduction of Internet trading 3 million families to integrate with the trading.

Internal Visions for DSE

To set up true On-line National Clearing House. Review necessary Rules and Regulations to match vision 2013. Strengthening Investors awareness program.