PRESENTATION ON STOCK

Presented By: EXCHANGE

Sultana Nasrin ERA ID#14.02.02.010
Shakhawat Rinik ID#14.02.02.014
Syed Sadman ID#14.02.02.017
Fatima Jahan Prity ID#14.02.02.019
Tanzia Nur Ahmed Fariha ID#14.02.02.031
Mehedi Hasan ID#14.02.02.038
Mehedi Maruf ID#14.02.02.040
MEANING OF STOCK EXCHANGE
.
HISTORY OF STOCK EXCHANGE
The stock exchange was established by East
INDIA company in 18th century. In INDIA it was
established in 1850 22 stock brokers opposite to
town hall Bombay. This stock exchange is known as a oldest
stock exchange of Asia.
FEATURES OF STOCK EXCHANGE
o It is an organized market.
o It is a securities market.
o It is a voluntary association of persons desirous of
dealing in securities.
o Stock exchange is a voluntary association its
membership is not open to everybody.
o In a stock exchange only members can deal i.e. buy&
sell securities.
IMPORTANT FUNCTIONS OF STOCK
EXCHANGE
o Equalization of price of securities.
o Smoothen price improvement.
o Increase the marketability and liquidity of securities.
o Help capital formation.
o Provide forecasting service.
Initial Members Who Are Still Running In
Their
Business In Stock Exchange Are:-
 D.S. Prabhudas &company.
 Jamnadas Morarjee.
 Champak lal Devidas.
 Brymohan Laxminarayan.
TYPES OF SHARES
PROCEDURES OF PURCHASES SHARES
Investors Selection
Delivery of of broker
shares &
money Open A/C
with
member
Confirmatio
n to the Order
office Placeme
nt

Information to Kinds of
Order execution order
the operator
WHY IN IPO PREMIUM IS CHARGED
The business is started before the issues of
shares, the income statement and the
balance
sheet shows better performance.
DIFFERENCES BETWEEN BROKER & JOBBER
BBbbBbbbJobber
1.A jobber is an independent
securities Purchasing or selling
securities on his own account.
2.A jobber earns profit from his
operations i.e. buying and selling
activities.
3.Each jobber specializes in certain
groups of securities.
Broker
1.A broker deals with the jobber on
behalf of its client. in other words a
broker is a middleman between
jobber and clients.
2.A broker gets only commission
for his dealings.
3.The broker deals in all types of
securities.
WHY TO INVEST IN STOCK EXCHANGE
 Security
 Liquidity
 Profit
i. Dividend
ii. Market fluctuations
iii. Bonus and right shares
 Tax relief.
HOW TO DEAL AND INVEST IN STOCK
EXCHANGE
In order to deal with a securities one has to have an
account called Demat a/c Trading a/c .It is just like a
bank account. Same procedures opening the bank
account is followed to open the a/c. But all the banks
account does not give the facility for opening the
account. Only few banks provide the facility. After
Demat a/c or Trading a/c is opened than the securities is
brought and sold.
SEC REGULATING THE DSE & A CSE
D
SE

SEC

C
SE
SECURITIES AND EXCHANGE
COMMISSION
 It is the regulatory body of Bangladesh
capital market.SEC regulating the
DSE(Dhaka Stock Exchange) and
CSE(Chittagong Stock Exchange).
 SEC defines working process rules and
policies under which the stock exchange
will be operated.
DHAKA STOCK EXCHANGE

The Dhaka Stock Exchange (DSE) : located in

Motijheel, Dhaka. In 2015, the combined of
market capitalization listed companies on the
Dhaka bourse stood at over $40 billion. The
central government proposal for the Karachi
stock exchange opening a branch at Dhaka but
this did not favor cause we wanted a
independent stock exchange. Formal trading
started in 1956.
REGULATORY STRUCTURE
Parliament of Government of Peoples
Republic of Bangladesh

Ministry of Finance

Securities and Exchange Commission

Dhaka Stock Exchange LTD.(DSE)

Corporate Members of DSE

OBJECTIVES
 Ensure steady domestic and offshore
institutional investments of at least three fourth
of the total investments in the market.
 Attract more foreign investments to attain a
steady level of at least 30% of the total market
capitalization.
 Double the total number of listed securities
(other than Government Bills and Bonds).
 Increase depth and liquidity of bond market,
including bringing in the Government
Securities under trading net.
FUNCTIONAL AREA OF DSE
 Monitoring the activities of listed companies.
 Publication of monthly Review.
 Protecting the investors fund.
 Administration the controlling market.
 Providing the screen based automated trading
security.
CHITTAGONG STOCK EXCHANGE
The Chittagong Stock Exchange is a stock exchange
based in the port city of Chittagong Bangladesh. It is one
of the twin financial hubs of the country alongside
Dhaka
stock exchange. The exchange is located in the Agrabad
business district in downtown Chittagong. The
Chittagong Stock Exchange (CSE) begins its journey 10th
October of 1995 from Chittagong city through the cry-
out
trading system with the promise to create a state of the
art- bourse of the country.CSE was formally opened by
then Honorable Prime Minister of Bangladesh on
OBJECTIVES
 Increasebusiness turnover.
 Modernize trading system.
 Ensure effective relationship with
management.
 Engage in product and market diversification.
FUNCTIONS
 Listing of securities and ensuring compliance
by the issuers.
 Over the counter market (OTC) and internet
based trade facilities provide by CSE.
 Management of the members.
 Clearing and settlement of executed members.
 TRADING SYSTEM OF CSE
 Chittagong Stock Exchange was the first stock exchange in the
country to introduce automated trading system on June 1998.The
trading system at CSE known as a CHITTRA at that time. It
connected major cities of Bangladesh enabling all members to trade
nation wide simultaneously with ease and efficiency.CHITTRA
provided a screen based, quota driven trading facility. Investors were
allowed to quota an expected price in their buy and sell
orders.CHITTRA automatically the best prices.
MEANING OF RECORD DATE

The record date is the cut-off date established by a

company in order to determine which shareholders are
eligible to receive a dividend or distribution. The
determination of a record date is required to ascertain
who the company's shareholders are as of that date,
since the shareholders of an actively traded stock are
continually changing. The shareholders of record as of the
record date will be entitled to receive the dividend or
distribution declared by the company. Also known as the date
of record.
MEANING OF STOCK MARKET
 A stock market or equity market is a market for the
trading company stock(shares) and derivitaties at
an agreed price.
 The Bangladesh Securities and Exchange
Commission(BSEC) is the regulator of capital
market of Bangladesh compromising Dhaka Stock
Exchange(DSE), Chittagong Stock Exchange
(CSE).The commission is a statutory body and
attached of the Ministry of Finance.
STRUCTURE OF STOCK MARKET

Capital Market

Primary market Secondary market

FUNCTIONS OF STOCK MARKET
 It provide ready market for securities.
 It helps in price discovery of securities.
 Helps in capital generation process.
 Encourages capital information.
 Promotion of investment.
 Help capital formation.
Why does the price of share price increase or
decrease in the market:
 By this we mean that share prices change because
of supply and demand. If more people want to buy
a stock (demand) than sell it (supply), then the
price moves up. Conversely, if more people
wanted to sell a stock than buy it, there would be
greater supply than demand, and the price would
fall.
PROBLEMS OF STOCK MARKETS IN
BANGLADESH
The unexpected rise and fall in share prices mostly
followed from the general confidence of the investors
about political stability, euphoria of investment in
shares, prospect of quick capital gains, a vacuum in
respect of institutional presence in the share market,
monopolistic dominance of member brokers. The
problems of DSE, CSE may be summarized as under:
 Price manipulation
 Delays in Settlement
 Irregulations in Dividends
 Selection of Membership
 Improper financial statement
IMPROVE THE ACTIVITIES OF STOCK MARKET
 To introduce automated monitoring system that may
control price manipulation.
 To introduce full computerized system for settlement
of transactions.
 To force the listed companies to publish their annual
reports with actual and proper information.
 To take remedial action against the issues of fake
certificate.
CONCLUSION
Can make a lot of money investing in stocks or
trading in the stock but it is not something for
the new investors. Care must be taken when it
comes to stock investments.