Share Market in Bangladesh; Its Impulsive Attitude towards Investors and the Reasons behind These Spontaneous Changes

Khadiza Tul Tahera

Abstract: Financial Markets are absolutely vital for the proper functioning of economic activities as they serve to control funds from servers to borrowers. They play an important role by controlling the funds by those who can make productive and proper use of it. The financial market permits both business and government to raise the needed funds by selling securities. Simultaneously, the surplus units of the economy are able to invest and earn and return. Financial markets include primary markets where new securities are sold and secondary markets where existing securities are traded.  Investors invested money in share market by getting secret information, Investors are interested to purchase low price’s share all the time, Most of the investors invested money after taking loan from bank in share market, Much black money has been invested in share market, people instigate to new investors to enter the share market, the investors entered the share market to get the highest profit instead of other investing options. Investors collected money from various sources. . Bangladesh economy has grown at around 6% over the past 5 years, despite natural shocks and external volatility, and we believe that the best years for the country are ahead of us. The economy has the potential to grow by around 8% during the coming years and for that the investment must grow faster than the present rate. The investment climate in Bangladesh is quite attractive with policies for foreign investment that are among the most permissive in the region.  Bangladesh is open for foreign direct investment in all industrial sectors excepting for 4 reserve sectors (defense equipments, reserve forestry, atomic energy, currency printing and minting) mentioned in the Industrial policy. The Public Private Partnership (PPP) initiative in infrastructure investment announced by the government offer attractive long term investment opportunities for foreign investors.   Stock markets in Bangladesh are open for foreign portfolio investment by non-resident individual or institutional investors. But in the year 1996 and 2011 Share Market of Bangladesh feces a terrible crisis. The share market collapsed due to the presence of syndicates. The government could not take initiative to stable the market. Above all, the people have become very pessimistic to invest in Stock Exchange of Bangladesh.  This paper is all about share market analysis and the reason behind the crash in share market in these mentioned years.  I try to cover up all possible ways to stable this unpredictable market.

Title: Share Market in Bangladesh; Its Impulsive Attitude towards Investors and the Reasons behind These Spontaneous Changes

Author: Khadiza Tul Tahera

International Journal of Social Science and Humanities Research

ISSN 2348-3164 (online), ISSN 2348-3156 (Print)

Research Publish Journals

Vol. 2, Issue 4, October 2014 - December 2014

Citation
Share : Facebook Twitter Linked In

Citation
Share Market in Bangladesh; Its Impulsive Attitude towards Investors and the Reasons behind These Spontaneous Changes by Khadiza Tul Tahera