| dc.description.abstract | Capital markets are very important to make a capital or fund for the country from the
people lend this fund as loan and advances to the borrowers in different sectors of
the industry. Capital Market play a very important role in both national and
international trade.
This report is prepared for fulfilling a partial requirement of both M.B.A. and the
internship program. The report will mainly focus on the Investment decision taken
by an investor in Capital Market. It will also focus on operation of Brokerage house.
Time is a major limiting factor while preparing the report. The report had to be
prepared in these months of my Job experience. There were scarcity of written
documents about the facilities and other related things. Much information could not
be gathered for the reason of confidentiality.
Capital markets are financial markets for the buying and selling of longterm
debt or equity‐backed securities. These markets channel the wealth of savers to
those who can put it to long‐term productive use, such as companies or governments
making long‐term investments. Capital markets are defined as markets in which
money is provided for periods longer than a year. Investors commonly
perform investment analysis by making use of fundamental analysis, technical
analysis and gut feel.
Investment decisions are often supported by decision tools. The portfolio theory is
often applied to help the investor achieve a satisfactory return compared to
the risk taken.
The Mercantile Bank Securities Limited has started its Brokerage operation in 29th
June, 2009.They help investor to open a BO account and Make an investment decision
for buy and sale of shares. For this it provides loan in medium interest rate, less
commission and important suggestion with no supervision charges. Recognizing the
demand in Trading of the instruments, the MBSL offers a simplified investment
decision for increasing Trading finance in Capital Market. For financing Share Market,
MBSL is giving different kind of facility, the time these customers will take to
relationship –Trade finance (instead of product‐based) gives a further boost to the
sector.
Capital Market of Bangladesh is passing tough times since December 2010 as high
volatility is eroding the capital of Thousands of Investors that might turn into social
instability. This fall is caused by many factors which was tried to identify and tried to link
up between The Causal factors of market crash and regulatory failure. Primary issue
related problems was faulty listing methods and IPO overpricing, few numbers of
new listings, revaluating assets before company listing, high premium in issuance of
right share/Repeat IPO etc. while secondary market related problems was stock
splits and stock price manipulations through block trading, circular trading and
insider trading. Investor’s greed and irrational behavior played a big rule to make
the stock prices sky rocking as they were crazy to buy shares without judging the
company fundamentals. Shares of the companies with closed operations and big
accumulated losses were rising constantly due to investors high risk appetite that
caused them to loss everything. Government had already taken many steps
(including SEC reforms) to stabilize the market but failed as investors confidence is
in the bottom level. Government and regulators should work together to identify the
main speculators and should brought under proper trial to bring investors back to
the market. Regulator should make reforms on Listing procedures and other faulty
regulatory frameworks to ensure transparency and efficiency in the capital market
and also should bring clear guidelines regarding Private Placements, Asset
Revaluation, insider training, Dealing with omnibus account etc.
Now a day’s SEC & DSE has taken many steps to correction the market .DSE has
started new index system ,new price value of shares .They have also introduced the
new implemented system to software which was used by NASDAQ . In this case the
markets analysis would be predicted that this will help to implement the share
market. | en_US |
