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A Study on Recent Stock Market Crash in Bangladesh.

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Introduction:
Currently share market is well known to all. It is known that the economic stability and prosperity of a country depend on the condition of her share market. Many brokerage houses are now operating in our country to help investors. When Bangladesh economy looks like a good shape based on capital/share market, that time Trading on the Dhaka Stock Exchange index was halted after it fell by 660 points, or 9.25%, in less than an hour. Chittagong Stock Market also met a similar fate. An abrupt crash of the market sparked violent protests from the Bangladeshi investors. It was the biggest one-day fall in its 55-year history. It is estimated that over three million people - many of them small-scale individual investors - have lost …show more content…

A good portion of the investments in Bangladesh stock exchange are trend-driven and unfortunately even rumour-driven.

Omnibus Account used as Umbrella
At least Tk 2,500 crore has been traded from hidden or omnibus accounts used as a major tool of stock market manipulation, according to the government probe body on the recent market debacle. The syndicate players of the Investment Corporation of Bangladesh (ICB) traded Tk 2,348 crore from nine omnibus accounts of the ICB alone. An omnibus account is a stock holding account that involves more than 10,000 investors although actual shareholders, individual investors don't have the accounts in their names.
Most big players chose omnibus accounts to gamble in the market, as it's not possible to find out issue-wise or client-wise transactions of actual number of shares from omnibus accounts. The committee sampled 10 players and examined their accounts from which transactions between Tk 21 crore and Tk 900 crore were made.
The committee held responsible 30 big players including the ICB for the share market debacle and said most manipulators traded from omnibus accounts. Some big players manipulated the stock market through omnibus accounts during market swings.

Share Splitting used as a Tool to Inflate Prices
Split of shares used as a tool to sweep up small investors' money had been a major reason behind the massive price inflation on the stock market

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