Bangladesh Capital Market Problems & Prospects

Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign Exchange Market Page 40: Factors that Influence the Exchange Rate Page 42: Futures Contracts and Forward Rate Agreements Page 47: Options

In Frontline’s The Meltdown, the causes of the stock market crash of 2008 came into discussion. The topics regarding Bear Stearns, the Lehman Brothers’ and their collapse, and the huge bailout made in results to the market crash. There were great points being made on the mistakes Henry Paulson and Ben Bernanke did not view from their perspective, which in turns were the problems that made up the crash.

So what does this really mean? It means if a company puts their stock up for sale on the market you can buy a partial ownership of the company. Your portion of ownership depends on the amount of shares you purchase in a particular company. When you purchase a share of the company you own that percentage of everything the company owns and makes and can have a decision on the company. The two most common types of stock are common, the typical traded stock that everyone is use to and comes with voting rights, and preferred, doesn't usually come with voting rights and typically offers some form of guaranteed fixed dividend forever. Features of stocks are easy to buy and sell, no guarantee of return, may make huge profits fast or lose value just as quick, requires monitoring. Stocks are traded on "The Market", meaning they have to be bought and sold through a stock market. With regulations just anyone can't buy or sell on the market, it has to be a licensed broker to carry out the transaction. Stock buying and selling can take a lot of time and research to make the most profit. If you can find a broker, you trust they can really help you with your investment. Stocks are one area of investment, more so than bonds, you need to be sure you can stand to lose the money if the market doesn't work

The common stock is a security that represents ownership in a corporation. It is calculated below.

Financial crisis is really a major concern for all economies in the world. Every time a crisis occurs, companies, banks and financial institutions should draw their own lessons, because if the lessons are not recognized, they may still go on the trail of failure of

The “Stock Market” is a term that actually describes several markets such as the New York Stock Exchange NASDAQ, where the stocks of companies are traded. Shares in a company are sold and the shareholders then become part owners of the company. Offering shares of stock raises money for continued research and development of company products or services.

A stock market is a place where shares or stocks in a company are bought and sold. An example of a stock market is the New York Stock Exchange.

When you buy stock you are purchasing a part of a corporation. The ownership of the corporation is divided into shares of common

In the late 1990’s, there was a boom and bust on information technology stocks. Because of that, a mild recession happened in 2001. The mild recession made people have over confidence to the stability of financial system and the whole economy. Therefore, the authorities started to ignore the work of keeping financial stability.

Being a stockholder can have great rewards like a viable source of income, or an eggs nest for retirement, however it does have its downsides as well. Owning stock in a corporation bears the risk of losing all one’s investment if the company goes bankrupt. Aside from financial benefits, owning stock allows stockholders to have a voice (however small it may be) in the company’s direction.

The impact of the financial crisis in 2008 is so far , it has resulted in various industries have revived a shock, even many large companies have been forced into bankruptcy.Inflation is a result of the decline in the quality of life, the weakening of people 's ability to pay. The outbreak of the financial crisis from the United States and then spread to the world,so this essay analyzes the reason of the US financial crisis, it is equally applicable to the countries in the world and take warning,that is the lack of supervision of financial institutions in the United States.

There are a few terms new stock investors should learn before actually beginning to put money into the stock market. You hear words like “shares”, “assets”, and even “earnings” when you watch or listen to people on the television. Shares are a percentage of the company, if you buy a share; you own a small percentage of it and its earnings. Earnings are all the money that the company makes. Assets involve all the company owns, for example, trademarks, equipment, and even the buildings their workers work in. Companies put their assets and

When the financial crisis during 2008 hit the economy, people panicked. In an attempt to stabilize the market, the government took action. The various actions taken in 2008 by the Department of the Treasury and the Federal Reserve Bank, as well as the new regulations proposed and implemented by the Securities and Exchange Commission, were generated to reduce and mitigate the systemic risk created by the Money Market Mutual Funds. These actions and regulations, as well as the systemic risk created, will be addressed during the upcoming paragraphs.

As a government, it requires its ability and being able to express the reality completely for all people. They should release the power from the previous level supervising authority and verify the lawful financial information. Ideally, this suggestion can avoid the financial crisis based on the failure of credit department. From research and development investors’ point of view, even though the U.S. fiscal deficits year after year, but research funding has continued to increase (28). Nowadays, the financial crisis has got more severed. Thinking of the investment banks have performed the significantly technical positions in the financial history. Banks help raising money for the new company, and the product that they buy is raising comprehension of investors' interest in technology companies. Despite of the global financial depression, high-tech industries’ profits are still rising.

Stocks (or shares), by definition, are shares of ownership in a company. By purchasing stocks in a company, the investor becomes a part owner, and thereby owns a percentage share of the company’s after tax profits. Stocks/shares have two key characteristics: 1) they can be issued in small denominations: an investor can purchase as many or as few shares in a company as he/ she wants, thereby becoming a