Capital Market Is The Lifeblood Of Business And Industry

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1.0 Introduction

Capital is the lifeblood of business and industry and capital market is the main source for raising capital. It provides long-term fund for industries and creates investment scope for the mass. Capital market plays a vital role in industrial, and thus overall economic, development of a country. Bangladesh stock market seems to be extremely volatile; the price fluctuations of this market are so high. As a result, confidence of investors in the market place fell drastically during the two bubbles-burst episodes. Market insiders said that this lack of confidence following the ongoing liquidity crisis in the market is due to lower participation of investors. This upward and downward swing is a characteristic feature of the market and is termed as stock market volatility.
The year 2010 was noticed as the abnormal bullish trend with all the barometers touched the historical height, consequences has been happened in year 2011 as all the barometers gone to the bearish condition. As a result most of the individual investors who are the middle class earning investors lost their valuable money.

Most of the time, the collapse is attributed by the negative attitude of investors, liquidity crisis, insider trading, placement shares, stock split, omnibus account, strong manipulation and money whitening. Hence general investors have lost confidence on the capital market an they are the victims. It is true that the market does not move on its own accord, there are forces
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