Problems and Prospects of Capital Market in Bd

In the historical balance sheet we can see a very important decrease of the short-term debt, so UGC could also increase this debt. Obtaining cash from the stock market, negotiate an increase of the number of days of the accounts payables, reducing inventory or decreasing the number of days in their accounts receivable could also be very important cash resources. Still, it is difficult to estimate the financial need due to the fact that we cannot forecast the cash from operations.

Introduction to the Financial System Financial Instruments Financial instruments can be: • Equity This is usually through the selling of common shares and/or common stock. It gives the buyer some ownership of the firm and thus, voting power when it comes to electing the board of directors. Debt This is money that is borrowed from someone else. Debt must be repaid at set intervals. Debt can be divided into short and long-term debt. This should follow the matching principle where short-term assets should be funded with short-term debt.

Capital can come from state and corporate pension funds, public and private endowments and personal investors

From a perilous beginning, Bangladesh has attained notable advancements in economic and social development in about four decades. Since it won its independent in 1971 following a bloody war, many, in the international community were doubtful about the country’s long-term economic sustainability. Some observers predicted a state of continuing aid dependency, while others believed if a country with such enormous and innumerable development problems as Bangladesh could make strides in development, then possibly other developing countries could as

Item 5.|  |MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES|  | |20|  |

what was available for the suppliers of capital (that is, creditors and owners). An alternative cash flow,

Any excess amounts go first to repayment of short-term borrowings and then to investment in marketable securities. When cash is needed to reach the minimum balance, the company policy is to sell marketable securities before borrowing.

(ii) An account for each unit setting forth any shares of common expenses or other charges due, the due dates thereof, the present balance due, and any interest in common surplus.”

2) Proprietary Funds - Used to account for "business-type" activities, where the collected fees from customers are used to account for the provided services (i.e. trash collection).

The money the private company raises through the issuance of shares is either transferred to the original investors of the company, used to pay-off existing debt, used to finance operating

the liquidation of these pools of assets. These investors would assume the risk of nonpayment on

Debt securities include very debt tool that is available for buying and selling inside two groups and have understanding of some common terms like the notional amount or also known as the borrowed amount, maturity or renewal date and interest rate. Debt securities involves corporate, government and municipal bonds, CDs, collateralized securities ( like CDOs, CMOs, GNMAs) and zero coupon securities. (Investopedia, 2015). On the financial records, the debt securities are documented in the type of bonds, collateralized securities and preferred stocks.

160-161). Once these options are reviewed then one can make that optimal decision as to what type of investment would be the best options to choose from. Next, is bonds which is a financial instrument, that is issued by a corporation or government entity and is required to be paid back; known as an IOU. These will mature overtime and gain face value, and usually come in all types and varieties to choose from; some taking as long as 100 years to reach it maturity date. Lately, is mutual funds and EFT’s, these are securities that are held in different sectors and eliminate any form of risk compared to other investment; known as the closed-end fund or the open-ended fund. So, what is a “close-end fund, is a fixed amount of dividends in a portfolio of assets; where shares of a closed-end funds can be traded among investors much like stocks” (Kelly & Williams, 2017, pg. 163).

Personal investment is defined as an individual invest and manage their own financial instrument, such as, stocks, bonds, property and others. This personal investment is in aims of improve the liquidity and efficiency of the equity and capital of the individual. Basically, the individual investors have to develop their own investment plan and framework based on different characteristics of the individual investors. This is because the personal investment is very subjective, whereby it is totally based on the characteristics and the degree of risk tolerance of the individual investors. However, before investing into the financial instruments, the individual investors should develop an investment plan and strategy. This

Bangladesh is a south Asian country and has an approximate population reaching 164 million. The manufacturing industry is what Bangladesh is known for. That industry also accounted for almost 12% of GDP in 2009 and 2010 with employing over four million people (The Bangladesh Accord Foundation, 2014). The labor force is made up of young, urbanizing, mainly women. Bangladesh accounts for approximately 78% total exports (The Bangladesh Accord Foundation, 2014), which is second to China.