Stock market crisis in bangladesh in

Protests were also fueled by the Finance Minister's comments on the secondary markets in Octoberwhen he said, "I don't know how it will get right.

Stock market crash in 2010

They find that the increase in retirement attributable to the rising unemployment rate will be almost 50 percent larger than the decrease in retirement brought about by the stock market crash. The consumption expenditure of the investors has been reduced by as much as 30 percent. It seems that regulators have failed to address the problems faced by both the issuers and the investors adequately. This essentially has matched with the expected scenario of our market since most of the individual investors have small amount of investment in the market. Boone, L. Savings was largely affected for the Very Large investors. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, gross domestic product, inflation rate, cost of goods and services, infrastructure, national economic growth, economic and political stability, environmental quality, climate and safety which things are totally not feasible in our country because of current situation of stock market. But unfortunately, there has been no such efforts taken by the regulators or government or academicians in Bangladesh. Investment value was down at the highest level for small investors. Some common problems are: a Rapid expansion of money supply, b rise in asset price due to increased inflation, c rise in interest rate due to less credit facilities for private sectors, d instability of domestic reserve and exchange rate mismanagement, e commercial banks making huge profit from the asset price surge, f lack of corporate governance and non-implementation of financial reporting act, and g illegal business of MLM companies. Because immediately after any such big crisis, it expected that there will be a large negative impact on the livelihood of the people.

He derives from post war data an MPC on these capital gains of about 0. They find that the Australian Historical Roy Morgan Consumer Confidence data continuously measured since shows dramatic events, such as the stock market crash and that of "September 11" have had a significant effect on Australian Consumer Confidence.

Share market crash in bangladesh 2010

He said that the stakeholders put emphasis on the quality IPO to recover confidence over the market. This chain effect has been quite evident in the latest crisis. Green states that given the heavy concentration of the stock ownership, much direct impact via capital gains and losses of stock market fall and boom upon the purchases of mass consumption items should not be expected. A balanced supply and demand for the stocks can ensure fair price. Boone, Giorno, and Richardson examined the likely influence of recent stock market fluctuations on major OECD economics on and before , focusing on wealth effects and consumption. Therefore, the high level of profit generated in the last years from the stock market helped many of such individual investors to build a good amount of personal wealth. After the profit dropped sharply, capital value started to reduce. A careful observation has been given in designing the questionnaire and collecting data so that no effect of issues other than related to the stock market investment is included in this two- point of time comparison. December The last glorious day for the investors of capital market in was 5th December.

They found a temporary increase in the population average of expectations and uncertainty right after the crash. Coincidentally, Awami League have been at government during both of the crashes.

But SEC was working in favor of manipulators, approving unethical proposal and issuing wrong orders which lead to unexpected market conditions deteriorated the image of SEC. Because immediately after any such big crisis, it expected that there will be a large negative impact on the livelihood of the people.

Stock market bubble and crash of bangladesh

It has been found in the investigation report that many masterminds of this market scam were also responsible of crash. Coincidentally, Awami League have been at government during both of the crashes. In the advent of this zero confidence level of the common people on stock market, there was virtually a stagnant market up to Using Life Cycle Hypothesis, Garner found that a one-dollar fall in the stock market wealth leads to five cent decrease in the value of consumption of the individual investors. The reason of cancelling these directives was a significant fall of share prices on 8th December. Another aspect with respect to profession of the investors, it is found that about 51 percent investors are originally businessman and 32 percent of them are engaged in private service. Volume 3 Issue 4, The daily star. On this day DSE witnessed its biggest one day fall in 55 years history until the date with losing

Additionally, a significant adverse health effects and loss of wealth observed immediately after the crash. About 71 percent of the investors responded that they suffered from physical problems during and after the crisis.

Therefore, all related corners including Government, Regulatory bodies, Listed Companies, Brokerage houses, institutional investors, and retail investors should act rationally to maintain the stability in the capital market for the greater interest of the country.

The need is to accurately assess the strategic tasks confronting Bangladesh stock market in order to ensure long-term, stable and rapid economic development.

Present condition of stock market in bangladesh

Strategic tasks facing Bangladesh capital market: Stock market should diligently implement the macroeconomic regulatory policies of the central government and make good use of the function of capital markets in optimising resource allocation to ensure sound development of the financial sector and the economy as a whole. This liquidity crisis is evident from the recent scramble for luring depositors by some banks by hiking interest rates on deposit. The fall finally triggered small investors to go on a fast-unto-death on 16 October after forming the Bangladesh Capital Market Investors' Council. At the end of the day, the index closed red at Additionally, a significant adverse health effects and loss of wealth observed immediately after the crash. As a result, share prices increased from 20th to until 30th December and index stood at point at the end of the financial year The actual growth of the stock exchange has been started in when the market capitalization was Tk. Rather they feel more comfortable in maintaining their savings with banks as FDRs and Savings Certificates. In this circumstance, educating small investors are top most priority.

Coile, C. Strategic tasks facing Bangladesh capital market: Stock market should diligently implement the macroeconomic regulatory policies of the central government and make good use of the function of capital markets in optimising resource allocation to ensure sound development of the financial sector and the economy as a whole.

Butrica, B.

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