A presentation on investing primary and secondary market in Bangladesh.

1. How to Invest in
Capital Market

2. Group Members
Name ID
Sabiha Jannat 1411010282
Azizul Gaffar Mesbah 1411010264
Hasan Abdullah 14110102
Mahmuda Sultana Liza 1411010156
Bipa Akter 1411010296

3. Some Concepts
Financial Market:
The mechanism by which borrowers and lenders get
together.

4. Some Concepts

5. Some Concepts
• Capital Market Division
Capital Market
Primary Market Secondary Market
The Firm InvestorsInvestorsInvestors
Cash
Newly
issued
securities
Cash
Outstanding
Securities

6. Some Concepts
• Stock Market
• Stock Exchange
• Stock Exchanges in Bangladesh
 Dhaka Stock Exchange Ltd. (DSE)
 Chittagong Stock Exchange Ltd. (CSE)

7. Products Available in Our Capital Market
Share
• Ordinary Share
• Preference Share
Mutual Fund
Debt Securities
• Debenture
• Bond

8. Market Intermediaries
⇒ Stock-Broker- Broker is entitled to buy and sale the securities
on others account.
⇒ Stock-Dealer- Dealer is entitled to buy and sale the securities for
his own account.
⇒ Authorized Representative-Authorized Representatives (AR)
are employees of broker/dealer.
 Others
⇒ Merchant Banker/Portfolio / Underwriter;
⇒ Asset Management Company;
⇒ Custodian;
⇒ Trustee;
⇒ Depository Participant (DP);

9. Investment in Primary Market

10. How to Invest in Primary Market

11. How to Invest in Primary Market

12. How to Invest in Primary Market

13. Investment in Secondary Market

14. How to Invest in Secondary
Market

15. How to Invest in Secondary
Market

16. How to Invest in Secondary
Market

17. How to Invest in Secondary
Market

18. How to Invest in Secondary
Market

19. How to Invest in Secondary
Market

20. How to Invest in Secondary Market
9.Clearing and Settlement
 A trade executed through exchanges is settled amongst the brokers through
the clearing house of the exchanges;
Flow Chart of Clearing and Settlement
Securities Cheque
T+1 T+1
Cheque T+3 Securities T+3
Day-0 Trading
Day
Selling
Broker
Buying
Broker
DSE Clearing
House

21. How to Invest in Secondary
Market
Settlement to Clients by Members
 Settlement by delivery of securities.
 Payment by cheque.
 Default fine - Tk. 500.
 Interest for delayed payment at 1.5% per month.

22. Some Basic Points for Making Investment in the
Capital Market

23. Important Factors to be Considered for Investment
in the Capital market
⇒Industry and average return.
⇒Management.
⇒Various ratios.
⇒Product, technology, market position.
⇒Turnover rate.

24. Thank You