The Problem in Bangladesh Stock Market

1.1 Prelude

A stock Market is place where stocks (shares) can be bought and sold. Stock markets are the complex of institutions and whereby intermediate term funds and long-term funds are pooled and made available to business, the government & individuals. In a wider sense, stock markets includes all organized market and institutions such as commercial banks, discount houses, stock exchanges, investment corporations etc dealing in long-term loans, mortgages and time and savings deposits.

Stock exchange is an independent company formed by shareholders members. It can take various decisions. But decision is taken by executive body. The objectives of stock exchange are to provide a market place along with facilities for together the buyers and sellers of securities promote just and equitable principles of trade protect the interest of the investors.

1.2 Importance of the Study:

The report is very much conducive for the MBA Program students on account of achieving practical experience, which leads to build up their career and ambition. The program intends to integrate the information about the performances of Chittagong Stock Exchange and the price behavior of the listed company. It is expected that the integration of knowledge in theories and practices will enable us to become effective. The Program helps us to acquire the organizational behavioral patterns necessary in discharging responsibility as an executive. Through this program, we can gather practical knowledge on the systems, procedures and techniques used in performing different jobs.1.3 Objectives of the Study:

The objectives of the study are:

1. To know the information about the Stock Market of Bangladesh.

2. To study the activities & performance of stock market (CSE) . .

3. To know the problems faced by stock market and to suggest remedial

4. To study the price behavior NCCBL in the stock market.

5. To know the reasons for increasing or decreasing share prices of NCCBL.

1.4 Methodology of the Study:

The report has been prepared on the basis of the experience gained during the period of MBA Program. To prepare the report, I have collected all kinds of related data from the primary and secondary source.

Primary data has been collected from interview with CSE members & brokerage firm. The main source of secondary data has been annual report, annual statements, various books, articles related with the capital market, financial papers, Internet, different publication.

I have selected National credit & commerce bank LTD. (NCCBL) as Sample Company for my study purpose i.e. listed in CSE & DSE. I will highlight the behavior of CSE with respect to NCCBL. The data collected from different sources will be analyzed manually by using financial, statistical and other tools.

1.5 Scope of the Study

Chittagong stock exchange provides various scope for the business students to know different areas of the stock exchange, its managing procedures, working systems and environments which are very helpful to know & to increase our knowledge & to get more information and data regarding the topic "Stock Market information and market Reaction". The information section of Chittagong stock exchange is very rich that's why I was easy to collect the required books, magazines, periodicals, journals, brochures, portfolio and the Internet facilities.

1.6 Limitations of the study

The collected data and information have been tabulated, processed and analyzed carefully and report has been prepared in present to make the study more informative and useful. Despite my sincerest endeavor in preparing a perfect report some of the limitation is inescapable. They are as follows:

1. A self-finance study.

2. Study was confined to CSE.

3. Primary and secondary data were not available in organized form.

4. Due to short time, I could not collect enough necessary data about the study to prepare the report.

In spite of the limitation I had tried with all of my efforts to know and find out the response pattern of the subjects and consultation of relevant record and document. Data have reached a fairly acceptable degree of accuracy.

Chapter-2

Brief Discussion of Stock Market

&

Brief Overview of CSE

2.1 Introduction

Stock market is an essential part of capital market. The economy of our country largely depends on a strong capital market. Contribution of any stock exchange generally leads to economic growth by increasing the funds to finance industry and other enterprise.

Stock exchange is an independent company formed by shareholders members. It can take various decisions. But decision is taken by executive body. The objectives of stock exchange are to provide a market place along with facilities for together the buyers and sellers of securities promote just and equitable principles of trade protect the interest of the investors.

We can divide market in two sides: Money market & Capital market. These market are also divide in two sides- which are shown below:

Financial Market

2.2