How to Invest in Capital Market

Group Members

Name ID

Sabiha Jannat 1411010282

Azizul Gaffar Mesbah 1411010264

Hasan Abdullah 14110102

Mahmuda Sultana Liza 1411010156

Bipa Akter 1411010296

Some ConceptsFinancial Market:

The mechanism by which borrowers and lenders get together.

Some Concepts

Some Concepts• Capital Market Division

Capital Market

Primary Market Secondary Market

The Firm InvestorsInvestorsInvestors

Cash

Newly issued

securities

Cash

Outstanding Securities

Some Concepts

• Stock Market• Stock Exchange • Stock Exchanges in Bangladesh Dhaka Stock Exchange Ltd. (DSE) Chittagong Stock Exchange Ltd. (CSE)

Products Available in Our Capital Market

Share• Ordinary Share• Preference ShareMutual FundDebt Securities• Debenture• Bond

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);

Investment in Primary Market

How to Invest in Primary Market

How to Invest in Primary Market

How to Invest in Primary Market

Investment in Secondary Market

How to Invest in Secondary Market

How to Invest in Secondary Market

How to Invest in Secondary Market

How to Invest in Secondary Market

How to Invest in Secondary Market

How to Invest in Secondary Market

How to Invest in Secondary Market9.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

How to Invest in Secondary MarketSettlement 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.

Some Basic Points for Making Investment in the Capital Market

Important Factors to be Considered for Investment in the Capital market

Industry and average return. Management. Various ratios. Product, technology, market position. Turnover rate.

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