Term paper
On
Reason for stock price volatility of capital market in
Bangladesh
Submitted To
Abu Taleb
Professor & Chairman
Department of Banking and Insurance
University Of Dhaka
Prepared By
AHSAN HABIB
ID: 51840070
Semester-SUMMER
MBA (EVENING)
Department of BANKING and Insurance
University of Dhaka
28th AUGUST, 2019
Letter of Transmittal
28th August,2019
Abu Taleb
Professor & Chairman
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka
Subject: Submission of the term paper on “Reason for stock price volatility of capital market in
Bangladesh”
Dear Sir,
I have completed the term paper as a course requirement “Reason for stock price volatility of capital
market in Bangladesh” of M.B.A. program and now I am greatly impressed for the submission of term
paper on have tried my level best to bring out the original scenario regarding “Reason for stock price
volatility of capital market in Bangladesh” with full of effectiveness & efficiency. To prepare this report I
have collected what I believe to be the most relevant information to make my report as analytical and
reliable as possible. I have concentrated my best effort to achieve the objectives of the term paper and
hope that my endeavor will serve the purpose. The practical knowledge and experience gathered during
my report preparation will immeasurably help in my future professional life.
I am very glad to you because you assigned me to do the term paper. I hope that my report will
meet your standard and oblige thereby.
Yours faithfully,
………………………….
AHSAN HABIB
ID: 51840070
Semester: Summer
MBA (Evening)
Department of Banking and Insurance
University of Dhaka
Supervisor Certification
This is to certify that the Term paper on “Reason for stock price volatility of capital market in
Bangladesh” submitted by Ahsan Habib, ID: 51840070, Semester: summer, as an integral part of
the requirement of MBA(Evening) degree from the Department of Banking and Insurance, University
Of Dhaka.
……………………..
Abu Taleb
Professor & Chairman
Department of Banking and Insurance
Faculty of Business Studies
University Of Dhaka
Student Declaration
I am Ahsan Habib, hereby declare that this Term paper on titled “Reason for stock price volatility of
capital market in Bangladesh” is uniquely prepared by me after the completion of three months
working in Bank Asia Ltd.
I also confirm that, this study has not previously been published in any journal or not submitted
for the partial fulfillment of any degree, diploma or fellowship in any other Organizations or
Universities.
………………………….
Ahsan Habib
ID: 51840070
Semester: Summer
MBA (Evening)
Department of Banking and Insurance)
University of Dhaka
Excutive Summary
For the development of capital market of Bangladesh DSE was established in 1954. Up to
December/2004 there is 237 listed companies, 11 mutual funds and 8 debentures in DSE. CSE was
established in 1995 after successful operation of DSE and to meet the increased demand of expanded
capital market. . There is 198 listed companies 11 mutual funds and 2 debentures in CSE. In our country
investors are not so award about the factors what should be considered to take an investment decision
either in primary market or in secondary market. Consequences of this unawareness in 1999 the capital
market was depressed and investors lose their investment. To ensure the investors’ interest and operating
in trading a lot of measures was taken by Security Exchange Commission (SEC) like Central Depository
System (CDS), screen based operating system, etc. But over the all measures investor has to know the
risk and return associated with their investment. For that purpose knowing about volatility of price is very
important. The main objective of the study is to know about the security market of Bangladesh, volatility
and to compare the volatility of two security markets. Identification of the problems regarding the
volatility and suggestions to the investors in this regard there are also the prime objectives of this study. In
its role as the capital market DES and CSE tries to satisfy the need of entrepreneurs and the investors by
accumulating capital and ensuring safe and sustaining return. Volatility of stock return has been mainly studied in
developed economies. There is relatively a few empirical research has been conducted on stock return volatility.
nowing about volatility of price is very important. The main objective of the study is to know about the security
market of Bangladesh, volatility and to compare the volatility of two security markets. Identification of the problems
regarding the volatility and suggestions to the investors in this regard there are also the prime objectives of this study
Table of Contents
SL NO Particular Page no
1 Introduction 1
2 An Overview of Bangladesh 2-4
capital Market
3 Concept of volatility 5-6
4 Some key Indicators for 7-9
measuring development capital
market
5 Conclusion 10
