Financial Performance Analysis of IDLC Securities Limited

Abstract

The trading of company stock and derivatives at a predetermined price takes place on the public stock market, also known as the share market. These securities can be traded privately or listed on a stock exchange. Typically, broker houses are viewed as the country's stock market, and a stock market is a representation of the country's economic situation. A broker house is an organization with permission from the Securities and Exchange Commission, among others, to sell and buy securities, manage portfolios, and provide investment advice to clients. However, the broker house provides this service in exchange for their client's commission on each transaction because it is a member of DSE and CSE. As a result, more transactions translate into higher commissions on homes and increased wealth. People in Bangladesh used to buy and sell their paper shares directly to buyers or sellers’ hand in hand prior to 1998, making broker houses relatively inactive. The hand-to-hand transaction took a very long time and was complicated. The trade accelerated significantly following the establishment of CDBL (Central Depository of Bangladesh Limited). As a consequence of this, the number of people investing in the stock market has been skyrocketing on a daily basis, and the brokerage houses in Bangladesh have been confronted with significant challenges as a result of the rising number of people investing in the capital market. It is remarkable that BO (Beneficiary Owners) accounts have increased in Bangladesh's stock market. As a result, the DSE and CSE brokerage houses have the opportunity to carry out smooth and substantial trades every day. Not only is it the case that the broker receives a higher commission for each transaction, but also that the brokerage houses are required to adhere to all of the BSEC's regulations. Brokerage houses may occasionally suffer as a result of BSEC regulations. There is no doubt that brokerage firms are a significant part of Bangladesh's capital market. Consequently, we must constantly monitor the brokerage firms' performance. In addition, in order to satisfy the parties involved in the development, we need to measure its own performance.