Abstract:
In Dhaka Stock Exchange many of the brokerage houses are run their business, but many of
them don‘t help their investors as well as they don‘t follow the proper rules of the busines. As
a result the investors have faced a lot of problems and lose their capital. Last 2 years the
stocks are overpriced and this is a serious risk factor for the inexperienced new investors.
Here many share prices are fluctuating for various reasons. Entry of new companies in the
market can help to reduce gap between demand and supply and help bring stability in the
market. New companies need to be encouraged to come to the market through market friendly
policy. But recent policy interventions do not seem to be moving towards that end. The stateowned
companies are not coming forward for listing despite repeated assurances given by the
authorities. Immediate entry of at least two or three large companies could be extremely
helpful for a balanced growth of the market. The central idea is that the stock price is
determined by some weighted average of investment acts from investors applying
informational diversified investment strategies. The dynamics behind the price fluctuation is
as follows: The higher the share of uninformed investors, the more uncertain the market price
is relative to the fundamental stock value. In any stock market, there will bullish and bearish
trends. Regulatory policies should be framed with long term vision. In recent months, some
policy decisions are being taken to address current problems at the cost of long term market
interest. These policy changes include fixation of minimum size of new public issue,
imposing restriction on private placements, disqualifying private sector companies under
direct listing and discouraging new mutual funds. Determinants which directly and indirectly
affect the stock prices in Bangladesh especially in the Dhaka Stock Exchange & ‘‘Problems
and prospect of Brokerage houses in Bangladesh are discuss in this report.‖
