Problems of Brokerage Houses in Bangladesh Cost of opening a new brokerage house : The cost of opening a new brokerage is huge. To become a member of DSE now cost almost Tk. 500 mn excluding the other cost, Deposit to CDBL is 5mn. So despite of the increasing demand of new brokerage houses it is not possible to investor just start one. There is another problem that DSE is not … [Read more...] about Problems of Brokerage Houses in Bangladesh
Financial Market
When should a Company Initiate IPO?
When should a Company Initiate IPO? Creating an initial public offering, by definition, means selling once-privately owned shares to the public. After the offer is made, these shares are traded on a recognized stock exchange. When should a Company Initiate IPO? To create an IPO, start-up companies and small businesses must demonstrate the potential to develop into lucrative … [Read more...] about When should a Company Initiate IPO?
Functions of Brokerage House
Functions of Brokerage House: The business of brokers consists of searching out buyers when their customers wish to sell and locating sellers when their customers wish to buy so as to execute transactions as per customers’ instructions. Usually, deals are arranged with other brokers representing their customers. Functions of Brokerage House. Functions of Brokerage House The … [Read more...] about Functions of Brokerage House
Trading Mechanics of Securities in Secondary Market
Trading Mechanics of Securities in Secondary Market Selection of a broker: The buying and selling of securities can only be done through SEBI registered brokers who are members of the Stock Exchange. The broker can be an individual, partnership firms or corporate body. So the first step is to select a broker who will buy/sell securities on behalf of the investor or … [Read more...] about Trading Mechanics of Securities in Secondary Market
Liquidity in the Secondary Market
Liquidity in the Secondary Market: Liquidity is the ability or power of an asset to be converted into cash or near cash at the time needed without loss. A liquid asset is a readily marketable asset with a relatively stable price that is reversible. Perfectly marketable assets are called perfectly liquid assets. Whenever sold they suffer no price decline. Liquidity in the … [Read more...] about Liquidity in the Secondary Market
The Structure of the Secondary Market
The Structure of the Secondary Market. When securities are traded between investors, issuers no longer receive any cash proceeds. Investors usually initiate securities purchases in the secondary markets by calling a security brokerage house. After an account has been opened, a broker relays the client’s order to a dealer making a market in the securities the investors want. … [Read more...] about The Structure of the Secondary Market
Difference Between Primary Market and Secondary Market
Difference Between Primary Market and Secondary Market: The most popular another term of "Primary market" is "Market in art valuation". The primary market is a significant part of the capital market. It usually deals with issuing of new securities. Primary markets make long term instruments through which corporate entities raise funds from the capital market. The secondary … [Read more...] about Difference Between Primary Market and Secondary Market
Trading Systems in Stock Exchanges or Trading Arrangement
Trading Systems in Stock Exchanges or Trading Arrangement. Investors give orders to the broker or dealer to execute their transactions in the securities markets with a view to managing their portfolios. When an investor places an order with a broker/dealer, there are a number of arrangements from which he can choose. These arrangements include the type of orders placed, the … [Read more...] about Trading Systems in Stock Exchanges or Trading Arrangement
Types of Brokers and Dealers – A Broker in The Securities Markets
Types of Brokers. The trading activities done by the investors are executed by a security firm acting either a broker or a dealer. A firm acting in a brokerage capacity serves as an agent for investors by finding anther investor to take the other side of the transaction. For doing this job, the broker is compensated by a commission. A broker in the securities markets is an … [Read more...] about Types of Brokers and Dealers – A Broker in The Securities Markets
Participants in the Securities Markets
Participants in the Securities Markets: People of different categories do engage in share trading on DSE. Share ownership in DSE has increased significantly during the last couple of years. The motivation of all the participants is presumed to be the same: to earn a return at least commensurate with the level of risk assumed. Participants in the Securities Markets In the … [Read more...] about Participants in the Securities Markets