2011•Asia Pacific journal of research in business managementRequires access

Performance of stock market of bangladesh: An empirical study on chittagong stock exchange (cse)

Ataur Rahman, Mohammad Mizenur Rahaman

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Abstract

A strong and well-structured secondary market is the hub of capital market, which bears paramount importance in the economic development of a country. It is not a mere coincidence that almost all the developed nations exhibit a strong secondary market. It is perceived to act as the medium of transactions between interested parties. This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, market turnover were considered. The study finds that key indicators are significantly correlated. The findings of the study suggest that growth of stock market of Bangladesh till not stable. We conclude that Bangladesh stock market is still at an early stage of its growth and stock market size is small.

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What this paper is about

A strong and well-structured secondary market is the hub of capital market, which bears paramount importance in the economic development of a country. It is not a mere coincidence that almost all the developed nations exhibit a strong secondary market. It is perceived to act as the medium of transactions between interested parties. This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, market turnover were considered. The study finds that key indicators are significantly correlated. The findings of the study suggest that growth of stock market of Bangladesh till not stable. We conclude that Bangladesh stock market is still at an early stage of its growth and stock market size is small.

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Available abstract

A strong and well-structured secondary market is the hub of capital market, which bears paramount importance in the economic development of a country. It is not a mere coincidence that almost all the developed nations exhibit a strong secondary market. It is perceived to act as the medium of transactions between interested parties. This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, market turnover were considered. The study finds that key indicators are significantly correlated. The findings of the study suggest that growth of stock market of Bangladesh till not stable. We conclude that Bangladesh stock market is still at an early stage of its growth and stock market size is small.

Key concepts: Market capitalization, Market liquidity, Stock market, Primary market, Stock exchange, Market depth, Factor market, Market microstructure

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