Stock market is one of the main part of capital market. if the stock market face crash or any other price fluctuation then it highly influence the country's economy. Stock market also influence the other markets and it brings a overall change in all the broad heads of the economy like Input & Output of goods Employment International Exchange rate Inflation/ Deflation. In this slide the reasons and the overall impact is given precisely.

1. Capital Market Crisis & its
Impact On Bangladesh
Economy

2. Group
Members
¤ TasnimAnsari Hridi
¤ Md. Mehedi Hassan Bappy
¤ Debanik Chakraborty
¤ Nazia Yousuf
¤ Syed Istiak Uddin Ahmed
16221009
16221021
16221025
16221027
16221031

3. Introduction
Reasons
Impacts &
Analysis
Recommendations
Crash in
Bangladesh
Research
Question Objective of
the Study
Justification
of Paper
Limitations
Slide Map

4. Introduction

5. Duty as the students of Finance
& Banking
Analysis of the Impact on
Overall Economy
Avoiding Future Crushes
Justification of This Paper

6. Research
Question??

7. Objective of The Study

8. 1
Lack of
Resources
& Links
2
Lack of
Sufficient
Time
3
Less
Reliable
Secondary
Sources
Limitations of the Study

9. What is Capital Market?
Capital markets are market for
buying and selling equity
and debt instruments.
It is a market for both Bonds &
Share

10. Brokerage firms are the Financial
Institutions those facilitates the
buying and selling of Financial
Securities between a Buyer and a
Seller.
Brokerage firms

11. Capital Market Crash
A stock market crash is a sudden dramatic
decline of stock prices across a significant
cross-section of a stock market resulting in a
significant loss of paper wealth.

12. Structure of Bangladeshi Capital
Market
SEC as the Regulatory Body
Bangladesh Bank as Controller

13. BO Accounts in CDBL
Participating Bodies
Structure of Bangladeshi Capital
Market

14. Crash of 1996-97
&
2010-11

15. MAJOR
DIFFERENCE
BETWEEN
CRASH OF
1996-1997 &
2010-2011
PEOPLE WERE UNFAMILIAR
COULD NOT EVALUATE
PROFITABLE SHARES
FAKE PRINTED ONES WERE SOLD
NO CIRCUIT BREAKER WAS THERE

16. DURING
THE
CRASH
233
points
were lost
lost 70
% from
highest
point
Continued to
decrease for
the next 7
years
rarely
crossed
1000 point
crash
of 1996-
1997

17. 1 42 3 5
BO
Account
Holders
increased
to 3.21
million
from1.25
million
new
investors
did not
have
enough
knowledge
shared a
huge
amount
unexpected
fall after
55 years
occurred
on 19th
December
during
2010-2011
historical day
in the
Bangladesh
Stock Market
when market
lost 551.76
pointsor
6.71%
Prices
startedto
fall in an
hour after
the trading
startedand
200 points
were wiped
off

18. A. accessing market
information
B. share fair
C. new branches of
brokerage house
across the country
increased the number of
shareholders
which caused excess
liquidity.
A. poor monitoring took
place
B. market conditions could
not be monitored
properly
C. share prices of small
companies & Z category
company increased at a
dramatic rate.
the EASE of
as a
CONSEQUENCE

19. Reasons of Capital
Market Crash in
Bangladesh

20. Identified Broad Heads

21. Irregularities in
issuance of right
share
Regulatory Body’s
Failure
Primary Issuance
Problems
Secondary Market
Problems

22. Illegal
Private
Placement
Market
Pre-IPO &
IPO
Process
Problems
Primary Issuance Problems
Direct
Listing
Wrong
Valuation
of Asset

23. Secondary Market Problems
Stock Price
Manipulation
Serial and
Artificial
Trading
Block
Placement

24. The
Government
Bangladesh
Bank
Security
and
Exchange
Commission
DSE and
CSE
Regulatory Bodies

25. Irregularities in Issuance of
Right/Preference Share

26. Impact of stock market
crash on the economy
of Bangladesh

27. Decrease in
output
Highinflation
rate
High
Unemployment
Imbalance in
International
Trade

28. Decrease in country’s output
Little change
Consumpti
on
Decrease
Investment &
Savings
Government
Purchase
Net export
Decrease Decrease
Decrease in Country’s Output

29. Money Supply
increased
Supply of commodities
decreased
Price hike
Value of money
decreased
11.6%
High Inflation

30. Firms lost their
investment &
equity
Cut off wages and laid off
workers
High Unemployment Rate

31. Net Export
Foreign currency
exchange rate
Import became greater than
export
Value of taka decreased by 1.75%
Imbalance in International Trade

32. Recommendations

33. No Inside Trading
Special Monitoring Team
Honesty of the market Regulators

34. Well Efficient Executive Board of
DSE & CSE
Political Stability of
Bangladesh
Restrictions on Investment
during BOOM
The Knowledge of small investors must
be enriched

35. No Corruption in Pre-IPO &
IPO
Efficient Role of Bangladesh
Bank
Legal Action by
Government

36. Any Questions?

37. Thank You