This document is a project report on investigating the general behavior of investors in the Dhaka Stock Exchange. It includes an introduction outlining the importance of stock markets and investors' behavior. It then lists the objectives of studying investor behavior and reviews previous literature on factors influencing investor decisions. The report methodology and statistical analysis used to examine demographic factors like age, gender, education and income are also outlined. In the end, the report will analyze the findings and relationships between investor characteristics and make conclusions.

1. Project Work
On
Investors General Behavior in Dhaka Stock Exchange

2. Project Work
On
Investors General Behavior in Dhaka Stock Exchange
Course: Project Work
Course Code: BUS 498
Spring-2017
Prepared for:
Jannatunnesa
Senior Lecturer
Department of Business Administration
East West University
Prepared By:
Taibul Islam
2013-3-10-020
Department of Business Administration
Date of Submission:
April 13,2017

3. Letter of Transmittal
13th
April 2017
Jannatunnesa
Senior Lecturer,
Department of Business Administration,
East West University, Dhaka.
Subject: Submission of Project Work
Dear Madam,
It is a pleasure me to present you my research paper which prepared as a part of the BUS-498
(Project Work). The duration of preparing this report has been enormously helpful and productive
to me, giving me a golden opportunity to look out of the box from the regular classroom and move
to the real world. From this work, I learn a lot of lessons and a vast amount experience was gained.
Obviously, this work will help me to solve more complex situations and problems and building a
better observation for my future.
I hope that this project work will fulfill your expectations and requirements. Thank you very much
for your kind consideration and guidance. The acknowledgement letter is also included.
Thank you,
Sincerely yours,
Taibul Islam (2013-3-10-020)
Page: i

4. Acknowledgement Letter
By remembering the name of Almighty Allah, I am very much pleased to complete the research
paper under the supervision of Jannatunnesa. In this project work I tried to find out the investors
general behavior in the Dhaka stock market.
During the project work many respondents, professionals; professor’s help. I am very much
obliged to those persons who gave their valuable time in the opinion and advice to complete this
project work. My profound gratification goes to Jannatunnesa the honorable supervisor of my
project work for her supervision to complete the report successfully. She has contributed much in
this project by providing proper guidelines and her own writings. I would like to thank the
respondents who participated by giving the required information about different perspective to
complete this Project paper. I am also acknowledging to all those web sites, newspapers and
magazines from which I have taken necessary helps. I would like to thank my other finance
teachers who shared their opinion on this topic. My gratitude also goes to some senior students for
their guidance in various stages of completing the report and my dear friends and classmates for
their specific advices and supports. Finally, I am pleased to complete the project on “Investors
General Behavior in Dhaka Stock Exchange” properly and authentically.
Page: ii

5. Index
Contents Page Number
Letter of Transmittal i
Acknowledgement Letter ii
Abstract 1
1. Introduction 2
1.1.Limitation of the study 3
2. Objectives of the study 3
3. Literature review 4-5
3.1. Overview of Dhaka Stock Exchange 6-8
3.2.Investor’s behavior in stock market 9
4. Methodology 10
4.1.Research Instruments 10
4.2. Sample and data collection 10
4.3. Statistical Methods 10
5. Empirical Analysis and Findings
11
5.1.Univariate Analysis: Frequency Distribution
11-17
5.2.Bivariate Analysis: Cross Tabulation
18-22
6. Findings of the Study
23-24
7. Conclusion 25
7.1.Scope of Further Research
26
References 27
Appendix a-d

6. Page | 1
Abstract
In the financial sector, the behavior of investors is important for getting a perfect financial solution
of the stock market’s future decision making. This study attempts to find out the general behavior
of the investors who invest in the Dhaka Stock Exchange in Bangladesh. And the project work
more focused in the demographic factors of those investors specially age, gender, educational
qualification, annual income etc. The study also considered the investors investment size, period,
and their thinking about the Dhaka Stock Exchange. The study adopted both the primary and
secondary data for getting more accurate value about the context of the stock market of
Bangladesh. So, the frequency distribution, crosstabulation are conducted as the statistical methods
to find the respondents behavior of the stock market. Major findings of the study after statistical
methods are conducted between the most considerable factors of the behavioral analysis.

7. Page | 2
1. Introduction
Stock market is an important source for companies to maximize their wealth. Companies and
businesses can publicly trade through stock market. The liquidity plays a crucial role in the
financial market, where investors can sell securities easily. Stock market offers liquidity primarily.
According to Viswanadham (2014), equity plays a vital role in allocating economic and financial
resources and contributing to wealth creation in any country.
Bangladesh, as a developing country, focused more in their stock market to have a better economic
position in the long run. So, after liberation war in 1976 the Dhaka Stock Exchange span their
working capacity and in 1993 they adopted IFC calculation method to achieve the upcoming goals.
The Dhaka Stock Exchange continuously adopted new methodology for getting future benefits.
Now the Dhaka Stock Exchange provides investors more flexibility to attract for investing more.
According the rules and regulation followed by the Dhaka Stock Exchange like investors
protection fund regulation 1999, Investor’s grievance Cell etc. investors get much flexibility to
invest more. The Dhaka Stock Exchange faced decrease level of progress sometimes. However,
the investors of the country always show their attraction to invest in the stock market.
Most of the investors in the stock market are investing according to their own interest in the stock
market. Investors are not forced to invest in, however they are interested to involved in the equity
market. At that position, their behavior is more influential for the stock market situation. The
investors invest in primary and secondary market for their wealth maximization which belongs to
higher risk for higher return. The companies traded publicly in the stock market, elected their board
of directors among the investors.
As a result, the investors behavior is more important for the future of the companies in the stock
market. The personal view of the investors is always affecting the stock market’s environment as
well as the financial condition of the economy. The demographic overview of the investor like
age, gender, educational qualification etc. have a positive impact in the stock market’s success.
The earning capacity of the investor is also a term for the market’s growth and perfect return.
This relation between investor and the market is defined through so many research works all over
the world. In the Dhaka Stock Exchange, the investors play an important role to keep this

8. Page | 3
relationship more positive. As a result, the investors behavior is examined through statistical
analysis like frequency analysis along with percentage. This analysis provides a role to get current
report about the investors. Basically, the respondents who provided the information of their
behavioral and thinking about the stock market. The frequency distribution is provided for getting
the ratio of those respondents. For the better result about the behavioral analysis of the investors
the crosstabulation is a perfect process.
1.1.Limitation of the Study
This study is the reflection of hard work on the investor’s general behavior of the Dhaka Stock
Market. The information provided here are only belong to Dhaka stock Exchange. There is
investor’s personal information as well as the investor’s perception in different action. However,
the respondents number is few as the investor’s size in the stock market.
There is no limitation of the study except the few participants, as the study conducted here is done
with nice care.
2. Objectives of the study
The main objectives of this study are to
i) Develop a framework about general behavioral aspects of investors in the Dhaka Stock
market.
ii) Analyzing the investor’s demographic features in the Stock market of Bangladesh mainly
focusing the Dhaka Stock exchange.
iii) Examining the differences among the variables which is related to the demographic
features of investors.
iv) Find relationship with previous studies for getting proper analysis and findings.

9. Page | 4
3. Literature Review
The general behavior of investors is influenced by some objectives. Investors generally invest in
the capital market by those objectives, wealth maximization, liquidity maintenance, and risk
minimization. there are different renowned journals nationally and internationally, seminars,
conference and research papers are published.
According all the study conducting about the investors and stock market relationship, every
relationship has some factors. Among investors there are six influencing factor which are expected
corporate earnings, stock marketability, past performance of the firm’s stock, get rich quick,
government holdings ant the creation of the organized financial market (Al-Tamim,2005,
Factors Influencing Individual Investor Behavior:An Empirical Study of UAE Financial Markets
’). The most influencing factor for affecting investors behavior is religious reasons, while the least
one is rumors (Al-Tamimi, 2009, Financial Literacy and Investment Decision of USA Investors).
The study also showed, women have lower level of financial literacy than men and financial
markets operates efficiently for educated investors. So, the gender plays an important role in the
behavioral factors in the stock market. The educational qualification always plays a perfect shape
towards a common stock’s transaction among the investors. The educated investors are basically
assets for a stock market. They don’t manipulate by the information like rumors.
There is another study shows that, women are more risk averse than men (Al-Ajmi, 2008, Risk
Tolerance of Individual Investors in an Emerging Market). As the risk-taking behavior is more
important among investors, there are more study to conduct in this field. Successful investors are
risk tolerant while the unsuccessful investors are not (Skitin and Pablo, 1992, Reconceptualizing
the Determinants of Risk Behavior). This risk-taking behavior allows an investor to earn more by
having a higher return. Somehow this method gives an investor to go for a wrong move.
The sentiment of investors is depended on the beginning-of-period sentiment’s higher and lower
ratios, as per the subsequent returns (Barker, 2006, Investors Sentiment and the Cross-Section of
Stock returns). Thus, the investors’ tolerance of risk, strength of the economy, media focus,
political stability, government policy are influential factors for affecting investor’s attitude
(Bennet, 2011, Factors Influencing Retail Investors’ Attitude Towards Investing in Equity Stocks).
The investors should play that role in the stock market according to their behavior.

10. Page | 5
Another study found age, marital status, level of income, educational qualification as the affect the
of risk and investor’s behavior (Shaikh et al. 2011, Impact of the Demographic Factors on Retail
Investors’ Investment Decisions-An Exploratory Study).
The information flows in the stock market as fast as possible. For that reason, Individual investors
are more rely on the newspaper and media (Dimitrios, 2007, Applied Econometrics: A Modern
Approach Using E-views and Microsoft). This situation provides an impact to shape the stock
market, as the investors rely on the outward information. In some cases, the institutional investors
are more rely on the professional’s research and analysis for getting good profit. The news about
the stock market and the high demand of any trading volumes are also drawn the attention by the
individual investors (Barber et al. 2008, All the Glitters: The Effect of Attention and News on the
Buying of Individual and Institutional Investors).
There are also some specific attributes of the company, net asset value, accounting information,
trading opportunity, ownership structure etc. are influencing factor for the investors (Hossain et
al. 2012, Factors Affecting Selection of Equity Shares: The Case of Retail Investors in
Bangladesh). More retail investor tend to prove that they are having the capacity to get proper
information as the factor to influence them are effective.
All the information of this literature review shows so many measurement process for conducting
research work efficiently. However, the study for this project work mainly focused on the factors
like age, gender, educational qualification, annual income, investment period etc. These factors
are providing this project work for going through the relationship between different demographic
characteristics.
The major findings are indicating most productive result. Here age is a considerable factor while
finding correlation. As investment in stocks declines with age (Papke,1998, AEA Papers and
Proceeding). The relationship shows the future behavior of the individual investors along with the
stock market of the respective country.

11. Page | 6
3.1. Overview of Dhaka Stock Exchange
Bangladesh, as a developing country, focused more in their stock market to have a better economic
position in the long run. So, after liberation war in 1976 the Dhaka Stock Exchange span their
working capacity and in 1993 they adopted IFC calculation method to achieve the upcoming goals.
The Dhaka Stock Exchange continuously adopted new methodology for getting future benefits.
Dhaka Stock Exchange reached US $ 320.5 billion market capitalization at 2015 after formation
under company act 1994, Security and Exchange Commission Act 1993, Security and Exchange
commission Regulation 1994, and Security Exchange regulation 1994. So, Dhaka Stock Exchange
as a public Limited Company has self-regulation regulated by Articles of Association along with
Rules and regulations and bye-laws of the exchange.
230 members of Dhaka Stock Exchange mainly hold the shares of the organization. And Dhaka
Stock Exchange’s operation is entrusted on a 25 members Board of Directors among them 12
members are elected from the organization. As a result, Dhaka Stock Exchange need a highly-
qualified CEO to manage the overall situation and management. To do better handling with
managerial process, most financially sound organization hold the Board like Bangladesh Bank.
Dhaka Stock Exchange follow some objectives and it’s have many functions to achieve those
objectives. As this regard, Dhaka Stock Exchange is providing the screen based automated trading
of their listed securities, settlement of trading, granting approval to the transaction of share outside
the trading system of the exchange. They also monitor the activities of listed companies,
publication of monthly review and announcement of price sensitive about the listed companies by
online. Dhaka Stock Exchange also give dispute resolution, SMS facility, GPRS facility for the
respective user.
For promoting the market integrity is main function of surveillance of Dhaka Stock Exchange. At
first, it is done by price monitoring by following some activities through online and offline
surveillance. Here, the high and low differences, percentage of change, top turnover etc. is
monitored. Secondly, position monitoring provides the surveillance department to find out the key
areas. Online monitoring of brokers position, B/S statement of trading members, snap
investigation, market intelligence etc. are key areas to examine. The verification of institutional

12. Page | 7
trade, foreign trade, cross reporting trade, dealers own trade, sponsor’s trade also some other key
areas to follow. Thus, the investigation take place as a surveillance action.
The Dhaka Stock Exchange offers four types of market in stock market of Bangladesh. The normal
volume of market instruments is traded in public market. The spot market, odd lot and block market
also view the market diversification in the Dhaka Stock Exchange. As a result, five categories of
share like A, B, G, N and Z are found in Dhaka Stock Exchange. The stock market’s financial
strength lies on group A and B which is the most attracted place to take information.
The categorization of shares give Dhaka Stock Exchange to having balance in the indices. From
the beginning, Dhaka Stock Exchange have DSI, DGEN, DSE20. ACI Limited, A.M.C.L Pran,
Apex Tannery Limited, Beximco Pharmaceuticals Limited, BATBC, BOC Bangladesh Limited,
Bata Shoe Company (Bangladesh) Limited, Bangladesh Lamps Limited, Dhaka Bank Limited,
GQ Ball Pen Industries Limited, Islami Bank Bangladesh Limited, Meghna Cement Mills Limited,
Monno Ceramic Industries Limited, National Bank Limited, Prime Bank Limited, Southeast Bank
Ltd, Singer Bangladesh Limited, Square Pharmaceuticals Limited, Square Textile Limited and
Uttara finance are included in DSE-20. In recent years, Dhaka Stock Exchange provides DSES
named index which have the Sharia based listed companies to attract more investors form all types
of living standard people.
If Dhaka Stock Exchange’s portfolio is observed it could easily shows the increase of IPO
offering, number of enlisted securities, percentage change of tradeable securities, performance of
listed securities, yearly trading volume and market capitalization. Besides all of that, Dhaka Stock
Exchange saw turnovers positively and negatively.
As information communication technologies take place so rapidly, Dhaka Stock Exchange also
realized the potentiality of this. As a result, Dhaka Stock Exchange introduce a technology which
ensure transparency, timeliness and satisfaction in customer service. This automated system
known as TESA provides all the facilities above to the investors. Now members can have
established main branch remotely. The principle function of TESA are market information, order
management, order execution, trade reporting, index calculation, market access. For that, the
Dhaka Stock Exchange gain more investors attraction.

13. Page | 8
Over the counter trading market provides benefits to the small company pull upward from weak
performance. At this case, the OTC have separate floor for the buyers and sellers. Mostly the Z-
category companies are shifted to the OTC market which include 90 listed companies with weak
performance.
Dhaka Stock Exchange follow some policies where they can introduce automate monitoring
systems that may control price manipulation. They can force the listed companies to declare and
pay regular dividends through conducting Annual General Meeting. They also can make sure all
the listed companies publish their annual reports with actual and proper information that can ensure
the interest of the investors. They make arrangement to set up merchant banks, investment banks
and floatation of more mutual funds particularly in the private sectors.
However, Dhaka Stock Exchange face some problems which are price manipulation, unavailability
of information, delays of settlement, irregular payment dividends, selection of membership,
improper financial statement, lack of proper market monitoring, technical problems, political
infighting and lack of proper policy. These lacks somehow take a negative place to the investor’s
mind to invest in Dhaka Stock Exchange.
So, Dhaka Stock Exchange should improve their policies based on the near future of the stock
market in Bangladesh. They should follow Strict rules and regulations and practiced protecting the
investor's interest. They should force the listed companies to declare and pay regular dividends
through conducting Annual General Meeting. Dhaka Stock exchange must ensure availability of
full information. It should also restrict to misrepresenting, hiding or partially disclosing of
information which may confuse the investors They should punish the member brokers for
breaching of contract.

14. Page | 9
3.2. Investor’s behavior in stock market
Investor’s behavior is more important for the future of the companies in the stock market. The
personal view of the investors is always affecting the stock market’s environment as well as the
financial condition of the economy. Most of the studies shows the relationship between investor
and stock market by considering the demographic overview of the investor. Those demographic
overviews are age, gender, educational qualification etc. have a positive impact in the stock
market’s success. The earning capacity of the investor is also a term for the market’s growth and
perfect return.
Most of the investors in the stock market are investing according to their own interest in the stock
market. Investors are not forced to invest in, however they are interested to involved in the equity
market. Investors behavior is more influential for the stock market situation. They invest in
primary market to the listed securities which is enlisted through IPO. The shares enter for
transaction in the secondary market. They also invest in the secondary market for their wealth
maximization which belongs to higher risk for higher return. The companies traded publicly in the
stock market, elected their board of directors among the investors.
Investor both institutional and individual rely on the information. The information plays a vital
here. Dhaka Stock Exchange provides their investors more reliable and updating information all
the time. This results a huge investment in all the markets of Dhaka Stock Exchange. Investor buy
and sell their shares frequently by considering the information. As a result, age plays a role to
adopt information mostly the young investors. The aged investors more focused on the long run
process of investment in the stock market.
For some reasons like the stock market crash, process of resource enlistment is threatened. So that,
investors become panic and begin to seek safe alternatives. Research statistics shows around 3.3
million retail investors of Bangladesh engaged in the stock market during the market crash of 2010.
investors used to invest money from various sources such as savings in bank, idle money, and part
of earnings or proceeds from selling their asset.

15. Page | 10
4. Methodology
4.1. Research Instruments
This study uses both primary and secondary data for conducting a good project work. For
collecting Primary data, a good survey was conducted. The interested respondents provided their
valuable responses to achieve the goal of a good survey. On the other hand, the secondary data
collection is done from various newspapers, magazines, research articles, websites, etc. Primary
data were based on the Dhaka Stock Exchange through a good survey. Both the data collecting
process gives a good benefit to conduct the overall project work.
4.2. Sample and Data Collection
The structured questionnaire was prepared and an organized survey was conducted based on the
questions. The questionnaire has multiple choice option for the purpose of investor’s personal
information, and the ability to pic the better choice for some option on Dhaka stock exchange. The
personal information was about age, gender, educational qualification, and the annual income. The
selected respondents are performing the questionnaire of the survey’s better preparation.
The first portion of the questionnaire is about demographic information, while the other portion of
the questionnaire is about general behavior. The respondents are performed the both option as well
as the investors also perform about some specific issues.
4.3. Statistical Methods
All the data of the conducted survey are used the most efficient technology like excel, SPSS to
complete. The percentage of the data from frequency are done in excel as the application is
considered as the best option for statistical methods. The SPSS is worked for getting the
crosstabulation and correlation between the behavioral factors of the investors.

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5. Empirical Analysis and Findings
The analysis and findings for the investors general behavior is done by using frequency distribution
and crosstabulation. Frequency distribution is held towards the personal information of the
investors of the participated respondents from Dhaka Stock Exchange. On the other hand, the
crosstabulation method is mainly focused on the analysis between investor’s behavior affecting
factors. For this reason, the chi square test is very much applicable while on the research.
5.1. Univariate Analysis: Frequency Distribution
Investor’s Personal Information Respondent: 20 Percent
1) Age 20 – 35 years 35%
35 – 50 years 50%
More than 50
years
15%
2) Gender Male 90%
Female 10%
3) Educational qualification Primary 0%
Secondary 0%
Undergraduate 20%
Graduate &
Others
80%
4) Annual income (TK) 200,000-
1,000,000
35%
1,000,000-
2,500,000
15%
2,500,000-
5,000,000
20%
5,000,000 and
above
30%
5) How long have you been investing? Less than 1 year 10%
1-3 years 25%

17. Page | 12
3-6 years 45%
More than6 years 20%
6) How frequently do you invest in equity market? 0-3 months 35%
3-12 months 55%
12-36 months 10%
More than 36
months
0%
7) Do you sell all or part of shares? All 85%
Part 15%
8) Do you attend any workshop/ seminars at Dhaka Stock
exchange?
Yes 40%
No 60%
9) Which market sector do you usually invest in? Insurance 10%
Textile 10%
Banks 30%
Chemical,
engineering
5%
Others 45%
10) What kind of investor are you? Speculative 0%
Short term 30%
Long term 70%
Table 1.1: Frequency distribution of Investor’s personal information
For the ages the provided data shows that among all the respondents 35% of them are belong 20-
35 years, while more than 50 years have the minimum percentage only 15%. Among all the
respondent of the survey most investors are 35-50 years. As their frequency number is higher, the
calculated percentage is 50%.
While considering gender the data shows that among all the respondents 90% of them are Male,
and only 10% are female.

18. Page | 13
The respondent’s educational qualification the data shows that there is no primary and secondary
education qualification holder as their percentage is totally 0. Most of the people are graduate and
other education qualification holder, having the maximum amount of frequency level the
percentage shows here 80%. On the other hand, undergraduate respondents are 20%.
Annual Income of provided data shows that among all the respondents 30% of them are having
more annual income than all. However, between 2,500,000 – 5,000,000 TK annual income holders
are 20%. And between 1,000,000 – 2,500,000 TK annual income holders have 15%. Most of the
respondents have 200,000-1,000,000 TK annual income and their percentage is 35%.
The provided data shows that among all the respondents 10% of them are just started their investing
in stock market. 25% investors are investing 1-3 years in stock market. Most of the investors who
are the respondent are investing 3-6 years, as their percentage is 45%. And 20% of the investors
are investing more than 6 years.
The provided data also shows that among all the respondents only 10% invest frequently in the
equity market. Most of the investors are invest 3-12 months, as they have 55% percentage.
However, 35% respondent invest more frequently than others. The data for more frequent investors
are 35%.
The data for selling shares shows that among all the respondents 85% of them sell all the parts of
share. But only 15% of the respondent sell parts of their share when they are conducting their
investing in the stock market.
While the respondent’s response about workshop from Dhaka Stock Exchange, the provided data
shows that among all the respondents only 40% attended workshop/seminars at the Dhaka Stock
Exchange. However, most of the respondents don’t have any attention about the
workshop/seminars provided by the Dhaka Stock Exchange.
The provided data shows that among all the respondents 10% percentages of the investors have
shares which are from insurance sector, as well as the same amount of percentage is given for the
textile sector. Only a few number of respondents has shares from Chemical, engineering sectors,
as their percentage is only 5%. Most of the investors have a good number of shares from Banking
sector and their percentage is 30%. Among all the respondents, 30% of them don’t recognize their
market sector.

19. Page | 14
The provided data clearly shows that among all the respondents there is no Speculative. Most of
the investor are long term investor, as their percentage is 70%. On the other hand, there is 30% of
short term investors.
The respondents are asked about their thinking about Dhaka Stock Exchange. The responses
answer shows extraordinary percentage about every section. These respondents are shown below
1) What do you think about the near future of Dhaka Stock exchange?
Respondent: 20 Frequency Percent
Optimistic 4 20%
Pessimistic 0 0%
Can’t define 7 35%
Neutral 9 45%
Analysis: The provided data shows that among all the respondents there is no one who pessimistic
about the Dhaka Stoke Market. Most of the respondent, percentage 45%. remain neutral about
their future prediction. While 35% respondent can’t define anything about the condition of the
stock market. The data shows that 20% of the respondents are basically optimistic about the near
future of Dhaka stock market.
2) What price range of shares do you prefer to invest in?
Respondent: 20 Frequency Percent
High range 2 10%
Moderate range 15 75%
Low range 3 15%
Analysis: The provided data shows that among all the respondents 75% of them are preferring to
invest in moderate price range shares. 10% of the respondents like to invest in high range price of
shares. And 15% of the respondents are preferring to invest in low range shares.

20. Page | 15
3) How important are your peers for you as a source of information?
Respondent: 20 Frequency Percent
Extremely important 2 10%
Least Important 0 0%
Moderate Important 18 90%
Analysis: The provided data shows that among all the respondents 90% of all consider their peer’s
information as a source of information to invest in Dhaka Stock Exchange. On the other hand, 10%
of the respondent consider peer’s information as extremely important.
4) How important are others market participants (Brokers, Fund Managers, Institutional investors,
Analysts etc.) for you as a source of information?
Respondent: 20 Frequency Percent
Extremely important 3 15%
Least Important 0 0%
Moderate Important 17 85%
Analysis: The provided data shows that among all the respondents 85% of all consider others
market participants (Brokers, Fund Managers, Institutional investors, Analysts etc.) for the source
of information to invest in Dhaka Stock Exchange. On the other hand, 15% of the respondent
consider the source information as extremely important.

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The respondents are also participated on some analytical questionnaires. The evaluation levels of
those questionnaires are Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree.
Respondents keep their patience while they evaluated the following statement as these all are
related with the investor’s behavior and activities in the stock market.
Respondent: 20 Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Sufficient knowledge of DSE 15% 20% 65% 0% 0%
Ability to pick better stocks than others 0% 25% 60% 15% 0%
Discussion about investment with others
reduces pressure of being successful
0% 40% 10% 50% 0%
Past investment’s successes make invest
more
30% 55% 5% 10% 0%
Past investment’s successes are attributed
to investor’s skills and performances
5% 70% 25% 0% 0%
Plan to increase investment in DSE 10% 25% 50% 5% 0%
Like to sell stocks as soon as their prices
increasing or vice versa
5% 35% 55% 5% 0%
Like to hold stocks if their market price is
greater than the purchase price
10% 80% 10% 0% 0%
Others investor’s decisions have an
impact on their investment decisions.
0% 10% 80% 5% 5%
After a prior loss, they risk averse 0% 20% 70% 10% 0%
Tend to treat each element of my
investment portfolio separately
10% 20% 65% 5% 0%
Consider carefully the price changes of
stocks that I intend to invest in
35% 60% 5% 0% 0%
Prefer to buy those stocks whose
information is more available
20% 75% 0% 0% 5%
Table 1.2: Investor’s Action Against Specific Issues

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Above table 1.2 shows investor’s action against specific issues considering their level of strongly
agree, agree, neutral, disagree, strongly disagree. When the respondents are asked the issues of
Sufficient knowledge of DSE they are 65% neutral, 15% strongly agree and 20% agree.
Investors ability to pick better stocks than others are 60% neutral, 25% agree but 15% disagree.
Discussion about investment with others reduces pressure of being successful at this statement
respondent are 40% agree, 10% neutral but 50% disagree. Investor’s past investment’s successes
make invest more are 30% strongly agree, 55% agree, 5% neutral, but 10% disagree.
Past investment’s successes are attributed to investor’s skills and performances on this statement
there are 25% neutral, 70% agree and 5% strongly agree. Somehow all the investors are plan to
increase investment in DSE at a percentage of 50% neutral, 25% agree, 10% strongly agree but
5% disagree.
The respondents are asked as like to sell stocks as soon as their prices increasing or vice versa,
having a percentage of 5% strongly agree, 35% agree, 55% neutral, but 5% disagree. While
investors are like to hold stocks if their market price is greater than the purchase price, the
percentage is 10% strongly agree, 80% agree, 10% neutral. Others investor’s decisions have an
impact on their investment decisions, the statement have got a percentage of 10% agree, 80%
neutral, but 5% disagree, and 5% disagree.
After a prior loss, they are risk averse. This statement has a percentage of 20% agree, 70% neutral,
but 10% disagree. The investors are Tend to treat each element of my investment portfolio
separately at a percentage of 10% strongly agree, 20% agree, 65% neutral, but 5% disagree.
Investors are considering carefully the price changes of stocks that they intend to invest in 35%
strongly agree, 60% agree, 5% neutral. Prefer to buy those stocks whose information is more
available at a percentage of 20% strongly agree, 75% agree but 5% strongly disagree.
These all evaluation of statement shows that most of the investors in Dhaka Stock Exchange are
like to take risk as per the market’s position. On the other hand, small portion of percentage among
investors are taking risk every time to get higher return, as there is high risk for higher return. And
the investors evaluated that though they don’t have deep knowledge about stock market, they can
easily collect the market’s information to gain short term benefits. This scenario gives them extra
benefits to learn more from the stock market.

23. Page | 18
5.2. Bivariate Analysis: Cross Tabulation
How long have you been investing? * age Crosstabulation
Age Total
20-35 35-50 More
than 50
How long have
you been
investing?
less than
1 year
Count 2 0 0 2
% within How long
have you been
investing?
100.0
%
.0% .0% 100.0
%
% within age 28.57% .0% .0% 10.0%
% of Total 10.0% .0% .0% 10.0%
1-3
years
Count 4 3 0 7
% within How long
have you been
investing?
57.14% 42.85% .0% 100.0
%
% within age 57.15% 30.0% .0% 35.0%
% of Total 20.0% 15.0% .0% 35.0%
3-6
years
Count 1 6 1 8
% within How long
have you been
investing?
11.11% 66.67% 22.22% 100.0
%
% within age 14.28% 60.0% 33.33% 40.0%
% of Total 5.0% 20.0% 5.0% 40.0%
more
than 6
years
Count 0 1 2 3
% within How long
have you been
investing?
.0% 25.0% 75.0% 100.0
%
% within age .0% 10.0% 66.67% 15.0%
% of Total .0% 5.0% 10.0% 15.0%
Total Count 7 10 3 20

24. Page | 19
% within How long
have you been
investing?
35.0% 50.0% 15.0% 100.0
%
% within age 100.0
%
100.0
%
100.0
%
100.0
%
% of Total 35.0% 50.0% 15.0% 100.0
%
Table 1.3: Crosstabulation considering Investor’s Age with investing time
The above analysis shows that, the crosstabulation between age and the period of the investment
is highest level at the 35-50 age category. On the other hand, the category of 20-35 years has 35.0%
respondents among all. As a result, the aged grouped having a lower percentage among all.
The correlation is a very important factor where the dependent and independent variables should
perfectly correlate. Here, the matrix shows the correlations between Dependent Variable (invested
period) and Independent Variables (age).
Correlations
How long
have you been
investing? age
How long have you been
investing?
Pearson Correlation 1 .657**
Sig. (2-tailed) .001
N 20 20
Age Pearson Correlation .657**
1
Sig. (2-tailed) .001
N 20 20
**. Correlation is significant at the 0.01 level (2-tailed).
Table 1.4: Correlation of age and investing time

25. Page | 20
The value of correlation, r = .657 which is between -1 to 1 but positive. This means from
independent and dependent variables if one variable increases, another variable will increase.
There is a positive correlation between two variables shows the future expected increasing among
this relationship. The calculation can be concluded that if age increases, investment time will also
increase because value of correlation is positive.
How frequently do you invest in equity market? * age Crosstabulation
Age Total
20-35 35-50 More
than 50
How frequently do
you invest in
equity market?
0-3
months
Count 3 4 0 7
% within How
frequently do you
invest in equity
market?
42.86% 57.14% .0% 100.0
%
% within age 42.86% 40.0% .0% 35.0%
% of Total 15.0% 20.0% .0% 35.0%
3-12
Months
Count 4 5 2 11
% within How
frequently do you
invest in equity
market?
36.36% 45.45% 18.18% 100.0
%
% within age 57.14% 50.0% 66.67% 55.0%
% of Total 20.0% 25.0% 10.0% 55.0%
12-36
months
Count 0 1 1 2
% within How
frequently do you
invest in equity
market?
.0% 50.0% 50.0% 100.0
%
% within age .0% 10.0% 33.33% 10.0%

26. Page | 21
% of Total .0% 5.0% 5.0% 10.0%
more
than 36
months
Count 0 0 0 0
% within How
frequently do you
invest in equity
market?
.0% .0% .0% .0%
% within age .0% .0% .0% .0%
% of Total .0% .0% .0% .0%
Total Count 7 10 3 20
% within How
frequently do you
invest in equity
market?
35.0% 50.0% 15.0% 100.0
%
% within age 100.0
%
100.0
%
100.0
%
100.0
%
% of Total 35.0% 50.0% 15.0% 100.0
%
Table 1.5: Crosstabulation considering Investor’s Age with frequently investment
The above analysis shows that, the crosstabulation between age and the period of frequently invest
in the Dhaka Stock Exchange is highest level at the 35-50 age category. On the other hand, the
category of 20-35 years has 35.0% respondents among all. As a result, the aged grouped having a
lower percentage among all.
Here, the above table shows the correlations between Dependent Variable (frequently investment
time) and Independent Variables (age). This bivariate analysis shows that, the age differences is
ethical as most of the young group of people.

27. Page | 22
Correlations
How
frequently do
you invest in
equity
market? age
How frequently do you
invest in equity market?
Pearson Correlation 1 .665**
Sig. (2-tailed) .001
N 20 20
Age Pearson Correlation .665**
1
Sig. (2-tailed) .001
N 20 20
**. Correlation is significant at the 0.01 level (2-tailed).
Table 1.6: Correlation of age and frequently investment
The value of correlation, r = .665 which is between -1 to 1 but positive. This means from
independent and dependent variables if one variable increases, another variable will increase.
There is a positive correlation between two variables shows the future expected increasing among
this relationship. The calculation can be concluded that if age increases, frequently investment
time will also increase because value of correlation is positive.
The above correlation is significant at the 0.01 level where it is measured as 2-taield. The
proportion of frequently invest in the equity market and the investor in a specific age having a
positive correlation shows that the bivariate analysis is appropriate for the relationship.

28. Page | 23
6. Findings of the Study
The analysis and findings for the investors general behavior in Dhaka Stock Exchange is done by
using frequency distribution as univariate analysis and crosstabulation as bivariate analysis. Here,
frequency distribution is held towards the personal information of the investors of the participated
respondents from Dhaka Stock Exchange. On the other hand, the crosstabulation method is mainly
focused on the analysis between investor’s behavior affecting factors.
Among all other factors age is considered mostly as there is some phycological aspects belong
with it. In this project work, age is cross tabulated with investment duration as well as frequent
investment in the stock market by the individual investors.
The data (Table 1.1) of the univariate analysis, frequency distribution. The consideration data or
maximum amount of the percentage should analysis at first. While the personal information of the
investors is provided through twenty respondents. 50% of the investors are between 35 – 50 year’s
age. While the gender information shows that the 90% of the respondent are male. 80% of the
investors have their graduation and other level educational qualification. While 35% of the
respondent declared their annual income from 200,000 – 1,000,000 TK.
Among all the respondents 45% of them are investing 3-6 years in the Dhaka Stock Market. 55%
of the investors frequently invest in the stock market. The 85% respondents are sell all the parts of
shares. 60% of the investors don’t attend any workshop/seminars at the Dhaka Stock Exchange.
45% of the respondents don’t recognize their sector which their shares belong to, however only
30% of them are consider Banking sector when they are buying shares. And 70% of the investors
are long term investor. The table shows the percentage of the factor of the investor’s personal
information at various level from maximum to minimum.
Table 1.2 shows investor’s action against specific issues considering their level of strongly agree,
agree, neutral, disagree, strongly disagree. When the respondents are asked the issues of Sufficient
knowledge of DSE they are 65% neutral. Investors ability to pick better stocks than others are 60%
neutral. Discussion about investment with others reduces pressure of being successful at this
statement respondent are 40% agree but 50% disagree. Investor’s past investment’s successes
make invest more are 55% agree. Past investment’s successes are attributed to investor’s skills and

29. Page | 24
performances on this statement there are 70% agree. Somehow all the investors are plan to increase
investment in DSE at a percentage of 50% neutral.
The respondents are asked as like to sell stocks as soon as their prices increasing or vice versa,
having a percentage of 55% neutral but 5% disagree. While investors are like to hold stocks if
their market price is greater than the purchase price 80% agree. Others investor’s decisions have
an impact on their investment decisions, the statement have got a percentage of 80% neutral.
After a prior loss, they are risk averse. This statement has a percentage of 20% agree, 70% neutral,
but 10% disagree. The investors are Tend to treat each element of my investment portfolio
separately at a percentage of 65% neutral. Investors are considering carefully the price changes of
stocks that they intend to invest in 35% strongly agree, 60% agree. Prefer to buy those stocks
whose information is more available at a percentage of 75% agree but 5% strongly disagree.
The crosstabulation analysis shows that, between age and the time and period of frequently invest
in the Dhaka Stock Exchange is highest level at the 35-50 age category. On the other hand, the
category of 20-35 years has 35.0% respondents among all. As a result, the aged grouped having a
lower percentage among all.
The value of correlation is between -1 to 1 but positive. This means from independent and
dependent variables if one variable increases, another variable will increase. There is a positive
correlation between two variables shows the future expected increasing among this relationship.
The calculation can be concluded that if age increases, investment time and frequently investment
period will also increase because value of correlation is positive.
As all the above correlation is significant at the 0.01 level where it is measured as 2-taield. The
proportion of investments and frequently invest in the equity market and the investor in a specific
age having a positive correlation shows that the bivariate analysis is appropriate for the relationship.
Thus, the overall findings show that, the factors affecting the investors general behavior are so
much important for the future market success of the stock market in Bangladesh.

30. Page | 25
7. Conclusion
The study is conducting by considering the respondents who are basically the respective investors
of the Dhaka Stock Exchange. Most of the respondents are middle aged as 35-50 years. As per
considering the education level, most of the people are Graduated. The annual income from
200,000 – 1,000,000 TK. is the highest range and they are investing 3-6 years in the Dhaka Stock
Market. 55% of the investors frequently invest in the stock market. The 85% respondents are sell
all the parts of shares. However, most investors don’t attend any workshop/seminars at the Dhaka
Stock Exchange. And 70% of the investors are long term investor.
The investor’s action against specific issues considering their level of strongly agree, agree,
neutral, disagree, strongly disagree. The respondents have sufficient knowledge of DSE in neutral.
Investors ability to pick better stocks than others are neutral. Discussion about investment with
others reduces pressure of being successful at this statement respondent are merely disagree.
Investor’s past investment’s successes make invest more are agree on it.
Past investment’s successes are attributed to investor’s skills and performances is perfect.
Somehow all the investors are plan to increase investment in DSE at a neutral level. The
respondents are neutral when asked as like to sell stocks as soon as their prices increasing or vice
versa and they are like to hold stocks if their market price is greater than the purchase price. Others
investor’s decisions have an impact on their investment decisions.
After a prior loss, they are risk averse. The investors are Tend to treat each element of my
investment portfolio separately. Investors are considering carefully the price changes of stocks that
they intend to invest in and prefer to buy those stocks whose information is more available.
The crosstabulation analysis shows that, between age and the time and period of frequently invest
in the Dhaka Stock Exchange is highest level. There is a positive correlation between two variables
shows the future expected increasing among this relationship. The calculation can be concluded
that if age increases, investment time and frequently investment period will also increase because
value of correlation is positive, where all the correlation is measured in a significant level.

31. Page | 26
7.1. Scope of Further Research
The overall project paper shows that, there is a wide ground of the further research of the study of
the Stock market of Dhaka. The investors are so much neutral about the Dhaka stock market. As
the study clear the limitation of the study the data will be more productive while the limitation
could be emitted. The information of the stock market always provided the updating for future
study. So, there is a scope of further research to get investors general behavior at others stock
exchange.

32. Page | 27
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33. Page | a
Appendix
Investor’s Personal Information
1) Age
Respondent: 20 Frequency Percent
20 – 35 years 7 35%
35 – 50 years 10 50%
More than 50 years 3 15%
2) Gender
Respondent: 20 Frequency Percent
Male 18 90%
Female 2 10%
3) Educational qualification
Respondent: 20 Frequency Percent
Primary 0 0%
Secondary 0 0%
Undergraduate 4 20%
Graduate & Others 16 80%
4) Annual income (TK)
Respondent: 20 Frequency Percent
200,000-1,000,000 7 35%
1,000,000-2,500,000 3 15%
2,500,000-5,000,000 4 20%
5,000,000 and above 6 30%
5) How long have you been investing?
Respondent: 20 Frequency Percent
Less than 1 year 2 10%
1-3 years 5 25%
3-6 years 9 45%
More than 6 years 4 20%

34. Page | b
6) How frequently do you invest in equity market?
Respondent: 20 Frequency Percent
0-3 months 7 35%
3-12 months 11 55%
12-36 months 2 10%
More than 36 months 0 0%
7) Do you sell all or part of shares?
Respondent: 20 Frequency Percent
All 17 85%
Part 3 15%
8) Do you attend any workshop/seminars at Dhaka Stock exchange?
Respondent: 20 Frequency Percent
Yes 8 40%
No 12 60%
9) Which market sector do you usually invest in?
Respondent: 20 Frequency Percent
Insurance 2 10%
Textile 2 10%
Banks 6 30%
Chemical, engineering 1 5%
Others 9 45%
10) What kind of investor are you?
Respondent: 20 Frequency Percent
Speculative 0 0%
Short term 6 30%
Long term 14 70%

35. Page | c
PART-A
1) What do you think about the near future of Dhaka Stock exchange?
Respondent: 20 Frequency Percent
Optimistic 4 20%
Pessimistic 0 0%
Can’t define 7 35%
Neutral 9 45%
2) What price range of shares do you prefer to invest in?
Respondent: 20 Frequency Percent
High range 2 10%
Moderate range 15 75%
Low range 3 15%
3) How important are your peers for you as a source of information?
Respondent: 20 Frequency Percent
Extremely important 2 10%
Least Important 0 0%
Moderate Important 18 90%
4) How important are others market participants (Brokers, Fund Managers, Institutional investors,
Analysts etc.) for you as a source of information?
Respondent: 20 Frequency Percent
Extremely important 3 15%
Least Important 0 0%
Moderate Important 17 85%
PART-B: Evaluation of Statements
Respondent: 20 Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Sufficient knowledge of DSE 15% 20% 65% 0% 0%
Ability to pick better stocks than others 0% 25% 60% 15% 0%

36. Page | d
Discussion about investment with others
reduces pressure of being successful
0% 40% 10% 50% 0%
Past investment’s successes make invest
more
30% 55% 5% 10% 0%
Past investment’s successes are attributed
to investor’s skills and performances
5% 70% 25% 0% 0%
Plan to increase investment in DSE 10% 25% 50% 5% 0%
Like to sell stocks as soon as their prices
increasing or vice versa
5% 35% 55% 5% 0%
Like to hold stocks if their market price is
greater than the purchase price
10% 80% 10% 0% 0%
Others investor’s decisions have an
impact on their investment decisions.
0% 10% 80% 5% 5%
After a prior loss, they risk averse 0% 20% 70% 10% 0%
Tend to treat each element of my
investment portfolio separately
10% 20% 65% 5% 0%
Consider carefully the price changes of
stocks that I intend to invest in
35% 60% 5% 0% 0%
Prefer to buy those stocks whose
information is more available
20% 75% 0% 0% 5%