The report will mainly focus on the Trading and Investment systems or decision making process in Capital Market. It will also focus on operation of Brokerage house. Stock exchanges are completely significant for the proper operational of capitalistic economy. Capital markets help to transmission capital from the surplus units to the deficit units. That plays an essential role by mobilizing the funds to these who can make a proper and creative use of the sale. They also help the surplus units to be capable of earning returns by serving the economy to use their idle funds in accelerating the economic freedom through employment generation. In such a way the financial institutes especially the organized stock exchanges contribute to the industrialization to the country. Stock market contain primary market, floating initial public offering and secondary market were existing security of listed companies are being traded. Primary market issued shares first time, and then the shares come to the secondary market. Both primary and secondary market is reliable to one another. In primary market shares are issued by IPO to the public. In secondary market the shares, which are issued in the primary market, are traded through the brokers.Now trading has become automated, led by DSE through central depository. Hasan Securities Ltd. playing a vital role to generate internet based trading system. It gains dependable value of secure transactions by satisfying customers. Research shows that overall performance and satisfactory. Research also specifies different types of investors and their knowledge level about the market Capital markets are financial markets for the buying and selling of long-term debt or equity‐backed securities. These bazaars channel the wealth of savers to those who can put it to long‐term fruitful use, such as corporations or governments making long‐term investments. Capital markets are defined as markets in which money is providing for times longer than a year. Investors usually perform investment examination by creating use of essential analysis, technical enquiry and gut feel. Investment judgements are often supported by decision tools. The portfolio theory is often applied to help the investor attain a reasonable return compared to the risk taken. Now a day’s SEC & DSE has taken various steps to improvement the market. DSE has started new index system, new price value of shares.

1. 1
JAHANGIRNAGAR UNIVERSITY
Internship Report
On
TRADING AND INVESTMENT SYSTEM OF STOCK MARKET IN
BANGLADESH: A STUDY BASED ON HASAN SECURITIES LIMITED
SUBMITTED TO
Md. Sohel Rana
Lecturer
Department of Accounting and Information Systems
Jahangirnagar University
SUBMITTED BY
Md. Mahmudul Hasan
ID: 1688
Examination Roll No: 130492
Registration No: 36534
Batch: 3rd
, Session: 2012-13
Department of Accounting and Information Systems
Jahangirnagar University
Date of Submission: 6th
March,2018

2. 2
TRADING AND INVESTMENT SYSTEM OF STOCK MARKET IN
BANGLADESH: A STUDY BASED ON HASAN SECURITIES LIMITED

3. 3
LETTER OF TRANSMITTAL
6th
March, 2018
Md. Sohel Rana
Lecturer
Jahangirnagar University
Savar, Dhaka-1342
Subject: Submission of an internship report
Dear Sir,
It is with great pleasure that I have the opportunity to submit the internship report titled: Trading
and Investment System of Stock Market in Bangladesh: A Study Based On Hasan Securities
Limited which was prepared from the job experience in the Hasan Securities Ltd. (Head Office)
I have tried my best to follow your guidelines in every aspect on my report. I have collected what
appears to be most significant information to make my report as precise and clear as possible. It
has been thrilled and informative experience for me to work in the organization and make this
report. In spite of the numerous limits faced while preparing this report, I have tried to be as
thorough as possible.
I am honestly thankful to you for your guidance during the preparation of this report. I hope you
will appreciate my effort put forth hereby.
Sincerely Yours,
Md. Mahmudul Hasan
ID: 1688
Examination Roll No: 130492
Registration No: 36534
Batch: 3rd, Session: 2012-13
Department of Accounting and Information Systems
Jahangirnagar University

4. 4
LETTER OF AUTHORIZATION
This is to certify that the Internship Report on: Trading and Investment System of Stock Market
in Bangladesh: A Study Based On Hasan Securities Limited is an authentic record and the
report is done by Md. Mahmudul Hasan based on reliable information under my direct
supervision as per requirement of Bachelor of Business Administration (BBA) degree from the
Department of Accounting & Information Systems, Jahangirnagar University.
The report has been accepted and approved and it is a record of the bona fide work carried out
successfully by Md. Mahmudul Hasan.
I wish him every success in life with very best of luck.
Md. Sohel Rana
Lecturer,
Department of Accounting & Information Systems
Jahangirnagar University
Savar, Dhaka-1342.

5. 5
ACKNOWLEDGEMENT
At the very beginning, I would like to express my deepest thankfulness to the almighty Allah for
giving me the strength and the capability to finish the job within the arranged time.
The fruitful accomplishment of this Internship Report is the result of the involvement and
participation of a number of people, especially those who took time to share their thoughtful
direction and suggestions to improve the report. It’s hard for me to thank all of those people who
have contributed something to this report. There are some special people who cannot go without
mention.
At the very first, I would like to extend thanks towards my honorable internship supervisor Md.
Sohel Rana, Lecturer, Department of Accounting & Information Systems, Jahangirnagar
University. I am grateful to her for her amiable support, supervision, ideas and direction that
allowed me to complete this report successfully.
I would like to thank to Mr. Priya Lal Saha, Chief Executive Officer of Hasan Securities Ltd. for
giving me opportunity to complete my internship reports during the job periods in his well‐reputed
organization. I would like to thank speciallyMr. Md. Hedayet Hossain (Senior Executive of Sales
and Trading) and Mr. Golam Robbani (Executive of CDBL). I also indebted to all of employee
of this branch as without their direct and indirect support it was not possible for me to gather
practical knowledge and experience of stock market operation.
Finally, my sincere gratitude goes to my family, friends and classmates who helped me whenever
I needed.

6. 6
EXECUTIVE SUMMARY
The report will mainly focus on the Trading and Investment systems or decision making process
in Capital Market. It will also focus on operation of Brokerage house.
Stock exchanges are completely significant for the proper operational of capitalistic economy.
Capital markets help to transmission capital from the surplus units to the deficit units. That plays
an essential role by mobilizing the funds to these who can make a proper and creative use of the
sale. They also help the surplus units to be capable of earning returns by serving the economy to
use their idle funds in accelerating the economic freedom through employment generation. In such
a way the financial institutes especially the organized stock exchanges contribute to the
industrialization to the country. Stock market contain primary market, floating initial public
offering and secondary market were existing security of listed companies are being traded. Primary
market issued shares first time, and then the shares come to the secondary market. Both primary
and secondary market is reliable to one another. In primary market shares are issued by IPO to the
public. In secondary market the shares, which are issued in the primary market, are traded through
the brokers.
Now trading has become automated, led by DSE through central depository. Hasan Securities Ltd.
playing a vital role to generate internet based trading system. It gains dependable value of secure
transactions by satisfying customers. Research shows that overall performance and satisfactory.
Research also specifies different types of investors and their knowledge level about the market
Capital markets are financial markets for the buying and selling of long-term debt or equity‐backed
securities. These bazaars channel the wealth of savers to those who can put it to long‐term fruitful
use, such as corporations or governments making long‐term investments. Capital markets are
defined as markets in which money is providing for times longer than a year. Investors usually
perform investment examination by creating use of essential analysis, technical enquiry and gut
feel. Investment judgements are often supported by decision tools. The portfolio theory is often
applied to help the investor attain a reasonable return compared to the risk taken. Now a day’s SEC
& DSE has taken various steps to improvement the market. DSE has started new index system,
new price value of shares.

7. 7
Table of Contents
PART- A- ORGANIZATIONAL OVERVIEW......................................................................................................9
A.1 INTRODUCTION...................................................................................................................................9
A.2 FOUNDATION & GROWTH................................................................................................................10
A.3 NATIONAL NETWORK .......................................................................................................................10
A.4 PRINCIPLE BUSINESS ENTITIES..........................................................................................................11
A.5 COMPANY CHART .............................................................................................................................11
A.6 SWOT ANALYSIS................................................................................................................................12
PART- B- JOB DESCRIPTION........................................................................................................................13
B.1 INTRODUCTION.................................................................................................................................13
B.2 WORK EXPERIENCE ...........................................................................................................................13
B.3 JOB RESPONSIBILITIES.......................................................................................................................14
PART- C- PROJECT PART .............................................................................................................................15
CHAPTER-1- INTRODUCTION..................................................................................................................16
C.1.1 ORIGIN OF THE REPORT.............................................................................................................16
C.1.2 OBJECTIVE OF THE REPORT........................................................................................................16
C.1.3 SCOPE OF THE REPORT ..............................................................................................................16
C.1.4 LIMITATION OF THE STUDY........................................................................................................16
CHAPTER-2- LITERATURE REVIEW..........................................................................................................17
CHAPTER-3- METHODOLOGY.................................................................................................................18
C.3.1 SELECTION OF THE TOPIC ..........................................................................................................18
C.3.2 SOURCES OF DATA.....................................................................................................................18
C.3.3 CLASSIFICATION, ANALYSIS & PRESENTATION ..........................................................................18
C.3.4 FINDINGS OF THE STUDY ...........................................................................................................18
C.3.5FINAL REPORT PREPARATION.....................................................................................................18
CHAPTER -04- TRADING SYSTEMS OF STOCK MARKET IN BANGLADESH.................................................19
C4.1 INTRODUCTION...........................................................................................................................19
C.4.2 TYPES OF TRADING SYSTEM OF DSE..........................................................................................19
C.4.3 PROCEDURE OF THE ACCOUNT OPENING AND TRADING PROCEDURE ....................................20
C.4.4 METHODOLOGY OF BO ACCOUNT OPENING.............................................................................20
C.4.5 METHODOLOGY OF CENTRAL DEPOSITORY BANGLADESH LIMITED CDBL................................25
C.4.6 METHODOLOGY FOR BUYING AND SELLING SECURITIES USING FLEX TRADE SOFTWARE........28

8. 8
C.4.7 METHODOLOGY OF PURCHASE POWER ....................................................................................28
C.4.8 BUY SELL WINDOW OF FLEX TRADE SOFTWARE .......................................................................29
CHAPTER-05- INVESTMENT SYSTEMS OF STOCK MARKET IN BANGLADESH .......................................32
C.5.1 NUMBER OF SECTOR IN CAPITAL MARKET................................................................................32
C.5.2 INVESTMENT SYSTEMS ANALYSIS..............................................................................................33
C.5.3 RISK & RETURN & PORTFOLIO ANALYSIS...................................................................................34
C.5.4 SECURITY PORTFOLIO ................................................................................................................40
C.5.5 ANALYSIS THE MARKET RETURN INDEX AND SHARE PRICE INDEX............................................41
CHAPTER-06-FINDINGS OF THE REPORT................................................................................................48
CHAPTER -07- PROBLEMS OF THE REPORT & COMPANY......................................................................49
CHAPTER-08-RECOMMANDATION ........................................................................................................50
CHAPTER-09-CONCLUSION.....................................................................................................................51
REFERANCE.................................................................................................................................................52

9. 9
PART- A- ORGANIZATIONAL OVERVIEW
This section highlights on the historical related of the company under learning, impression of the
company, their product and service, market reporting, market condition, principle business objects
of Hasan Securities Limited.
A.1 INTRODUCTION
Hasan Securities limited has been set up to provide to the desires of the capital market needs of
the official and individual clients. Hasan Securities limited offers full- fledged global standard
brokerage facility for retail and official clients. Having places in Dhaka Exchange Limited, it is
inevitable that Hasan Securities limited became the reliable agent to most of the local institutional
investors and high net worth clients financing in Bangladesh and abroad. Hasan Securities limited
is devoted to providing a high level of expert and personalized facilities to its local clients. The
company aims to offer high class product and service at a good rate to all clients. It has proven
name in serving customers by upholding strong Compliance practices and extreme ethical
standard.
FEATURES
 Global Standard Brokerage Operation.
 Full service Depository Participant (DP) of Central Depository Bangladesh Limited
(CDBL).
 Staffed with highly skilled professionals.
 Regular reporting of portfolio and transaction status through SMS, e-mail fax and website.
 Availability of market research reports and sector wise analysis.
 Facilities for opening brokerage and BO Account.
FUNCTIONS
 CDBL Services as Full Service Depository Participant (DP). Like- Bo (Beneficial
Owner) accounts opening and maintenance, Dematerialization and Re-materialization,
Transfers and multiple accounts movement.
 Sales and Brokerage. Like- Brokerage service for Institutional Clients, Insurance
Companies, Banks and Financial Institution, Trust, Corporation, Brokerage Service for
retail (Individual) Clients.
 Custodial Services. Like- Safe Deeping of securities.
 Research & Publication. Like- Monthly report, Industry/Corporate research report.
 Value Added Services. Like- Daily portfolio services through e-mail, Daily trade
confirmation through SMS service.

10. 10
A.2 FOUNDATION & GROWTH
To provide the needs of capital market business requirements Hasan Securities limited launched
its brokerage operations in July 2010. Brokerage division is working with two divisions located at
Gandaria and Motijheel which are directly controlled by the Main Head Office of brokerage
division at Gandaria.
A.3 NATIONAL NETWORK
Hasan Securities limited is now conducting its business throughout the country by establishing
two branches. The main branch is located at Gandaria, Dhaka city and the extension office at
Motijheel, Here the address of the corporate office and branches are given bellow.
Corporate Office
110, Distillary road, Gandaria, Dhaka-1204.
Phone:7453457, 7453458, Fax: 7451606
Extension Office
Ittefaq Bhaban (level-3)
1 R.K. Mission Road, Dhaka-1000
Phone: 02-7118943, 02-7124286

11. 11
A.4 PRINCIPLE BUSINESS ENTITIES
A.4.1 VISION: Provide to the needs of the capital bazaar needs of the official and individual
clients by providing a high level of expert and personalized services by keeping strong moral
standard.
A.4.2 MISSION
 Offers full- fledged global standard brokerage facility for retail and institutional clients.
 Offer high quality product and service at a competitive rate to all clients.
 Continuously challenge processes and platforms to enhance effectiveness and efficiency.
 Becoming trusted and efficient partner of the clients in capital market.
A.4.3 VALUE
 Accountable & Transparent.
 Courageous & Respectful.
 Engaged & Inspired.
 Maintaining extreme ethical standard.
A.5 COMPANY CHART

12. 12
A.6 SWOT ANALYSIS
It has continuously been significant for a business to know and understand how it fits in and
cooperates with the nearby environment on both an internal (office/factory/shop environment) and
external view (how the business operates with the outside world). Researching the environment
will advantage the organization and management team by tapping in a position to grow a strategy
for both the long and short term.
STRENGTH:
1. Strong Corporate Identity.
2. Strong Employee Bonding and Belonging.
3. Efficient Performance.
4. Empowered Work Force.
5. Strict Adherence to Compliance Standard.
6. Modern Equipment and Technology.
WEAKNESS
1. Lack of Manpower.
2. Insufficient Advertising.
3. Limited Number of Trading Machine.
4. Underdeveloped Website.
OPPORTUNITIES
1. Huge Market.
2. Government & Regulatory Body’s Initiative for Market Growth.
3. Weak Marketing Message by Other Organizations.
THREAT
1. Other Brokerage House.
2. Rivalry of Existing Competitors on Commission and Others.
3. Similar Services Are Also Provided by Other Banks & Financial Institution.
4. Industrial Downward Trend Due to recession, Inflation, Political Instability & Rumors.

13. 13
PART- B- JOB DESCRIPTION
B.1 INTRODUCTION
It was great pleasure for me to get an opportunity to work in the well-known and organized
brokerage house of Bangladesh; “Hasan Securities Limited”. I was placed to main corporate office.
It was at Gandaria. It works towards assuring better business presentation and competitive benefit
by enticing and retaining people in wining culture.
I was part of Hasan Securities Limited for two months and started my internship in 1st January,
2018. On the very first day, I was greeted by the Chief Executive Officer Mr. Priya Lal Saha, who
introduced me to the encouraging culture of Hasan Securities Limited. He spent some time with
me and gave me some useful guidance. I was very happy to work in such an environment where I
could apply my academic knowledge to an extent. This delighted me very much. It was beautiful
months and I enjoyed every moment of my working hour. Within these two months.
On the very first day my supervisor Mr. Md. Hedayet Hossain (Senior Executive of Sales and
Trading) and Mr. Golam Robbani (Executive of CDBL). discussed my tasks with me. More
important is that I am very much grateful to Mr Md. Hedayet Hossain his cordial support during
the internship period. I tried to bring my educational knowledge, devotion and honesty to discharge
all the responsibilities that was given upon me during my internship period.
A small explanation of the tasks that I have done during my internship period is given bellow.
B.2 WORK EXPERIENCE
1. Assisting in Customer Account Opening Process.
2. Providing customers information for opening B/O account (Beneficiary Owners Account).
3. Assisting customer service department regarding the voucher, ledger and any other
queries.
4. Deposit Collection.
5. Cheque Requisition.
6. Writing order sheets and arranging them accordingly.
7. Assisting customers in receiving cheque.
8. Maintaining documents of deposit collection and requisition.

14. 14
B.3 JOB RESPONSIBILITIES
The office time starts from 9.00 am in the morning. There are five working days in a week, Sunday
to Thursday. Office time ends at 5 pm. My activities begin with the start of office hour.
9.00 am- Enter into the office.
9.30 am-2.00 pm- During this period I complete my routine work. The responsibilities are given
bellow.
 Categorization out the news from DSE website, print them and attach them in the
notice board.
 Find out the order sheets and write them according to the confirmation sheet.
 Maintaining the compliances.
 Learning the trading systems.
 Helping the messenger to find out the document and responsibilities which has to
be sent to the head office.
 If any customer comes to open account, then I help them.
 Providing solution to the queries of customers.
2.00 pm- 2.45 pm: Lunch break and saying my prayer.
3.00 pm- 4.00 pm: Helping to deposit the cheque.
 Write out the order sheet.
 Checking out the B/O account opening form.
4.00pm- 4.40 pm: During this period Mr. Md. Hedayet Hossain discussed with me about the
capital market I have learnt many things from him during this time. In some extent he takes class
on capital market for me. He shares his experience with me during this time. I also help him by
using my knowledge in doming some sort of research on the entities of capital market
4.40 pm: Break for offering prayer.
5.00 pm: I prepare the stuffs required to do for the next day and come out from the office.

15. 15
PART- C- PROJECT PART

16. 16
CHAPTER-1- INTRODUCTION
C.1.1 ORIGIN OF THE REPORT
This report titled “Trading and Investment System of Stock Market in Bangladesh” is prepared
for fulfilling a partial requirement of both the B.B.A. and the Internship program .The Hasan
Securities Limited is the host organization for two months internship program ,which began
January 01, 2018.To prepare the report as an trainee I have taken necessary assistance from my
internship supervisor who authorized the topic of this report .On the other hand I have got a lot of
support from the employees of this organization.
C.1.2 OBJECTIVE OF THE REPORT
1. The prime objective of the study is to study and evaluate the whole trading system and an
Investment decision analysis of DSE. (Dhaka Stock Exchange)
2. To examine the trading system.
3. To know rules and regulations.
4. To identify the problems and prospects.
5. To evaluate the Investment Procedure of the Hasan Securities Limited to Capital market.
6. To give an insight about Investment in capital Market.
7. To calculate the analysis and portfolio investment of return of security.
8. To Analysis of investment of Capital market in Bangladesh.
C.1.3 SCOPE OF THE REPORT
The report will mainly focus on the Trading and Investment Policy of capita market l. It will also
focus on operation Companies’ like Central Depository Unit Bangladesh, Security and Exchange
Commission and DSE After studying that whole report anyone can learn and get huge knowledge
about the Trading and Investment decision that will be help them to further development.
C.1.4 LIMITATION OF THE STUDY
Despite my sincerest attempt, the study suffers from some limitations owing to numerous reasons,
such as:
 Two months are not sufficient to know all about a broker house and as well as the whole
stock market.
 There were lack of written documents about the facilities and other related things.
 Investors are not assuredly giving opinion due to some restriction.
 From Hasan Securities Ltd. database due to some management policy which was strict and
no exception was made.
 Big investors are not accessible, because they are not interested to share information
regarding their portfolio and investment in capital market.
 It is very difficult to carry out detailed analysis of market and the Investment financing.

17. 17
CHAPTER-2- LITERATURE REVIEW
Before starting to inform that why I have chosen this topic, I have to say something about capital
market. Basically a company raises long term fund from the capital fund. Moreover, a country’s
economy is largely dependent on the capital market. So, this industry is very much significant for
a country’s growth and a brokerage houses are working in this industry. It is a service based
industry and also trading and investment oriented industry. I am very fortunate that I got the chance
to work in this industry. Working in this industry helped me to gain and brush up my knowledge
about Finance and Accounting both subject. It was a great opportunity for me. As it is service
oriented industry so the satisfaction level of customers is very much important for a brokerage
house. On the other hand, in my point of view very few research works are done on this track. So,
I became interested to work on Trading System and an Investment Analysis of Stock Market in
Bangladesh. I have chosen Gandaria corporate office because it was my working place and total
customers of all branches of Hasan Securities Ltd. may not be possible to cover in this little period
of time. My supervisor also helped me to choose this topic.

18. 18
CHAPTER-3- METHODOLOGY
The study is directed in a methodical process starting from selection of the subject to final report
preparation. The important part was to recognize and gathering information; they were classified,
examined, interpreted and presented in an organized way to find the vigorous points. The overall
procedure of methodology followed in clarified further.
C.3.1 SELECTION OF THE TOPIC
I have chosen the topic and my supervisor has accepted to work on this the subject. Earlier the
topic was allocated it was carefully discussed so that a well-organized internship report can be
prepared. In this case the topic is “Trading System and an Investment Analysis of Stock Market in
Bangladesh: A Study based on Hasan Securities Limited”.
C.3.2 SOURCES OF DATA
The report has been prepared on the basis of the experience added during the period of the service
place. The significant feature of the report is the use of both primary and secondary sources of
information.
Primary sources
 Personal experience gained by visiting different desks (Front Office & Back Office
Including Accounts, CDBL, Trading)
 Personal investigation with customers and clients.
 Personal investigation in another Company’s trading Procedure.
Secondary sources
 Internet.
 Prospectus.
 Research reports connected with the stock exchange.
 Trade journal.
C.3.3 CLASSIFICATION, ANALYSIS & PRESENTATION
Some diagrams and table were used in this report for analyzing the collected data and to explain
certain concepts and findings more clearly. The help of MS Excel derived the diagram and tables.
Moreover, collected data were analyzed more precisely.
C.3.4 FINDINGS OF THE STUDY
The collected data were analyzed well and were pointed out and shown as findings at the end.
C.3.5FINAL REPORT PREPARATION
The final report is prepared after some valuable suggestions and correction provided by my
honorable advisor.

19. 19
CHAPTER -04- TRADING SYSTEMS OF STOCK MARKET IN BANGLADESH
C4.1 INTRODUCTION
The stock market is one kind of capital market where the stocks are of the various firms is traded.
DSE, floor trading was started with open cry-out auction system. Now exchange has become
automatic, led by the DSE through the central depository.
There are two types of stock markets:
 Primary market: In primary markets, fresh stock or bond issues are sold to investors via
a mechanism known as underwriting
 Secondary market: In the secondary markets, existing securities are sold and bought
among investors or traders, usually on a securities exchange, over-the-counter, or
elsewhere.
C.4.2 TYPES OF TRADING SYSTEM OF DSE
Automated Trading Systems:
Technology would ensure transparency, timeliness and satisfaction in customer service.
Considering those DSE introduced Automated Trading System on 10th August 1998.In other
words, the trading floor moved right into the member’s office premises where an investor started
to place buy/sell orders.
Considering market growth, the Automated Trading System was improved two times. The recently
Upgraded Trading System, started from 21st December, 2008 is capable to handle 1, 50,000 trades
per day as well as 3000 Trading work station
Internet Trading System:
Internet Trading System (ITS) is DSE venture on behalf of the brokers. This site has been provided
by the Dhaka stock exchange so as to give clienteles the suitability to trade or put orders on DSE
from anyplace in the world regardless of the trading hours of the stock exchange. The trading is
done by registration on the site under some current broker of the stock exchange.
Steps for trading through Internet:
1. Register on the site as an investor. It is needed to register under some existing broker/sub
broker in the Dhaka stock exchange.
2. For additional security there are two passwords, browsing password, which is reduced
every time, a transaction like order entry, modification etc. is made.
3. Trading can begin only after the respective broker has approved the registration and
assigned limits for trading.
4. The investor can do exchange during the trading hours of DSE as well as put offline orders
through the non- trading hours, which get added into the system in the next trading session.
5. The investor can trade only unto the limit allocated to him by his broker. On exceeding this
limit, the investor gets suspended.

20. 20
The objective of ITS is to spread the capital market of Bangladesh begun the larger cities of the
country. Through this system, you can observer the market situation on the internet and place
buy/sell order through your broker concurrently.
Spot Order trading:
Spot Orders are normal orders for which delivery has to take place on the same day. The scrip in
which spot trading is to be allowed is decided by the Stock Exchange.
1. A spot order is traded against another spot order only.
2. Priority of spot order depends on its price and time.
3. A trader can submit numerous spot orders in the similar scrip.
4. Spot Orders can be changed or removed before they are traded. On alteration, the spot order
misses its time priority.
5. The Spot BBO is shaped of spot orders only and is exposed distinctly.
Bulk Order Trading
1. Bulk orders are essentially limit orders used for trading in greater amounts. They are also
referred to as block deals.
2. Bulk orders will be putative in the continuous trading session only. The period of these
orders would be same as that current for limit orders.
3. Bulk orders will not be considered for BBO construction and final price calculation.
4. All other situations of client code, tick price, filter limited etc. are applicable for bulk orders
similar to the ones applied for normal orders.
5. Bulk orders entered by the broker/trader will be broadcast to all the BWS’s. The trader can
view the bulk orders and place the proper opposite order.
C.4.3 PROCEDURE OF THE ACCOUNT OPENING AND TRADING PROCEDURE
1. Investment decision made by Investor.
2. Opening a BO account.
3. Market analysis and select share.
4. Trading (Buy and Sale Share).
5. Withdrawal money (If they gain and sold share).
6. Keep the instrument (If the loss and wait until break-even).
C.4.4 METHODOLOGY OF BO ACCOUNT OPENING
1. What is a BO Account?
BO Account refers to Beneficiary Owners Account. This is the account that holds your
dematerialized/electronic shares like an inbox holding all your e‐mails.

21. 21
2. Requirement Documents for Opening of BO Account:
For Individual / Joint:
1. Photocopy of valid Passport/National ID card/Nationality Certificate
2. Three (03) copies of passport size photograph for individual and three copies (03) for Joint
Account Holder.
3. Two (02) copies Passport size photograph for nominee duly attested by A/C Holder
4. Two (02) copies of Passport size photograph of person authorized to operate the account duly
attested by A/C Holder
5. Bank statement and certificate from Branch Manager
6. BO Account opening fee
For NonResident
Bangladeshi:
1. Photocopy of passport / Social Security Card / Registration Card etc. duly attested (if you are
located in a foreign country then attestation needs to be done with the respective Bangladesh
Embassy or High Commission)
2. An FC account with Bank at any branch in Bangladesh.
3. Passport size photographs duly attested.
4. A nominee – beneficiary in case of death of the investor. His/her signature and photo (duly
attested by the investor) on the prescribe form provided by the brokerage house.
5. Employment certificate/ Trade License photocopy/Work Permit or Pay Slip/Tax Return
Documents as a proof other earning status of the NRB.
6. A nominated person with POA (Power of Attorney) who will sign trading documents on behalf
of the NRB while he is in abroad. His/her photo (attested by the NRB) and signature in a prescribed
form by our company (POA can be any adult person of legal age residing in Bangladesh).
7. An additional form of KYC (Know Your Customer will also have to be full in).
8. Primary fund will have to be a cheque or pay order or other allowable form drawn from FC
account.
9. All incomes from the investment can be first transported to a local currency account of NRB
and then to the trading account through help of the POA.
10. Trading account will allow the NRB to allocate fund for investment in the secondary market.
11. Sales proceeds will be distributed by account payee cheque in favor of the NRB investor.

22. 22
As such a local account or a NITA account (in case it repatriation is wanted in foreign money) is
required.
For Corporate:
1. Board Resolution for Account Opening.
2. Certificate of Incorporation and Memorandum and Article of Association Three (03) copies of
Passport size attested photograph for each signatory who will operate the Account.
3. Bank Certificate from Branch Manager.
4. BO Account primary fee.
3. What is a NITA Account?
 Non‐resident Investment Taka Account (NITA) is an account for guiding foreign money
in as well as repatriation of earnings from investment.
 All earning from investment (e.g. cash dividend) are credited to the NITA account.
 All adequate statement, certifying that all proper taxes are already withheld from Earnings.
 Upon issuance of auditors certificates the earnings can be repatriated to the NRB in foreign
currency
 If investors intention is not to repatriate any foreign currency than NITA account is not
mandatory.
4. What are the Tax rates for NRB?
 There is no Capital Gain Tax
 Individual Income Tax assessment is similar to any other resident Bangladeshi (visit
www.nrb.org.incometax.html for details). NRB can submit tax return to local Bangladesh
Embassy.
 Individual Income tax will not be more than 15%.
 10% at source is deduct by issuer in case of cash dividend.
N.B: Though Hasan Securities not operate the account of Non‐resident, But I give the information
to know all users.
5. Fees, Commission and Account Opening Charges:
 Cash Account: BDT 700/‐
 Service Charge: 1%*
 Others Charges: At actual basis
 Settlement Fee: 0. 40%* (on transaction value)
 Third Party Charge: At actual basis (Variable)

23. 23
6. Customer Account Opening Information Form:

24. 24

25. 25
7.Customer Account Opening Information Entry in Back Office Software (SIS):
After finishing all processes to open BO account, at first customer account opening info save in
back office software (SIS).
8.Methodology of Accounting:
When client deposit cash amount to buy a securities Hasan Securities Limited give money receipt
against of those amount of money, after that entry in back office software (SIS Plus).
C.4.5 METHODOLOGY OF CENTRAL DEPOSITORY BANGLADESH LIMITED CDBL
1.Clearing & Settlement:
Clearing and Settlement System is conducted as per the settlement of stock exchange transaction
regulations, 1998 and Dhaka Stock Exchange regulations, 2000.
1 (A) Settlement of Securities:
Pay In: Pay in is done on T+0 if members margin is paid on buy exposure only.
Pay In Failure: If stock broker fails to pay in on T+0, his trade will be suspended on T+1 (next
trading day) by Dhaka Stock Exchange Ltd. Due to Members' Margin Failure.
Pay Out:
• Pay Out for A, B and N Category Securities:
CDBL will place all the securities of which the broker buys on (T+0) to his clearing account on
the 3rd day (T+3) subsequent to the trading day. Pay Out shall be done on T+3 for A, B, and N
categories securities. It indicates that an investor can sell the securities (A, B & N categories) on
the 3rd day from his buying date (T+0) of the said securities.

26. 26
• Pay Out for Z Category Securities:
CDBL will place all the securities of which the broker buys on (T+0) to his clearing account on
the 9th day (T+9) subsequent to the trading day. Pay Out shall be done on T+9 for Z categories
securities. It indicates that an investor can sell the securities (Z categories) on the 9th day from his
buying date (T+0) of the said securities.
• Settlement on Spot Market:
In case of demated shares/bonds settlement will take place to the member clearing A/C just normal
transaction. The sell broker shall deposit the pay in transfer from with DP at T+0 while the buying
broker shall deposit cash or pay order or demand draft or make direct transfer of funds to DSE
clearing A/C on T+0 day within banking Hour & report the same to clearing department of DSE.
2 CDBL BO Setup Offline Window:

27. 27

28. 28
C.4.6 METHODOLOGY FOR BUYING AND SELLING SECURITIES USING FLEX TRADE SOFTWARE
1. How to buy or sell Shares/Securities:
 IPO application needs to be full in a prescribed form. Such forms can be got through mail,
website of issuing company, or though broker etc. Now a day the brokerage house will
provide form to do IPO share Business via their secondary share account by depositing
cash money.
 Trading in secondary market is done by Buy/Sell order forms (very soon to be made
available online).
 If POA (Nominee) is assigned, then the POA holder needs to sign the Buy/Sell order form
within 24 hours of order placement.
 If NRB desires not to allot a POA then orders can be placed via phone or email (broker
consent essential) and then a signed Buy/Sell order form needs to be faxed to our broker
house within 24 hours.
 Trading will be carried out within usual market rules.
 Shares will be credited or debited to the BO account consequently.
2. What happens to Dividend, Bonus etc?
Cash Dividend warrants will be delivered to the NRB. These are typically account payee cheques.
So this can either be deposited to NRB’s local Bank Account then may be to the trading account
to be reinvested in the secondary market through our broker house, if the POA holder follows the
proper procedures.
 All Bonus Shares will be credited to the BO account
 Earnings can be withdrawn from the investments by placing a request to our broker house
in a prescribed format.
 Cash Dividend will be credited to prospective accounts form given by Company through
Cheque or BEFTN.
C.4.7 METHODOLOGY OF PURCHASE POWER
When client buy and sell securities in any work station, they must have buy and sell limit in
FLEXTP server. This is the most vital step to buy and sell securities. FLEXTP serve limit window
is given bellow.

29. 29
C.4.8 BUY SELL WINDOW OF FLEX TRADE SOFTWARE
When client buy and sell securities in capital market, authorize representative submit order in Flex
Trade software. Window is given bellow.
Normal Flex Trade Window:

30. 30
Buy Window:
Total Market Window:

31. 31
Sale Window:

32. 32
CHAPTER-05- INVESTMENT SYSTEMS OF STOCK MARKET IN BANGLADESH
Long‐term Investment: In case of investment share market in Bangladesh if any investor wants
to go for long term investment he or she might be investing about 1.5 Lakh or above. In this view
the time span should be 10 years or above.
Midterm Investment: In case of investing in Midterm investment in security market in
Bangladesh anyone can make a 6 months’ investment of 1 to 1.5 Lakh.
Short term Investment: In case of 3 to 6 months’ investment which is depicted by Short Term
Finance and the amount is about 50 thousand to 1 Lakh.
C.5.1 NUMBER OF SECTOR IN CAPITAL MARKET

33. 33
C.5.2 INVESTMENT SYSTEMS ANALYSIS
1. Category Selection:
Category selection is the vital feature of the selecting a good share. There are 4 categories of
shares‐A, B, N & Z category.
2. Owner of the Share:
In case of buying shares, owner should buy these shares where boards of directors have bought a
huge amount of share but a few for public, customers should not buy the shares of that company
if the least amount of share is owned by Board of directors.
3. Internationally Recognized:
The company which has the ownership in foreign country, in this case it can be mentioned the
name of GrameenPhone or BATBC.
4. Dividend Yield:
Dividend Yield refers to the most recent years share price dividend divided by current share price.
Which company gives the most dividend yield so we should go for the company?
Cash Dividend:
The company which gives the most amount of cash dividend is a good company.
Corporate Government
Corporate governance largely mentions to the mechanisms, procedures and relationships by which
companies are organized and directed. Governance structures recognize the delivery of rights and
tasks amongst different members in the company (such as the board of directors, managers,
stockholders, creditors, accountants, supervisors, and other shareholders) and contain the
instructions and procedures for making judgements in corporate matters. This also makes an
influence for selecting a good share.
5. Trend Analysis:
Downward Trend: When in the security market, the capital is falling down; it is not wise decision
to buy the share. In case of sales. Investor has to wait and observe that when the price will rise
from their buying price then they should sell it.
Upward Trend: In case of upward Trend, the price is about to increase, then investors can buy
those share. In matter of selling the share, they have to observe the market trend and when the
price will rise from their buying price they should sold it. In case of upward market, the buyers
can make decision in long term investment and short term investment
Support Level: Support level will be determining as when Market will be fluctuated then after
fluctuation when the security price will be adjusting the price. In this prospect this share should be
buying.

34. 34
6. Market forecast:
The investors should not take decision based on seeing the present market present market index.
The investor should be invested on the basis of future trend of the market. After 3 month or month
what will be the situation in market. They should observe instrument and they should buy those
for seeing the sector.
7. Portfolio management: In case of investing in share market don’t put your all eggs in same
baskets. Remembering this situation, they will investment different sectors of share and diversified
it.
8. Budget expansion policy: In case of budget government should think about the capital market.
It will be remarkable role for capital market and index can be fluctuated.
9. Income statement: the investors must be observing of those company income statements. The
transaction may be how the accrued basis or cash basis.
10. Market growth: The market growth is very important in this respect. If the market growth
will be good it would be better for them to invest.
11. Taxation system: What will be the taxation system how we will pay tax on this will make a
remarkable role. If the taxation policy is flexible the investor would buy those shares.
12. Earnings Per share: It is very useful for buying a share to observe Earning per Share ratio.
13. Fixed Asset: What is the company’s fix asset what is the company’s situation?
14. Paid up Capital: What is the company’s paid up capital.
15. Equity: To invest in share market the company should be concern about their equity.
16. Risk factor: what will be company’s risk factor which will be analyzed?
17. P/E Ratio: what is the company’s P/E ratio would be an important factor.
18. Rate of Return: What is the company’s rate of return will be an important factor. Rate of
return will be determining in this case, Rate of return =Today’s Price –Previous Day’s Price/
Previous Day’s Price
19. Risk Level‐Risk level is determined by standard deviation and Variance.
C.5.3 RISK & RETURN & PORTFOLIO ANALYSIS
Risk is a significant concept in financial analysis, especially in terms of how it touches security
values and rates of return. Investment risk is related with the possibility of low or negative future
revenues.
The insecurity of an asset can be considered in two ways: (1) on a standalone basis, where the
asset’s cash movements are examined all by themselves, or (2) in a portfolio context, where the
currency flows from an amount of assets are mutual and then the combined cash flows are
examined.

35. 35
In a portfolio framework, an asset’s risk can be separated into two mechanisms: (1) a diversifiable
risk module, which can be diversified away and hence is of slight worry to diversified investors,
and (2) a market risk module, which replicates the risk of a overall stock market decay and which
cannot be eradicated by divergence, hence does anxiety investors. Only market risk is pertinent;
diversifiable risk is unrelated to most investors because it can be removed.
An effort has been made to measure market risk with a amount called beta. Beta is a size of how
a particular firm’s stock returns move comparative to overall actions of stock market returns. The
Capital Asset Pricing Model (CAPM), using the idea of beta and investors’ aversion to risk,
identifies the connection between market risk and the required rate of return. This relationship can
be imagined graphically with the Security Market Line (SML). The slope of the SML can
change, or the line can shift upward or downward, in response to alterations in risk or required
rates of return.
With most investments, an individual or business spends money nowadays with the hope of
earning even more currency in the future. The idea of return affords investors with a suitable
method of saying the financial performance of an investment.
 One method of expressing an investment return is in dollar standings.
 Dollar return = Amount received – Amount invested.
 Expressing returns in dollars is easy, but two difficulties rise.
 To make a meaningful decision about the competence of the return, you need to
know the gage (size) of the investment.
 You also need to know the timing of the return.
 The answer to the scale and timing problems of dollar returns is to express investment
results as rates of return, or percentage returns.
 The rate of return calculation “normalizes” the return by considering the return per unit of
investment.
 Expressing rates of return on an annual basis solves the timing problem.
 Rate of return is the most common measure of investment performance.
Risk refers to the chance that some unfavorable event will occur. Investment risk is linked to the
possibility of really earning less than the predictable return; thus, the larger the chance of low or
negative returns, the perilous the investment.
An asset’s risk can be examined in two ways: (1) on a standalone base, where the asset is
considered in separation, and (2) on a portfolio base, where the asset is held as one of a numeral
of assets in a portfolio.
 No investment will be undertaken unless the predictable amount of return is high sufficient
to pay the investor for the perceived risk of the investment.

36. 36
 The probability distribution for an event is the entry of all the probable results for the event,
with calculated probabilities allocated to each.
 An event’s probability is definite as the chance that the event will happen.
 The sum of the probabilities for a specific event must equal 1.0, or 100 percentages.
 The expected rate of return (^r) is the sum of the yields of each possible outcome times its
related probability—it is a weighted average of the numerous probable results, with the
weights being their probabilities of happening:
o
o Where the numeral of probable results is virtually limitless, continuous probability
deliveries are used in determining the expected rate of return of the event.
o The tighter, or more peaked, the probability distribution, the more likely it is that
the real result will be near to the expected worth, and, subsequently, the less
probable it is that the real return will end up far under the expected return. Thus,
the tighter the probability distribution, the lower the risk allotted to a stock.
 One degree for defining the tightness of a distribution is the standard deviation, σ.
The standard deviation is a probability‐weighted average deviance from the predictable
value, and it gives you a hint of how far above or below the expected value the real value
is possible to be.
 Another useful measure of risk is the coefficient of variation (CV), which is the standard
deviation divided by the expected return. It illustrations the risk each unit of return, and it
delivers a more meaningful base for evaluation when the expected returns on two
alternatives are not the similar: Coefficient of variation
 Most investors are risk averse. This means that for two substitutes with the same expected
rate of return, investors will choose the one with the lower risk.
 In a market dominated by risk‐averse investors, riskier securities must have greater
expected returns, as valued by the marginal investor, than less risky securities, for if this
condition does not hold, buying and selling in the market will force it to happen.
An asset held as part of a portfolio is less risky than the same asset held in separation. This is vital,
because maximum financial assets are not held in separation; rather, they are held as parts of
portfolios. From the investor’s position, what is significant is the return on his or her portfolio, and
the portfolio’s risk—not the fact that a individual stock goes up or down. Thus, the risk and return
of an individual security should be examined in terms of how it affects the risk and return of the
portfolio in which it is held.

37. 37
 The expected return on a portfolio, ^r, p is the weighted average of the expected returns on
the individual assets in the portfolio, with the weights being the fraction of the total
portfolio invested in each asset:
 The riskiness of a portfolio, σp, is usually not a weighted average of the standard deviations
of the individual assets in the portfolio; the portfolio’s risk will be smaller than the
weighted average of the assets’ σ ‘s. The riskiness of a portfolio rest on not only on the
standard deviations of the distinct stocks, but also on the correlation between the stocks.
 The correlation coefficient, measures the trend of two variables to change together.
With shares, these variables are the individual stock returns.
 Divergence does nothing to decrease risk if the portfolio contains of perfectly positively
correlated stocks.
 As a rule, the riskiness of a portfolio will decay as the amount of stocks in the portfolio
increases.
 Nevertheless, in the actual world, where the correlations among the individual stocks
are generally positive but less than +1.0, some, but not all, risk can be removed.
 In the actual world, it is difficult to form totally riskless stock portfolios. Diversification
can decrease risk, but cannot eradicate it
 While very big portfolios end up with a considerable quantity of risk, it is not as much risk
as if all the cash were invested in only one stock. Nearly half of the riskiness intrinsic in an
average singular stock can be eradicated if the stock is held in a judiciously well diversified
portfolio, which is one holding 40 or more stocks.
 Diversifiable risk is that part of the risk of a stock which can be eradicated. It is caused
by events that are distinctive to an individual firm.
 Market risk is that part of the risk which cannot be removed, and it stalks from factors
which systematically touch most firms, such as war, inflation, recessions, and high
interest rates. It can be measured by the degree to which a given stock tends to change
up or down with the market. Thus, market risk is the relevant risk, which reflects a
security’s impact to the portfolio’s risk.
 The Capital Asset Pricing Model is a vital tool for examining the connection between
risk and rates of return. The model is founded on the proposition that any stock’s
essential rate of return is equivalent to the risk‐free rate of return plus a risk premium,
which replicates only the risk residual after diversification. Its primary deduction is:
The related riskiness of an individual stock is its involvement to the riskiness of a well‐
diversified portfolio.

38. 38
The propensity of a stock to move with the market is replicated in its beta coefficient, b,
which is a measure of the stock’s volatility relative to that of an average stock.
 An average risk stock is definite as one that tends to move up and down in step with the
general market. By meaning it has a beta of 1.0.
 A stock that is twice as volatile as the bazaar will have a beta of 2.0, while a stock that is
half as volatile as the market will have a beta coefficient of 0.5.
 Since a stock’s beta measures its contribution to the riskiness of a portfolio, beta is the
theoretically correct measure of the stock’s riskiness.
 The beta coefficient of a portfolio of securities is the weighted average of the separate
securities’ betas:
 Since a stock’s beta coefficient defines how the stock affects the riskiness of a diversified
portfolio, beta is the most related measure of any stock’s risk.
The Capital Asset Pricing Model (CAPM) employments the idea of beta, which measures risk as
the connection between a particular stock’s activities and the activities of the overall stock bazaar.
The CAPM uses a stock’s beta, in conjunction with the normal investor’s degree of risk aversion,
to compute the return that investors require, rs, on that individual stock.
 The Security Market Line (SML) shows the link between risk as measured by beta and the
requisite rate of return for individual securities. The SML equation can be used to discovery
the required rate of return on Stock i:
SML: ri = rRF + (rM – rRF)bi.
Here rRF is the rate of interest on risk‐free securities, bi is the ith stock’s beta, and rM is the return
on the market or, alternatively, on an average stock.
 The term rM – rRF is the market risk premium, RPM. This is a measure of the extra return
over the risk‐free rate desired to compensate investors for presumptuous an average

39. 39
quantity of risk.
 In the CAPM, the marketplace risk premium, rM – rRF , is increased by the stock’s beta
coefficient to define the extra premium over the risk‐free rate that is essential to compensate
investors for the risk inherent in a specific stock.
 This premium may be higher or lesser than the premium requisite on an average stock,
reliant on the riskiness of that stock in relation to the overall bazaar as calculated by the
stock’s beta.
 The risk premium measured by (rM – rRF) bi is added to the risk‐free rate, rRF (the rate
on Treasury securities), to determine the total rate of return required by investors on a
particular stock, rs.
 The slope of the SML, (rM – rRF), displays the increase in the required rate of return for a
one-unit increase in risk. It replicates the grade of risk hatred in the economy.
 The risk‐free (also known as the nominal, or quoted) rate of interest contains of two
features: (1) a real inflation‐free rate of return, r*, and (2) an inflation premium, IP, equal
to the anticipated rate of inflation.
 The real rate on long‐term Treasury bonds has traditionally ranged from 2 to 4
percent, with a mean of about 3 percent.
 As the expected rate of inflation increases, an upper premium must be added to the
real risk‐free rate to recompense for the loss of purchasing power that outcomes
from inflation.
 As risk hatred rises, so do the risk premium and, thus, the slope of the SML. The greater
the average investor’s hatred to risk, then (1) the steeper the slope of the line, (2) the greater
the risk premium for all stocks, and (3) the higher the required rate of return on all stocks.
 Numerous issues can affect a company’s beta. When such variations happen, the required
rate of return also changes.
 A firm can affect its market risk, hereafter its beta, through variations in the
composition of its assets and also through its use of debt.
 A company’s beta can also change as a result of external factors such as increased
competition in its industry, the expiration of basic patents, and the like.
For a managing whose main goal is stock price maximization, the overruling consideration is the
riskiness of the firm’s stock, and the related risk of any physical asset must be measured in terms
of its effect on the stock’s risk as seen by investors.
A number of new studies have raised anxieties about the validity of the CAPM.
 A new study by Fama and French found no historical relationship between stocks’ returns
and their market betas.
 They found two variables which are reliably related to stock returns: (1) a firm’s size
and (2) its market/book ratio.
 After adjusting for other factors, they found that smaller firms have provided

40. 40
comparatively high returns, and that returns are higher on shares with low market/book ratios. By
contrast, after monitoring for firm size and market/book ratios, they found no relationship between
a stock’s beta and its return.
C.5.4 SECURITY PORTFOLIO
1. Mean Value: In arithmetic and statistics, the mathematics mean or just the mean or average
when the background is clear, is the sum of a group of numbers divided by the number of numbers
in the collection. The collection is often a set of outcomes of an trial, or a set of outcomes from a
survey. Assuming we have a data set holding the values a1,….an The mathematics mean A is
defined by the method
2. Standard Deviation: A calculation of the distribution of a set of information from its mean.
The more spread apart the data, the higher the deviation. Standard deviation is measured as the
square root of variance. In finance, standard deviation is applied to the annual rate of return of an
investment to calculate the investment's volatility. Standard deviation is also known as historical
volatility and is used by investors as a device for the amount of expected volatility.
3. Alpha: Alpha is a risk‐adjusted method of the so‐called active return on an investment. It is the
return in excess of the recompense for the risk borne, and thus usually used to measure active
managers' performances. Often, the return of a benchmark is subtracted in order to consider
relative performance, which yields Jensen's alpha.
The alpha coefficient (α) is a parameter in the Capital Asset Pricing Model (CAPM). It is the
intercept of the security characteristic line (SCL), that is, the coefficient of the constant in a market
model regression.
5. Slope: In finance, the beta (β) of an investment is a degree of the risk arising from exposure to
over-all market activities as opposed to individual issues. The market portfolio of all investable
assets has a beta of exactly 1. A beta below 1 can specify either an investment with lower volatility
than the bazaar, or a volatile investment whose price movements are not vastly connected with the
market. An example of the first is a treasury bill, the price does not go up or down a lot, so it has
a low beta. An example of the second is gold. The price of gold does go up and down a lot, but not
in the same direction or at the same time as the market.
A beta above one generally means that the asset both is unstable and tends to move up and down
with the market. An example is a stock in a big technology corporation. Negative betas are possible
for investments that tend to go down when the market goes up, and vice versa. There are few

41. 41
fundamental investments with constant and significant negative betas, but some derivatives like
equity put options can have large negative betas.
Beta is significant because it calculates the risk of an investment that cannot be spread away. It
does not degree the risk of an investment detained on a stand‐alone base, but the quantity of risk
the investment adds to an already‐diversified portfolio. In the capital asset pricing model, beta risk
is the only kind of risk for which investors should obtain an expected return higher than the risk‐
free rate of interest.
Value of
Beta
Interpretation Interpretation
β < 0 Asset usually moves in the reverse
route as compared to the index.
An opposite exchange‐traded account or
a short place.
β = 0 Movement of the asset is uncorrelated
with the movement of the benchmark.
Fixed‐yield asset, whose growing is
distinct to the drive of the stock market.
0 < β < 1 Movement of the asset is usually in
the similar way as, but less than the
movement of the standard
Steady, "staple" stock such as a
enterprise that makes soap. Moves in the
same route as the market at big, but less
vulnerable to day‐to‐day fluctuation.
β = 1 Movement of the asset is normally in
the similar track as, and about the
same quantity as the movement of the
standard.
A representative stock, or a stock that is
a durable giver to the index itself.
β > 1 Movement of the asset is normally in
the similar path as, but more than
the movement of the standard.
Shares which are very powerfully
influenced by day‐to‐day market
newscast or by the over-all health of the
economy.
C.5.5 ANALYSIS THE MARKET RETURN INDEX AND SHARE PRICE INDEX
In case of examination the share and seeing the criteria of investment it has been selected three
shares. They are Berger PBL, Square Pharma and SPCL (shahjibazar power co. Ltd.) The daily
return is showed on the 3 months’ close price with 3-month share index in this share it has been
used this formula:
Daily return = (Today’s Price‐Previous Days Price)/ Previous Days Price
Market return = (Today’s Market Index‐Previous Days Market Index)/ Previous Days Market
Index

42. 42
Berger PBL Square Pharma
Security
price
Daily
Return
Market
Index
Market
Return
1 1,623.50 4,556.94
2 1,555.40 ‐0.04 4,585.73 0.01
3 1,541.60 ‐0.01 4,585.73 0.00
4 1,501.40 ‐0.03 4,626.23 0.01
5 1,486.50 ‐0.01 4,624.95 0.00
6 1,484.80 0.00 4,664.91 0.01
7 1,472 ‐0.01 4,681.54 0.00
8 1,481.60 0.01 4,695.80 0.00
9 1,512.50 0.02 4,719.41 0.01
10 1,521.40 0.01 4,739.65 0.00
11 1,541.70 0.01 4,763.22 0.00
12 1,509.30 ‐0.02 4,742.22 0.00
13 1,506.40 0.00 4,801.15 0.01
14 1,539.40 0.02 4,808.64 0.00
15 1,533 0.00 4,802.18 0.00
16 1,502 ‐0.02 4,788.23 0.00
17 1,457.90 ‐0.03 4,802.27 0.00
18 1,441.20 ‐0.01 4,800.41 0.00
19 1,440.40 0.00 4,769.47 ‐0.01
20 1,447.30 0.00 4,831.18 0.01
21 1,449.40 0.00 4,841.72 0.00
22 1,450.30 0.00 4,810.54 ‐0.01
23 1,472.40 0.02 4,786.69 0.00
24 1,454 ‐0.01 4,712.57 ‐0.02
Security
price Daily Return
Market
Index
Market
Price
1 259 4,556.94
2 257
‐
0.007722008 4,585.73 0.01
3 253.3
‐
0.014396887 4,585.73 0.00
4 254.3 0.003947888 4,626.23 0.01
5 253.3
‐
0.003932363 4,624.95 0.00
6 259.1 0.02289775 4,664.91 0.01
7 257.6
‐
0.005789271 4,681.54 0.00
8 254.9
‐
0.010481366 4,695.80 0.00
9 257.2 0.009023146 4,719.41 0.01
10 255.8
‐
0.005443235 4,739.65 0.00
11 258.5 0.010555121 4,763.22 0.00
12 260.3 0.00696325 4,742.22 0.00
13 259.8
‐
0.001920861 4,801.15 0.01
14 259.9 0.000384911 4,808.64 0.00
15 259.9 0 4,802.18 0.00
16 260.2 0.00115429 4,788.23 0.00
17 259.6
‐
0.002305919 4,802.27 0.00
18 260.2 0.002311248 4,800.41 0.00
19 260.6 0.001537279 4,769.47 ‐0.01

43. 43
20 260
‐
0.002302379 4,831.18 0.01
21 259.8
‐
0.000769231 4,841.72 0.00
22 258.2
‐
0.006158584 4,810.54 ‐0.01
23 256.2
‐
0.007745933 4,786.69 0.00
24 255.4 ‐0.00312256 4,712.57 ‐0.02
25 254.1
‐
0.005090055 4,701.60 0.00
26 255.2 0.004329004 4,685.04 0.00
27 252.2
‐
0.011755486 4,668.06 0.00
28 253.1 0.003568596 4,656.47 0.00
29 256.2 0.012248123 4,618.43 ‐0.01
30 255
‐
0.004683841 4,654.95 0.01
31 254.3
‐
0.002745098 4,724.05 0.01
32 253.8
‐
0.001966182 4,747.64 0.00
33 253.2
0.001966182
4,757.10 0.00
34 254.3 0.004344392 4,708.33 ‐0.01
35 255.4 0.0043256 4,716.76 0.00
36 255.9 0.001957713 4,797.96 0.02
37 256.9 0.003907776 4,783.21 0.00
38 259.3 0.009342156 4,856.95 0.02
39 258.5
‐
0.003085229 4,867.08 0.00
40 256.7 ‐0.00696325 4,917.38 0.01
41 257.7 0.003895598 4,956.09 0.01
42 257.2
‐
0.001940241 4,951.69 0.00
43 256 ‐0.00466563 4,969.73 0.00
44 256.8 0.003125 4,956.93 0.00
45 258.7 0.007398754 4,943.99 0.00
46 259.5 0.003092385 4,968.71 0.00
47 261.3 0.006936416 4,963.66 0.00
48 265 0.014159969 4,969.67 0.00
49 263.8
‐
0.004528302 4,926.41 ‐0.01
50 263.8 0 4,941.5150 0.00
25 1,433.10 ‐0.01 4,701.60 0.00
26 1,422.10 ‐0.01 4,685.04 0.00
27 1,415.30 0.00 4,668.06 0.00
28 1,418.50 0.00 4,656.47 0.00
29 1,432.80 0.01 4,618.43 ‐
0.01
30 1,392.20 ‐0.03 4,654.95 0.01
31 1,404.60 0.01 4,724.05 0.01
32 1,415.50 0.01 4,747.64 0.00
33 1,393 ‐0.02 4,757.10 0.00
34 1,392.30 0.00 4,708.33 ‐
0.01
35 1,388.40 0.00 4,716.76 0.00
36 1,398.50 0.01 4,797.96 0.02
37 1,388.20 ‐0.01 4,783.21 0.00
38 1,387.70 0.00 4,856.95 0.02
39 1,387.10 0.00 4,867.08 0.00
40 1,378.50 ‐0.01 4,917.38 0.01
41 1,387.10 0.01 4,956.09 0.01
42 1,400 0.01 4,951.69 0.00
43 1,393.80 0.00 4,969.73 0.00
44 1,416.90 0.02 4,956.93 0.00
45 1,427.80 0.03 4,943.99 0.00
46 1,409.30 ‐0.01 4,968.71 0.00
47 1,409.60 0.00 4,963.66 0.00
48 1,413.10 0.00 4,969.67 0.00
49 1,416.90 0.00 4,926.41 ‐
0.01
50 1,431.30 0.01 4,941.52 0.00
51 1,425.10 0.00 4,864.96 ‐
0.02
52 1,342.70 ‐0.06 4,814.16 ‐
0.01
53 1,266.80 ‐0.06 4,801.35 0.00
54 1,287.60 0.02 4,823.57 0.00
55 1,288.10 0.00 4,838.64 0.00
56 1,311.80 0.02 4,868.47 0.01
57 1,330.70 0.01 4,849.69 0.00
58 1,300.80 ‐0.02 4,856.42 0.00
59 1,280.20 ‐0.02 4,837.93 0.00
60 1,297.60 0.01 4,878.65 0.01
61 1,250.60 ‐0.04 4,892.96 0.00

44. 44
51 263.8 0 4,864.96 ‐0.02
52 263.7
‐
0.000379075 4,814.16 ‐0.01
53 259.4
‐
0.016306409 4,801.35 0.00
54 261.3 0.007324595 4,823.57 0.00
55 259.4
‐
0.007271336 4,838.64 0.00
56 258.2 ‐0.00462606 4,868.47 0.01
57 259.3 0.004260263 4,849.69 0.00
58 259.2
‐
0.000385654 4,856.42 0.00
59 258.1
‐
0.004243827 4,837.93 0.00
60 257.8 ‐0.00116234 4,878.65 0.01
61 258.1 0.001163693 4,892.96 0.00
Average 0.00
SD 0.01708375
SLOPE 0.40329137
ALPHA ‐0.0046818
Average -3.49626E-05
SD 0.006853967
SLOPE 0.069288166
ALPHA 0.000117981
Average 0.00
SD 0.01708375
SLOPE 0.40329137
ALPHA ‐0.0046818

45. 45
SPCL
8 208 ‐
0.04761905
4,695.80 0.00
9 197.6 ‐0.05 4,719.41 0.01
10 205.8 0.04149798 4,739.65 0.00
11 188.7 ‐
0.08309038
4,763.22 0.00
12 172.3 ‐
0.08691044
4,742.22 0.00
13 169.2 ‐
0.01799187
4,801.15 0.01
14 162.8 ‐
0.03782506
4,808.64 0.00
15 160.7 ‐
0.01289926
4,802.18 0.00
16 146.1 ‐
0.09085252
4,788.23 0.00
17 146.6 0.00342231 4,802.27 0.00
18 162.8 0.11050477 4,800.41 0.00
19 167.5 0.02886978 4,769.47 ‐0.01
20 174.6 0.04238806 4,831.18 0.01
21 158.7 ‐
0.09106529
4,841.72 0.00
22 158 4,810.54 ‐0.01
23 157.1 ‐0.0056962 4,786.69 0.00
24 157.4 0.00190961 4,712.57 ‐0.02
Security
price
Daily
Return
Market
Index
Market
Price
1 198 4,556.94
2 216.9 0.09545455 4,585.73 0.01
3 237.6 0.09543568 4,585.73 0.00
4 230.8
‐
0.02861953 4,626.23 0.01
5 244.8 0.06065858 4,624.95 0.00
6 227.2
‐
0.07189542 4,664.91 0.01
7 218.4
‐
0.03873239 4,681.54 0.00

46. 46
25 164.3 0.04383736 4,701.60 0.00
26 169 0.02860621 4,685.04 0.00
27 171 0.01183432 4,668.06 0.00
28 187.5 0.09649123 4,656.47 0.00
29 184.6 ‐
0.01546667
4,618.43 ‐0.01
30 195.2 0.05742145 4,654.95 0.01
31 213.9 0.09579918 4,724.05 0.01
32 233.5 0.0916316 4,747.64 0.00
33 238.9 0.02312634 4,757.10 0.00
34 240.1 0.00502302 4,708.33 ‐0.01
35 221.2 ‐0.0787172 4,716.76 0.00
36 218.7 ‐
0.01130199
4,797.96 0.02
37 214.6 ‐
0.01874714
4,783.21 0.00
38 209.9 ‐
0.02190121
4,856.95 0.02
39 201.1 ‐
0.04192473
4,867.08 0.00
40 196.7 ‐
0.02187966
4,917.38 0.01
41 206.8 0.05134723 4,956.09 0.01
42 216.5 0.04690522 4,951.69 0.00
43 219.5 0.01385681 4,969.73 0.00
44 218.1 ‐
0.00637813
4,956.93 0.00
45 223.8 0.0261348 4,943.99 0.00
46 216.7 ‐
0.03172475
4,968.71 0.00
47 205.4 ‐
0.05214582
4,963.66 0.00
48 187.9 ‐
0.08519961
4,969.67 0.00
49 170.9 ‐
0.09047366
4,926.41 ‐0.01
50 188.4 0.10239906 4,941.52 0.00
51 202.3 0.07377919 4,864.96 ‐0.02
52 210.3 0.03954523 4,814.16 ‐0.01
53 216.9 0.03138374 4,801.35 0.00
54 226.6 4,823.57 0.00
55 230.7 0.01809356 4,838.64 0.00
56 231.7 0.00433463 4,868.47 0.01
57 230.2 ‐
0.00647389
4,849.69 0.00

47. 47
58 241.9 0.05082537 4,856.42 0.00
59 231.1 ‐
0.04464655
4,837.93 0.00
60 212.8 ‐0.0791865 4,878.65 0.01
61 213.6 0.0037594 4,892.96 0.00
Average 0.00278703
SD 0.05571522
SLOPE ‐
0.05835235
ALPHA 0.00285763
In circumstance of this report we can use this formula Expected portfolio return
E(x)=
From the following graph that it observable that the randomly selected three instrument which
has been bought and the last three-month price observation and it is visible that the price has tend
to increase. In this case it is wise to buy shares.
w1 w2 w3 E(R1) E(R2) E(R3) E(Rp)
0.40 0.30 0.30 0.00 ‐3.4963 0.00279 ‐1.048
0.30 0.40 0.30 0.00 ‐3.4963 0.00279 ‐1.3977
0.30 0.30 0.40 0.00 ‐3.4963 0.00279 ‐1.0478
0.25 0.35 0.40 0.00 ‐3.4963 0.00279 ‐1.2226
0.25 0.15 0.60 0.00 ‐3.4963 0.00279 ‐0.5228
0.10 0.30 0.60 0.00 ‐3.4963 0.00279 ‐1.0472
0.35 0.25 0.40 0.00 ‐3.4963 0.00279 ‐0.873
+

48. 48
CHAPTER-06-FINDINGS OF THE REPORT
In the time of choosing the instruments it has been observed that the mean deviation of Berger
PBL is 0, the price is not rising, and in this case this will be very wise decision to invest in another
instruments. As it has been observed 3 months’ market price. But if anyone is short term investor
they should not invest in Berger PBL. Regarding as a long term investor it will be wise decision
to buy Berger PBL.
Amongst of the three chosen share standard deviation of Square pharma is the least. In this case
we can also change decision. From The standard deviation it is observed that in what extent the
price is being fluctuated. In case of standard deviation Berger PBL is the best. For this Reason, it
has been chosen.
In case of three shares SPCL has negatively correlated with the market index. The price of the
share is increasing whereas the market index or market return is decreasing. On the other hand,
bother other share is going as the same direction with the market.
In case of the slope analysis or beta analysis Movement of the asset is generally in the same
direction as, but less than the movement of the benchmark. Stable, “staple" stock such as a
company that makes soap. The market moves in the same direction as at large, but less susceptible
to day‐to‐ day fluctuation.
Alpha is the interpretation of the riskiness of the asset which determines that show much profit or
gain has he earned. In this report it has been observed that the riskiness of asset is greater because
Berger PBL and square pharma shows minus figure whereas SPCL shows a positive result. SPCL
has the best Alpha among the two. It indicates that the riskiness of asset is less them other twos.
The three instruments have three types. It is chosen from different risks because of it is not wise
to put all eggs in same basket. It has been wise to diversify all eggs into different segments. In this
prospect an investor can invest in another portfolio with three another type of asset.

49. 49
CHAPTER -07- PROBLEMS OF THE REPORT & COMPANY
In this report there are some problems.
1.Investors Problem: The investor is in a fix that in which share they will they invest. As we see
that in the market index will be fluctuated and the price of share is influence by Co Relation.
Sometime this mathematical analysis will not work out. For this reason, most of the investor are
unaware about process and procedure capital market. Most of the People make a short term
investment. In this case the loss a huge amount of money. In case of long term investment, they
have make some patience.
2. Analysis of the share’s: It has been chosen three random shares to analysis the information of
these reports.
A) Berger PBL is a share. In case of calculation of analysis of single share if we invest it the rate
of return is low because its mean deviation is constant. So we can choose another share.
B) SPCL is gambling share. The investor is gambling with this share. Some house is not allowed
to trade this instruments. By investing in this share the investor could loss a huge amount of money.
In Case of Money payment System, the customer wants to withdraw money after selling share.
But in this case company has charged some money to avoid this kind of interruption. Sometimes
the customer makes some arguments being on this.
3. Financial Analyst: In case of share market analysis a financial team has been activated work
to analysis the market. In this prospect this company has lack of this.
4. Lack of training and other facility: There are some training arranged by DSE but there is no
training or other facility for the back office.
5. N numbers of Assets: It is difficult to calculate more than three Assets. So, in this report it is
very tough to calculate more than three assets.

50. 50
CHAPTER-08-RECOMMANDATION
1. Hasan securities Limited should develop a well-organized website to make them more
available to their current and potential clients. In addition, they should introduce online
trading facilities for their clients.
2. They can introduce investor awareness program, should take the inventiveness to produce
wise and educated investor. In this way both the clients and house will be benefitted.
3. Hasan Securities limited should give more highlight on the research and publications. And
it should be ensured that research and publications are available to the clients.
4. Now a day’s share market is in downward tendency but trend will rise also. So it is wise
that the investor who will make decision they will have long term investor with a huge
amount of money with a huge amount of risk. In this case they should invest the huge
amount of money in capital market. However, they must be keep patience in this case. The
interest rate and bank rate will be lessening to influence the more investment in capital
market.
5. Equity Research is not yet very popular in Bangladesh, in this case this brokerage house
should be in more qualified and more research produced by their independent research
departments. In this case to increase more price incentive for private entrepreneurs to
access the capital market should be remarkable role. Tax Gap between listed company and
non-listed company could be increased. Infrastructure projects should be access to capital
market raise financing though bonds and corporations should raise short term financing.
Securitization should be encouraged.
6. Hasan Securities Limited can arrange more seminar and workshop with the different
stakeholder of this organization about the investment of capital market.

51. 51
CHAPTER-09-CONCLUSION
As Bangladesh is economically emerging country, the Bangladesh capital market still has a long
way to go. Meanwhile Bangladesh has accepted open market economy as her nationwide strategy
to attain her goals of upper growing and fast privatization, she must recover her stock markets and
make them capable of working as the main vehicle for mobilizing and allocating funds needed to
finance the industrial and other development actions of the country. In fact, no other track is
appropriate like a stock market to strengthen the financial base of a country, gear up its
improvement actions and attain its all-out economic liberation. Dhaka Stock Exchange has been
highly helpful in many ways in this journey of capital market improvement in Bangladesh. In this
brief span of its existence DSE has played a prominent role in the improvement of capital market
in Bangladesh. DSE influence is huge in shaping where we stand now and achievement of DSE in
this journey of improvement of capital market in Bangladesh mainly depends on how it run its
Trading System and how the investment decision makes.
END

52. 52
REFERANCE
1. http://www.dsebd.org/
2. http://www.stockbangladesh.com/
3. www.ivestopedia
4. https://www.sec.gov/reportspubs/investor
5. https://dspace.bracu.ac.bd
6. https://en.wikipedia.org
7. http://www.globalresearch.ca
8. www.instaforex.com
9. S. Islam. “Dhaka Stock Exchange: An overview”. Published by Dhaka Stock Exchange
Ltd.December.2005
10. Rahman, M.T. and Moazzem, K.G. 2011. “Capital Market of Bangladesh: Volatility in the
Dhaka Stock Exchange and Role of Regulators.” International Journal of Business and
Management, 6 (7): 86‐93.
Bibliography
1. Investment Principal and Concept, Charles P.Jones 11th Edition
2. www.srcapitalbd.com/
3. www.dse.com.bd/
4. www.sharebazar.org
5. www.bdstock.com
6. www.stockbangladesh.com