PREMIER UNIVERSITY CHITTAGONG

Term Paper
On
Organized Stock Exchange: A comparative
Study between the CSE & DSE

PREPARED FOR:
Mr. Tasnim Uddin Chowdhury
Assistant Professor,
Discipline of Finance,
Premier University, Chittagong.

PREPARED BY:
Imran Mahmud Rohel

SEMESTER: 8TH. BATCH:

34TH.

DISCIPLINE: FINANCE SECTION: B

DATE OF SUBMISSION: 10 June 2021

th
 Letter of Transmittal

10th Sept. 2021

Mr. Tasnim Uddin Chowdhury

Assistant Professor
Discipline of Finance
Premier University, Chittagong

Subject: Submission of Term paper

Respected Sir,

It’s my great pleasure to place my term paper report for your kind approval.

My term paper report is on “A comparative Study between the CSE & DSE”. The
observation and results of the study are embodied on this report. In addition to my
careful study, this report has been a worthwhile review allowing me to go for in-
depth analysis about the real situation. This report has been a great pleasure and an
extremely interesting and rewarding experience. It has enabled me to get an insight
into the practical arena of Stock market. I tried my level best to complete this report
properly and to produce a meaningful report within all the constraints. I would be
glad to furnish you with any clarifications, if required.

I therefore, pray and hope that you would kind enough to accept my report and
oblige me with the honor of completing my term paper and would excuse the minor
flaws.

Sincerely yours,

..………………………

Imran Mahmud Rohel

ID: 1603410109073
Program: BBA (Major in Finance)
Discipline of Finance
Premier University, Chittagong
 Acknowledgement:

This report is the ending part of our BBA program and to enhance the capability of
study. In the field of practical organizational arena, a lot of efforts and study have
done to make the report reliable. This would have not been possible without the
genuine support and assistance.

At first I express my deep gratitude and sincere thanks to Almighty Allah for providing
me sufficient strength to make this repot successfully and also my respected faculty
Mr. Tasnim Uddin Chowdhury, Assistant professor, Premier University Chittagong,
for his valuable guidance interest and consistent encouragement to me in the
preparation of this project report.. Without his assistance it would not possible to
complete this report.

If I don’t mention some of the employees who are engaged in stock market, my
acknowledgement will be incomplete & void. In this period, I am highly grateful to
Mr. Mohammad Mohiuddin, Managing Director of Island Security, who helped me to
complete my Term paper. Furthermore, I want to pay thanks to Mr. Mohammad
Yusuf Nabi, Manager of Island Securities Ltd, who gave me full support to acquire
some basic knowledge about this sector. I want to give my specials thanks to
Mr.Rajib Dutta, Assistant professor, Premier University Chittagong , who helped me
by providing some valuable information required to complete my report.

For successfully completion of my Term paper report, I am really fortunate to get

guidance and supervision from my teachers, friends & others.
Executive Summary
Table of Content
Chapter -1 : Introductory Aspect

1.1 Background
The world stock market plays a vital role in most national economies, both individuals
and collectives. By offering trading, investing, speculation, hedging and arbitrage
opportunities, the market performs a wide range of economic and political functions.
In addition, they also serve as mechanisms for price discovery and information
dissemination, and at the same time provide a means for companies to raise funds.
Stock markets are used to implement privatization programs, and they often play an
important role in the development of emerging economies (Fabozzi and Modigliani,
1995). The performance of the stock market in the economy has attracted the
attention of all parties, including investors, capital markets, stock exchanges, and
governments. The performance of the stock market is affected by many key factors,
including government activities and the overall performance of the economy.
Economic activities affect the operations of the stock market. Other factors that
affect the stock market’s performance include, availability of other investments
assets, change in composition of investors, and markets sentiments among other
factors (Fabozzi and Modigliani, 1995). Therefore, the stock market is an important
part of a country's economy. It can be considered the heart of the economy.
However, the Bangladesh stock exchange failed to fulfill its obligations. Subsequently
there is a massive crash. But, if the market is efficient, there are fewer chances of
collapse. Therefore, it is important to improve the efficiency of the stock market.
There are two stock exchanges in Bangladesh and they are Dhaka Stock Exchange and
Chittagong Stock Exchange. The investors of these stock exchanges need to know the
form of efficiency. This research will help them understand the efficiency of the stock
exchanges and will also be able to compare the efficiency of the stock exchanges with
each other.

http://www.ijsrp.org/research-paper-0314/ijsrp-p2716.pdf
1.2 Objectives of the study

There are some specific objectives :

 To give detailed information about DSE and CSE.

 To focus on the major activities of DSE and CSE.
 Compare the Dhaka Stock Exchange and Chittagong Stock Exchange with
each other
 Their performance in our country
 To suggest some recommendations to these problem

1.3 Scope of the study

The Dhaka Stock Exchange and the Chittagong Stock Exchange (CSE) are the only two
stock exchanges in our country, so we can easily get the information we need. This
study can help the investors to understand the impact of important happenings on
the stock exchanges. Here we discuss about the Basic idea of DSE and CSE ,
similarities and dissimilarities between them,along with that we will discuss about
the performance of these two giant stock exchanges and then we will talk about
some extra ordinary features of these two stock exchanges.The study of the stock
exchanges in countries would definitely help the future investors to take investment
decisions while investing. The study will also be useful For the future researches in
this area.

1.4 Methodology
Data can be collected in two ways: Primary & Secondary source of data. A primary
source is collected directly from the original source.Whereas Secondary data is data
gathered from studies, surveys, or experiments that have been run by other people
or for other research. Currently there is Pandemic situation in Bangladesh so it is not
possible to collect data from primary source. The report is based on information
collected from secondary source of data & by using DSE and CSE web sites. Along
with that I have consulted over the time with my Honorable course instructor. The
data collected from the some other sources too. These are-
 Dhaka Stock Exchange monthly review
 Chittagong Stock Exchange monthly review
 CSE portfolio
 Articles published in national dailies
 Various books & brochures from the libraries of Bangladesh Security &
Exchange Commission (BSEC) and Bangladesh Bank (BB)
&
 Also Gather some data from expert person’s regarding share market
operation and trading over the phone

1.5 Limitations
While conducting the study, we were confronted with the following
limitations:

 The primary data collected wasn’t sufficient. So, My major reliance was
on the secondary data.
 Lack of experience has acted as constraints in the way of meticulous
exploration on the topic
 Lack of a wider coverage due to time constraint.
 In many cases up to date information is not available
Chapter -2 : Theoritical Aspect

2.1 Introduction
The capital market in Bangladesh is still at a developing stage. Bangladesh capital
market is one of the smallest in Asia but the third largest in the south asia region. It
has two automated stock exchanges namely Dhaka stock exchange and Chittagong
stock exchange. The Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
(CSE) has undergone significant changes contributing towards the development of
Bangladesh capital market.These two stock exchange is conducted by computerized
automated trading system. All exchanges are self-regulating private sector entities
and their operating rules must be approved by the Bangladesh Securities and
Exchange Commission.

For the development of capital market of Bangladesh DSE was established in 1954.
Up to July/2021 there is 609 listed companies, there are 34 close-end and 61 open-
end mutual funds listed by the BSEC, 8 debentures in DSE. Dhaka stock Exchange the
main share market of Bangladesh is situated at the main market place of Dhaka &
capital of Bangladesh, called Motijhil. Dhaka Share market normally started its
trading in the year 1956 even before the formation of Bangladesh as a country.
Dhaka Share market is still at its infant stage and has to walk a long way for coming
into the radar of the Global financial Market.CSE was established in 1995 after
successful operation of DSE and to meet the increased demand of expanded capital
market. There is 349 listed companies in CSE. The Chittagong Stock Exchange began
its journey in 10th October of 1995 from Chittagong City through the cry out trading
system with the promise to create a state of the art bourse in the country
 .

or the development of capital

market of Bangladesh DSE
was established in 1954. Up to
December/2004 there is 237
listed companies, 11 mutual
funds and 8 debentures in DSE.
CSE was established in 1995
after successful operation of
DSE and to meet the increased
demand of expanded capital
market.
or the development of capital
market of Bangladesh DSE
was established in 1954. Up to
December/2004 there is 237
listed companies, 11 mutual
funds and 8 debentures in DSE.
CSE was established in 1995
after successful operation of
DSE and to meet the increased
demand of expanded capital
market.
For the development of capital
market of Bangladesh DSE
was established in 1954. Up to
December/2004 there is 237
listed companies, 11 mutual
funds and 8 debentures in DSE.
CSE was established in 1995
after successful operation of
DSE and to meet the increased
demand of expanded capital
market.
For the development of capital
market of Bangladesh DSE
was established in 1954. Up to
December/2004 there is 237
listed companies, 11 mutual
funds and 8 debentures in DSE.
CSE was established in 1995
after successful operation of
DSE and to meet the increased
demand of expanded capital
market.
Stock Exchanges are mutual organization that facilitates trading of company stocks
and securities to the stock brokers and traders. The stock exchanges deals with the
issue of securities and otherf inancial instruments.The stock exchanges also involves
in the payment of income and dividends.The role of the stock exchange is to raise
capital For Businesses& mobilize savings for investments,facilitate company growth&
and redistribute wealth as well as raising capital for financing the development
projects of the government

Stock markets in the world individually and collectively play a critical role in the most
national economies. The markets perform a wide range of economic and political
functions while offering trading, investment, speculation, hedging, and arbitrage
opportunities. In addition they serve as a mechanism for price discovery and
information dissemination while providing vehicles for raising finances for
companies. Stock markets are used to implement privatization programs, and they
often play an important role in the development of emerging economies (Fabozzi and
Modigliani, 1995). The performance of a stock market of an economy is of interest to
various parties including investors, capital markets, the stock exchange and
government among others. Stock market performance is influenced by a number of
factors key among them the activities of governments and the general performance
of the economy. Economic activities do affect the performance of stock markets.
Other factors that affect the stock market’s performance include, availability of other
investments assets, change in composition of investors, and markets sentiments
among other factors (Fabozzi and Modigliani, 1995). So, Stock exchange is an
important part of the economy of a country. It can be treated as the heart of
economy