Frequently Asked Questions

The stock exchange provides a sound and stable securities market where shares can be bought and sold.

There are two stock exchanges in Bangladesh: 1. DHAKA STOCK EXCHANGE PLC. (DSE) - Established in 1954 2. Chittagong Stock Exchange Ltd. (CSE) - Established in 1995 Of these, DHAKA STOCK EXCHANGE PLC. is the biggest stock exchange in the country.

Bear in mind that even in the best of securities/shares, there can be short-term aberrations. It is important to have the power to hold your investments for longer periods. Studies have shown that investments properly timed and based on strong fundamentals have been very profitable for investors in the longer term.

Generally, the Trading Time is from 10:00 am to 02:30 pm. Working Days are Sunday to Thursday.

The following types of securities are available on the stock market for investment: • Ordinary shares of listed companies • Mutual funds • Debentures • Bonds

Market Capitalization is the total market value, at the current stock exchange list price, of the total number of equity shares issued by a company. Formula: Market Capitalization = ∑ (Number of Issued Shares × Closing Price)

A Circuit Filter is the maximum permissible deviation of the price (specified as a percentage) of an aggressor order from the last trade price.

A Market Lot is the smallest tradable unit for an instrument except those traded in the Oddlot book. All order quantities can only be an integral multiple of the Market Lot.

The Touchline Price for an instrument is the best offer (sell) and best bid (buy) price amongst all orders in the order book. The touchline buy price is the highest price amongst all buy orders and the touchline sell price is the lowest price amongst all sell orders.

The groups of instruments in DSE are categorized as: A, B, G, N, and Z based on their performance, listing status, and compliance.

Qualifications include: • Must be a company limited by shares incorporated under the Companies Act, 1994. • Minimum paid-up capital of Taka 10,000,000 (Ten Million). The audited net worth must not fall below 75% of its paid-up capital at any time. • Must have adequate professional management including a compliance officer, IT infrastructure, and financial capability. • Promoters, sponsors, directors, and CEO must comply with the Fit and Proper Criteria specified by the Commission. • Directors must not have served in a defaulter or expelled TREC holder. • Have adequate systems to resolve complaints, monitor conflicts, and prevent money laundering.

No, no person or entity shall hold more than one Trading Right Entitlement Certificate (TREC) of the Exchange at a time.

Yes, a Trader Certificate (TC) is yearly renewable with a fee of BDT 5,000.

You can create a personalized portfolio on the official DSE website. Once logged in, you can add instruments to a watchlist to monitor real-time prices in a unified view. Watchlist registration is free for all users.

The stock exchange provides listed companies with a channel to seek capital funding from the public, and at the same time, it provides investors a place to buy and sell shares of the listed companies. The exchange also monitors the market to ensure that it is working efficiently, fairly, and transparently.

Don't put in your money until you have understood all relevant information regarding the investment. Prepare yourself for the vigorous homework of analyzing a company's annual reports, EPS (Earning Per Share), accounts, and other statements while keeping abreast of what's happening in the industry, country, and elsewhere that may affect your investment. Consult your investment adviser/broker to get the latest market information about shares you intend to buy or sell. Be skeptical of anything picked up from rumors, particularly if you cannot rationally explain the choice.

When a company declares a dividend, right/bonus shares, or intends to hold any AGM/EGM, it declares a book closure period or Record Date to register the name of shareholders. Only shareholders whose names appear on the register after the book closure / Record Date are eligible to attend the AGM/EGM and also to receive dividends, bonus shares, and entitlements to right shares, if any.

There are four primary indicators of market performance: • Market Capitalization • Value Turnover • Traded Volume • Index

Each share represents a small stake in the total paid-up capital of a company. A public limited company is formed to accumulate capital from a large pool of investors. Therefore, the total capital of such companies is divided into smaller equal units represented by a share. One may buy large or small lots to match the amount of money they want to invest. A company's share price can rise or fall as a result of its own performance or market conditions. Once shares are bought and transferred to the new investor's name, the investor becomes entitled to receive all the benefits of share ownership, including dividends, voting rights at general meetings, and company annual reports.

Initial Public Offering. An IPO is the first offer of securities by an issuer company to the general public.

A Circuit Breaker is the maximum permissible deviation of the price (specified as a percentage) of the incoming order from the Circuit Breaker Base Price for that instrument. Orders violating the circuit breaker are rejected by the system.

Stock market shares are generally bought and sold in market lots, which are easy to trade. Any number of shares less than the market lot makes an odd lot. Odd lots typically arise from bonus or rights issues.

Orders are queued and traded according to first on price and then time priorities. Best-priced orders are traded first. If there is more than one order at the same price, the order is placed by time priority.

Settlement rules vary by category group. Groups A, B, N, and G generally settle on a T+2 basis (Pay-in on Day 1, Pay-out on Day 2). Z-group (defaulter or under-performing companies) features T+3 or spot settlement depending on guidelines.

Yes, a TREC is yearly renewable with an annual fee of BDT 50,000.

An applicant applying for a Trader Certificate must meet the following: • Be a citizen of Bangladesh. • Aged 21 years or more. • Hold a graduation degree from a recognized university. • Meet the "Fit and Proper" criteria prescribed by BSEC/Exchange. • Has not been convicted by any court for moral turpitude.

Trade data on the official DSE website (www.dsebd.org) updates at an interval of every 1 to 3 minutes.