Current stock market of Bangladesh
This internship report is submitted in a partial fulfillment of the requirements for the degree of Bachelor of Business Administration,2013.
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BRAC University
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10361-28762019-09-30T03:42:25Z Current stock market of Bangladesh Tabassum, Mehnaj Faruqui, Mahtab BRAC Business School, BRAC University Business administration Stock market This internship report is submitted in a partial fulfillment of the requirements for the degree of Bachelor of Business Administration,2013. Cataloged from PDF version of Internship report. Includes bibliographical references (page 36). At some points of its business operation every company needs to raise money. To do this, companies can either borrow the same from somebody or raise the amount by selling ownership of the company. The later is known as issuance of stock. When a company go for public issue for the first time it is known as Initial Public Offering (IPO). IPO can be made through fixed price method, Book Building method and direct listing. In my report I have worked with the Book Building method. Book Building Method is the process by which an underwriter attempts to determine the offer price of an IPO based on demand from institutional investors. This method is basically a process to aid price and demand discovery. In our country book building method was introduced in 2009 but unfortunately it is now postponed because the system was one of the salient reasons for the 2010 stock market crash. Though the system is widely used in some developed and developing countries but in our country the context was different. It was mainly caused by fixing a high indicative price as the offer price of the IPO depends on the indicative price under this system. Because of the high indicative price the offer price was also high and investors expected that other stocks value is undervalued and it would go up in future. Under this speculation the investors invested in the capital market and it was back fired. As a result book building system was found to be the major reason major for the stock market crash. However, the system that is widely used found improper in country but this situation can be improved if there is a strong regulations and follow up by the SEC for determining the indicative price and the lock in period of 15 days can be increased to discourage higher bidding by the institutional investors. More importantly, room should be allowed for the IPO issues to be somewhat under-priced to attract the general investors for a win-win situation from both issuers and investors’ perspectives. Mehnaj Tabassum B. Business Administration 2014-01-27T10:32:04Z 2014-01-27T10:32:04Z 2013 2013-08-22 Internship report ID 09304012 http://hdl.handle.net/10361/2876 en BRAC University Internship reports are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. 39 pages application/pdf BRAC University |
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Brac University |
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Institutional Repository |
| language |
English |
| topic |
Business administration Stock market |
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Business administration Stock market Tabassum, Mehnaj Current stock market of Bangladesh |
| description |
This internship report is submitted in a partial fulfillment of the requirements for the degree of Bachelor of Business Administration,2013. |
| author2 |
Faruqui, Mahtab |
| author_facet |
Faruqui, Mahtab Tabassum, Mehnaj |
| format |
Internship report |
| author |
Tabassum, Mehnaj |
| author_sort |
Tabassum, Mehnaj |
| title |
Current stock market of Bangladesh |
| title_short |
Current stock market of Bangladesh |
| title_full |
Current stock market of Bangladesh |
| title_fullStr |
Current stock market of Bangladesh |
| title_full_unstemmed |
Current stock market of Bangladesh |
| title_sort |
current stock market of bangladesh |
| publisher |
BRAC University |
| publishDate |
2014 |
| url |
http://hdl.handle.net/10361/2876 |
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AT tabassummehnaj currentstockmarketofbangladesh |
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