What is the stock market?
We often hear about the stock market. A stock market is a place where various public and private institutions operate various stock exchanges and buy and sell stocks, bonds, securities, and more. A place where stocks or shares are traded is called a stock exchange.
There are stock exchanges in different countries of the world for stock trading. There are two stock exchanges in Bangladesh, Dhaka Stock Exchange, and Chittagong Stock Exchange. In order to sell shares, the company must be registered on the stock exchange. The stock market is also known as the capital market.
This is a market where investors can buy and sell ownership of various investable assets. Different types of people work in the stock market, including traders, stockbrokers, portfolio managers, and investment bankers.
The stock market in Bangladesh is regulated by the Securities and Exchange Commission. Shares are traded on the stock exchange through brokers.
IPO stands for initial public offering. IPO is also known as the primary market. An IPO is considered a risk-free investment.
New listing on Dhaka Stock Exchange
When starting a business, we do it with our own funds or with a bank loan, but when the company or business needs to grow, then part of the business is sold without borrowing from the bank. This type of sale is called an IPO.
Currently, the amount of IPO investment in my country is increasing day by day. The Securities and Exchange Commission of Bangladesh has invited five private banks to enter the Dhaka stock market through an IPO. these are-
1. SIA Magna banka
2. Wachovia Bank Limited
3. Madumathi Bank Limited
4. NRB Bank Limited
5. SIA Rozhbanka.
Among these banks, Wachovia and NRB Bank have accepted offers to enter the stock market through IPOs.
Stock market investment tips
Before investing in the stock market, you must first understand stocks. Proper investment in the stock market is very important for wealth growth. It is not right to invest in the stock market without thoroughly researching the stocks or shares.
Many people invest heavily in the stock market without knowing the right information and investment skills and face losses, so you should learn about the stock market before investing. To start investing in the stock market, you need to open two accounts.
One is a Demat account, and the other is a trading account. To open a Demat account, some documents are required like
1. Bank Account
2. Statement of account
3. Broker
4. PAN card
5. Personal verification etc.
After opening a Demat account, you can invest in the stock market by opening a trading account with an online broker.
