AN EXPLORATORY STUDY ON IMPORTANCE OF CAPITAL MARKET, OBSTACLES AND FUTURE PROSPECT OF DSE IN CONTEXT OF BANGLADESH

Abstract

Capital market and financial institutions are investment intermediaries linking the savers and users of capital. Improved capital markets can enhance a country’s growth. Bangladesh has a small capital market relative to its neighbouring countries. Due to some barriers and inefficiencies people are mostly depended on the banks rather than depending on capital market. Therefore, the size of the stock market is still small. The importance of capital market is indispensable for a country’s future expansion. This study will try to explore the ways to develop the current stock market. Due to lacking experts, not having enough knowledge about stock market and shortage of bonds are some major blockages for which capital market is still underdeveloped. Market can be developed by more supply of securities and bonds with good fundamental to help bring in depth and strength. This study also explores how more Seminars and trainings can help to the development of DSE. If the entrepreneurs are aware of the obstacles and have the knowledge about the stock market, then it will be more developed. This research will try to explore the importance of capital market, obstacles mainly faced by DSE and the future prospect of it.