Factors Influencing the Crash in the Share Market in Dhaka Stock Exchange

Abstract

Financial markets are absolutely vital for the proper functioning of capitalistic economy, since they serve to channel funds from savers to borrowers. They play an important role by channeling the funds to those who can make the proper and productive uses of the same. The financial market permits both business and government to raise the needed funds by selling securities. Simultaneously, the surplus units of the economy are able to invest and earn and return. Financial markets include primary markets where new securities are sold and secondary markets where existing securities are traded. In this report total 150 respondents were interviewed. Among them, there were male and female, businessmen, students, job holders, jobless, and the persons who were above 20 years of age. Total 11 hypotheses were tested among them two hypotheses were rejected. These are: Investors are conscious for calculating assets to invest and Most of the investors invested the money in the share market at the right time. Rests of the hypotheses were accepted. These are: Investors invested money in share market by getting secret information, Investors are interested to purchase low price’s share all the time, Most of the investors invested money after taking loan from bank in share market, Much black money has been invested in share market, Most of the people instigate to new investors to enter the share market, Most of the investors entered the share market to get the highest profit instead of other investing options. Investors collected money from various sources.  The share market collapsed due to the presence of syndicates. The government could not take initiative to stable the market. Above all, the people have become very pessimistic to invest in Dhaka Stock Exchange.

Key words: Financial markets, securities, investors