Question 01: Why Trading is suspended??

Answer: Dhaka Stock Exchange (DSE) suspended all its trading activities due to large scale
nationalization of companies.
Question 02: Which one is the first Investment banker in Bangladesh?
Answer: Investment Corporation of Bangladesh (ICB) is the first Investment banker in Bangladesh, which
is establish in 1976.
Question 03: What are the reasons for collapse of 1996?
Answer: Reason behind the collapse of 1996:
I. Manual open outcry trading system.
II. Price manipulation by some foreign portfolio manager, few brokers and sponsor of few listed
companies.
III. Inside information.
IV. Unauthorized long kerb market with the absence of central share depository system.
V. Many brokers/dealers show fake trading to increase demand of share through fake stock
certificate.
VI. Foreign investors safely offloaded their holding with profit with the expiry of the lock-in period.
VII. Week regulation and surveillances could not monitor market manipulators and intermediaries.
Even information inefficiency, artificial financial statement, false information and rumor were
important factors that overheat the market and burst the bubble.
VIII. Expectation from newly elected Government.

Question 04: What are the reasons for collapse of 2011?
Answer: Reason behind the collapse of 2011:
I. Uncoordinated policy changes by the SEC and Bangladesh Bank.
II. Expectation from newly elected Government.
III. Suspicious Transaction of top players.
IV. Asset revaluation and rumor.
V. Banks & other financial institutions of Bangladesh had a lot of excess liquidity due to less
business opportunities in the recession period of 2009-10.
VI. Low interest rate for deposits in the financial market.
VII. Liquidity crises and raise the rate of money market interest rate.
VIII. Supplies of new securities through IPOs were not enough to pursuit huge capital of too many
investors in the market.
IX. Due to the poor monitoring & market surveillance share prices of Z Category Companies and
small companies increased dramatically.
X. Lack of knowledge of small investor.

Question 05: Do you see any similarities in two collapse?
I. Lack of knowledge of small investor.
II. Expectation from newly elected Government.
III. Huge investment by big investors and create bubble in the market.
IV. Poor monitoring & market surveillance of share prices.
V. Offloading of shares by big investors and create panic among the small investors.
VI. Government measures to prop-up the market.
VII. Stock market collapse.

Question 06: What is moral Hazard?
Answer:


Question 07: What do you suggest for avoid collapse in DSE?
The policy makers can be guided by the following guidelines in order to prevent future crashes:
I. Maintaining investors confidence
II. Role of regulatory Authorities
III. Moral Hazard
IV. Capacity Building
V. Educating the investors
VI. Increase the Supply of the Stock
VII. Involvements of bank