Financial markets father different methods to calculate the theoretical value of companies and their sh ars or form(a)s. These methods argon used in identify to foretell the future market values or the potential market worth and earn the capital gain from the price movement of these stocks. burgeon forths atomic number 18 bought when they are judged as undervalued with respect to the theoretical value and are sold when are considered to be overvalued, in the expectation that the undervalued stocks price will rise and overvalued ones will f on the whole, on the whole. But all these forecasting does not work properly in the uncomplete fiscal market where the information regarding the stock markets, issuing companies, stock prices, rules and regulations are not available and investors do not fuddle adequate knowledge about the investment market and financial instrument dealings. On the other hand, hedging is conducted to reduce peril through stabilizing cash flows, setting purchase or sales price of securities or currencies, diversifying holdings, more closely duplicate the balance sheet assets and liabilities, reducing transaction cost, decreasing costs of storage and minimizing the capital subscribe toed to carry inventories.
However, in an incomplete financial market investment involving the valuation of stocks and bonds and hedging of securities and currencies are not conducted in a smooth way. Bangladesh was in need of a dynamic, automated, and transparent stock exchange and the capital of Bangladesh transmission line Exchange and Chittagong Stock Exchange turned out to have all these characters which make them organizations with international standards which facilitate the competent entrepreneurs to set up capital and accelerate industrial growth for the overall gain ground of the economy and to keep pace with the global advancements. Dhaka Stock Exchange (DSE) In Bangladesh one of the biggest investment places is the capital market. Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is... If you want to get a full essay, order it on our website:
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