Analysis Of Enrique s Journey And Journalist For La Times

Before reading Enrique’s Journey I only knew 3 things about those who immigrated to the US. One, the majority were Mexican families. Two, they only migrate to the US, because they are poor and there are more job opportunities with better pay. Three, they got to the US by being smuggled in a van over the Border. All these things listed are true to an extent, but on a much deeper level. Sonia Nazario, author of Enrique s Journey and journalist for LA times, has opened my eyes with Enrique s Journey. Enrique is a young Honduran boy making his seventh attempt to America to reconnect with his mother after 11 years. Many unaccompanied children go on the same quest to America as Enrique to escape gang violence or to find a job to support their families. On this journey children ride on top of train cars, encounter gangs and corrupt officers, witnessed many acts of violence and death, and do their best to blend in and not get caught by officers who will deport them back from where the y came. I learned immigration is frowned upon in the US and many agree with presidential candidate Donald Trump’s â€Å"build a wall† campaign to block out anyone coming in from Central America. I believe the majority of those who agree with his campaign only believe the stereotypes about immigrants. If those who supported Mr.Trump s campaign knew the true struggles of immigrants lives and what sacrifices they made and the serious danger they put themselves in to get to America I strongly believe everyoneShow MoreRelatedDeveloping Management Skills404131 Words   |  1617 Pagesbuilt-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY Kim S. Cameron UNIVERSITY OF MICHIGAN Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul SingaporeRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagescase can be made for viewing the decades of the global scramble for colonies after 1870 as a predictable culmination of the long nineteenth century, which was ushered in by the industrial and political revolutions of the late 1700s. But at the same time, without serious attention to the processes and misguided policies that led to decades of agrarian and industrial depression from the late 1860s to the 1890s, as well as the social tensions and political rivalries that generated and were in turn

Hamlet, Prince Of Denmark - 1798 Words

Hamlet, Prince Of Denmark is by far one of the best known of William Shakespeare’s works and, may well be the most famous English-language play ever written. Categorized as one of Shakespeare’s â€Å"later tragedies,† it has developed a reputation as a difficult work to analyze. The Character of Hamlet is, perhaps, one of the most compelling characters to ever rise from the pages of English literature. He has been subjected to numerous interpretations and studies over the centuries, his actions thoughts analyzed and analyzed again. And this, probably more than anything else, is the reason for Hamlet’s enduring appeal. One of the biggest arguments in Hamlet’s character is his madness; whether he is pretending or if he really goes insane.†¦show more content†¦Somehow, even in the short amount of time the people have had to morn the King’s death, Claudius convinces everyone that it is time to move on and put the past behind. Gertrude is the mother of prince Hamlet and the new wife of his uncle. Her marriage to Claudius largely accounts for the melancholy and cynicism of her son, who violently attacks her for her lust. She appears with her new husband, the King, and he justifies their marriage to the court. Later she tries to talk Hamlet out of dwelling on his father, and into seeing the new king as a father. The Ghost of Hamlet’s father is probably the most mysterious character of them all. It is fully covered in armor and takes the form of the ex-King on Denmark. This spirit has twice appeared to Marcellus and Bernardo (both castle guards) before they see it a third time in the presence of the skeptical Horatio. It appears again to Hamlet, Horatio, and Marcellus. Hamlet follows, and it tells him how he was poisoned by Claudius, who had already seduced Hamlet’s mother. The spirit then enjoins Hamlet to revenge his murder, but leave his mother to the punishment of heaven. The ghost appears again in act III, scene iv when Hamlet, having made no attempt to kill Claudius, seems to be on the point of killing his mother. It is said by Rowe Flatter in his book â€Å"Hamlet’s Father,† that Shakespeare himself acted the part of the Ghost of King Hamlet. Polonius is the chief advisor to King

Management Studies and Skills

Question: What do you think should be the most important characteristics of the ideal Manager ? Answer: Introduction In this era of globalization, competition has increased among organization. It can be said that organizations requires leaders and managers in order to develop a sustainable model of business. There has been a shift from transactional marketing to relationship marketing. It is important that managers should be able to play an integral role of anchor. The role of manager is not only to manage the operations, the role of the manager is to encourage and motivate others in order to get things done. For a long time, people have been involved in doing the research work on managerial work. It can be said that managerial work is both quantitative and qualitative in nature. Therefore it is important that the research work on managerial work must focus on both quantitative and qualitative factors. It is also important that the researcher should be able to identify the strengths and weaknesses of the research on managerial work. It can be said that the research on managerial work could be usefu l people in society as people can learn a lot from managerial work. It is often said that management is both an art and a science. The research on management and managerial work would help people to understand the intricacies involved in management decisions. It would help both organizations and individuals to make decision that could benefit them (Guthrie, 2010). The objective of this paper is to identify, discuss and explain the strengths and weaknesses of the research on managerial work and explain how research on teamwork should shape the future of research on managerial work. It is important to learn about the teamwork because teamwork is an integral part of any managerial work. The objective of managers is to ensure that there could be effective communication and collaboration among the team members. Analysis One of the important roles of managers is to develop a platform wherein the people can learn the skills and competencies required to perform the daily work. It is also important that managers should understand the difference between skills and competencies and the same difference should be communicated to employees. Skills are more technical in nature. It is about the knowledge that can be attained from education or practical. Competency is about the execution of this knowledge. For example, a car mechanic may have desired skills to repair the car but he may lack competency if he does not know the manners to behave with customers. It can be said that skills are at the core of any offering and competency is the periphery. For human managers it is important to develop skills and competencies among individuals. HR managers should develop a platform wherein individuals can develop specific skills and competencies in order to perform their duties (Cai, 2012). It is important that managers should realize the skills of their employees. The research on managerial work would to get a perspective on the way managers works. It is important that managers should continuously work to improve the performance of its team members. The managerial work is a generic term that could be highlighted to number of operations performed by a manager. It is important that people should realize that a manager has to wear a heat of multiple colors. The role of manager has changed in todays time and it is expected that manager would be able to do both internal and external work. One of the organizational goals and objectives is to satisfy the need of customers. It can be said that customers are the most important external stakeholders for management and employees are the most important stakeholders for management. One of the managerial works is to maintain a balance between internal and external stakeholders. In fact, it can be said that one of the work of manager s is to bridge the gap between customers expectations and management perception of customers expectations. Another important work of managers is to work as guardian of employees. In an organizational setting, employees would perceive the organization from the eyes of their manager. Therefore one of the objectives of managers is to be a bridge between organizational policies and strategies and employees expectations. The research on managerial work would help to understand all the things that affect the relationship of managers and employees. The research on managerial work would be beneficial for management as well as employees. It is important that managers should participate in any such research (Corbridge, 2010). It is also important that managers should provide true inputs whenever required. For example, managers should answer to all the questions of researchers. At the end of researcher it is also important that this information should be kept confidential and the person who is manager should be ask for permission if any such information has to be published. One of the important managerial works is to develop a team of promising individuals that can help organization to reach its goal and objectives. The research work on managerial work should also include the research on teamwork. It can be said that the success of managers would be directly proportional to the way managers are able to handle their team. It is expected that manager would be able to develop a team that would help manager to accomplish the task. Therefore any research on managerial work should always be based on the research on teamwork. The research on teamwork should always act as an input to the research for managerial work. The future of the research on managerial work depends on the underlying research that is being done on the teamwork. It would not be an exaggeration to say that the quality of services delivered by managers would depend on the way managers could handle the team. Managers should realize that the best learning is the learning from people (Boxall, 2005). Therefore managers should always focus on teamwork and they should focus to recruit the best people from the industry. For researchers it is important to realize the strength and weakness of performing the research work on managerial skills. The relative strength and weaknesses of the research on managerial work can be discussed as: Strengths 1. One of the important strength for doing the research on managerial work is for managers itself. Every organization would have lot of managers. With the output of the research on managerial work, managers would be able to learn about themselves. The research on managerial work would be a good input for managers to realize their strengths and weaknesses. The result from the managerial work would also help managers to get a feedback about their performance. It is very important for any individual or any manager to get an open feedback about the way he or she is performing in the organization. 2. The strength of doing the research on managerial work shall also be discussed with respect to organization and organizational leaders. It would be important for founding members of an organization to have information about the way their managers is perceived by the employees and external stakeholders. It could be possible that the senior management and founding members funds the research project. Any research project requires an investment to be made. The senior management should be willing to make this investment. 3. The strength of the research work on managerial work shall also be discussed with respect to employees. It can be said that the performance of employees also depends on the actions of managers. Therefore it is important that a health relation is maintained between managers and employees. The research work on managerial work should also drive employees. In fact, the research work on managerial work should also include collecting data and information from employees or team members. It is expected that all the employees and team members would provide correct responses with respect to the questions. The research on managerial work would also enlighten employees in number of ways. 4. The strength of the research work on managerial work could also be observed for society at large. With the research on managerial work, people can learn a lot of things about the people living in society. It is important that people should always keep and open mind in order to learn from managers and leaders. Managers should develop the strategies for people and managers also play a role of bridge between internal and external environment of the company. It is important that HR managers should have healthy relations with employee and customers. In fact, HR managers should enable employees to deal with customers. It would result in improve levels of employee satisfaction and customer satisfaction. Weaknesses 1. It is expected that people would have their normal life full of privacy. One of the important weaknesses of research on managerial work is that it could be seen as an attack on the privacy of individuals. It happens in several scenarios that managers have to put their privacy on line. The interviews with managers, which would be done for managerial research, would include both personal and professional questions. This is the weakness that personal questions also have to be answered with professional questions. 2. The output of the research work on managerial work would also make the life of manager a public life. One of the weaknesses of the research work is that the life of managers is made public. It is difficult for managers to have a balance between private and personal life. The managers can overcome this weakness only when they learn to differentiate between their personal and professional lives. This weakness can also be overcome by the way researcher would perform the research. It is important that researchers should have a professional attitude while performing the research. 3. One of the weaknesses is that the output of research work depends a lot on the quality of research work. Therefore it is important that only qualified researchers perform the research. Researcher should always have positive attitude. It can be called as weaknesses of research work on managerial work that it depends a lot on the attitude of research work. To overcome this, researcher should have a standardize way of performing research. It would ensure that the research work on managerial work can be least affected by the attitudes and personal judgments of the researcher. 4. The weakness of research on managerial work would also be discussed with respect to ethical and legal dimension (Redman, 2010). For any research, there are number of ethical and legal concerns that have to be overcome. It is important that researcher should overcome all the ethical and legal concerns before he or she can start the research work. It is also important that researchers and managers should also discuss the research work. The ethical responsibilities also exist for managers. It is important that all the questions that should be asked by researchers should not cross the ethical lines. 5. The strength and weaknesses discussed above also highlights the advantages and disadvantages of managerial work and the research done on managerial work. It is also important to understand that any manager would eventually have a team and it is expected that the team members would also support in the research work on managerial work. It can be said that the research work on managerial work would explain the research work on teamwork. The reasons for the same can be discussed as: 6. Every manager has to handle a team. The way a team is performing can be judged from the way manager is leading. In fact the performance of managers can be closely linked to the performance of teamwork. Therefore any research on teamwork would eventually have an impact on research on managerial work and vice-versa. 7. In an organizational setting, managers come at top and employees come at entry level and mid level (Prykop, 2012). Typically, organizations would have a pyramid type of organization structure. It is important that the pyramid should be in control of manager, who is at the top of the pyramid. The entire pyramid can be thought of as a team. It is important for managers to handle their team. The relationship between managers and their team is strong. Therefore any research work on the managerial work has to start with the research work on teamwork. 8. It can be said that management or leadership and team have to work hand in hand. If managers are the policy makers then team members are the executors (Paauwe, 2012). It is important that managers should be able understand the expectations of its team members. The research work on managerial work or on teamwork cannot be completed unless the second factor is also considered. For example, any research work on managerial work should incorporate teamwork and vice-versa. Conclusion It can be said that most organizational leaders intuitively know this and want the best managers they can find. Unfortunately, identifying and selecting the best managers is not always an easy task. It can be observed that high performing technical employees are often selected for managerial positions because of their ability to do the technical work. But good technical employees are not necessarily good managers.Therefore it is important to have a research on managerial work. There could be number of drivers who can trigger this research. The project sponsor can ask for the research of managerial work or this request can also come in from top leaders of the company. The above paper discusses the strengths and weaknesses of the research on managerial work. With the above discussion it can be said that is important to have the provision of research work on managerial skills and work. It is also important that the stakeholders of organization should realize that technical skills might not be required to emerge as a successful manager. It can also be said that there are very less chances that technical managers would emerge as successful leaders. Therefore it is important that organizations should have the provision of research on managerial work. As discussed above the research done on managerial work could be useful for leaders in the organization, managers and employees. It is important that the research output of this research work should be shared with all the stakeholders so that they can make their own decision. The paper also discussed the weaknesses associated with this research work. However there are ways that these weaknesses can be overcome. It is expected that all the stakeholders would work together in order to ensure that weaknesses can be overcome and true benefits could be realized. References Evanschitzky, H., Sharma, A., Prykop, C. (2012). The role of the sales employee in securing customer satisfaction.European Journal of Marketing,46(3/4), 489-508. Haesli, A., Boxall, P. (2005). When knowledge management meets HR strategy: an exploration of personalization-retention and codification-recruitment configurations.The International Journal of Human Resource Management,16(11), 1955-1975. Ji, L., Huang, J., Liu, Z., Zhu, H., Cai, Z. (2012). The effects of employee training on the relationship between environmental attitude and firms' performance in sustainable development.The International Journal of Human Resource Management,23(14), 2995-3008. Palthe, J., Kossek, E. E. (2003). Subcultures and employment modes: Translating HR strategy into practice.Journal of Organizational Change Management,16(3), 287-308. Messersmith, J. G., Guthrie, J. P. (2010). High performance work systems in emergent organizations: Implications for firm performance.Human resource management,49(2), 241-264. Pilbeam, S. Corbridge, M. (2010)People resourcing and talent planning: HRM in practice. 4th ed. London: Prentice Hall International. Snape, E., Redman, T. (2010). HRM Practices, Organizational Citizenship Behaviour, and Performance: A Multià ¢Ã¢â€š ¬Ã‚ Level Analysis.Journal of Management Studies,47(7), 1219-1247. Van De Voorde, K., Paauwe, J., Van Veldhoven, M. (2012). Employee Wellà ¢Ã¢â€š ¬Ã‚ being and the HRMOrganizational Performance Relationship: A Review of Quantitative Studies.International Journal of Management Reviews,14(4), 391-407.

Problems and Prospects of Capital Market in Bd Essay Example

Problems and Prospects of Capital Market in Bd Essay Problems and Prospects of Capital Market In Bangladesh What is Capital Market? A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e. g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as Securities and Exchange Commission (SEC) for Bangladesh or for the UK Financial Services Authority (FSA) oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. What is stock? Stock is a security issued in the form of shares that represent ownership interests in a company. There is both common stock (often simply called stock, shares, or equity) and preferred stock. Common stock holders elect the companys board of directors and actively participate in the companys success (or failure) through a rising (or falling) stock price. Common stock holders may also receive dividends, provided the company is profitable, obligations to commercial creditors and bondholders have been met, and the board sees fit to declare them. We will write a custom essay sample on Problems and Prospects of Capital Market in Bd specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Problems and Prospects of Capital Market in Bd specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Problems and Prospects of Capital Market in Bd specifically for you FOR ONLY $16.38 $13.9/page Hire Writer How can it be traded? For example if you want to transfer your part of ownership of the firm to other then you should sell the deed of ownership to someone else. In that case, you have to maintain some papers. For example, a sale deed will be signed and the deed will be registered in government registry office. In case of stock when you buy stock/share of a certain company you will be given a share certificate. This certificate certifies that you own that much part of the company. In addition, you have to register your ownership certificate with companys register. However, due to some problems with paper certificate (such as copied certificate, maintenance of huge paper certificates) a new system of electronic stock (dematerialized share) is made. In this system, your stock is preserved in an electronic system rather delivering you the paper shares. Moreover, you do not need to register your ownership. The ownership is automatically transferred to you and preserved in an automatic system. This system is called Central Depository Bangladesh Limited (CDBL). What is stock exchange? A stock exchange is an entity which provides trading facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which give them advantages of speed and cost of transactions. For example Dhaka Stock Exchange has a electronic trading system called TESA and Chittagong Stock Exchange has an electronic trading system called VECTOR. These two systems work as an arrangement to help buy/sell of listed securities. Capital Market Participants: The participants of capital market are mainly those who have a surplus of funds and those who have a deficit of funds. The persons having surplus money want to invest in capital market in hope of getting high returns on their investment. On the other hand, people with fund deficit try to get financing from the capital market by selling stocks and bonds. These two kinds of activities keep the capital market going. Surplus Unit: Surplus Unit has enough funds over all of their liabilities to invest in the capital market. It may broadly be classified into two investors (i) Individual Investors; (ii) Institutional Investors. i)Individual Investors: Individual Investors participate in the capital market through purchasing Govt. Bonds Notes, Public Limited Co. ’s shares, or mutual funds. (ii)Institutional Investors: When the institutional investors have surplus funds that are not needed for a short time period, they seek to make money from their cash surplus by purchasing securities from the market. Institutional Investors may be Commercial Banks, Insurance Companies, Leasing Companies, Investment C orporation Bank (ICB), Asset Management Companies, and various other companies. Deficit Unit: Deficit Unit usually takes loans or capital by selling bonds or shares to the surplus Unit to arrange necessary funds for investment in different promising business. Deficit group may further be classified into two groups (i) Government; (ii) Public Limited companies. (i)Government: The Government of Bangladesh always experiences its expending requirements exceed their tax revenues. To balance this difference, it needs to collect fund through borrowing. Government also borrows on behalf of nationalized industries, municipalities, local authorities and other public sector bodies. It can borrow by selling Treasury Bonds and Treasury Notes to the surplus Unit through capital market. (ii)Public Limited Companies: Public Limited Companies arrange their equity capital and debt capital by selling shares bonds or debentures respectively to the surplus unit for the purpose of fund modernization or future business expansion. DIAGRAM OF FINANCIAL MARKET Dhaka Stock Exchange Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is located in Motijheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country. The management and operation of Dhaka Stock Exchange is entrusted on a 25 members Board of Director. Among them 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organizations. The CEO is the 25th ex-officio member of the board. As of January 20, 2010, the Dhaka Stock Exchange had 444 listed securities with a combined market capitalization of TK. 2,049. 34 billion. Chittagong Stock Exchange BACKGROUND The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City through the cry-out trading system with the promise to create a state-of-the art bourse in the country. Founder members of the proposed Chittagong Stock Exchange approached the Bangladesh Government in January 1995 and obtained the permission of the Securities and Exchange Commission on February 12, 1995 for establishing the countrys second stock exchange. The Exchange comprised of twelve Board members, presided by Mr. Amir Khosru Mahmud Chowdhury (MP) and run by an independent secretariat from the very first day of its inception. CSE was formally opened by then Honorable Prime Minister of Bangladesh on November 4, 1995. As of January 20, 2010, the Chittagong Stock Exchange had 227 listed securities with a combined market capitalization of TK. 1,640 billion. The key Indicators of DSE and CSE are shown in the following table: (as of January20, 2010) Sl. No. Indicators DSECSE 01. Total No. of Listed Companies 282209 02. Total No. of listed Mutual Fund 1816 03. Total No. of listed Bond Debenture1362 04. Total No. of Listed Securities (01+02+03)436227 05. Total No. of shares4,428,589,137414,612,267 06. Total Issued Capital (Share)TK. 230. 62 billionTK. 223 billion 07. Total Market Capitalization (TK. )TK. 2,049. 34 billion. TK. 1,640 billion. 08. Total Market Capitalization (US $)29. 36 billion23. 5 billion 09. General IndexDGEN 4956. 73CSCX 9346. 70 The Potentiality of the Bangladesh Capital Market The capital market is the engine of growth for an economy, and performs a critical role in acting as an intermediary between savers and companies seeking additional financing for business expansion. Vibrant capital is likely to support a robust economy. While lending by commercial banks provides valuable initial support for corporate growth, a developed stock market is an important pre-requisite for moving into a more mature growth phase with more sophisticated conglomerates. Today, with a US $ 89. 04 billion (TK. 6149. 43 billion)economy and per capita income of roughly US $621, Bangladesh should really focus on improving governance and developing advanced market products, such as derivatives, swaps etc. Despite a challenging political environment and widespread poverty, Bangladesh has achieved significant milestones on the social development side. With growth reaching 5. 8 percent in 2009, the economy has accelerated to an impressive level. It is noteworthy that the leading global investment banks, Citi, Goldman Sachs, JP Morgan and Merrill Lynch have all identified Bangladesh as a key investment opportunity. The Dhaka Stock Exchange Index is at a 10-year high, however, the capital market in Bangladesh is still underdeveloped, and its development is imperative for full realization of the countrys development potential. It is encouraging to see that the capital market of Bangladesh is growing, albeit at a slower pace than many would like, with market development still at a nascent stage. The market has seen a lot of developments since the inception of the Securities and Exchange Commission (SEC) in 1993. After the bubble burst of 1996, the capital market has attracted a lot more attention, importance and awareness, which have led to the infrastructure we have in the market today. The Recent Surge in the Capital Market The Dhaka and Chittagong Stock Exchange Index was at a 10-year high in the 2009 year end. DSE General Index rose at 4,800 and CSE SCX rose at 8560 in the year end of 2009 which made it Asias one of the top performers. The steady investment atmosphere prevailing throughout 2009 is considered one of the main reasons behind this surge. Good return prospects, stable market growth, and uninterrupted trading as a result of political stability attracted foreign investors to invest in local securities. The banking sector, followed by the power, pharmaceutical and cement sectors, received the most foreign investment. The government has also attracted investors by pledging to sell securities of state enterprises. The state-owned companies Jamuna Oil Ltd, Meghna Petroleum Ltd, and Titas Gas Ltd debuted in the bourses in 2008. The P/E ratio now stands at least 20x as compared to 14.1x for emerging markets. It seems sustainable if the planned big IPOs of a few SOEs and the other telecom companies like Grameen Phone Ltd. take place in the market. More such large issues are required, which can emerge out of the energy, infrastructure and public sectors. Challenges Ahead of the Capital Market 1. Information Asymmetry Access to credible information is restricted Retail investors lack dedicated investment process infrastructure. Forced to look to brokers for advice that may consist of market rumors. Syndicate of large investors manipulate the market through price inflation, pump and dump strategies. 2. Supply Side Constraints Lack of fundamentally sound scrips as companies prefer traditional bank finance to capital markets Need to encourage listing of good scrips in the market. Reducing supply side constraints generates liquidity, reducing scope for price manipulation. 3. Lack of Professional Portfolio Management Ratio of institutional-to-retail investors remains low Institutional investors bring stability through non speculative long term investments. Listing of more mutual funds can be a starting point to increasing institutional activity. 4. Valuation Disparity Value of scrips is subject to speculative trading rather than sound fundamentals, resulting in market volatility Education of investors, overall development of capital markets through time can address this issue. 5. Lack of a Formal Debt Market Bangladesh does not have established secondary debt market Markets are unable to provide short term financing solutions to corporations, i. e., commercial paper. Listing of debt instruments from quality issuers and institutional trading can increase activity. Introduction of BASEL II guidelines by Bangladesh Bank likely to encourage banks to raise capital through debt instruments in 2010. 6. Quality Research and Analysis Development of quality equity research in the country is yet to match the growth of local capital markets Quality research increases investor awareness, reducing speculative trading and market volatility. 7. Central Co-ordination of Regulators Top down co-ordination between Bangladesh Bank, SEC and related bodies would: Streamline regulatory processes. Reduce time required for quality issuers and new capital markets products to reach mark. Recent Regulations and Opportunity Space in the Capital Market 1. Strengthening of Surveillance Following the stock market crash of 1996, measures have been taken to prevent future incidents of the sort Constant market surveillance by the SEC. Increasing standards of corporate governance. Dematerialization of Trading. Focus on investor education – establishment of Capital Markets Institute. 2. Introduction of BASEL II Guidelines Introduction of BASEL II guidelines by Bangladesh Bank likely to encourage banks to raise capital through debt instruments in 2010 Issuance of debt and equity by banks through capital markets likely to generate increasing liquidity. 3. Introduction of Book building / Price Discovery Introduction of book building is a big step towards developing Bangladesh capital markets Book building reduces risk of undervaluation for issuers. Ensures fair pricing by factoring in demand, likely to encourage listing of large, well-reputed companies. SEC qualifying conditions for book-building set certain criteria for companies to be eligible. 4. Infrastructure Development through Capital Markets Focus on infrastructure development may see Government of Bangladesh (GoB) seek capital markets as an avenue for financing GoB plans to issue TK. 5. 0 billion (US$72mm) in securitized bonds to fund Bangabandhu Bridge. Cabinet approval for the issue of TK. 42 billion (US$650mm) in bonds to fund Padma Bridge likely. Plans to construct second bridge over Padma at a cost of US$1. 89bn signals potential financing needs. Further GoB funding requirements arise from needed development in the power sector and development of roads and highways. Bangladesh Capital Markets – The Future 1. Institutionalization of the Market We expect to see more institutional investors bringing long term commitment and liquidity to the market -Longer investment horizons reduce market volatility. -Institutional investment strategies are fundamental focused rather than speculative. 2. Listing Fundamentally Sound, Well-reputed Companies With the improvement of corporate governance, we can attract sound corporations to come to capital markets -Quality scrips provide liquidity and motivation for educated investors to participate in capital markets. -Listing of large, reputable corporations attract foreign investments, increases liquidity. -Introduction of new scrips in different sectors provides investors with broader options. -Recent addition of telecom sector likely to generate interest among other large cap companies to list. -Inclusion of well reputed, large companies will reduce ability of select â€Å"investor syndicates† to manipulate prices. 3. Flotation of Mutual Funds Strong pipeline for listing of mutual funds (US $ 300mm in mutual funds expected to enter the market by mid 2010) -Provide retail investors with safer, indirect market access, preventing wealth capital losses. -Reduces dependency on retail investors, allowing institutions to bring commitment and stability to the market. -Bring much needed market stability that only institutional investors can provide. 4. Facilitation of Private Equity Investments Recent introduction of certain foreign private equity investors in Bangladesh -Provide stable flow of capital given mid to long term investment horizon of PE investments. High risk hurdles and selective investments direct PE funding to quality local corporations. 5. Inclusion in Global Indices Bangladeshi companies are now included in global indices -The Dow Jones SAFE Index already includes 5 Bangladeshi banks and a power company. -Inclusion of high quality scrips in the index can result in inclusion of our index in global indices such as MSCI Emerging Markets, etc. Other Major Future Prospects Within the next 2 years, 26 large profitable state-owned enterprises (SOEs) are going to be listed under Direct Listing Method to increase depth of the market. The Private Public Partnership (PPP) will be implemented through capital market for financing government projects. The Telecom companies (Aktel, Teletalk, and Banglalink) are interested to be listed in capital market like Grameen Phone. British High Commissioner of Bangladesh Stephen Evans has recently said about 1 million Bangladeshis living in UK are willing to invest in the capital market. Bangladesh Shipping Corporation (BSC) is almost ready to float the share and it is expected that it will raise TK. 50 billion from the market Power and energy sectors demand for capital is 5 to 10 billion dollar within short time to meet the immediate needs of 5000 MW power demand. Introducing book-building method that is well accepted by everybody and it is expected that the SOEs will also be off-loaded through the method. A deep-sea port requiring 1 billion dollar is going to start with a policy decision that it will also be listed. Export oriented food processing industry needs huge capital and technical capacity to meet the growing standards in global market for marine food, fruits and poultry. IT sector with our talented developers, yet to demonstrate the massive potentials of software industry of the country. Problems of the Capital Market in Bangladesh The unexpected rise and fall in share prices are mostly followed from the general confidence of the investors about political stability, euphoria of investment in shares, prospect of quick capital gains, a vacuum in respect of institutional presence in the share market, monopolistic dominance of member brokers, inefficiency of the SECS to cope up with the developments, xistence to Kerb market, and absence of proper application of circuit breaker etc. Delivery versus payment mechanism was used as one of the main vehicles of manipulation. Kerb market gave birth fake and forged share certificates. Although there are increasing trends in all the indicators, DSE, CSE are not free from problems. The problems of DSE, CSE may be summarized as under: 1. Price manipulation It has been observed that the share values of some profitable companies has been increased fictitiously some items that hampers the smooth operation of Stock market. 2. Delays in Settlement: Financing procedures and delivery of securities sometimes take an unusual long time for which the money is blocked from nothing. 3. Irregulations in Dividends: Some companies do not hold Annual General Meeting (AGM) and eventually declare dividends that confused the shareholders about the financial positions of the company 4. Selection of Membership: Some members being the directors of listed companies of DSE, CSE look for their own interest using their internal information of share market. 5. Improper financial statement: Many companies do not focus real position of the company as some audit firms involve in corruption while preparing financial statements. As a result the shareholders as well as investors do not have any idea about position of that company OTHER PROBLEMS The concept of centralization of the securities market has not been implemented that arises technical problems and political infighting. The intrinsic values for securities traded are sometimes estimated without considering the current market prices of the securities. The absence of comprehensive legal and supervisory framework. Lack of skilled manpower as well as financial and non-financial institutions involved in the securities market. The lack of proper policy framework that provides incentives and protection to investors. The dominance of bigger public sector and borrowing of public sector as well as government form the institutional sources rather than the market. Suggestions to Improve the Activities of Capital Market To introduce automated monitoring system that may control price manipulation, malpractices and inside trading. To introduce full computerized system for settlement of transactions. To force the listed companies to publish their annual reports with actual and proper information that can ensure the interests of investors. To control and abolish kerb market form premises of stock market. To take remedial action against the issues of fake certificates. The Composite Quotation System (CQS) should be introduced and implemented that available the exchange specialist bid-ask quotes to the subscribers. To create arrangement to set-up merchant banks, investment banks and floatation of more mutual funds particularly in the private sectors. Banks, insurance companies and other financial institution should be encouraged deal in share business directly. The brokers should not be allowed to deal in the Scripps on their own accounts. The management of DSE and CSE should be vested with professionals and should not in any way be linked with the ownership of stock exchange and other firms. Conclusion To expedite the market development process, it may be a good idea to decide on certain milestones and link them to the disbursement of Development Credit Support of the World Bank. The government is making good progress in other sectors, including monetary management, corporatisation of public-sector banks and others through this linkage. The missing link between the SEC, Bangladesh Bank, Bangladesh Telecom Regulatory Commission and other regulatory bodies is now getting established. Individually, they were not serving each other’s interests, and there was no effective coordination among them, hence the country was deprived of great initiatives. A dedicated financial market cell at the Ministry of Finance could be formed to coordinate with these regulators as well as other ministries. In terms of creating market depth, more state-owned-enterprises that are profitable should be listed. The supply of securities can be increased if the SOEs are allowed to operate through the stock exchanges. Floatation of SOE scrips is expected to expand the market by couple of times. Corporatisation of SOEs will bring in transparency as well as confidence on the government financial system. The Bangladesh capital market still has a long way to go. The recent measures taken by the transitional government have already begun to influence the markets positively. If more investor friendly policy reforms were to be implemented, the capital market will undoubtedly play a critical role in leading Bangladesh towards being the next Asian tiger with growth comparable to India, Vietnam and the other most dynamic economies in the region. Appended Part Index DSE: Dhaka Stock Exchange CSE: Chittagong stock Exchange DGEN: DSE General Index CSCX: CSE Selective Categories Index SOEs: State-Owned Enterprises SEC: Securities Exchange Commission CQS: Composite Quotation System AGM: Annual General Meeting BSC: Bangladesh Shipping Corporation GoB: Government of Bangladesh FSA: Financial Services Authority in UK IPO: Initial Public Offering CDBL: Central Depository Bangladesh Limited BSB: Bangladesh Shilpa Bank BSRS: Bangladesh Shilpa Rin Shashta ICB: Investment Corporation of Bangladesh Data Sources http://www. dsebd. org http://www. csebd. com http://www. scribd. com/document http://en. wikipedia. org/wiki/Capital_market http://en. wikipedia. org/wiki/Stock_exchange