You are on page 1of 9

Frequently Asked Questions

General Information
1. What is the Stock Exchange?
2. What is the Role of the Stock Exchange?
3. How many Stock Exchanges in Bangladesh?
4. How do you select the company Before You Invest?
5. What Do Investors Think For Long-term Investment?
6. What is 'Book closure' / 'Record Date'?

Market Related Information


1. What is the trade time of DSE?
2. What are the measures of market performance?
3. What Investment Products are Available?
4. What is Share?
5. What is 'Market Capitalization?
6. What is IPO?
7. What is 'Circuit Filter?
8. What is 'Circuit Breaker?
9. What is 'Market Lot?
10. What is 'Odd Lot?
11. What is 'Touchline Price?

12. How orders are queued for trading?


13. What are the groups of instruments in DSE?
14. What are the Settlement Rules for different categories instruments?
ICT Related Information
1. What is the time interval of the data update at DSE website?
2. How can I observe some specific instrument's current traded information
from the DSE website in a page?
3. Does DSE offer any SMS facility?
4. Does DSE offer any GPRS facility?
5. Is Dhaka Stock Exchange Ltd. offering Internet / Web based trading?

General Information
1. What is the Stock Exchange?
The stock exchange provides a sound and stable securities market where shares can be bought
and sold.

2. What is the Role of the Stock Exchange?


The stock exchange provides listed companies with a channel seek capital fund from the public
and at the same time it provides the investors a place to buy and sell shares of the listed
companies.
The exchange also monitors the market to ensure that it is working efficiently, fairly and
transparently.

3. How many Stock Exchanges in Bangladesh?


There are two stock exchanges in Bangladesh:
1. Dhaka Stock Exchange Ltd. - Established on 1954
2. Chittagong Stock Exchange Ltd. - Established on 1995

Of these, Dhaka Stock Exchange is the biggest stock exchange in the country.

4. How do you select the company Before You Invest?


Don't put in your money until you have understood all relevant information regarding the
investment. Prepare yourself for the vigorous homework of analyzing company's annual reports,
EPS (Earning per Share), accounts and other statements while keeping abreast of what's
happening in the industry, country and elsewhere that may affect your investment. Consult your
investment adviser/broker to get latest market information about shares you intend to buy or sell.
Be skeptical of anything picked up from rumors, particularly if you cannot rationally explain
their choice.

5. Why Do Investors Think For Long-term Investment?


Bear in mind that even in the best of securities/shares, there can be short-term aberrations. It is
important to have the power to hold your investments for longer periods. Studies have shown
that investments properly timed and based on strong fundamentals have been very profitable for
investors in the longer term.

6. What is 'Book closure' / 'Record Date'?


While a company a dividend, right/ bonus shares or intends to hold any AGM/ EGM; it declares
a book legislature closer provider/ Record Date to register the name of shareholders.
Only shareholders whose names appear on the register after the book closure/ Record Date are
eligible to attend in the AGM/ EGM and also to receive dividends & bonus shares and
entitlement to right shares, if any.

Market Related Information


1. What is the trade time of DSE?
Generally Trading Time is from 10:30 am to 02:30 pm.
working Days: Sunday to Thursday

2. What are the measures of market performance?


There are four indicators of market performance:

Market Capitalization

Value Turnover

Traded Volume

Index

3. What Investment Products are Available?


The following types of securities are available on the stock market for investment:

Ordinary shares of listed companies

Mutual funds

Debenture

Bond

4. What is Share?
Each share represents a small stake in the total paid up capital of a company. In fact a public
limited company is one that is formed to accumulate capital from a large pool of investors.
Therefore total capital of such companies is divided into smaller equal denomination units
represented by a share/ capital. One may buy large or small lots to match the amount of money
that one wants to invest.
A company's share price can rise or fall as a result of its own performance or market conditions.
Once the shares are bought and transferred to new investors name, the name will be entered in
the company's share register, the new investors will then be entitled to receive all the benefits of
share ownership including the rights to receive dividends, to vote at the company's general
meetings and to receive the company's reports.

5. What is 'Market Capitalization?


Market Capitalization is the total market value, at the current stock exchange list price of the
total number of equity shares issued by a company.
Market Capitalization = (No. of Issued Share * Close Price)

6. What is IPO?
Initial Public offering, IPO means while a company wants to raise fund from the general public,
it goes for public offering after completing necessary regulatory compliances.

7. What is 'Circuit Filter?


Circuit Filter is the maximum permissible deviation of the price (specified as percentage), of an
aggressor order from the last trade price.

8. What is 'Circuit Breaker?

Circuit Breaker is the maximum permissible deviation of the price (specified as percentage) of
the incoming order from the Circuit Breaker Base Price for that instrument. Orders violating
circuit breaker will result rejection of the order.

9. What is 'Market Lot?


A Market Lot is the smallest tradable unit for an instrument except those traded in the Oddlot
book. All order quantities can only be an integral multiple of the Market lot.

10. What is 'Odd Lot?


Stock market shares are generally bought and sold in market lots, which are easy to trade. Any
number of shares less than the market lot makes an odd lot. Odd lots typically arise from bonus
or rights issues.

11. What is 'Touchline Price?


The Touchline Price for an instrument is the best offer (sell) and best bid (buy) price amongst all
orders in the order book. The touchline buy price is the highest price amongst all buy orders and
the touchline sell price is the lowest price amongst all sell orders.

12. How orders are queued for trading?


Orders are queued and traded according to first on price and then time priorities. Best-priced
orders traded first. If there is more than one order at the same price, the order is placed by time
priority.

13. What are the groups of instruments in DSE?


The groups of instruments in DSE are: A, B, G, N and Z.

14. What are the Settlement Rules for different categories instruments?
Settlement (Pay Cycle) Rules for different categories instruments are:
Rule

Group

Howla Type

Market Type

Pay In

Pay Out

Rule 1

DVP

Rule 2

Spot

Rule 3

Rule 4

Rule 5

Rule 6

Rule 7

ICT Related Information


1. What is the time interval of the data update at DSE website?
Using the real time data DSE upgraded its official website (www.dsebd.org) where trade data
updates in every 1 to 3 minutes interval.

2. How can I observe some specific instrument's current traded information


from the DSE website in a page?
You can make a Portfolio on the DSE official website (www.dsebd.org) to observe your desired
specific instrument's current traded information all at once. (If you are a new user you have to
signup first.). Right now, the registration is free.

3. Does DSE offer any SMS facility?


Yes, DSE is offering SMS services. You can get Latest Trade Information of any DSE Listed
Company you desire by sending SMS.
Write DSE XXXXX & send it to 4636
Example: Write DSE DESCO & send it to 4636
You will get the value of the share for 3 times in a working day.

To Start Subscription Service:

Write DSE SUB & send it to 4636

To Add Company at Subscription Service:

Write DSE sadd XXXXX & send it to 4636

To Delete Company from Subscription Service:

write DSE sdel XXXXX & send it to 4636

To View Your Companies at Name at Subscription Service:

write DSE mystock XXXXX & send it to 4636

To Stop Subscription Service:

Write DSE UNSUB & send it to 4636

To Start Alert Service for DSE:

Write DSE alert XXXXX, PPP & send it to 4636


Write the Instrument name at the space of XXXXX & the desired share price at the space of PPP.
To View Information of DSE:

To View DSE All Share Price Index

Write DSE INDEX & send it to 4636

To View DSE 30 Index

Write DSE 30 & send it to 4636

To View DSE Selected Index

Write DSE DSEX & send it to 4636

To View Top 5 (Gainer) Companies

Write DSE top & send it to 4636

To View Bottom 5 (Loser) Companies

write DSE bottom & send it to 4636

4. Does DSE offer any GPRS facility?


Yes, DSE is offering GPRS services. For GPRS users to make use of the BULL software you
have to register first. Then you can access the software by mobile through GPRS to get a variety
of Latest Trade Information of DSE.
The application requires login before using it. Only GrameenPhone Users can register and login
right now. If the user is not registered then he/she can request for a PIN from the application. A
PIN will be sent to the user through SMS. The user has to send the PIN through SMS to the
BULL registration server to verify authenticity. SMS format is,
BULL PINCODE has to be sent to a number, e.g. 4636
After getting the correct PIN from the user a password will be sent through SMS and the user can
login to BULL Application using the mobile number as username and password (sent through
SMS).
5. Is Dhaka Stock Exchange Ltd. offering Internet / Web based trading?
Yes, Dhaka Stock Exchange Ltd. is now offering Internet / Web based trading.

You might also like