Published on 12:00 AM, July 21, 2008

Share market investors


We find DSE website very busy during. Most of the companies have converted their share transaction system through BOI/electronic or computerized account. It makes life easier for the shareholders. You can see the market status through Internet or TV channel and you can decide whatever shares you want to buy or sell. This reduces lot of paperwork. This is one of the factors to eventually attract general people to this business. There are some common terms used for this case. IPO, primary share, stock, secondary share, bond, dividend, lot, face value, bonus share, EPS, spot sale, portfolio, A, B, Z, N, G category, etc. Presently, students, teachers, service holders, businessmen, retired personnel all are investing some of their money to learn and see the return.
But, in fact, it is very difficult to speculate the trend of market without analysing financial status of the companies and related factors. So, in practice, even the investors who are doing this business since long have faced difficulties from time to time. There is a lot of risk for the small investors as well. We can say it's some kind of speculation-based business.
As we discussed with brokers, most of the people are investing their money on rumours. Especially, the new and small investors are investing their money and are caught in a trap due to their ignorance. This is really dangerous.
For example, one company's share was selling at Tk.900 at the beginning. Afterwards it reached to Tk.155 only. So, imagine, what a great loss for those who bought them at a higher price. But there are some people who are earning a lot from this business.
However, this business is too much risky for the low income people and novices dependent on rumours.
Lastly, we would request SEC and DSE to take necessary measures to save the beginners and low income people.