Capital Market financing Submitted to: Md. Mahfujur Rahman Assistant Professor School of Business

Capital Market financing
Submitted To:
Mr. Md. Mahfujur Rahman
Assistant Professor
School of Business
(BBA Program)
Submitted By:
Ehsanul Hoque
ID: 170202003
Section: A
Year: 4th year 2nd semester

Table of Contents
Introduction................................................................................................................ 3
Types of Capital Market.............................................................................................. 3
The Primary Market................................................................................................. 3
The Secondary Market............................................................................................. 4
The capital market in Bangladesh.............................................................................. 5
Dhaka Stock Exchange (DSE)..................................................................................... 6
Chittagong Stock Exchange........................................................................................ 6
The Role of Capital Markets in an Economy...............................................................7
Circuit Breaker............................................................................................................ 8
Settlement cycle......................................................................................................... 8
T+2 settlements cycle............................................................................................. 8
T+3 settlements cycle............................................................................................. 8
Math:.......................................................................................................................... 8
Conclusion:............................................................................................................... 12
References:.............................................................................................................. 12

Introduction
In a capital market, firms and governments can raise long-term money by selling long-term
investments such as bonds and stock (debt or equity). Other markets raise short-term funds, but
this market raises long-term capital. This is how it's defined: In the money market, for example,
The stock market, as well as bonds and equity securities, comprise the capital market (debt).
Securities and exchange commissions like the Bangladesh Financial Services Authority (BFSA)
and the Bangladesh Securities and Exchange Commission (SEC) administer the capital markets
within their jurisdictions, protecting investors in Bangladesh against fraud.
Primary and secondary capital markets exist. The process of selling new stock and bond offerings to
investors is known as underwriting in the financial markets. Investors and traders buy and sell existing
securities in secondary markets, such as the stock exchange, over-the-counter, or somewhere else.
Secondary marketplaces, such as
As a major component of the financial system, the capital market has a significant impact on economic
growth.
The capital market is a place where companies and governments can raise long-term funds.
There is also a capital market in addition to the stock and bond markets. Capital markets allow
capitalism to flourish. Economies around the world are increasingly reliant on the size of their
respective global markets. This arrangement makes it feasible for everyone to own a piece of the
country's wealth. Having many ways to raise money is appealing since it allows you to keep
finding new sources of funding over time. The markets encourage more participation in order to
increase investor confidence. The internet can supply the steady flow of information that markets
require in order to operate correctly.
Types of Capital Market
The Primary Market
New securities are issued in the primary market, which is a part of capital markets. A new stock
or bond issue can provide capital for companies, governments, or public sector entities. A
syndicate of securities dealers is often used to accomplish this. Underwriting refers to the sale of
new securities to investors. If you're selling stock in a company for the first time, you're making
an initial public offering (IPO). Although it can be found in the prospectus, the commission paid

to dealers is included in the price of the investment. Companies can borrow from the capital
market using long-term instruments created in primary markets.
This is the market for new long-term equity capital, which is a characteristic of primary markets.
The first time a security is offered for sale is in the primary market. As a result, the fresh issue
market is another name for it (NIM).
Directly to investors, securities are issued through an initial public offering (IPO) or "primary
issue." The corporation receives the funds and then provides new certificates of deposit to the
investors who purchased them. A company's primary concerns are used to start a new company
or to expand or modernize an existing one. A key role of the primary market is to facilitate the
creation of capital in the economy.
Other long-term external financing options, such as loans from financial institutions, are not
included in the fresh issue market. "Going public" refers to borrowing money from the new issue
market in order to transform private capital into public capital. Only the original owner of the
sold financial assets has the right to redeem them.
The Secondary Market
The financial market where previously issued assets and financial instruments such as stocks,
bonds, options and futures are purchased and sold is known as the secondary market or the
aftermarket. [1]. An alternative application for an existing product or asset, which has a client
base in the second market is also referred to as "secondary market" (for example, corn has been
traditionally used primarily for food production and feedstock, but a "second" or "third" market
has developed for use in ethanol production). Loans that are sold to investors like Fannie Mae
and Freddie Mac by mortgage banks are another prominent use of the phrase "secondary
market."
When a company issues stock in an initial public offering (IPO), for example, or when the
federal government issues treasuries, investors can buy directly from the company or the
government, rather than through a broker. Investors can buy from one another in the secondary
market after the first issuance.
From loans to stocks, the secondary market for a wide range of assets can be fragmented or
centralized, illiquid or very liquid. Liquid secondary markets for publicly traded company stock