Abstract: Financial markets are absolutely vital for the proper functioning of capitalistic economy, since they serve to channel funds from savers to borrowers. They play an important role by channeling the funds to those who can make the proper and productive uses of the same. The financial markets permit both business and government to raise the needed funds by selling securities. Simultaneously, the surplus units of the economy are able to invest and earn and return. Financial markets include primary markets where new securities are sold and secondary markets where existing securities are traded. Primary markets where new securities are sold and secondary markets where existing securities are traded. Primary markets involve investment bankers who specialize in selling new securities. Secondary markets consists of equity markets, bond markets and derivative markets. Investors in Bangladesh became increasingly interested in equity markets because many entrepreneurs look for requirements from the equity markets for many reasons. In this connection Dhaka Stock Exchange (DSE) play an integral role in the pace of the industrialization of the country.
1Shelina Akhter , 2 Abu Misir and 3Sharmeen Ahmed , 2005. Capital Markets Development in Bangladesh The Status of Dhaka Stock Exchange. Pakistan Journal of Social Sciences, 3: 1002-1006.