Sunday, November 1, 2009

Bangladesh Share Market: Learn First and then You Can Earn

These days, many people are interested about investing money in stock exchange in Dhaka. There is nothing wrong in it and in fact, the stock exchange of a country is an indicator of the economy of that country. For example, when global recession started in September 2008, the first thing we saw was that the stock exchanges of rich countries like USA and Japan suffered a lot. Now, things are becoming better and as a result, the share markets are bouncing back in those countries. On the other hand, even during the time of economic recession, we have seen our share market to grow sharply in the last one year. So, it is clear that many people came in the share market without any knowledge about it.
These ignorant investors just thought that share market is a place for making quick money. They came in thousands and then bought secondary shares. When the demand of a product increases and its supply is limited then naturally the price only increases. This thing has happened in Dhaka Stock Exchange. Grameenphone recently entered the market and it created even more interest among people.
Unemplyment is high in Bangladesh and that is why, it is natural that thousands of people opened BO accounts.
I am again expecting an explosion in price in the share market like 1996. This time, the regulatory body and government both are very cautious. However, I am sad to say that ordinary people are not cautious. In fact, many of them have no idea how a share market operates and they just throw away their money. Right now, the price of the shares of most companies is abnormally high compared to their face value. Naturally, some people will make a lot of money while majority of them will suffer loss and become unhappy and frustrated in the end.
If you read this entry then my only advice for you is that try to know about the share market first. Don’t go for any short cut. This is not a place for making quick money. Secondary shares are always risky. First know about them and then buy or sell. If you lose your money then no one cares about it. You are on your own. The maximum you can do is to get angry and say some bad words against the companies and the government. The money you lose will not come back to you.