• What is online share trading?

    Online share trading is the process of buying and selling of shares through the internet on the secondary market with a view to profiting from the difference in the buying price and selling price. The share price of a stock is determined by the demand and supply of a particular share. Online share trading enjoys various advantages such as accessibility, security, convenience in tracking portfolio etc over traditional branch trading.

  • What is an Equity Share?

    An equity share represents the form of ownership. The holder of such a share is a member of the company and has voting rights.

  • What returns can I expect from my investments in equity shares? What are the risks?

    Equity shares are “High-Risk High-Return Investments.” The major distinction of Equity investment from all other investment avenues is that while the return from many avenues such as Bank Deposits, Small Saving schemes, Debentures, Bonds etc are fixed and certain, the earnings from equity investments are highly uncertain and varied. A good scrip picked up at the right time could fetch fairly good returns else the return may be meager or it may even turn negative, i.e. the invested fund itself may be eroded. In short, if the investment in fixed income category instruments is secured and risk-free to a large extent, investment in equities and related fields could be termed as risky.

  • What is Dividend?

    Dividend is the part of profit distributed by the company among its investors. It is usually declared as a percentage of the paid-up value or face value of the share.

  • What is a Bonus Share?

    A Share issued by companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years.

  • What is a Bond?

    A Bond is a promissory note issued by a company or government to its lenders. A Bond is evidence of debt on which the issuing company usually promises to pay the bondholder a specified amount of interest at intervals over a specified length of time, and to repay the original loan on the expiration date. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date.

  • What is a Debenture?

    It is a Bond issued by a company bearing a fixed rate of interest usually payable half-yearly on specific dates and principal amount repayable on a particular date on redemption of the debentures. Debentures are normally secured / charged against the asset of the company in favor of debenture holder.

  • What is a Stock Exchange?

    A Stock Exchange is a place where the buyer and seller meet to trade in shares in an organized manner. Dhaka Stock Exchange is the main Stock exchange of Bangladesh.

  • What shares can I buy?

    You can buy the shares that are listed on any of the recognized Stock Exchanges.

  • Whom should I contact for my Stock Market related transactions?

    To be able to buy or sell shares in the stock markets a client would need to be registered with a stock broker like Kazi Equities who holds membership in stock exchanges and who is registered with BSEC.

  • Am I required to sign any agreement with the broker?

    Yes, you have to sign the “Member-Client agreement” for the purpose of engaging a broker to execute trades on your behalf from time to time and furnish details relating to yourself to enable the member to maintain Client Registration Form.

  • What is Buying and Selling?

    There are several types of orders that you can dictate to a broker. The most common type, which is a regular buy or sell order, is called a market order. Another type of order is a limit order wherein you ask the broker to trade only if the price reaches a specific level. In a stop order, you tell the broker to sell your shares if the price drops to a certain level to prevent significant loss because if it drops to that level it is likely to drop further and your losses are likely to increase.

  • How do I place my orders?

    Trading can be done via the phone or by coming in person to the office of Kazi Equities or through any other facility provided by Kazi Equities like Internet trading.

  • What is an index?

    An index is a stock-market indicator created as a statistical measure of the performance of an entire market or segment of a market based on a sample of securities from the market. An index is thus a means to evaluate the overall performance of a market or of a segment of the market. An index measures aggregate market movements. Apart from being a general market indicator, indices are used as a benchmark to evaluate individual portfolio performance. Professional money managers will always try to outperform the market, i.e. they will always try to do better than the indices. For example, if the value of a portfolio moves up by 10% while the index moved up by only 5% then the portfolio is doing better than the market. We have 2 renowned indices viz.
    o DSEX (DSE General Index) and
    o DS30
    DSEX comprises of all companies. As the name suggests, it is a premier index on DSE. DS30 comprises of 30 large-cap companies on the DSE.

  • What is ‘book closure’/Record date’?

    While a company gives a dividend right/bonus shares or intends to hold any AGM/EGM, it declares a book legislature close 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 share, if any.

  • What is pay-in day and pay-out day?

    Pay-in day is the day when the broker shall make payment or delivery of securities to the exchange. Pay-out day is the day when the exchange makes payment or delivery of securities to the broker.

  • What is a depository?

    A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. CDBL (Central Depository Bangladesh limited) is the main depository in Bangladesh.

  • What should I do when I want to open an account with a DP?

    You can approach Kazi Equities or any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with DP in a CDBL prescribed standard agreement, which details your and your DP’s rights and duties.

  • What do you mean by ‘Market Trades’ and ‘Off Market Trades’?

    Any trade settled through a clearing corporation is termed as a ‘Market Trade’. These trades are done through stock brokers on a stock exchange. ‘Off Market Trade’ is one which is settled directly between two parties without the involvement of a clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.

  • How do I make or receive payments to or from Kazi Equities?

    Payments to Kazi Equities have to be made via a Account Payee cheque/Demand Draft in favor of Kazi Equities. Similarly Kazi would pay an Account Payee cheque, or BEFTN in the name of the investor, which will also contain the Bank name and account number of the client.

  • How long does it take to receive my money for a sale transaction and my shares for a buy transaction?

    The pay-out of funds and securities to the clients by Kazi will be within 24 hours of the pay-out.

  • 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.

  • 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.

  • What is ‘Market lot’?

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

  • What are the various kinds of accounts that I need to trade via Internet with Kazi Equities?

    Three kinds of accounts are required to be able to trade on-line. They are:
    • Account with Kazi Equities
    • Depository Participant (DP) account with Kazi Equities

  • What are the various kinds of accounts that I need to trade via Internet with Kazi Equities?

    Three kinds of accounts are required to be able to trade on-line. They are:
    • Account with Kazi Equities
    • Depository Participant (DP) account with Kazi Equities

  • Who is odd lot?

    Any number of shares less than the market lot makes an odd lot. Odd lot typically arises from bonus or right issues.

  • What is the function of the Capital Market?

    Capital Market enhances capital formation in the economy and comprises of -
    1. Primary Market is a place where new offerings by Companies are made either as an Initial Public Offering (IPO) or Rights Issue.
    2. Secondary Market is a market where securities are traded after being initially offered to the public in the Primary Market and/or listed on the Stock Exchange. Majority of trading is done in this market which comprises of equity market and debt market.