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 OFFLINE | Frequently Asked Questions
General Information
• What is the Stock Exchange?
• What is the Role of the Stock Exchange?
• How many Stock Exchanges in Bangladesh?
• How do you select the company Before You Invest?
• What Do Investors Think For Long-term Investment?
• What is 'Book closure' / 'Record Date'?
Market Related Information
• What is the trade time of DSE?
• What are the measures of market performance?
• What Investment Products are Available?
• What is 'Share' ?
• What is 'Market Capitalization' ?
• What is 'IPO' ?
• What is 'Circuit Filter' ?
• What is 'Circuit Breaker' ?
• What is 'Market Lot' ?
• What is 'Odd Lot' ?
• What is 'Touchline Price' ?
• How orders are queued for trading?
• What are the groups of instruments in DSE?
• What are the Settlement Rules for different categories instruments?
ICT Related Information
• What does TESA mean?
• What are MSA & TWS?
• What is the time interval of the data update at DSE website?
• How can I observe some specific instrument's current traded information from the DSE website in a page?
• Does DSE offer any SMS facility?
• Does DSE offer any GPRS facility?
• Is Dhaka Stock Exchange Ltd. offering Internet / Web based trading?
General Information
What is the Stock Exchange?
The stock exchange provides a sound and stable securities market where shares can be bought and sold.
What is the Role of the Stock Exchange?
The stock exchange provides listed companies with a channel seek capital fund from the public and at the same time It provides the investors a place to buy and sell shares of the listed companies.
The exchange also monitors the market to ensure that it is working efficiently, fairly and transparently.
How many Stock Exchanges in Bangladesh?
There are Two stock exchanges in Bangladesh:
1. Dhaka Stock Exchange Ltd. - Established on 1954
2. Chittagong Stock Exchange Ltd. - Established on 1995
Of these, Dhaka Stock Exchange is the biggest stock exchange in the country.
How do you select the company Before You Invest?
Don't put in your money until you have understood all relevant information regarding the investment. Prepare yourself for the vigorous homework of analyzing company's annual reports, EPS (Earning Per Share), accounts and other statements while keeping abreast of what's happening in the industry, country and elsewhere that may affect your investment. Consult your investment adviser/broker to get latest market information about shares you intend to buy or sell. Be skeptical of any thing picked up from rumors, particularly if you cannot rationally explain their choice.
Why Do Investors Think For Long-term Investment?
Bear in mind that even in the best of securities/shares, there can be short-term aberrations. It is important to have the power to hold your investments for longer periods. Studies have shown that investments properly timed and based on strong fundamentals have been very profitable for investors in the longer term.
What is 'Book closure' / 'Record Date'?
While a company a dividend, right/ bonus shares or intends to hold any AGM/ EGM; it declares a book legislature closer 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 shares, if any.
Market Related Information
What is the trade time of DSE?
Generally Trading Time is from 11:00 am to 03:00 pm.
Working Days: Sunday to Thursday
What are the measures of market performance?
There are four indicators of market performance:
• Market Capitalization
• Value Turnover
• Traded Volume
• Index
What Investment Products are Available?
The following types of securities are available on the stock market for investment:
• Ordinary shares of listed companies
• Mutual funds
• Debenture
• Bond
What is 'Share' ?
Each share represents a small stake in the total paid up capital of a company. In fact a public limited company is one that is formed to accumulate capital from a large pool of investors. Therefore total capital of such companies is divided into smaller equal denomination units represented by a share/ capital. One may buy large or small lots to match the amount of money that one wants to invest.
A company's share price can rise or fall as a result of its own performance or market conditions. Once the shares are bought and transferred to new investors name, the name will be entered in the company's share register, the new investors will then be entitled to receive all the benefits of share ownership including the rights to receive dividends, to vote at the company's general meetings and to receive the company's reports.
What is 'Market Capitalization' ?
Market Capitalization is the total market value, at the current stock exchange list price of the total number of equity shares issued by a company.
Market Capitalization = ∑ (No. of Issued Share * Close Price)
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 Filter' ?
Circuit Filter is the maximum permissible deviation of the price (specified as percentage), of an aggressor order from the last trade price.
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 Oddlot book. All order quantities can only be an integral multiple of the Market lot.
What is 'Odd Lot' ?
Stock market shares are generally bought and sold in market lots, which are easy to trade. Any number of shares less than the market lot makes an odd lot. Odd lots typically arise from bonus or rights issues.
What is 'Touchline Price' ?
The Touchline Price for an instrument is the best offer (sell) and best bid (buy) price amongst all orders in the order book. The touchline buy price is the highest price amongst all buy orders and the touchline sell price is the lowest price amongst all sell orders.
How orders are queued for trading?
Orders are queued and traded according to first on price and then time priorities. Best-priced orders traded first. If there is more than one order at the same price, the order is placed by time priority.
What are the groups of instruments in DSE?
The groups of instruments in DSE are: A, B, G, N and Z .
at are the Settlement Rules for different categories instruments?
Settlement (Pay Cycle) Rules for different categories instruments are:
Rule Group Howla Type Market Type Pay In Pay Out
Rule 1 - DVP - 5 6
Rule 2 - - Spot 0 1
Rule 3 A - - 1 3
Rule 4 B - - 1 3
Rule 5 G - - 1 3
Rule 6 N - - 1 3
Rule 7 Z - - 3 7
CT Related Information
What does TESA mean?
TESA (The Electronic Security Architecture) is The DSE trading system and is used to trade Ordinary shares of listed companies, Mutual funds, Bonds and Debentures.
What are MSA & TWS?
MSA ( Member Server Application ) : Brokers can use MSA to monitor and control their trader(s). There can be only one MSA per broker house. All the traders (TWS) have to connect to the trading system through MSA.
TWS (Trader Workstation) : Traders can trade on the stock exchange using either TESA supplied workstation software or through their own custom developed broker system. TESA supplied workstation is referred to as TESA trading workstation in this document. TESA provides traders with trading services such as entering orders and viewing orders.
What is the time interval of the data update at DSE website?
Using the real time data DSE upgraded its official website (www.dsebd.org) where trade data updates in every 1 to 3 minutes interval.
How can I observe some specific instrument's current traded information from the DSE website in a page?
You can make a Portfolio on the DSE official website (www.dsebd.org) to observe your desired specific instrument's current traded information all at once. (If you are a new user you have to signup first.). Right now, the registration is free.
Does DSE offer any SMS facility?
Yes, DSE is offering SMS services. You can get Latest Trade Information of any DSE Listed Company you desire by sending SMS.
Write DSE XXXXX & send it to 4636
Example: Write DSE DESCO & send it to 4636
You will get the value of the share for 3 times in a working day.
• To Start Subscription Service:
write DSE SUB & send it to 4636
• To Add Company at Subscription Service:
write DSE sadd XXXXX & send it to 4636
• To Delete Company from Subscription Service:
write DSE sdel XXXXX & send it to 4636
• To View Your Companies at Name at Subscription Service:
write DSE mystock XXXXX & send it to 4636
• To Stop Subscription Service:
write DSE UNSUB & send it to 4636
• To Start Alert Service for DSE:
write DSE alert XXXXX, PPP & send it to 4636
Write the Instrument name at the space of XXXXX & the desired share price at the space of PPP.
To View Information of DSE :
• To View DSE All Share Price Index
write DSE INDEX & send it to 4636
• To View DSE 20 Index
write DSE 20 & send it to 4636
• To View DSE Selected Index
write DSE GEN & send it to 4636
• To View Top 5 (Gainer) Companies
write DSE top & send it to 4636
• To View Bottom 5 (Loser) Companies
write DSE bottom & send it to 4636
Does DSE offer any GPRS facility?
Yes, DSE is offering GPRS services. For GPRS users to make use of the BULL software you have to register first. Then you can access the software by mobile through GPRS to get a variety of Latest Trade Information of DSE.
The application requires login before using it. Only GrameenPhone Users can register and login right now. If the user is not registered then he/she can request for a PIN from the application. A PIN will be sent to the user through SMS. The user has to send the PIN through SMS to the BULL registration server to verify authenticity. SMS format is,
BULL PINCODE has to be sent to a number, e.g. 4636
After getting the correct PIN from the user a password will be sent through SMS and the user can login to BULL Application using the mobile number as username and password (sent through SMS).
Is Dhaka Stock Exchange Ltd. offering Internet / Web based trading?
No, just now Dhaka Stock Exchange Ltd. is not offering Internet / Web based trading.
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Originally Posted by Abdul Quddus Chowdhury: