1. Organization and Functioning of Securities Markets Shahadat Hosan Faculty, MBA Program Stamford University, Bangladesh shad@asia.com shad@asia.com

2. What is a Market?  A market the means through which buyers and sellers are brought together to aid in the transfer of goods and/or services.  A market net not have a physical condition, but it is only necessary that the buyers and sellers can communicate regarding the relevant aspects of the transaction.

3. What is a Market?  In most financial market, those who establish and administer the market do not own the assets but simply provide a physical location or an electronic system that allows potential buyers and sellers to interact.  They help the market function by providing information and facilities to aid in the transfer of ownership.

4. Characteristics of a Good Market  Timely and accurate information is available on the price and volume of past transaction and the prevailing bid and ask prices.  It is liquid, meaning an asset can be bought or sold quickly at a price close to the prices for previous transactions.

5. Characteristics of a Good Market  Transaction entails low costs, including the cost of reaching the market, the actual brokerage costs, and the cost of transferring the asset.  Prices rapidly adjust to new information; thus, the prevailing price is fair because it reflects all available information regarding the asset.

6. Organization of the Securities Markets  Primary Markets- where the new securities are sold to acquire new capital  Secondary Markets- where outstanding securities are traded.

7. Secondary Financial Market  Secondary Bond Market:  Secondary Market for Govt. Bond- Banks and investment firms  Secondary Corporate Bond Market - Security exchange and over-the counter market ( OTC).  Financial Futures- contracts allowing the holder to buy or sell a specified amount of a given bond issued at a stipulated price. Chicago Board of Trade ( CBOT) and Chicago Mercantile Exchange ( CME).

8. Secondary Financial Market  Secondary Equity Market:  National Stock Exchange – NYSE, Tokyo Stock Exchange ( TSE), London Stock Exchange ( LSE) etc.  Regional Stock Exchange- Chittagong Stock Exchange, in Bangladesh, Nagoya Stock Exchange in Japan.  Over- the Counter Market- which involves trading in stocks not listed on an organized exchange. NASDAQ is an automated, electronic quotation system for the vast OTC Market.

9. Thank You Please visit www.shadbd.weebly.com for softcopy of the lecture and go through the text book Ch-4 for details.www.shadbd.weebly.com