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The document provides an overview of capital markets, securities like stocks, bonds and mutual funds. It discusses various analysis techniques like fundamental analysis and technical analysis. It introduces the random walk theory and efficient market hypothesis. A section describes Charles Dow and the Dow theory, which analyzes market trends and phases through the behavior of indices.

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anowar hossain
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60 views24 pages

Slide 01

The document provides an overview of capital markets, securities like stocks, bonds and mutual funds. It discusses various analysis techniques like fundamental analysis and technical analysis. It introduces the random walk theory and efficient market hypothesis. A section describes Charles Dow and the Dow theory, which analyzes market trends and phases through the behavior of indices.

Uploaded by

anowar hossain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Stock Bangladesh

L i m i t e d

Center For Financial Analysis

Class 1

Introduction
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Instructor

INSTRUCTOR NAME
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Contents

• Capital Market
• Securities
• Analysis
• Random Walk Theory
• Efficient Market Hypothesis
• Fundamental Analysis
• Technical Analysis
• Dow Theory
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Capital Market

• A market in which individuals and institutions


trade financial securities.
• Organizations/institutions in the public and
private sectors also often sell securities on the
capital markets in order to raise funds. Thus, this
type of market is composed of both the primary
and secondary markets. (Definition From
Investopedia)
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Securities

• Stock
• Bond
• Mutual Fund
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Stock
• Interested Personal
• Limited Company Formation
• Paid-up Capital
• Operation
• Profit/Loss
• Revaluation
• Expectation
• Price
• Market
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Bond

• Debt Securities
• Interest Earning
• Maturity Period
• Maturity Value
• Price
• Convertibility
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Mutual Fund

• Diversified
• Professionally Managed
• Open End
• Close End
• Net Asset Value
• Earning
• Price
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Price

• Demand
• Supply
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Trade

• Sell
• Buy
• Settlement
• Clearing
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Price & Volume

• Increase
• Decrease
• No Change
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Analysis

• Fundamental Analysis
• Technical Analysis
• Sentiment Analysis
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Random Walk Theory

• Developed by Burton G. Malkiel, an economist,


professor at Princeton University and writer of
A Random Walk Down Wall Street.
• Coin Flip Test
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Efficient Market Hypothesis


• Developed by Professor Eugene Fama at the
University of Chicago Booth, School of Business
as an academic concept of study through his
published Ph.D. thesis in the early 1960s
• Informational Efficiency
• Weak, Semi Strong, Strong
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Fundamental Analysis

• Company
• Asset
• Earning
• Profitability
• Risk
• Growth
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Technical Analysis

• Price Action
• Human Behavior
• Tend
• Expectation
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Charles Henry Dow


Charles Henry Dow ( November 6, 1851 – December 4, 1902) was an
American journalist who co-founded Dow Jones & Company with
Edward Jones and Charles Bergstresser.
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory
• Charles Henry Dow ( November 6, 1851 – December 4,
1902) was an American journalist who co-founded
Dow Jones & Company with Edward Jones and
Charles Bergstresser.

• Dow also founded The Wall Street Journal, which has


become one of the most respected financial
publications in the world. He also invented the Dow
Jones Industrial Average as part of his research into
market movements. He developed a series of
principles for understanding and analyzing market
behavior which later became known as Dow theory,
the groundwork for technical analysis.
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory

• Market discounts every thing


(information)
• The market has three movements
– Main movement (Primary Trend)
– Medium swing (Secondary Trend)
– Short swing (Minor Trend)
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory
• Market movement or trends have three phases

– For bull market or positive trend


• Accumulation phase
• Public participation phase
• Excess phase

– For bear market or losing trend


• Distribution phase
• Public participation phase
• Excess or panic phase
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory

• Market averages must confirm each other

• Trends are confirmed by volume

• Trends exist until definitive signals prove that


they have ended (Clear reversal)
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory
Stock Bangladesh
L i m i t e d

Center For Financial Analysis

Dow Theory

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