2011

FINANCIAL INSTITUTIONS AND MARKETS

Prepared By

Hasan, K.M. Makid ID: 09-13435-1 Sec: A

IFIC Bank Profile

International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking company incorporated in the Peoples Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the Peoples Republic of Bangladesh now holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the field of trade and commerce own 8.62% of the share capital and the rest is held by the general public.

IFIC Bank is providing a wide range of financial services, offering specialist advice and products to corporate clients to meet diverse demands of changing market scenario. We have expertise to customize products & services to meet specific requirements of our clients. We are committed to serve our customer with extensive branch net work all over the country to expedite our client's business growth. We facilitate your business to face the challenges and realize opportunities, now and in the future. Banks main focus is relationship based banking and understanding corporate & institutional business environments in Bangladesh.

Bank's Mission
IFIC banks Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for and are committed to the welfare and economic prosperity of the people and the community, for we derive from them our inspiration and drive for onward progress to prosperity.

Bank's Vision
IFIC bank want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary. In an intensely competitive and complex financial and business environment, also particularly focus on growth and profitability of all concerned.

Board of Director
1. Mr. Salman F Rahman 2. Mr. Mohammad Lutfar Rahman 3. Mr. Abu Tahir Mohammad Golam Maruf 4. Mr. Aminur Rahman 5. Mr. Syed Anisul Huq 6. Mr. Mohammed Nayem Syed 7. Mr. Anwaruzzaman Chowdhury 8. Mr. Monirul Islam 9. Mr. Tanim Noman Sattar 10. Mr. Mahmudul Huq Bhuiyan 11. Mr. Arastoo Khan 12. Mr. Syed Monjurul Islam 13. Mr. Mohammad Ali Khan, ndc. 14. Mr. Mohammad Abdullah Honourable Chairman Honourable Director Honourable Director Honourable Director Honourable Director Honourable Director Honourable Director Honourable Director Honourable Independent Director Honourable Director Honourable Director Honourable Director Honourable Director Managing Director

Closing prices of Year: 2010-11

Year
2010 2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2011 July August September October November December January February March April May June

Month
1100 1090 1070 1200 1410 1620 1405 1215 790 895 798 680

Closing Price

This Line graph shows that IFIC Banks closing share price of last one year. X-axis shows the months of 2010-11 and Y-axis indicates the closing Price of share.

In July 2010 per share price was 1100 taka and it was remaining almost same until September 2010 with little fluctuation after that the price of the share increased in between October 2010 to December 2010. In December, The share price was 1620 taka (pick position), then it fall in between January 2011 to March 2011 and it again dropped dramatically with little bit fluctuation until end of June 2011.The lowest price of the share is in June 2011.

To sum up, the line graph shows the Price of share increased continuously in 2010 then it dropped dramatically in 2011.

Reasons For Stock price fluctuate in general

1. Supply and Demand:
Supply and demand can take the short-term balance out of the stock market and present opportunities for investors who have the patience to see that balance restored. Investors who can anticipate abnormal supply or demand variations can also capitalize. While popular stocks trade millions of shares every month, the majority of stocks that we can choose to invest in do not have such liquidity. As a result, stocks that trade smaller volumes of shares are subject to fluctuations because of supply and demand. If a large shareholder wants to sell a large number of shares into a market with weak liquidity, that shareholder can dramatically move share price. The other side is also true when a large buy order comes into a market that lacks sellers.

2. Inflation:
The effect of inflation is the prices of everything going up. In that, time the price of the stock also going up. For this reason, inflation is one of the major cause stock prices to fluctuate.

3. Investors Assumption:
Investors must make judicious decisions when it comes to investing their hard-earned money in the markets. Some stocks may become highly overpriced. An overpriced stock in a heated market is sure to burst when the bull-run ends.

4. Psychological Factors
Humans are behind the trading activity of the stock market. That means human characteristics are also factors in how share prices move. Understanding human psychology is extremely valuable when evaluating investment opportunities because human psychology creates and accentuates many of the opportunities that investors can capitalize on.

5. Uncertainty
What a company will make in the future is far from certain. For this reason, we should expect stocks to bounce around a little bit because of the nervousness of the market about the future of the company. The uncertain future of the company will bring some volatility in share prices even during a period in which there is no new information.

6. Economic Recession:
Stock prices go down during an Economic recession situation. Investors may begin selling off their stocks in favor of investment instruments not as largely affected by market volatility such as Treasury Bonds. This sell off causes stock prices to drop even further, causing an overall drop in the stock market. Lower stock prices due to a recession causes business profits to fall and often forces businesses to slow production and lay off employees, further deepening the recession.

7. Sudden increase of Money:

Some times after the war or Natural & Manmade Disasters government prints huge money. At that time, investors are willing to buy more stock. For this reason, demand will be increase and price will be increase.

Conclusion
From the upper reasons, we got the clear idea about why the fluctuation of stock price happens in stock market. Recently DSE (Dhaka Stock Exchange) crash just because of mismanagement and another cause can be political power, some political person create this crash intentionally to get their own profit rather then the investors. So government should stop that types of Unethical work otherwise investors minimize their investment.