Role of Institutional Investors in the Development of Bangladesh Stock Market

Abstract

Institutional investors are the major investor group of the stock market in every country. The impact of institutional quality on stock market development because it widely believed that the strengthening of property rights could broaden appeal and confidence in stock market investment. In this paper I tried to show the performance of the institutional investor of Bangladesh, where they are performing as the mainstream investor in the stock market. The developments of these institutions are also correlated with the development of the stock market of Bangladesh. The total performance of the stock market in terms of market capitalization, turnover, liquidity, total value traded/GOP, number of listed company, volatility and concentration of the market is also shown here. At the end some of the findings are discussed regarding the problems and prospect with some recommended suggestions in order to get a stable and smooth capital market. Contributions of the institutional investors are simultaneously related to each other as I tried to show that the development of institution can help the stock market to develop as well.