Financial experts have called on the investors to make prudent investment decisions for the sake of their investments and the capital market as well.
"No one can protect investors unless they are able to protect themselves. That's why their investment decisions must be prudent," Prof Abu Ahmed told a seminar in the city on Friday.
The seminar on 'Fundamental Aspects of the Capital Market and Investment Strategy' was held on the occasion of the three-day Bangladesh Capital Market Expo-2019 that began at the Shilpakala Academy on Thursday.
Prof Ahmed said the provision of selling placement shares, issued before floating the Initial public offering (IPO), is not acceptable, as the companies see huge public subscriptions in the secondary market.
"The market faces the selling pressure when the placement share holders start offloading their shares," he noted.
He also suggested that the finance ministry should take an initiative for the listing of the multinational companies (MNCs) which are yet to go public.
"Some MNCs such as Unilever are listed with other stock exchanges, including the Bombay Stock Exchange. Then why they have not their share listed in Bangladesh?" he posed a question.
Prof Ahmed also said the corporate tax should be reduced further to encourage the companies with good fundamentals to go public.
Md Mahbubul Alam, an executive director of the securities regulator, said investors' own assessment is very important while working out their investment strategy.
"Investors should avoid any kind of loans in case of making investments in the capital market. They also should not inject their entire funds into the stocks to avoid risks," he said.
Mr Alam also said institutional investors sometimes behave like the retailers. "Such kind of behaviour is not market-friendly."
Sherief MA Rahman, the chief executive officer at BRAC EPL Stock Brokerage, said investors must choose the appropriate time of purchasing securities to reduce investment risks.
Mohammad Rezaul Karim, a director of the securities regulator, presented his keynote speech at the seminar.
In his presentation, Mr Rezaul said knowledge, right decision, selection of appropriate securities, among others, are very important to reduce investment risks.
Ashiqur Rahman, managing director at MIDWAY Securities, also spoke at the seminar.
arthosuchak.com, an online news portal, organised the Bangladesh Capital Market Expo-2019.
