ABSTRACT
This Chapter seeks to examine the trends in stock prices with a view to discovering their behavioral pattern and also locate the main factors, both economic and non-economic, behind the stock price behavior in Bangladesh. The stock markets to an economy, what a clinical thermometer is to a human body. Stock prices, in general, are determined by the interaction of demand and supply. Stock differs from other consumer goods to the extent that stock itself can’t directly be consumed like other consumer goods rather the income generated by it can be used for consumption purposes. The primary function of a stock market is to allocate resources to the most profitable investment opportunities. Trading is conducted by the broker-members of the stock exchanges in Bangladesh. In the history of Bangladesh stock markets the most significant event occurred in 1996 when the market behaved irrationally.
