Informative Impacts of Dynamic Forces in the Share Prices of Stock Market : A Perception Study

Information about the dynamic forces of a stock market, provides a framework for the investors to evaluate themselves related to the trading of stock market instruments. Unfortunately, most of the investors in our market do not know which dynamic force(s) actually influence stock market trading. As such, the main objective of this paper is to ascertain the major dynamic forces along with their influencing role in share price movement. Primary data are used in this research. A close-ended questionnaire is developed considering of sixteen dynamic forces measured through a five point Likert Scale. Responses of sixty stock traders from randomly marked eighteen brokerage houses in Dhaka City are considered. Descriptive analysis is used to identify the influential dynamic forces. Based on the survey it is found that bonus dividend, earnigs per share, price earnings ratio, net asset value per share, annual general meeting date, goodwill and company's news have significant influential role in share price movement among the sixteen identified dynamic forces whereas investors' sentiment, cash dividend and rumours have least significant influence. The study is mainly important to the investors of the stock market. It will be helpful in their decision making for trading of stock market instruments