Because of frequent price instability, stock market in Bangladesh represents itself an\nimperfect one over times. The retail investors claim that these frequent price fluctuation in the\nmarket is due to price manipulation, presence of syndicate and improper control by regulatory\nbodies and so on. But this study has found that a great portion of retail investors are very\nmicro investors and reluctant in using relevant information in stock trading and furthermore\nridiculously influenced by others investors and brokerage house personnel. Most of them\nconsider only trend of past prices and market index. Majority of our respondents never\nconsidered net asset per share although it might give an idea about market value per share. So,\nthe whole responsibilities of this price volatility and market imperfection can�t be shifted to\nthird parties solely; retail investor themselves are responsible to some extent due to their\nirrational behavior and high expectation from stock trading. Stock market perfection in\nBangladesh is quite impossible without enhancing awareness among retail investors and\nensuring their rational behavior in stock trading.
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