Effects of Money Supply on Investment Decision, Analysis of Bangladesh Economy

Abstract

Investment is the part of optimal operating financing decision, and this verdict become more crucial when it is related to the uncertain capital or stock market and risky assets. Currently the money supply is very high in Bangladesh economy. More funds are available for the investors, but question is where to invest. Based on more risk more return strategy, Bangladeshi investors are investing more in Stock Market. In this study, researcher has tried to find the effect of this increased money supply on stock market investment mainly in two indexes DSEX and DSE 30. For this study, research has used the data of Bank of Bangladesh for money supply, and data of Dhaka Stock Exchange for DSEX and DSE 30 and run a regression to find the relationship between these variables.