Finance 1

HIGHER SECONDARY CERTIFICATE 2028 Business Studies Group • English Version • Dhaka Education Board Finance, Banking and Insurance First Paper Subject Code 292 Complete Chapter Notes Full syllabus • Labelled diagrams • Board style questions Prepared by Md Ahbab Hamid Khan ahbab.dev October 11, 2026

HSC 2028 • Finance, Banking and Insurance First Paper • Code 292 1 Contents How this paper is examined 7 1 Introduction to Finance 11 1.1 What this chapter is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.2 Key terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.3 What finance really means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.4 How the idea of finance grew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.5 The nature of finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.6 The types of finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.7 Public finance: aims and sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.8 Business finance and the form of the business . . . . . . . . . . . . . . . . . . . . . . . 15 1.9 The functions of finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1.10 The three financial decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1.11 Finance and the macro economy . . . . . . . . .

HSC 2028 • Finance, Banking and Insurance First Paper • Code 292 2 2.12 The laws behind the market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.13 The stock exchanges and the depository . . . . . . . . . . . . . . . . . . . . . . . . . . 40 2.14 The papers a company needs before it can sell securities . . . . . . . . . . . . . . . . . 41 2.15 Ways of raising capital from the market . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2.16 The helpers of the market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2.17 Investor protection and insider trading . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2.18 Comparison tables you can copy in the exam . . . . . . . . . . . . . . . . . . . . . . . 43 2.19 Real examples you can reuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 2.20 Board exam traps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 2.21 Cheat sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 2.22 Practice set . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 2.23 Sources . . . .