Category: Finance

  • What Does a 500% Cash Dividend Mean in Bangladesh?

    What Does a 500% Cash Dividend Mean in Bangladesh?

    In Bangladesh, cash dividends are calculated based on a share’s face value rather than its market price.

    The face value of a typical listed share in Bangladesh is Tk 10. Therefore, if a company declares a 500% cash dividend, shareholders receive 500% of the share’s face value.

    However, a 500% cash dividend does not mean investors earn a 500% return on their investment. To understand the actual return, investors need to consider the price they paid for the shares.

    Suppose you own 10 shares of Company X, and company X declares 500% cash dividend. This means you will receive a gross dividend of TK 50 per share and since you own 10 shares of company X your total gross dividend is TK 500. ( This is before taxes)

    How Is Cash Dividend Taxed in Bangladesh?

    Under Section 117 of the Income Tax Act, 2023, as amended, dividend payments to individual shareholders covered by the provision are generally subject to withholding tax at the following rates:

    ShareholderDividend withholding tax
    Individual with TIN10%
    Individual without TIN15%

    It simply means Companies deduct tax 10% if individual provides a valid 12 digit Tax Identification Number (TIN) and 15% if fails to provide a valid 12 digit TIN.

    For example, if you have a TIN and the applicable withholding rate is 10%, TK 50 would be deducted from your TK 500 gross dividend. You would receive TK 450.

    A real example: Marico Bangladesh

    On 30 July 2026, Marico Bangladesh announced a 500% interim cash dividend, equivalent to Tk 50 per share, for the first quarter of FY 2026–27. The record date was 27 August 2026. Since I own few shares of Marico Bangladesh, I received the dividend in my bank account after the company deducted 15% from it as tax.

    You can read more about my experience in My First Dividend: Tk 50 per Share from Marico Bangladesh.

    Final Thoughts

    A 500% cash dividend may sound like a huge return, but it simply means that a company is distributing five times the face value of its shares as a cash dividend. It does not mean investors are earning a 500% return on their investment.

    Receiving my dividend from Marico Bangladesh helped me understand how cash dividends work in practice, including the tax deducted before the money reaches my bank account.

    For investors, understanding the difference between dividend percentages and actual dividend yield is important. A high dividend percentage alone doesn’t necessarily make a company a good investment.

    Before investing in any company, always consider its financial performance, dividend history, and current share price.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial, investment, or tax advice. Dividend payments, withholding tax rates, and applicable regulations may vary depending on individual circumstances and changes in legislation. Readers should verify the latest information from official sources and consult a qualified professional before making financial or tax-related decisions.

  • Binary options trading is not real trading — it’s structured gambling with a financial skin

    Binary options trading is not real trading — it’s structured gambling with a financial skin

    Binary trading is not real trading, it’s similar to gambling. You only win fixed amount or lose 100% of your balance.

    In real trading ( forex, crypto, gold, stocks), you buy or sell an actual asset or CFD that tracks it. When price moves, you can hold, cut losses, take profit.

    But in binary options you are simply placing a bet, will the price be higher or lower than this level at exactly this time.

    There is no position to manage. The outcome is only “win fixed amount” or “loss 100% of the stake”. That is pure binary bet.

    Binary option brokers generally offer 70-90% payout. That means if you risk 100$ and win you get 70-90$ and if you lose you lose the full 100$ amount. Even if you are right 55% of the time the math favours the house over a large number of trades. This is the same structure as roulette or sports betting with a fixed house edge.

    Real trading has risk management, position sizing, and the possibility of being right over time. Binary options remove all of that and leave only a short-term, negative-expectancy bet. Calling it ‘trading’ is marketing. The correct word is gambling.

  • What Is Bitcoin? Learn in Simple steps

    What Is Bitcoin? Learn in Simple steps

    Have you ever wondered what Bitcoin is or what makes it the most popular cryptocurrency in the world? Bitcoin is the first decentralised cryptocurrency.

    Bitcoin is a digital currency powered by a peer-to-peer (P2P) network, used primarily for internet transactions.

    ‎If you are here to learn about Bitcoin, you are in the right place. After Reading this blog post, you will have complete knowledge about Bitcoin, how it works, and how to use it.

    ‎History of Bitcoin

    ‎It was created back in 2009 by an individual or a group of individuals using the name Satoshi Nakamoto. Even today in 2025 No one knows who Satoshi Nakamoto is

    How Does Bitcoin Work?

    Bitcoin works through blockchain technology, a decentralised public ledger where all transactions are recorded. Through wallets, one user sends bitcoin to others and the transactions  are recorded in the public ledger. Miners validate transactions by solving complex puzzles (proof of work) and adding them to the Blockchain, ensuring security and transparency. The cryptography behind Bitcoin is based on the SHA–256 algorithm designed by the US National Security Agency.

    Bitcoin was created to be used as a digital currency but today many people see it as an investment option.

    Bitcoin work process step by step infographic

    How can you use Bitcoin?

    If you have a crypto wallet, you can use Bitcoin in your daily life. And you can buy Bitcoin from an exchanger like Binance. Bitcoin can be used for purchasing items like normal currency. Today, many shopkeepers accept Bitcoin as payment. 

    Bitcoin operates without the need for the authority of the bank or government. So many people try to use it for many illegal activities, but for the public ledger (Blockchain Transparency), the transactions are traceable. Law enforcement agencies use advanced Blockchain analysis tools to monitor suspicious activity.

    A 2022 chainlysis report says that only 0.24% of cryptocurrency transactions were linked to illegal activities.

    Short Statistics of Bitcoin

    Today, in this world, an estimated 560 million people use cryptocurrency. And the most popular and most used cryptocurrency is Bitcoin.

    Click to Join Binance and Buy Bitcoin‎

    https://www.binance.com/activity/referral-entry/CPA?ref=CPA_00I9O1EH31

    As of June 2025, the market capitalisation of bitcoin is 2.17 trillion US dollars, and Fully Diluted Market capitalisation is 2.29 trillion US dollars, leaving behind silver and competing with Gold. 

    Recently, Bitcoin has reached its all-time high of 111,970.1681$ per Bitcoin. This milestone is hit on 22-05-2025.

    The supply of bitcoin is limited, and the demand for bitcoin is increasing, so the price is increasing. The max supply of bitcoin is only 21 million, and the current circulation supply of bitcoin is 19.88 million.‎

    Bitcoin Vs Fiat Currency

    Bitcoin vs Fiat currency infographic

    Technology Used to Create and Run Bitcoin.

    Bitcoin is created using very complex technology that can be very hard to understand. Here are a few things that are used for creating Bitcoin and completing the transactions of Bitcoin.

    Blockchain Technology

    Blockchain technology is a decentralised digital ledger that records transactions securely and transparently across multiple computers in such a way that it cannot be altered.

    Key Factors of Blockchain Technology‎·

    • Decentralization: Traditional databases are controlled by a single entity/authority blockchain is controlled by multiple nodes (computers).
    • Transparency: All transactions are visible to users, which builds trust among users.
    • Immutability: Once a transaction is recorded on the blockchain, it can not be deleted.

    Cryptographic Hashing

    Many people think that bitcoin transactions are encrypted, but they are not encrypted. In the simplest terms, encryption means converting readable data into code. Bitcoin uses a different technology which is cryptographic Hashing. Cryptographic Hashing can sound like encryption, but it is not the same thing. Cryptographic Hashing is a one-way function; it can not decrypt the hash and get back the original. But encryption is two way function, you can get your original data back by decrypting.

    Proof of Work(PoW)

    Proof of work is a consensus mechanism which is used in Bitcoin.

    ‎A consensus mechanism is a protocol used in Blockchain and distributed networks to ensure all nodes (computers) agree on the current state of the data or ledger.

    In simple miners compete to solve a cryptographic puzzle, finding a random number (nonce). The first miner to find a valid nonce broadcasts the block to the network. Other miners (nodes) verify the solution, and if valid, the block is added to the blockchain. The successful miner receives a block reward (currently 3.125 BTC as of the 2024 halving) plus transaction fees.

    But Proof of work requires immense computational power, leading to significant electricity usage. Bitcoin mining consumes an estimated 150-200 TWh annually, raising environmental concerns.

    Public and private key cryptography

    Public and Private key cryptography is the foundation of Bitcoin’s security, enabling secure transactions and ownership verification.‎

    How it Works in Bitcoin?‎1. ‎Sending Bitcoin2. ‎Receiving Bitcoin3. ‎Security‎

    Peer-to-Peer (P2P) Network 

    In general, peer-to-peer (P2P) networks are decentralised networks where each participant (or node) acts as both a client and a server, allowing for direct resource sharing without a central authority

    In Bitcoin peer-to-peer(P2P) network is a decentralised system that enables its operation without a central authority.

    Take an example, Jacob sends 0.1 BTC to Bob; her wallet broadcasts the transaction to nearby Bitcoin miners (nodes). These miners (nodes) verify it, relay it across the P2P network, and miners include it in the block, adding to the blockchain