Best about Nepali Share Market

Share Market Tips

By Sarika

24 April 2022 15:21 PM | UPDATED 2 years ago

24 April 2022 15:21 PM

As we know,  the word Share Market is familiar to all. But some of them are still unknown the exact meaning of the share market. Let’s make clear the meaning of the share market.  So in simple share market is a place where shares of publicly listed companies are issued, buy and sell. The company first issue the share as IPO(Initial Public Offering)  in the primary market. After that buyer or seller can buy or sell that share in the secondary market with help of the broker. 

Share Market is the place where investors invest their money to get some returns from the investment. Investors may get returns in the short-term or the long-term process. Where short-term investment means the process of getting returns from the investment in a certain period. It means they buy the shares intending to get handsome returns at a certain time. They buy the shares and sell them after a few days if the market is high. In this investment process, investors may get profit if the market becomes high. But this kind of investment is riskier. An investor may get a loss if the market goes downward. 

Whereas long-term investment is the process of buying shares from the stock market. To hold the share for long period. And selling it at a higher rate in the stock market and getting heavy returns from that is the main aim of long-term investors. This kind of investment is less risker than a short-term investment. An investor only sells the stocks if the market rate is high.  

There are certain requirements to enter into the share market of Nepal

Share Market

Table Of Content

  1. About Share Market
  2. According to the NEPSE
  3. The thing to be considered while investing
  4. Primary Market
  5. Secondary Market
  6. Current situation of the share market
  7. Conclusion

1. According to the NEPSE(Nepal Exchange Stock)

Nepal Stock Exchange(NEPSE) is the only stock exchange in Nepal. It is located in the Singha Durbar Plaza, Kathmandu. The main objective of NEPSE is to hold free marketability and liquidity to the government and corporate securities facilitating translation on its trading floor through member market intermediaries, such as brokers, market makers, etc. NEPSE opened its trading floor on13th January 1994. The current paid-up capital is 506.93 million. 

Share Market

2. The thing to be considered while investing

This part is the most important for the investor while investing in the share market. An investor should analyze the market condition of the company before investing the money. Not everyone can earn profits from the investment. But some can earn from the share market if he/she analyzes the market perfectly. If you select the best company to invest in. You must have to  analyze the company’s

  • EPS(Earning Per Share)
  • P/E Ratio
  • Dividend History
  • Financial Report
  • Financial summary of the company 

These are the major things you have to consider while investing in the stock market in Nepal.

Share Market

3. Primary Market

 Primary Market is the place where securities of publicly listed companies like Nabil Bank Limited, Sanima Bank, and other companies are created and issued for the public to become a part of their companies. It is the primary stage for the shareholder to enter the share market. Where you can only buy the shares of the companies. Initial Public Offering(IPO) is the perfect example of the Primary Market. 

Steps to enter into the Primary Market

  • Open your bank account
  • Open Demat account
  • Fill out the form of Mero share to connect share online
Share Market

4. Secondary Market

The secondary market is the place where buyers and sellers meet each other to buy and sell stocks at the present market rate.  The market rate of the share is determined by the demand and supply of the share. For example, if the demand for one company is higher then the rate of the stock of that company is also high in the market. And if the supply of one company is high then the rate of the stock will decrease. We can also analyze the market through the Bull and Bear market conditions. The bull market represents high and upward market conditions. Whereas bear market means the loss market and downward sloping market condition.  There are some steps to enter into the secondary market 

Steps to enter into Secondary Market

  • Choose one broker  to open a broker account
  • Open TMS account
  • Submit the documents(citizenship, photo)  as per the broker

5. Current situation of the share market of Nepal

The craze of investors toward the share market is increasing. Due to the increasing number of investors in the share market, the current situation of the share market of Nepal is at the top level.  Some investors have earned lots of returns from the share market. So people are investing their time and money in the stock market. And the reason is to earn more returns from the investment. 

Nowadays many people are involved in the stock market to invest and to get returns. However, some of them earn good returns from their investment whereas some of them get losses from there. So you have to make a proper plan and research for the investment in the share market. While investing in the share market you have to choose the right company. And you have to analyze the market condition. Investors should study the market condition before entering the share market.

6. Conclusion 

At last, we can conclude that, if you are thinking to enter the share market of Nepal. This information may be helpful for you to choose the best investment company.

Thank You for reading this blog.

Read More

  1. Top Five Best Stock Market Apps in Nepal
  2. Top 5 Best Cars In Nepal 2022
  3. Best 10 Diets for a Healthy Heart
  4. 10 best ideas to save money for solo travelers