Share market basics ( stock market Nepal)

What is share market?

Share Market is a platform where securities are exchange from one to another. here security means, stock  or let's say ownership of related companies. In share market, the ownership is trade on the basics of quantity. The more quantity you grab, the more security you have.  Market have its fixed time to open and close, between that time the buying and selling process continues by investors. This process of selling and buying of stock is share market or Stock market.

Stock market is not only supposed to exchange the shares, having partial ownership or having the source of income through trading of different stocks and market or lets say for business raise capital, in this age, it has been the signs of whole economic wealth of respective company as well as it shows the economic wealth of whole country. 

Factors that affects the Stock market:

  • Political Stability and economy
  • Foreign institution investor
  • Domestic institution investor
  • Supply and demand on stock market
  • Global events
  • Natural disasters and so on.

in context of Nepal, the  only one platform of exchanging the stock is NEPSE (Nepal Stock Exchange). It was established on january13,1994. Publicly held company which are listed on NEPSE are only can be trade (bought and sold). Up to january 2024, 249 companies are listed on NEPSE. People or citizens enter into for trading and investing.

Basically Stock market can be classified into two types:

1. primary Market:

 primary market is the initial phase of entering the company into share market. here, the company launch  and sells  its ownership to the public named  as IPO (Initial public Offering) for the first time to raise the money or capital from the general public.

2. Secondary Market:

The shares which are sold by the company in Primary market, then they are traded on secondary market. once the company's shares started to trade on the secondary market, the price of shares fluctuates. This event happens due to the activities of buyers and sellers who are trading on the market. This is the main funda of this market. Stock market is running away due to this activities of buying and selling/demand and supply occurs in the market.

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