What is share market?
Share market
is the trading place or a platform where trades are either bought or sold.
Share market can also be called as the stock market where stock or bond are
traded between general public, business tycoon or trader. Share market though
may sound to be deal done only by profound business companies and by a person
who are financial well build up but it can be done even in less amount as long
as you have got the idea of ordinary shares, IPO, mutual fund, debenture, etc.
Types of share markets
Primary Market
Secondary Market
Primary
market is a market where new stocks or bonds are release and is bought by
public accordingly how the company has categorized the price and limitation. It
can also be said as the first phase of trading shares. Any government or
private company release new stock share in any fixed price or by adding premium
for people to buy. After buying share it's a personal choice to hold or sold
the share that one has owned.
Secondary market
is a market where buying and selling of share is done. Till now we understood
about primary market where we buy stock or bond that any company releases like
secondary market is advance form where one can sell shares that they own through
brokers. Secondary market is riskier than primary market as one can gain huge money
if the stock price rises and has to lost if the stock prices are lower. Before selling
and buying share we must have the idea about the perfect time to buy or sell
the shares.
Share market in Nepal
While talking
about share market in Nepal it is done Nepal Stock Exchange (NEPSE) and it is
the only stock exchange market in Nepal. Nepal Stock Exchange was established
in 1994, January 13. NEPSE is own various parties in which Nepal Government own
58.66% of its ownership and other is own by Nepal Rastra Bank (14.60%), Employees
provident fund (10%) and rest is own by shareholder (16.74%). As the data of November,
2022, 190 companies are listed in stock exchange whereas 97 registered brokers
are involving in exchange as per October, 2022. https://en.wikipedia.org/wiki/Nepal_Stock_Exchange)
In Nepal, IPO
(Initial Public Offering), Mutual Fund and Debenture, SIP, etc are the shares
which are release for the public by government or private company which can be
brought by anyone as per their Finance limitation. IPO can be bought with 100rs
per unit and min 10 unit must be purchase on the other hand mutual fund can be
brought with 10rs per unit, one has to buy at least 100 unit. Likewise, debenture
is 1000rs per unit and must be brought 25 unit so bank account holder must have
at least 25 thousand in their bank account. IPO and mutual fund are of less
amount but it depends upon luck as well because almost double percent of people
buy such share that are beyond the limited number and only certain percent
people wins which means those who doesn’t win the shares their hold funds are
release back to their account. So, the amount we invest to buy the share either
gives back us more or our invested money is securely return back to our account.
What we need
to buy IPO, mutual fund?
1. We need a bank account
We need to open Demat account
We must have CRN number
We must have at least 1000rs to buy
shares beside bank charges.
Hence, share
market is such a platform which is meant for the welfare of the business as
well as general public. It is a market which can give us more benefits though
we own less amount of money. The habit of buying share also help us to save
money and monetize our bank in regular way. Government of private companies
releases the IPO, mutual fund for general public and many people are winning it.
As it can be brought once you have 1000rs in bank account and it is worth to
buy it.
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