Share Market

 

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 

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

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.