SHARE MARKET BASIC Money 101-Part 1 Biswash Sapkota Department of Pharmacy Madan Bhandari Academy of Health Sciences Hetauda , Nepal
What is Share ? What is Share market ? Why is share market necessary in every country? Why to invest in share market? How to enter in share market ?
What is Share?
What is Share Market ?
Note: Only public companies are traded in share market NEPSE
Why is Share Market necessary ?
Stock markets have existed for centuries. The oldest stock exchange was started in Belgium back in 1531. However, they never used actual stocks but traded in promissory notes and bonds. Later, the Amsterdam Stock Exchange was established in 1602 by the Dutch East India Company and regarded as the first real stock exchange Since its inception, stock markets have served many purposes, the most important being to provide companies with a source to raise capital for investment and expansion.
Because Stock market helps companies to raise the capital Stock market helps to create the personal wealth It helps increase investment in the economy It serves as the indicator of the state of the economy
Why to invest in share market ?
Trading cost Ease in trading Amount of investment Liquidity Diversification Transparency Can be share holder of any companies Can be used as collateral To gain profit Someone's sitting in the shade today because someone planted a tree a long time ago
How to invest in share market ?
Share Market Primary Market Secondary Market IPO (initial Public Offer) FPO (follow up public offer) Right Share
Initial Public Offer (IPO) An initial public offering ( IPO ) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.
A follow-on offering (FPO) is when a public company issues more shares after their initial public offering (IPO). It happens when the company wants to raise more capital by giving out additional shares to finance projects, pay their debt, or make acquisitions. Follow up Public Offer (FPO)
Such new shares shall be offered to the persons who, at the date of the offer, are holders of the equity shares of the company in proportion, as nearly as circumstances admit, to the Capital paid-up on those shares at that date Right Share
Saving Bank Account Citizenship copy 4 passport size photos Nominee with pp and citizenship Fill the DEMAT ( dematerialised account) account form from Bank or any broker firm (2-7 days you will get your number ) It is the account to store purchased shares Fill C-ASBA ( Centralized Application Supported by Blocked Amount form and obtain CRN ( customer relationship number) Fill Mero share form Requirement to Enter Primary Market
http://www.nepalstock.com/ https://merolagani.com/ https://www.nepalipaisa.com/ https://nepsealpha.com/ https://bizpati.com/ Sources of Information
Broker /Trading Account Nepal Stock Exchange Trade management system (TMS) login There are currently 50 licensed stock brokers in Nepal, you can visit any one of them with your demat account details, pp size photos, citizenship and a blank cheque voucher for online trading . Or you can do it online by visiting any broker online TMS link . Requirements to Enter Secondary Market