Share Market in Nepal For Beginners | Overview, Advantages, Disadvantages

What is Share Market?

Share Market (Stock Market) means the accumulation of markets and trades in which the general activities of buying, selling, and issuing shares of public entities are performed.

If you are an investor then invest in the market for a long time and hold stock for a long time which results in you getting the management of the company from which you bought the shares.

Why is Share Market Important?

The stock market plays an important role in helping businesses grow revenue growth and growth.

Through IPOs, companies issue shares to the general public and in turn receive funds that are used for a wide range of activities.

The company is listed on the stock exchange after the IPO and this provides an opportunity for even the average investor or trader to take a position in the company.

Business visibility will grow similarly.

You can be a trader or an investor within the stock market.

Traders hold shares for a short period of time while investors hold shares for a long time.

Depending on your financial needs, you will choose an investment product.

Investors within the company will use this investment to satisfy their life goals.

It is one of the most important investment platforms in terms of investment.

What are the Advantages and Disadvantages of Share Market?

Benefits of Shared Market Investments

Chances of high returns in the short term

Company ownership in the company.

Higher costs

Your rights are well protected by SEBI

Tax benefits

Disadvantages of Shared Market Investments

Instability

Risk

Systematic accident

Unused risk

Shareholders are paid one last time.

Emotional Roller Coaster

Note:- If you wanna know about advantages and disadvantages and how to avoid risk from share market. We already published article on this blog. Click Here

How to invest in Share Market in Nepal?

a) Open a Bank Account

Initially, you need to visit the approved BFIs and open your bank account. You need a citizenship certificate for this purpose and other required documents.

b) Get a Demat Account

Investing in the Nepali stock market can be fundamental or basic, a demat account is now mandatory. Previously, stockbrokers used their shares in a tangible way as a share certificate. Demat account helps stockbrokers hold their shares electronically.

Like a bank account, stocks that you buy and sell on the stock market are deducted and credited to your demo account accordingly. You can open a data account with zero balance of shares in your account. To open a data account, you can visit approved BFIs, brokers or broker banks.

c) C-ASBA number

Block Amount-Supported Medium Application (C-ASBA) is an advanced ASBA form that allows investors to apply for basic and fair online offerings. To obtain a C-ASBA registration number, you need to visit an authorized bank where you hold your bank account and complete a C-ASBA form.

You need data account details to complete the C-ASBA form. Once you have obtained the CRN number, you can apply for the lower and right shares of the issuing companies. You do not need this number to buy or sell shares in the secondary market.

d) About Mero Share Account

To invest stocks easily and directly from home online, the Mero share is very useful for investors. To get this service, you just need to pay Rs. 50 per year. You can apply for major and fair donations easily using the Mero Share.

Similarly, you can directly transfer your shares to the merchant using the EDIS location. Just go to your bank and fill out a form to get this facility. You need to provide an email to get your login id and password. 

e) About Broker Account

If you want to buy and sell stocks in the second market, you need to choose one of the 50 stock exchanges available. When you open a trading account, it would be better if you choose a trading company that works with your nearest office.

Open a Broker account and place an order to buy or sell shares of companies listed in NEPSE. You will receive a different code in which your transaction is entered by the merchant. To see a list of sellers, Click here.

So, after following the five steps above you are ready to trade the first and second stocks in the Nepal stock market.

Frequently Asked Questions about Share Market

How I can see daily report of Share Market?

You can see the detail through Nepal Share Market official website.

Is really we can earn money from Share Market?

Yes, investment on Share market is one of the best and genuine method to earn money.

How can I enter into the Secondary Market?

If you want to enter into the Secondary Market, Firstly, you need to make bank account, then a DEMAT account and again you have to make Broker account from nearest Broker's office. Then You can enter to the Secondary market with the help of Brokers.

How can I enter into the Share Market?

Entering to Share Market is very easier, you just have to make bank account and one DEMAT account then Bank will give you the CRN number, So finally you can entered to the Share market through Mero Share app or Mero Share website.

What is Primary and Secondary Market?

Primary Market is the first step to the Share market. Here you simply apply for IPO's and that's it, nothing to do in Primary Market.

But Secondary Market is the King, Here you can buy and sell shares of companies and make profit with it.

How we can earn money from Secondary Market?

There are two methods of earning money from secondary market. They are:

a) By Trading

b) By Long term Investment:- I think this is the best method for making profits from Share Market.

Is Share Market really Hard?

No, it is not. Share market is not that difficult as you think. In starting phase it can be difficult for you but later when you understand about the market, you will find it easy. So, don't think it is vey hard.