It's a basic introduction to the share market

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SHARE MARKET BASIC
Money 101-Part 1
Biswash Sapkota
Department of Pharmacy
Madan Bhandari Academy of Health Sciences
Hetauda , Nepal

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※ 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 ?

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What is Share?

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What is Share Market ?

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Note: Only public companies are traded in share market
NEPSE

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Why is Share Market necessary?

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• 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.

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Because
1. Stock market helps companies to raise the capital
2. Stock market helps to create the personal wealth
3. It helps increase investment in the economy
4. It serves as the indicator of the state of the economy

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Why to invest in share market?

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1. Trading cost
2. Ease in trading
3. Amount of investment
4. Liquidity
5. Diversification
6. Transparency
7. Can be share holder of any companies
8. Can be used as collateral
9. To gain profit
Someone's sitting in the shade today because
someone planted a tree a long time ago

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How to invest in share market?

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Share Market
Primary
Market
Secondary
Market
1. IPO (initial Public Offer)
2. FPO (follow up public offer)
3. Right Share

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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.

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• 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)

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• 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

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1. Saving Bank Account
2. Citizenship copy
3. 4 passport size photos
4. Nominee with pp and citizenship
5. 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
6. Fill C-ASBA (Centralized Application Supported by Blocked
Amount form and obtain CRN (customer relationship number)
7. Fill Mero share form
Requirement to Enter Primary Market

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• http://www.nepalstock.com/
• https://merolagani.com/
• https://www.nepalipaisa.com/
• https://nepsealpha.com/
• https://bizpati.com/
Sources of Information

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• 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

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