All of us are looking for an investment opportunity so that we can utilize our hard earned income. Some people are willing to earn high profits by taking more risks. While others are satisfied with getting a decent return at a low level of risks. In the context of Nepal there are two types of market i.e. Primary Market and Secondary Market.
Primary Market : It is the market where shares are issued to the public for the first time which is also known as Initial Public Offering (IPO).
Secondary Market : It is the market where we can sell the IPOs (Allotted from Primary Market). We can also buy shares from this market. The number of buyers and sellers in the secondary market is large, the market price fluctuates in proportion to demand and supply. In the secondary market, those who buy shares at a lower price and sell them at a higher price make a profit.
To enter into the share market you need the following :
- Bank Account : At first, you need to open a bank account. You need to visit the bank with a citizenship certificates, photographs and other necessary documents.
- Demat Account : To invest in the share market either primary or secondary, demat account is mandatory now. Like a bank account stores our money, in the same way demat account stores our shares/securities. Demat account facilitates the shareholders to hold their shares in electronic form.
- Meroshare : Meroshare is very useful to investors. We can easily apply shares from our home within only few clicks by the help of Meroshare app. We can also easily transfer shares to the broker (After Selling) by the help of this app.
- C-Asba : We need Bank Account & Demat Account for C-Asba. Once we get our bank account number and demat account number, we can apply for C-Asba by visiting the nearest C-Asba Registered Bank.
- Broker Account : If we want to buy and sell shares in a secondary market, we need to select one broker for stock trading.