📈 100 NEPSE & Stock Market Terms
Every Nepalese investor should know Part 1 (Terms 1–25)
🇳🇵 Nepal Stock Exchange · Beginner friendly
If you are planning to invest in the Nepal Stock Exchange (NEPSE), understanding these basic terms is very important. This guide explains each term in very simple English so that beginners can easily understand them.
Note: The terms in this guide are commonly used in Nepal's stock market.
Part 1: Basic Stock Market Terms
1. Stock Market A stock market is a place where investors buy and sell shares of different companies.
2. NEPSE (Nepal Stock Exchange) Nepal's official stock exchange where listed companies' shares are traded.
3. Share A small ownership part of a company. If you own shares, you own a part of that company.
4. Shareholder A person or organisation that owns one or more shares of a company.
5. Investor A person who buys shares to earn profits or build wealth over time.
6. Trading Buying and selling shares in the stock market.
7. Listed Company A company whose shares can be bought and sold on NEPSE.
8. IPO (Initial Public Offering) The first time a company offers its shares to the public.
9. FPO (Follow-on Public Offering) When a listed company issues additional shares to raise more money.
10. Ordinary Share The most common type of share. Shareholders usually have voting rights and may receive dividends.
11. Preference Share Gives priority in receiving dividends before ordinary shareholders.
12. Rights Share A new share offered first to existing shareholders, usually at a discounted price.
13. Bonus Share A free share given by a company to its existing shareholders.
14. Dividend A part of a company's profit distributed to shareholders.
15. Cash Dividend A dividend paid directly in cash to shareholders.
16. Bonus Dividend Paid in the form of additional shares instead of cash.
17. Face Value The original value of a share decided by the company when it is issued.
18. Market Price The current price at which a share is being bought or sold on NEPSE.
19. Paid-up Value The amount of money that shareholders have paid for their shares.
20. Book Value The value of a company's assets after subtracting all liabilities.
21. Market Capitalization The total market value of all outstanding shares of a company.
22. Blue Chip Share Belongs to a large, financially strong, and well-established company.
23. Bull Market A period when share prices are generally increasing.
24. Bear Market A period when share prices are generally decreasing.
25. Portfolio The collection of all shares and investments owned by an investor.
Conclusion – Part 1
These 25 terms are the foundation of investing in NEPSE. Understanding them will make it much easier to learn about trading, IPOs, financial analysis, and investing.
Next: In Part 2, you will learn about MeroShare, DEMAT Account, BOID, CRN Number, CDSC, ASBA, C-ASBA, TMS, Broker, DP, SEBON, and many other Nepal-specific stock market terms.
Quick reference – key terms at a glance
| S.N. | Term | Short definition |
|---|---|---|
| 1 | Stock Market | Place to buy/sell shares |
| 2 | NEPSE | Nepal's official exchange |
| 3 | Share | Ownership in a company |
| 4 | IPO | First public offer of shares |
| 5 | Dividend | Profit distributed to shareholders |
“Investing in the stock market is not about timing the market, but time in the market.” adapted for Nepalese investors
Disclaimer: This content is for educational purposes only and does not constitute financial advice. Always consult a registered financial advisor before making investment decisions. Stock market investments are subject to market risks.