Nepal Stock Exchange Limited (NEPSE)
The Nepal Stock Exchange Limited popularly called NEPSE is the only Nepal Stock Exchange of Nepal. It is located in Plaza SinghaDurbar, Kathmandu Nepal. On April 4, 2008 the equity market capitalization of listed companies in $ 3,658,390,000.
The basic objective is to provide free NEPSE marketability and liquidity of government securities and businesses to facilitate transactions in its trading floor by members, market intermediaries, as brokers, market makers, and so opened the floor NEPSE trading on January 13 1994.Till April 4, 2008 the number of listed companies were 147. NEPSE Index is the main market index of all shares of NEPSE.
History of share market of Nepal
The history of stock market started with the floatation of shares by Biratnagar Jute Mills Ltd. and Nepal Bank Ltd. in 1937. Introduction of the Companies Act 1964, the first issue of Government Debt in 1964 and the establishment of Central Securities Exchange SA in 1976 were the development of other important related to capital markets.
Securities Exchange Center was established with the objective of facilitating and promoting the growth of capital markets. Before conversion into stock market is the only institution capital markets perform the job of brokering, underwriting, management of a public issue of market making for government bonds and other financial services. Nepal Government, under a program initiated to reform capital markets turned into Securities Clearing Nepal Stock Exchange in 1993.
Members of NEPSE
NEPSE members are authorized to act as intermediaries in buying and selling government bonds and corporate bonds listed. Currently, there are 23 member brokers and market makers of two, operating on the trading floor and by the Securities Exchange Act of 1983, rules and bye laws.
In addition, NEPSE has also obtained membership to the expedition and director of sales of securities of the operator (dealer). Issuance and sales manager works as a manager of the question that guarantees a public issue of securities that, dealer (dealer), works as a single portfolio manager.
Common stock/Ordinary share
Securities representing the capital stock of a company, the granting of voting rights and entitlement to a portion of the company’s success through dividends and / or capital gains. In case of liquidation, common shareholders are entitled to the assets of a company only after bondholders, other debt holders and preferred stockholders have been met. Typically, common stockholders receive one vote per share to elect the company’s board of directors (although the number of votes is not always directly proportional to the number of shares owned.) The Board is the group of individuals representing the owners of the company and oversees major decisions for the company. common shareholders also receive voting rights regarding other company matters such as stock splits and company objectives. In addition to voting rights, common shareholders sometimes enjoy what is called “pre-emptive rights.” preferential subscription rights allow common shareholders to maintain their proportional ownership in the company if the company issues another offering of shares. This means that common shareholders preferential subscription right has the right but not the obligation to acquire the largest number of new shares of the population, and it would take to maintain their proportional ownership in the company .It can also be known as Ordinary Shares.
What is Right share?
Shares in a certain ratio to its old shareholders offered by a company. A right attached to some shares giving shareholders the option of buying more shares of the same stock at a specified price. It is similar to a share option, but is distributed to existing shareholders rather than buy and sell. However, the stock rights can be traded like any other option.
