The stock market rests on a few simple ideas. Understand these building blocks and the headlines suddenly make sense.
What is a share?
A share is a small piece of ownership in a company. If the company grows and profits, your slice can become more valuable; some also pay dividends.
What is a stock exchange?
A stock exchange is the regulated marketplace where shares trade — in Nepal, that is the Nepal Stock Exchange (NEPSE), open 11:00–15:00, Sunday to Thursday. It matches buyers with sellers through licensed brokers.
What is an index?
An index is a basket of stocks used to measure a market in one number — in Nepal, the NEPSE Index plus sub-indices for sectors like banking and hydropower.
Primary vs secondary market
- Primary market: companies first sell shares (an IPO).
- Secondary market: investors trade those shares afterwards — the day-to-day market on a chart.
Key takeaways
- A share is part-ownership of a company.
- Exchanges match buyers and sellers; indices summarise the market.
- Prices move on supply and demand.
- Returns come from capital gains and dividends — with real risk.
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