Glossary

Every term, in plain English.

68 stock market terms explained without jargon — 20 of them specific to NEPSE, from LTP and turnover to BOID, ASBA and book closure. Where a term shows up in live data, we link you straight to it.

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52-week high / low
The highest and lowest prices a share has traded at over the past year. Where today's price sits in that range is a quick read on momentum.
See ranges in the screener

A

Advance/decline ratio
The number of shares that rose divided by the number that fell in a session. Above 1 means more gainers than losers — a measure of market breadth.
Today's breadth
ASBANEPSE
Applications Supported by Blocked Amount. When you apply for an IPO, the application money is blocked — not debited — in your own bank account until shares are allotted.
How to apply for an IPO
Ask
The lowest price a seller is currently willing to accept for a share.

B

Bear market
A sustained fall in prices across the market, often described as a drop of 20% or more from a recent high, driven by pessimism.
Bid
The highest price a buyer is currently willing to pay for a share.
Blue chip
A large, well-established and financially sound company whose shares are considered relatively stable.
BOIDNEPSE
Beneficial Owner ID — the 16-digit number that identifies your Demat account. You need it to check IPO results and to receive shares.
Check an IPO result
Bonus share
Extra shares a company gives free to existing shareholders in proportion to their holding, instead of (or as well as) a cash dividend.
Book closureNEPSE
The date a company closes its shareholder register to decide who receives a dividend, bonus or right share. You must hold the shares before book closure to qualify.
Breakout
When the price moves decisively through a support or resistance level, often on higher volume.
BrokerNEPSE
A firm licensed to buy and sell shares on the exchange on your behalf. On NEPSE you trade through your broker's TMS account and pay commission on each trade.
Bull market
A sustained rise in prices and optimism across the market.

C

Candlestick
A chart shape that shows a period's open, high, low and close at a glance. The body spans open to close; the wicks show the high and low.
Capital gain
The profit made when you sell a share for more than you paid for it. Capital gains are taxable in Nepal.
CDSCNEPSE
CDS and Clearing Limited — Nepal's central depository. It holds shares electronically in Demat accounts, settles trades and runs Meroshare.
Circuit breaker
An exchange rule that limits how far a price or index can move in a session, or pauses trading after a large move, to curb panic.

D

Demat accountNEPSE
An account that holds your shares electronically, like a bank account for shares. You open it through a depository participant (DP).
How to buy shares in Nepal
Depository participant (DP)NEPSE
A bank, broker or other institution licensed by CDSC to open and maintain Demat accounts and issue Meroshare logins.
Diversification
Spreading money across different companies and sectors so one bad result cannot sink the whole portfolio.
Compare sectors on the heatmap
Dividend
A share of a company's profit paid to shareholders, in cash or as bonus shares.
Dividend yield
A share's yearly cash dividend divided by its price, as a percentage.

E

EPS
Earnings per share — a company's net profit divided by the number of its shares.
Ex-dividend date
The first day a share trades without the right to an upcoming dividend. On NEPSE the cut-off works through the book closure date.

F

Float indexNEPSE
An index that weights companies by their publicly tradable (free-float) shares rather than all their shares. NEPSE publishes a Float index alongside the main index.
NEPSE indices today
FloorsheetNEPSE
NEPSE's record of every executed trade in a session: the share, quantity, price and the buying and selling brokers.
FPO
Further Public Offering — new shares sold to the public by a company that is already listed.
IPO calendar
Fundamental analysis
Valuing a company by studying its business, earnings, assets, debt and growth.

I

Index
A single number that tracks a basket of shares, used to measure how a whole market or sector moved.
NEPSE indices today
IPO
Initial Public Offering — a company's first sale of shares to the public. In Nepal you apply through Meroshare using ASBA.
Nepal IPO calendar

L

Leverage
Using borrowed money to control a larger position. It magnifies both gains and losses.
Limit order
An order to buy or sell only at your chosen price or better.
Liquidity
How easily a share can be bought or sold without moving its price much. Heavily traded shares are more liquid.
Most traded today
Long position
Owning a share because you expect its price to rise.
LTPNEPSE
Last traded price — the price at which a share most recently changed hands. It is the price you see quoted during the session.
Live LTPs

M

MACD
Moving Average Convergence Divergence — an indicator that tracks momentum and possible trend changes from two moving averages.
Margin
Money borrowed against shares you own, or the deposit required to open a leveraged position.
Margin call
A demand to add money or sell shares when a fall in price pushes a margin loan below the lender's required level.
Market breadth
How widely a move is shared: how many shares rose, fell or stayed flat. A rising index with more losers than gainers is a narrow rally.
Today's breadth
Market cap
A company's total market value: share price multiplied by the number of shares.
Market order
An order that executes immediately at the best available price.
MeroshareNEPSE
CDSC's online portal where you apply for IPOs and right shares, see your Demat holdings and check application results.
Apply via Meroshare
Moving average
A line that averages the price over a set number of periods, smoothing out noise to show the trend.

N

NEPSENEPSE
Nepal Stock Exchange — the country's only stock exchange, where shares of listed companies are bought and sold. It is regulated by SEBON.
The NEPSE guide
NEPSE IndexNEPSE
The main index of the Nepal Stock Exchange, weighted by market capitalisation and covering all listed ordinary shares.
NEPSE Index today

P

P/E ratio
Price-to-earnings — the share price divided by earnings per share. A basic, rough measure of how expensive a share is.
Paper trading
Practising trades with virtual money, usually at prices based on the real market, so mistakes cost lessons rather than rupees.
Practise in the app
Portfolio
All the investments a person or fund holds.
Position size
How many shares you buy in one trade. Sizing from your risk keeps any single loss small.
Position size calculator
Promoter shareNEPSE
Shares held by a company's founders and sponsors. They are usually locked in for a period and are distinct from ordinary shares held by the public.

R

Resistance
A price level where selling has repeatedly stopped a rise.
Right shareNEPSE
New shares offered to existing shareholders in proportion to what they already hold, usually at face value.
Open issues
Risk/reward ratio
The reward you aim for compared with the risk you take on a trade, such as 1:2.
Risk/reward calculator
RSI
Relative Strength Index — a 0–100 momentum gauge. Readings above 70 are often called overbought and below 30 oversold.

S

SEBONNEPSE
Securities Board of Nepal — the regulator of Nepal's securities market, including NEPSE, brokers and public issues.
Sensitive indexNEPSE
A NEPSE index covering only 'A'-class companies that meet the exchange's size and liquidity tests.
NEPSE indices today
Short position
Selling borrowed shares expecting the price to fall, to buy them back cheaper later. Short selling is not generally available to retail investors on NEPSE.
Slippage
The difference between the price you expected and the price your order actually filled at.
Stop-loss
A pre-set price at which you exit a losing trade, capping the loss.
Size a trade around your stop
Sub-indexNEPSE
An index for one NEPSE sector, such as Banking or Hydropower, showing how that group moved.
Sub-indices today
Support
A price level where buying has repeatedly stopped a fall.
Swing trading
Holding trades for days to weeks to capture a larger price swing.

T

Technical analysis
Studying price, volume and chart patterns to time entries and exits.
TMSNEPSE
Trade Management System — NEPSE's online platform, accessed through your broker, where you place buy and sell orders.
How to buy shares
Trailing stop
A stop-loss that moves up as the price rises, locking in part of a gain.
TurnoverNEPSE
The total rupee value of shares traded in a session. NEPSE's daily turnover shows how active the market was.
Top turnover today

V

Volatility
How much and how quickly a price moves. Higher volatility means bigger swings in both directions.
Volume
The number of shares traded in a period. High volume behind a move shows conviction.
Most traded today
See the terms live

Words are easier with real numbers.

Turnover, LTP, breadth and 52-week ranges from the latest NEPSE session — all real data from Share Rocket Pro's data platform.

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