In Financial Term, Investment is the commitment of money or acquiring assets like bonds, stocks, golds, real estate anything else in financial value to generate greater value, or appreciate value, or generate regular income or profits later. The assets can be acquired at once or at regularly systematic way.
A portfolio is a collection of Assets to minimize the risks associated with a single investment. The idea of portfolio investment is to diversify the risk of one asset to another asset.
An Initial Public Offering (IPO) is a condition of public issue of securities (commonly shares) by a company to sell those to the public for very first time, allowing it to be listed and traded on a stock exchange.
A Follow-on Public Offering (FPO), on the other hand, happens after a company is already publicly listed. In an FPO, the company issues additional shares to raise more funds, and this can be structured in either a dilutive or non-dilutive way.
NEPSE Acronym for Nepal Stock Exchange, that is only one stock exchange for trading of listed securities in Nepal. The investors can buy and sell the securities of different companies listed on NEPSE. It is fully government owned organization in Nepal.
The Central Depository and Clearing System in Nepal. It works as the clearing and settlement institution and run the services related to dematerilization of securities in Nepal.
The OTC is the Over The Counter Market or the market for securites those are not listed in NEPSE.
Rating Companies are the organization those serve the services related to the rating of organization, public issues, financial position, and securites to be issued.
Investment Companies are the holding company those holds the assets in form of portfolio and holds them according their investment strategy to gain compounding and greater returns in future. The investment companies has professional management regarding their portfolio management. They themselves develope various subsidiary companies in various sectors for long term business growth.
The Basic Benefits of Investing in Investment Company:
- Long Term Focus
- Portfolio Management
- Expert Management
- Growth Potential
- Risk Minimization
Broker, Mutual Funds, BFIs, Regulators, Government, Dealers, Investors, Traders, Operators etc.
These participants works as differently in Market Such as:
Broker: Faciliates primarily buy sell service to their clients.
Mutual Funds: They participate as the institutional investors in market. These are the schemes to retail investors and collects small amount of funds and invests the funds in Market.
BFIs: Banks and Financial Institutions, they primarily focuses on providing the debt funds to the other investors they also invest some of their funds inMarket as well.
No, Currently there is no possibility of FDI in NEPSE due to Government Policy and Rules. But if there is any change in future years in government policy regarding FIIs, it is possible to gather FDIs in NEPSSE as well.
Bull market is the situation where all optimist spreads over market, there is increment in prices of stocks in exchange, investors and traders has huge participation in market due to upward trends in Indexes and Volumes and Turnover.
Bear Market is the situation of pessimist in market due to decline in price, index, volume and turnovers. The investors and traders has less participation due to fall in prices and other factors in market.
It is possbile to forecast bull and bear market using technical, fundamentals and market sentiment analysis.
- Fundamental analysis focuses on securities by estimating their intrinsic values for decision making.
- Technical analysis focuses on historical stock's price and volume over time to forecast the future patterns of prices and trends.
- Both are used to research and forecast future trends in stock prices.
- Both also have their adherents and critics.
- In practice, many investors combine aspects of both fundamental and technical approaches to inform their decisions.