How to buy shares from secondary market?

 

How to buy shares from secondary market?

 First of all we have to learn primary market’s knowledge perfectly to enter into secondary market. Primary market is the market where we only buys the shares with the base price of company. Secondary market is the place where we buys shares from individual in their desired rate and vice versa in selling as well. Before starting trading in secondary market we have to learn some key terms related to it :

NEPSE: It is the Only one stock exchange of NEPAL .It is established in 1993 BS. NEPSE is the place or organization authorized by Nepal government where peoples buys and sells their share, staying at the rule and price decided by NEPSE. it represent whole company’s rate to the public .

BROKER Account: To start buying and selling of shares in secondary market , we must  need to have broker account . It is the account where we give our instruction to buy or sell the price of our desired rate . Broker means (दलाल) in Nepali and they helps us to buy and sell our shares . Brokers also stays under NEPSE . To Open Broker account we must need to select best Broker To see broker’s list of Nepal Click BROKER.

TMS Account: This account is known as TRADING MANAGEMENT SYSTEM Account. it helps us to trade our share by ourself with the help of smart phone or laptop/Computer .

Collateral: Before Buying shares you need to deposit collateral to broker and Tms account to show that we have enough money to buy share. You can deposite collateral simply with connect ips or with your bank account.

Buy and Sell order: Before buying share we have to give command to the broker that , For ex Buy the ABC company’s share at the price of 550Rs. Physically or by using Nepse online Tms website and same for selling.

Fund Settlement: After completing buying order of desired share at desired rate we have to send the cost of share to broker, and sending the cost money of share into brokers account to pay the seller of the share , and vice versa for selling your share . you have to do Edis & wacc to request payment of your sold share .

 

EDIS & WACC:  

 

WACC: To pay the Tax to the government and give information about our buying rates and selling rates of our shares Wacc is done .

According to Nepal government’s rule . if we hold our share more than  year then we have to pay 5% and for less than 1year of holding we have to pay 7.5% tax to the government from our profit.

 

EDIS: The process of sending shares to the buyer’s names from our ownership is called EDIS.