Legal or Black? The Truth about Share Market in 2080

Is share market either a legal market?

Introduction of Share Market:

A share Market, Equity market or Stock market is a legal online trade business where an investor or a trader can buy or sell the shares of publicly listed companies of different sectors. Some people claim that the share market is like a casino, it should be banned. But the share market has a great role in the development of the nation as it provides the required fund to the various companies such that a big project can be run. The sector of companies includes hydropower companies, insurance companies(life or non-life), finance companies, microfinance companies, development banks, commercial banks, hotel and tourism, manufacturer and production companies, investment companies, mutual funds and others.

The shares of companies of different sectors are generally generated by floating IPO to the general public and local people( who got affected by that project). After floating IPO by the companies, people can apply for their shares online using MEROSHARE. Click here to apply for an IPO. After the allotment process, the shares of that company are listed in the NEPSE where a buyer or an investor buys or sells shares. Click here to learn how to buy or sell shares in NEPSE.

Also Read: How to apply for IPO online using MEROSHARE.


First, the share market was invented in 1611 in Amsterdam where the Dutch East India Company sold stock to the public to increase capital promising to pay the dividend of the stock to the investors. In Nepal, the concept of a share market was started in 1937 when Nepal Bank Ltd. and Biratnagar Jute Mill float their shares to the general public. At that time there were no securities board which now looks after the listed shares. The establishment of the Nepal Stock Exchange was held in 1993 under the Government Act. The main aim of the Securities Board of Nepal was to promote and facilitate the Nepalese stock market.

Objectives of Share Market:

There is the various objective of the share market. Its objective can be broadly classified into different types which are shown below:


It is the first and foremost theoretical main objective of the share market. Capitalization refers to the amount of money that is regulated in the stock market. it is the total asset of all buys and sells. It is the multiplication of the total number of shares and their price per share. This enables the shareholder or an investor to analyse whether the company is profitable or not. Market capitalization is further classified into four categories. They are:

  • Large capitalization
  • Medium capitalization
  • Small capitalization
  • Micro capitalization

Here are some of the companies with their market capitalization:

S.N.Name of companySectorMarket Capitalization(in rupees)
2.Nabil Bank LimitedCommercial banks159,067,208,200
3.Nepal Life Insurance Co.LtdOthers100,190,000,000
4.citizen investment trustInvestment company86,491,500,000
5.Nepal Life Insurance co.LtdLife Insurance62,462,625,474.94
6.Nepal Infrastructure Bank LimitedInvestment company53,244,000,000
7.NIC Asia Bank LimitedCommercial banks83,723,398,878.8
8.Global IME Bank LimitedCommercial banks59,822,523,042
9.Upper Tamakoshi Hydropower Ltd.Hydropower55,279,800,000


There are several ways that an investor can potentially make a profit from the share market:

Capital gains:

Investors can earn a profit by buying shares at a low price and selling them at a higher price, realizing a capital gain. The difference between the purchase price and the sale price is the profit.


Some companies pay dividends to their shareholders, which represent a portion of the company’s profits. Investors can earn a profit by holding shares of companies that pay dividends.


Some investors try to profit from short-term price movements in the share market by buying and selling shares frequently. This is known as trading, and it can be a high-risk, high-reward strategy.

Options trading:

Investors can also potentially profit from options trading, which involves buying or selling the right to buy or sell a share at a specific price within a specific time frame.

Redistribution of nepotist monopoly wealth:

The redistribution of wealth from nepotist monopoly in the share market would involve addressing the issues of nepotism and monopolies within the market. Nepotism refers to the practice of favouring relatives or friends for job opportunities or other benefits, which can limit opportunities for other qualified individuals. Monopolies refer to a situation where a single entity or group controls a large share of the market, giving them significant power to set prices and limit competition.

One way to address these issues is to promote transparency and competition in the share market. This could involve increasing regulatory oversight and enforcement to prevent nepotism and promote a level playing field for all investors. It could also involve encouraging the entry of new players into the market to increase competition and reduce the power of monopolies.

Another approach to redistributing wealth in the share market could be to promote policies that support broader access to investment opportunities. This could include programs that provide financial education and support to individuals and communities that have historically been underrepresented in the share market.


The share market can provide a platform for companies to raise capital and invest in growth opportunities, while also offering investors the potential for growth in their investment portfolios.

From the perspective of companies, the share market can provide access to capital that can be used to fund expansion, research and development, and other growth initiatives. By issuing shares of stock to investors, companies can raise funds without taking on debt, which can be an attractive option for companies that are looking to grow rapidly.

From the perspective of investors, the share market can offer the potential for growth in the value of their investments. By investing in companies that are well-positioned for growth, investors can potentially earn returns that exceed the rate of inflation and generate wealth over the long term. However, it’s important to note that investing in the share market always carries a degree of risk, and there is no guarantee of growth or positive returns.

1. Is the share market a black market?

Ans: No, the share market is not a black market. It is the legal market where investors or traders can buy and sell shares of different companies paying taxes to the government.

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