Shares, IPO, and two markets
What you own, how companies go public, and where NEPSE fits.
6 MIN READShare
A slice of ownership in a company. Own shares = own a part of that company.
What a share is
A share is a piece of a company. If a company has 100 equal shares and you buy 1, you own 1% of that company.
Owning a share is not a job salary. You may receive dividends (company profit paid to shareholders when declared). The share price can also rise or fall when people trade it.
Picture 100 shares
Simple ownership math - same idea for any company size.
100 equal shares total
You own 1%
They own the remaining 99%
Primary vs secondary - where money goes
IPO and NEPSE trading look similar (“I bought shares”) but the cash path is different.
Primary (IPO)
Company issues new shares. You apply and get allotment from that issue.
Your money → company (raising capital)
Secondary (NEPSE)
Shares already exist. You buy from another investor who is selling.
Your money → selling investor (not the company)
IPO path (primary)
How a company reaches the public the first time.
Tap a word - open a short definition
Use this if a term still feels mixed up.
Company
Needs capital. Can sell new shares to raise money.
Promoter shares vs public shares
Promoter / locked shares - often held by founders or early owners; selling can be restricted for a period.
Public / free-float - the portion that can trade more freely among investors on the exchange.
If only a small % is public, the same buy/sell size can move the price more.
Lock-in rules depend on that issue and regulator notices - check the offer document for the stock.
Quick check
You buy a listed bank’s share today on NEPSE from another investor. Which market is that?
Remember this
- A share is ownership. Dividends (profit payouts) are optional; price can also move with trading.
- IPO / primary = money usually to the company. NEPSE trading = secondary, investor to investor.
- Promoter vs public shows how much can trade freely on the exchange.