Binod Chaudhary writes in his autobiography that I spend a month half in the sky and half the time on the ground. He also withdrew Rs. 1.30 billion from “Nabil Bank” in the financial year 2070/71. This is not the amount of his salary nor the loan taken from the bank. He has taken the same amount from Nabil Bank in the previous years as well. He traveled around the world earning money from Nabil Bank. This is how making money while traveling
around the world, or even when you are not working, is to make money.
According to autobiography, Chaudhary has a 55% stake in Nabil Bank. Now, as per the data of mid-August 2070/71, the total capital of Nabil Bank is 55% of Rs. 3.65 billion i.e. Rs. 2 billion is Binod Chaudhary’s investment. The bank has announced to give 65% dividend from the profit of 2070/71. And his share was Rs 1.30 billion. But he never had to go to the bank to work. The stock market is a place where money is invested.
We have two options: Work for money or to use money.
- To get a job and be self-employed is to work for money. Go to work for a month, the salary comes after the month dies, but if you don’t go to work next month, you don’t get paid.
- Open the shop all day, the money comes, the next day, close the whole shop, the money doesn’t come.
- Robert Chaos, author of Rich Dad Poor Dad, says that a man can never become rich by working for money, that is, a man can earn millions by working for money, but if he wants to earn Billions, he must invest his money, so the stock market is a place where we Put money to work and here your money works day and night.
Listen carefully now and understand how the stock market finally started. In this blog we will learn a lot of mind blowing knowledge. So don’t forward without reading. If you are new in share market and thinking about what is share market and how we can invest on it.
About 400 years ago today, about sixteen centuries ago, the East India Company decided to build 100 ships to expand the trade of gold, wood, silk and other things around the world, but the big plan and to build 100 ships was very expensive for the East India Company and they did not have much money. So to raise money for their ship they came to Conclusion to raise money with the general public and demanded money from the general public. The agreement paper was given to the investor and agreed to share the profit money .
Due to this, the business of the East India Company increased tremendously and due to which their profit also increased as well as investors who invest money and in this way they raised money for its business, making the East India Company the world’s first stock market and from then on, companies began to raise money from investors and grow their businesses, and later established itself in every country. The work of raising capital from the general public by issuing shares in Nepal started in 1993 BS after the issuance of shares by “Biratnagar Jute Mill” and “Nepal Bank Limited”. However, the Nepal Stock Exchange (NSE), also known as “Nepse”, has officially started buying and selling on January 12, 2050 BS. And till now, and so far all the work related to share purchase and sale is done by “Nepse” and it is the only stock exchange in Nepal and so far 198 companies are operating in it.
Before we go any further, let’s clear up some misconceptions about the stock market. Let’s clear about “Two major misconceptions” that are in the human mind.
1) Investment in stock market is Very Risky
If you ask me this question it may be risky to invest in stocks to some extent but is it really risky? Let’s get a point with Fig.
if you invest in some company shares but suddenly the price of the stock fall down is that possible yes it can be because within small period share value fluctuates which you can see on this chart also, but if you see this in the long term what you see that the market is in 2016 and today it is in mean 2020 market is in 850 from this we can understand that in long term if we invest the risk is very low and it will give good profit. So no any question in it person who invest in 2016 with share value 5000 today that money increase 8 times. but in short term yes their is risk.
2) You need to have a good knowledge of the stock market as well as a large investment to enter the stock market
The common misconception is that if you want to enter the stock market and make good money, you need to have a lot of knowledge and a lot of investment. See if you have the right knowledge and the right money to invest, that’s fine. I am not saying that you can invest in stocks without knowing anything and miraculously make money. It is not as complex as you think of the stock market.
For e g. Warren Buffet who is rich person in the world when he entered in the share market despite having no knowledge or a lot of money, he started by buying shares of a company for $ 40 and never looked back.There are many examples of such people in Nepal who have started from such a small amount of money and have earned millions and crores today.If you are also thinking of investing in the stock market, you can invest in a primary stock or on IPO which par value is 100 and investing in it requires neither a lot of money nor a lot of knowledge and interesting think is that the risk is also low.
