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Nepal Share Market - Understanding the Basics | नेपाल Share बजार - जान्नुपर्ने कुराहरु | Part 1 - YouTube
Channel: Ideapreneur Nepal
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Hi everyone!
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Welcome to another video of Ideapreneur Nepal.
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[Intro]
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Today's video is going to be a part of a series, isn't it?
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So, there is not only this video,
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but it also comes part by part.
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This is a very important topic,
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which is what we hear as the share market.
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Everyone is also quite interested in this topic.
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I think if you have citizenship
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or as soon as you get citizenship,
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a person should have this information of Share,
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what is a share market,
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how is it,
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in my opinion.
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Because once you get into the habit of
investing from an early career,
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it can be very simple and easy in future.
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So, I request, if you are a student,
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working, science field,
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management field, arts field,
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or deprived, but even if you have citizenship,
to watch this series carefully
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because I will try to explain this series
in a very simple and easy language.
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So, please subscribe, and then like,
and then click that bell notification
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so that whenever a new video comes,
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you also get to know,
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and I will try to put up two videos a week
related to the share market.
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So, first of all, let's listen to the first chapter of this series.
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What is share?
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What is a Share Market?
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Why is a share market necessary in every country?
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Let's understand this from a deep level first.
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Then if you continue to take knowledge of something from ground root,
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it will be easier to understand later. It is easy to reason.
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Because of that, to get your entry into the share market and,
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to work and do business in it, you will start getting clarity later .
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So, don't miss any videos from this series.
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So, let's go to today's video now.
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[music]
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What is share?
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Some of you may know,
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For example, if we open a company,
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we will find a partnership carrying 50%, 25%
and other percentages
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That all percentages are all about ownership.
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And that means a share is ownership.
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If someone asks, what is a share in a simple way?
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then share is a ownership.
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How many shares have you taken?
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What percentage of company do you hold ownership of?
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It means how many shares of that company you are holding.
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So share is nothing. It's simply ownership.
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Share is a term and a financial instrument made for giving
and transferring ownership.
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What is share market?
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It's the same, ownership of shares,
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of which company do I own a share, and I had to sell it
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or someone wanted to be a shareholder of that company.
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It means the market for buying and selling shares is called the "Share Market."
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The shares of a private company are not listed on the market
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because a private company is something that
is in a very close circle.
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For that, you can't go to the open market and trade.
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Shares of a private company are not listed on the stock market.
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Listing in the share market always means public limited companies,
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where the number of people is little huge,
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and you can buy and sell those in the open market.
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So, only public limited companies are listed in the share market,
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and the place where these public limited companies are bought
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and sold is called the share market.
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So, it's said that each country has a share market.
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So how is the share market related to the country?
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What are its benefits?
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[#1 Source of Business Capital]
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The share market is a great platform for the source of business capital.
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For example, any public limited company had to expand.
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From where does he get the funds that he does not have to expand, then?
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The only another solution is to take a loan.
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What happens after getting a loan, in a company is
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you are looking to expand,
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At the same time, you took out a loan.
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You will get a loan only if
you are capable of paying it back.
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and additionally, the interest is attached to the loan.
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You must be paying interest to the bank whether
you make a profit or a loss.
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Additionally, the principal amount must be repaid.
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You're looking to expand the company, aren't you?
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You are looking for a company with full capacity,
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But at the same time,
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you also have to start paying interest
from the day you took out the loan.
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The principal also has to be repaid gradually.
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You have not been able to expand to your full capacity.
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It's another alternative is to go to the share market
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and if you raise your money from the public,
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then that does not come as a loan.
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You give them the ownership of your company.
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After giving ownership, it is like taking on an extra partner.
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If there is profit, distribute the profit.
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It's up to you to decide whether to distribute it or not.
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Nobody reaches out to you demanding their invested
money back in the case of a loss.
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Additionally, it is easy to raise a huge amount of capital
for a company
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so that company can reach its potential as soon as possible.
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At the same time, there is no pressure to pay
interest and principal.
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The company can only focus on its expansion and its work.
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If the money is raised from the share market,
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and if you ask, what is the benefit to the country?
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The government collects taxes through the share market.
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Every share is bought and sold, including government taxes.
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So even from that, the government gets huge revenue.
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One of the biggest revenue sources in each country is
the share market.
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The government also earns revenue by raising taxes on
the share market.
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So, it's a good source of tax income from the share market for the government.
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That's why there is a share market in each country.
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[#2 Promotes Investment]
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Speaking about the second point, the share market
promotes investment.
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It's because the government's job is to create policies
for each sector.
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For example, the agricultural sector and the real estate sector had to be developed,
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and once the tax-friendly and beneficial policies are in place,
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the majority of people will invest in those sectors.
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And what benefits do the investors get is that
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if any small company or company in an unnoticed field
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which has huge growth potential,
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then that investment is going to be very good in that
company or that sector.
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Investors can benefit from a very good return
in a short period of time.
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Because of that,
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Most investments are made more convenient by government policies.
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and creating an investment-friendly environment.
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in different sectors:
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hydropower sector,
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agricultural sector,
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real-estate sector,
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any research and development sector.
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If the government has made a policy to
make money by investing in it
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or to save it by investing in it,
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then even if the government does not invest in it,
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different sources of funds are invested
by the investors in that sector.
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Due to which, that sector will also be booming.
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At the same time, booming that sector means,
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the boom in the economy of the country.
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And because of that, the economy of the country
also gets a plus point,
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and the share market also helps to diversify your investment.
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So, due to this,
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the share market is also very important to promote
investments in different sectors.
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[#3 Source of Investment for Even Government]
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Point no 3. means
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Share Market is a good source of investment for the government also.
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It is because public projects such as
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water treatment plans or public community services,
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and different government projects
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cannot be funded by the government.
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If the government has to fund what they have to do is
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they have to take a lot of tax from us
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and that cannot be taken seriously.
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As a result, the government issues public bonds,
government bonds.
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And the government raises capital through bonds.
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If you have heard of government security or
security bonds in the market,
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this is the method by which the government raises
money for projects
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that are pretty safe.
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because investment at government level than the
at the private level
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is little more secure,
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and people invest a lot in it.
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Because of this,
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to raise funds for the project,
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through the share market,
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the government can raise a huge amount of capital
by issuing government bonds.
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Because of that,
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even those projects can move forward smoothly.
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And if the government believes they can fund
that project with tax revenue only,
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then that project cannot be done
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because huge funds are needed.
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And since the tax money alone is not enough to fund the project,
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it is better to raise capital through the share market and
invest in those projects.
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It's good for country's economy and
different sectors will grow too.
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The public community will also grow rapidly as well.
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As a result, government plays vital role
through the share market,
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to pull up investments to invest in a particular sector.
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[#4 Influence Economic Perception of Country]
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And when it comes to another point,
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it is about what is happening to the
economic growth of a country,
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which tells the people of the world
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like what is the state of the economy in Nepal? ,
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what is the state of the economy in China? ,
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what is the state of the economy in the USA?
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Its criteria are somewhat based on the prices of that
country's stocks.
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There is an average price for stock exchanges, like:
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Nepal has Nepse, India has Sensex and BSE
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then the Nasdaq in America is also quite popular.
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So, at what point is the listing of stock market right now?
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What's going on?
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It gives a number to evaluate the
economic growth in the country.
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So, surfacely, is the economic growth in this country
going well or not?
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One of the criteria to evaluate the information
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is the point offered by those stock exchanges.
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So, from that,
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the chances of foreign investment coming to
the country are much higher
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The growth rate here is good.
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The stock in this area is steadily improving
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then foreign investors will flock to your country to invest.
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Because of this,
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many projects that are being filed up will receive funding.
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So, any stock market gives an economic
perception of that country.
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So, that's why it's very very important for a country
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to have a stock exchange,
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which helps the country to be measured surfacely from outside.
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so that foreign investment can come
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and the economy can grow.
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Of course, there are many advantages to have a
share market in a country.
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So, here are some of the important ones that I listed out.
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I hope that is very helpful to you.
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[Ideapreneur Nepal]
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All right, it was part one of the series
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related to the share market.
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In next part, why should we invest in the share market?
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This will be our next video in this series.
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Till then, I hope you like today's content.
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For this basic understanding,
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I attempted to explain in simple language:
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what a share, a share market is,
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and why the country requires a share market.
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I hope you understand this well.
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Do some research yourself.
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Listen to me a little bit.
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When you link them both, it gives great meaning.
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So, wait for the next video.
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I will continue this series.
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I hope to see you in the next series.
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Please like, subscribe,
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and then share this video with people in your circle
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so that more and more people get this knowledge for free.
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Okay, thank you. See you on the next video.
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[outro]
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