NEPSE Approves Margin Trading for 123 Companies: What It Means for Investors
Nepal Stock Exchange (NEPSE) has released a list of 123 companies eligible for margin trading, meaning investors can borrow from brokers to buy their shares. To qualify, companies must meet specific criteria, including having at least 2.5 million shares listed and net worth equal to or greater than paid-up capital. This move is designed to encourage more liquidity and trading activity but also entails risk as investors use borrowed money. Margin trading allows investors to leverage their capital, potentially amplifying gains or losses. Understanding this helps everyday investors make informed decisions about borrowing to invest in the market.
- Only 123 companies are eligible for margin trading, allowing investors to buy shares on broker loans under NEPSE's new rules.
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Nepal Stock Exchange (NEPSE) has released a list of 123 companies eligible for margin trading, meaning investors can borrow from brokers to buy their shares. To qualify, companies must meet specific criteria, including having at least 2.5 million shares listed and net worth equal to or greater than paid-up capital. This move is designed to encourage more liquidity and trading activity but also entails risk as investors use borrowed money. Margin trading allows investors to leverage their capital, potentially amplifying gains or losses. Understanding this helps everyday investors make informed decisions about borrowing to invest in the market.
Source:bizmandu.com
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