Securities Board's 9-point message for new investors and students in the share market
The Nepal Securities Board has issued a 9-point message targeting new investors and students on the occasion of 'World Investor Week'. The message advises regular savings, study-based investing, risk management, and caution against misleading social media content.
Kathmandu – The Nepal Securities Board (SEBON) has issued a 9-point message for new investors entering the share market and students. The Board issued this message on the occasion of 'World Investor Week', which began today.
This week-long program is being organized jointly by the Securities Board, NEPSE, CDSC, Stock Brokers Association of Nepal, Merchant Bankers Association of Nepal, stock dealer companies, and credit rating companies. The program will run until Ashoj 25, and will provide information on the securities market especially to general investors and students.
The 9-point message issued by the Board is as follows:
- Develop a healthy financial habit of saving regularly from the beginning and making prudent investment decisions.
- Invest only after studying.
- When starting investment in the securities market, begin with securities of collective investment funds issued at par value in the primary market.
- When investing in the primary market, study the prospectus and offer document of the issuing company, analyze important aspects such as the company's promoters and management, financial condition, and credit rating level, and invest only if deemed appropriate.
- Analyze your return target and risk-bearing capacity in detail, and start investing with small savings amounts.
- When investing in the secondary market, make investment decisions based on proper information and your risk-bearing capacity.
- Invest after studying aspects such as the company's officially or authentically published financial statements, performance status, price-sensitive information, future plans, financial indicators mentioned in periodic and annual reports, price trends, and the condition of the related industry and sector.
- Be cautious of high-cost loans that could negatively affect your long-term financial condition. Avoid investing with borrowed money as much as possible.
- Be aware of content produced using artificial intelligence (AI) for advertising purposes in various online groups, as well as recommendations made by influencers through social media and opportunities that are excessively publicized as investment opportunities.