DETERMINANT OF STOCK PRICE VOLATILITY IN NEPAL

Abstract

To make safe investments, logical investors should examine the historical trend and pattern of the stock's price series in order to predict future price changes. In addition to formulating policies for the development of the capital market, the government should also promptly and correctly carry out these policies. Investors should place their money in the manufacturing and processing, commercial banking, and finance sectors because their performance outperforms that of other sectors. Individuals base a major portion of their financial decisions on signals from the stock market. Information should be accessible and affordable through the market process. Its dependability is essential. The stock exchange should have robust operations and efficient management, with a focus on investors and the market. The relevant regulatory organizations should work together and coordinate well. The process of purchasing and selling shares should be organized, quick, and low-time consuming. The listed firms are required to provide full and timely disclosure of their financial results. Negative rumors that could impact stock price should be avoided by the regulating agency. The stock price should move freely, fairly, and without interference. The payout ratios of the listed corporations are not consistent, and they lack a clear dividend strategy. The corporation ought to implement a vigilant monitoring system to scrutinize the actions of its stock price and endeavor to elevate its market value relative to its rivals. In order to provide investors with the right services, market intermediaries should have the infrastructural facilities and the essential experience developed by stockbrokers and other individuals involved in the securities sector. Concerned regulatory bodies should conduct more in-depth research and analysis on the efficiency of the stock market in order to provide inputs that will boost market activity and reduce manipulation.