FACTORS AFFECTING STOCK PRICE VOLATILITY OF NEPALESE COMMERCIAL BANKS

Abstract

The investors should analyze historical trends and price patterns of stocks to predict future price changes, ensuring secure investments. Governments must not only formulate but also promptly and effectively implement policies for developing the capital market. Sectors such as commercial banks, finance companies, and manufacturing & processing firms demonstrate superior performance compared to others, making them preferable for investors seeking stable returns. Individual investment decisions heavily rely on signals from the capital market, which should efficiently disseminate reliable information at minimal cost. Stock exchanges need to prioritize investor interests, operate with strong management, and maintain market orientation. Effective coordination among regulatory bodies is essential. Procedures for buying and selling shares should be streamlined, swift, and efficient. Listed companies must disclose their financial statements promptly and comprehensively to foster transparency. Regulatory bodies should mitigate negative rumors to prevent stock price manipulation, ensuring fair market behavior. Companies should establish clear dividend policies and stable payout ratios. Vigilant monitoring of stock price behaviors and efforts to enhance market value relative to competitors are crucial. Securities professionals should cultivate necessary expertise, and market intermediaries should possess adequate infrastructure to deliver quality services to investors. Furthermore, regulatory bodies should conduct extensive research and analysis to enhance market efficiency and reduce manipulation