STOCK PRICE BEHAVIORS OF COMMERCIAL BANK IN NEPAL
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Shanker Dev Campus
Abstract
Smart investors should look at how a stock's price has moved in the past to guess where
it's going next and avoid losing money. The government must take decisive action to not
only devise but also deliver on capital market development policies. The outputs of
commercial banks, finance companies, and manufacturing & processing companies
exceed those of other sectors, thus advising investors to commit funds to these industries.
Individual investment decisions are primarily influenced by cues from the stock market.
The market should spread information far and wide, and keep the cost low.
The stock exchange should be investor-centric, market-driven, and operationally sound.
Synergy among regulatory bodies is essential. The acquisition and disposal of shares
should be conducted in a systematic, expeditious, and time-efficient manner. Publicly
traded companies must provide full and timely disclosure of financial data. The
regulatory body should suppress the circulation of adverse rumors that might influence
the stock valuation. Stock price movements should be free from market manipulation.
Listed companies are unpredictable about dividends, sometimes paying more, sometimes
less. The company ought to establish a vigilant monitoring system to scrutinize stock
price dynamics and exert effort to enhance its market capitalization relative to
competitors.
It is imperative that stockbrokers and other securities professionals develop the necessary
expertise, and market intermediaries must possess adequate infrastructure to provide
comprehensive investor services. Further, a comprehensive analysis of stock market
efficiency should be undertaken by the concerned regulatory body to inform policy
decisions that will foster market growth and deter manipulation.