STOCK PRICE BEHAVIORS OF COMMERCIAL BANK IN NEPAL

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.