What a Share Trade Really Costs: Commission, Fees and Capital Gains Tax

 

You buy a share at Rs 500 and sell it at Rs 540. That's Rs 40 profit per share, right? Not quite. By the time the broker, SEBON, the depository and the tax office have taken their share, a fair chunk of that Rs 40 is gone.

None of these charges is big on its own. But if you don't count them, you'll overestimate your returns, and if you trade often, they can quietly eat most of your profit.

Got a Right Share Offer? Here's What to Check First

You own shares in a company, and suddenly there's a notice: "1:1 right share issue." It sounds like a gift. It isn't. It's the company asking you for more money.

That isn't necessarily bad. Plenty of good companies raise money this way. But it does deserve a proper look, and it's one of those decisions where doing nothing is also a decision with consequences.

Cash Dividend vs Bonus Shares: Why Bonus Isn't Free Money

Every book-closure season, the excitement is the same. "20% bonus announced!" The WhatsApp groups go wild. People rush to buy before the book closure date. Then the price adjusts and they wonder where the gain went.

Let's clear this up properly, because the difference between a cash dividend and a bonus share is one of the most misunderstood things in the Nepali share market.

"NEPSE Is Up 40 Points!" What the Index Does and Doesn't Tell You

Every evening the news says something like "NEPSE rose 40 points today." Then you open your portfolio and it's red. What's going on?

What the index is

The NEPSE index is a single number that summarises how listed shares moved overall, calculated with a specific method. Bigger companies count for more. A few large banks and hydropower companies moving a lot can push the whole index up or down.

So the index is a rough picture of the market as a whole. It isn't a picture of your shares.

Placing Buy and Sell Orders in TMS Without Costly Mistakes

Your first order on a broker's TMS can feel nerve-wracking. Lots of numbers changing, a clock running, and a button that spends real money. A few basics make it much less stressful.

What an order really is

When you place a buy order, you're saying, "I'll buy this many shares at this price." Someone has to be willing to sell at that price for it to go through. If no one is, your order just sits there. Placing an order doesn't mean it will execute.

IPOs in Nepal: What I Check Before Hitting "Apply"

In Nepal, applying for IPOs is almost a national hobby. A new issue opens, the family WhatsApp group lights up, and everyone applies for 10 kitta on Mero Share without really knowing what the company does. Some families apply in five or six names.

I get it. It's cheap (Rs 1,000 for 10 kitta at Rs 100 each), it's easy, and for years IPO shares often listed well above Rs 100. Getting an allotment felt like winning a small lottery.

But that habit has taught many people the wrong lesson: that IPOs are free money. They're not. Here's how I think about them.

Demat, Mero Share and Broker Account: Which One Does What?

When I first wanted to buy shares, someone told me, "Just open Demat and Mero Share, and get a broker." I nodded like I understood. I didn't. I thought they were three names for the same thing.

If you're in the same spot, here's the plain version, plus the steps to get set up and the mistakes to avoid.