Primary Market

Initial Public Offerings (IPOs)

An IPO is when a share is offered to the public by a private company for the first time. Before, it is funded by founders, friends, family, and investors.

Reasons for IPOs

Raise additional capital for a new project or pay off debt or fund research and development.
Other routes of raising capital are too expensive
Publicity increases
Selling opportunity for original investors

Further Public Offerings (FPOs)

An FPO is when the company has already issued IPOs but wants to raise capital even further and thus, offers shares again. To be eligible, the company must be listed and has profits for at least 2 years in the the last 5 years.

Right Share

When a company, whose shares are listed in the market, issues shares again, the existing shareholders get the first right to purchase them.

They are called right shares as the existing shareholders get the first right to purchase those shares.

Book Closure Date

A book closure date set to determine which shareholders have the shares and are eligible for the right shares and dividends. If you have the share of the company before the book closure date, you are eligible to apply for the right share or receive the dividend.

Dividends

A dividend is the distribution of some of the company's earnings to the shareholder. It comes either in Cash dividend or Bonus Share or both. The shareholders who are eligible for the dividends are determined by the book closure date. A company giving out dividends is like rewarding their shareholders for trusting them and it also shows that the company is doing well.

Auction Shares

Auction is the process of selling assets to the highest bidder. Companies generally invite sealed bids to sell unsold right shares through auction. They sell the shares to those investors who apply the shares at the highest price.

Debentures

A debenture is a type of bond or other debt instrument that is unsecured by collateral. Debenture is used to raise capital and it relies on the trustworthiness of the issuing manager.

More Reading: https://www.reddit.com/r/NepalStock/comments/l984ql/all_about_debentures/

Mutual Funds

A mutual fund is where they pool investors' money and invest in their behalves. It is managed by professionals and has its own objectives in which companies they invest in.