The secondary market, also known as the stock exchange, is a crucial component of the capital market. In Nepal, the primary stock exchange is the Nepal Stock Exchange (NEPSE).

NEPSE lists various companies, and investors can buy and sell shares of these listed companies through brokers registered with the exchange. NEPSE employs an automated trading system that allows for efficient and transparent transactions. Investors place buy and sell orders through brokers, and the matching of these orders determines the stock prices.