Trading in Stock (SHIKHAR)

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PROJECT REPORTPROJECT REPORT

ONON

COMPARATIVE STUDY BETWEENONLINE SHARE TRADING AND

OFFLINE SHARE TRADING

Towards partial fulfillment of

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

DEPARTMENT OF FINANCE AND CONTROL

SUBMITTED TO: SUBMITTED BY:

ANKITA AGARWAL SHIKHAR GUPTA

Roll No !"!"#!#!##$%

ARYAKUL COLLEGE OF EDUCATION

LUCKNOW


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COMPARATIVE STUDY BETWEEN ONLINE SHARE TRADING AND OFFLINE SHARE TRADING

ACKNOWLEDGEMENT

Every work constitutes great deal of assistance and guidance from the people concerned and

this particular project is of no exception.

A project of the nature is surely a result of tremendous support, guidance, encouragement and

help.

Wish to place on record my sincere gratitude to&&&&&&&&&&&&&and the entire faculty of our

department. I thank them for their constructive help and encouragement throughout the

project. Without their support and guidance taking this would not have been possible.

Also, wish to acknowledge enthusiastic encouragement and support extended to me by my

family members. At last, I would like to thank all the faculty of business management to help

me completing this project.

I am also thankful to my friends who provided me their constant support and assistance.

SHIKHAR GUPTA

oll !o." #$#$%#%#%%&'

SHIKHAR GUPTA, Roll No.: 1212010100!

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DECLARATION

I do hereby declare that the research report titled "COMPARATIVE STUDY BETWEENCOMPARATIVE STUDY BETWEEN

ONLINE SHARE TRADING AND OFFLINE SHARE TRADINGONLINE SHARE TRADING AND OFFLINE SHARE TRADING#submitted by me in

partial fulfillment of the re(uirement o' B*+lo, o' B-./0+.. A12/0/.3,3/o0, exclusively

prepared and conceptuali)ed by me and is not submitted to any other Institution or *niversity

or published anywhere before for the reward of any +egree+iploma-ertificate. It is the

riginal work of mine and has not been obtained from any other part.

SHIKHAR GUPTA

Roll No: !"!"#!#!##$%


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TABLE OF CONTENT

ACKNOWLEDGEMENT

DECLARATION

E4ECUTIVE SUMMARY

INTRODUCTION

STOCK E4CHANGES

STOCK BROKER

STOCK TRADING

COMPANY PROFILE

OBJETIVE OF THE STUDY

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

CONCLUSION

RECOMMENDATIONS

LIMITATION

ANNE4URE

o 5UETIONNAIRE

o BIBLIOGRAPHY


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E4ECUTIVE SUMMARY

/he methodological approach to this study is descriptive, because we attempt to identify and

explain variables that exist in a given situation and to describe the relationship that exists

between these variables in order to provide a picture of a particular phenomenon, but not to

ferret out cause0effect relationship. /he primary data was collected through (uestionnaire

filling and by conducting telephonic interviews. /he secondary data was collected from

journals, texts written by renowned marketing gurus of reputed institutes around the world

and the internet.

India has a large chunk of population which is at lower income level and at middle income

level. /here is a need of creating awareness among them for share trading and the tremendous

potential it has. /hey are doing trading on the old methods which were used in the past. !ow

with the advent of technology there are many options available to the traders which they can

use without any fear. /he trend is moving towards the online share trading but still it has a lot

to cover. /he traders are more of young age and middle age and don1t fear from risk taking

but the lack of knowledge doesn1t allows them to do so. 2o the stock broking companies

should take measures to empower the normal investors so that they can trade with the latest

technologies available.

/arget the youth as they are most potential customers of the stock market as their interest

towards stock trading is increasing. /he stock broking companies should educate the

investors by giving them timely help in the form of reports and tips. /he companies should

try to work in more transparent way. 3eople want good services and are ready for paying

extra penny. 3eople prefer Ease of transactions and security. 2o, brokerage companies should

focus on security and making transactions as simple as possible with simple usage of

technology. /he stock broking companies should also go for tie0ups with the leading banks.


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INTRODUCTION


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INTRODUCTION

A STOCK MARKET is a private or public market for the tradingofcompany stock and

derivativesof company stock at an agreed price4 both of these are securitieslisted on a stock

exchange as well as those only traded privately.

3articipants in the stock market range from small individual stock investorsto large hedge

fundtraders, who can be based anywhere. /heir orders usually end up with a professional at a

stock exchange, who executes the order.

2ome exchanges are physical locations where transactions are carried out on a trading floor,

by a method known as open outcry. /his type of auction is used in stock exchanges and

commodity exchangeswhere traders may enter 5verbal5 bids and offers simultaneously. /he

other type of exchange is a virtual kind, composed of a network of computers where trades

are made electronically via traders.

Actual trades are based on an auction market paradigm where a potential buyer bids a

specific price for a stock and a potential seller asks a specific price for the stock. 67uying or

selling at market means you will accept any ask price or bid price for the stock, respectively.8

When the bid and ask prices match, a sale takes place on a first come first served basis if

there are multiple bidders or askers at a given price.

In India there are many stock exchange are working. 7ut out those many two are the most

important and carries the maximum amount of the business these are two stock exchanges are

!2E and 72E.


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http://en.wikipedia.org/wiki/Market_systemhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Hedge_fundhttp://en.wikipedia.org/wiki/Hedge_fundhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Open_outcryhttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Auctionhttp://en.wikipedia.org/wiki/Market_systemhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Hedge_fundhttp://en.wikipedia.org/wiki/Hedge_fundhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Open_outcryhttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Auction


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STOCK MARKET

2tock exchange or bourse is a corporation or mutual organi)ation which provides facilities

for stock brokers and traders, to trade company stocks and other securities. 2tock exchanges

also provide facilities for the issue and redemption of securities, as well as, other financial

instruments and capital events including the payment of income and dividends.

/he securities traded on a stock exchange include" shares issued by companies, unit trusts and

other pooled investment products and 7onds. /o be able to trade a security on a certain stock

exchange, it has to be listed there.

*sually there is a central location at least for recordkeeping, but trade is less and less linked

to such a physical place, as modern markets are electronic networks, which gives them

advantages of speed and cost of transactions. /rade on an exchange is by members only.

A stock exchange is often the most important component of a stock market. /here is usually

no compulsion to issue stock via the stock exchange itself, nor must stock be subse(uently

traded on the exchange. 2uch trading is said to be off exchange or over0the0counter. /his is

the usual way that 7onds are traded.

/he initial offering of stocks and bonds to investors is by definition done in the primary

market and subse(uent trading is done in the secondary market.

Increasingly more and more stock exchanges are part of a global market for securities.

2upply and demand in stock a market is driven by various factors which, as in all free

markets, affect the price of stocks 6see stock valuation8. Although common, the term 9the

stock market9 is a somewhat abstract concept for the mechanism that enables the trading of

company stocks. It is also used to describe the totality of all stocks and sometimes other

securities, with the exception of bonds, commodities, and derivatives. /he term is used

especially to apply within one country as, for example, in the phrase 5the stock market wasSHIKHAR GUPTA, Roll No.: 1212010100!

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up today5, or in the term 5stock market bubble5. 7onds are still traditionally traded in an

informal, over0the0counter8 market known as the bond market. -ommodities are traded in

commodities markets, and derivatives are traded in a variety of markets 6but, like bonds,

mostly 9over0the0counter98.

/he stock market is distinct from a stock exchange, which is an entity 6a corporation or

mutual organi)ation8 in the business of bringing buyers and sellers of stocks and securities

together. :or example, 9the stock market9 in the *nited 2tates includes the trading of all

securities listed on the !;2E, the !A2+Arse.

STOCK E4CHANGE:6

/he stock exchange is the important segment of its capital market. If the stock exchange is

well0regulated function smoothly, then it is an indicator of healthy capital market. If the

state of the stock exchange is good, the overall capital market will grow and otherwise it

can suffer a great set back which is not good for the country. /he government at various

stages controls the stock market and the capitals market.

A $%&'(%l )%*+( -%l '/ '/%/$'%l %(, $l-'/3 $o'/ %/- $**/$4.7anking accounts

compromises the majority of financial assets. 3ension and provident funds insurance policies

shares and securities. :inancial assets are claim of holders over issuer 6business firms and

governments8. /hey enter low different segment of financial market. /hose having short

maturities that are non transferable like bank savings and current accounts set the

identification of the monetary financial assets. /his market is known as money market,

E(uity, 3referential shares and bonds and debentures issued by companies and securities

issued by the government constitute the financial assets, which are traded in the capital

market.SHIKHAR GUPTA, Roll No.: 1212010100!

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MONEY MARKET AND CAPITAL MARKET:6

Bo3* 2o0+7 2,8+3 01 9/3l 2,8+3 o0.3/3-3+ 3*+ '/00/l 2,8+3 -apital market

generally known as stock exchange. /his is a institution around which every activity of

national capital market revolves. /hrough the medium stock exchange the investor gets on

impetus and motivations to invest in securities without which they would not be able to

li(uidate the securities. If there would have been no stock exchange many of the savers would

have hold their saving either in cash i.e. idle or in bank with low interest rate or low returns.

/he stock exchange provides the opportunity to investors for the continuous trading in

securities. It is continuously engaged in the capital mobili)ation process.

Another conse(uence of non0existence of stock exchange would have been low saving of the

community, which means low investment and lower development of the country.

2 0 2ecurities provide for investor.

/ 0 /ax 7enefits planning and exemption.

0 ptimum return on investment.

- 0 -autious Approach.

? 0 ?nowledge of @arket.

Ex 0 Exchange of 2ecurities /ransacted.

- 0 -yclopedia of =isted -ompanies.

0 igh ;ield.

A 0 Authentic Information

! 0 !ew Entrepreneur encouraged.

B 0 Buidance of Investor C -ompany.

E 0 E(uity


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HISTORY OF THE STOCK MARKET

In #$th century :rance the courratiers de change were concerned with managing and

regulating the debts of agricultural communities on behalf of the banks. As these men also

traded in debts, they could be called the first brokers. 2ome stories suggest that the origins of

the term 5bourse5 come from the =atin bursa meaning a bag because, in #'c. 7ruges,the sign

of a purse 6or perhaps three purses8, hung on the front of the house where merchants met.

owever, it is more likely that in the late #'th century commodity traders in 7ruges gathered

inside the house of a man called Dan der 7urse, and in #'% they institutionali)ed this until

now informal meeting and became the 57ruges 7ourse5. /he idea spread (uickly around

:landers and neighboring counties and 57ourses5 soon opened in Bhent and Amsterdam.

In the middle of the #'th century Denetianbankers began to trade in government securities. In

#' the Denetian Bovernment outlawed spreading rumors intended to lower the price of

government funds. /here were people in 3isa, Derona, Benoaand:lorencewho also began

trading in government securities during the #Fth century.

/his was only possible because these were independent city states not ruled by a duke but a

council of influential citi)ens. /he +utch later started joint stock companies, which let

shareholdersinvest in business ventures and get a share of their profits 0 or losses. In #G%$,

the+utch East India -ompany issued the first shares on the Amsterdam 2tock Exchange. It

was the first company to issue stocksandbonds.


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PREDOMINANT FUNCTION OF STOCK MARKET

RAISING CAPITAL FOR BUSINESSES

/he 2tock Exchange provides companies with the facility to raise capital for expansion

through selling shares to the investing public.

MOBILIING SAVINGS FOR INVESTMENT

When people draw their savings and invest in shares, it leads to a more rational allocation of

resources because funds, which could have been consumed, or kept in idle deposits with

banks, are mobili)ed and redirected to promote business activity with benefits for several

economic sectors such as agriculture, commerce and industry, resulting in a stronger

economic growth and higher productivity levels.

FACILITATE COMPANY GROWTH

-ompanies view ac(uisitions as an opportunity to expand product lines, increase distribution

channels, hedge against volatility, increase its market share, or ac(uire other necessary

business assets. A takeover bid or a merger agreement through the stock market is the

simplest and most common way to company growing by ac(uisition or fusion.

REDISTRIBUTION OF WEALTH

7y giving a wide spectrum of people a chance to buy shares and therefore become part0

owners 6shareholders8 of profitable enterprises, the stock market helps to reduce large income

ine(ualities. 7oth casual and professional stock investors through stock price rise and

dividends get a chance to share in the profits of promising business that were set up by other

people.


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CORPORATE GOVERNANCE

7y having a wide and varied scope of owners, companies generally tend to improve on their

management standards and efficiency in order to satisfy the demands of these shareholders

and the more stringent rules for public corporations by public stock exchanges and the

government. -onse(uently, it is alleged that public companies 6companies that are owned by

shareholders who are members of the general public and trade shares on public exchanges8

tend to have better management records than privately0held companies 6those companies

where shares are not publicly traded, often owned by the company founders andor their

families and heirs, or otherwise by a small group of investors8. owever, some well0

documented cases are known where it is alleged that there has been considerable slippage in

corporate governance on the part of some public companies

CREATES INVESTMENT OPPORTUNITIES FOR SMALL INVESTORS

As opposed to other businesses that re(uire huge capital outlay, investing in shares is open to

both the large and small stock investors because a person buys the number of shares they can

afford. /herefore the 2tock Exchange provides an extra source of income to small savers.

GOVERNMENT RAISES CAPITAL FOR DEVELOPMENT PROJECTS

/he Bovernment and even local authorities like municipalities may decide to borrow money

in order to finance huge infrastructure projects such as sewerage and water treatment works

or housing estates by selling another category of securities known as bonds. /hese bonds can

be raised through the 2tock Exchange whereby members of the public buy them. When the

Bovernment or @unicipal -ouncil gets this alternative source of funds, it no longer has the

need to overtax the people in order to finance development.


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IMPORTANCE OF STOCK MARKETS

FUNCTION AND PURPOSE:

Hust as it is important that networks for transport, electricity and telecommunications function

properly, so is it essential that, for example, payments can be transacted, capital can be saved

and channeled to the most profitable investment projects and that both households and firms

get help in handling financial uncertainty and risk as well as possibilities of spreading

consumption over time. :inancial markets constitute an important part of the total

infrastructure for every society that has passed the stage of largely domestic economies.

/he financial system performs three main tasks" firstly, it handles transfer of payments4

secondly, it channels savings to investments with a good return for future consumption4 and

thirdly, it spreads and reduces 6local enterprise8 economic risks in relation to the players9

targeted returns 6but note that systemic risk is not thereby reduced it merely becomes less

concentrated and uneven8. @oreover, unforeseen risks, or catastrophic risks 6such as the

complete collapse of the financial system or government institutions8, may not be capable of

being spread, or insured against.

/he smooth functioning of all these activities facilitates economic growth in that lower costs

and enterprise risks promote the production of goods and services as well as employment. In

this way the financial system contributes to increased prosperity.

/he stock market is one of the most important sources for companies to raise money.

Experience has shown that the price of shares and other assets is an important part of the

dynamics of economic growth. ising share prices, for instance, tend to be associated with

increased business investment and vice versa. 2hare prices also affect the wealth of

households and their consumption. /herefore, central banks tend to keep an Argus eye on the

control and behavior of the stock market and, in general, on the smooth operation financial

system functions. :inancial stability is the raison d9Jtre of central banks.SHIKHAR GUPTA, Roll No.: 1212010100!

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WELL KNOWN STOCK E4CHANGES

/his is a list of stock exchanges that offers trading in securities besides trading in future

contracts are "0

!ew ;ork 2tock Exchange

/okyo 2tock Exchange

!A2+A3*

-ompanies view ac(uisitions as an opportunity to expandproduct lines, increase distribution

channels, hedge against volatility, increase its market share, or ac(uire other necessary

business assets.Atakeoverbid or amerger agreement through the stock market is one of the

simplest and most common ways for a company to grow by ac(uisition or fusion.

? R+1/.3,/;-3/o0 o' >+l3*

2tock exchanges do not exist to redistribute wealth. owever, both casual and professional

stock investors, throughdividends and stock priceincreases that may result in capital gains,

will share in the wealth of profitable businesses.

$ Co,9o,3+ =o+,00+

7y having a wide and varied scope of owners, companies generally tend to improve on their

management standards and efficiencyin order to satisfy the demands of these shareholders

and the more stringent rules for public corporations imposed by public stock exchanges and


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the government. -onse(uently, it is alleged thatpublic companies 6companies that are owned

by shareholders who are members of the general public and trade shares on public exchanges8

tend to have better management records than privately0held companies 6those companies

where shares are not publicly traded, often owned by the company founders andor their

families and heirs, or otherwise by a small group of investors8. owever, some well0

documented cases are known where it is alleged that there has been considerable slippage in

corporate governanceon the part of some public companies. /he dot0com bubble in the early

$%%%s, and the subprime mortgage crisisin $%%L0%K, are classical examples of corporate

mismanagement. -ompanies like 3ets.com 6$%%%8, Enron -orporation 6$%%#8, ne./el

6$%%#8, 2unbeam 6$%%#8, Web van 6$%%#8, Adelphia 6$%%$8, @-I World-om 6$%%$8,

3armalat6$%%'8, American International Broup6$%%K8, =ehman 7rothers6$%%K8, and 2atyam

-omputer 2ervices6$%%8 were among the most widely scrutini)ed by the media.

C,+3/0= /0+.32+03 o99o,3-0/3/+. 'o, .2ll /0+.3o,.

As opposed to other businesses that re(uire huge capital outlay, investing in shares is open to

both the large and small stock investorsbecause a person buys the number of shares they can

afford. /herefore the 2tock Exchange provides the opportunity for small investors to own

shares of the same companies as large investors.

Go+,02+03 9/3l6,/./0= 'o, 1++lo92+03 9,o+3.

Bovernments at various levels may decide to borrow money in order to finance infrastructure

projects such as sewage and water treatment works or housing estates by selling another

category of securities known as bonds. /hese bonds can be raised through the 2tock

Exchange whereby members of the public buy them, thus loaning money to the government.

/he issuance of such bonds can obviate the need to directly tax the citi)ens in order to

finance development, although by securing such bonds with the full faith and credit of the

government instead of with collateral, the result is that the government must tax the citi)ensSHIKHAR GUPTA, Roll No.: 1212010100!

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http://en.wikipedia.org/wiki/Public_companieshttp://en.wikipedia.org/wiki/Privately-held_companyhttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Pets.comhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/One.Telhttp://en.wikipedia.org/wiki/Sunbeam_Productshttp://en.wikipedia.org/wiki/Webvanhttp://en.wikipedia.org/wiki/Adelphia_Communications_Corporationhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/Parmalathttp://en.wikipedia.org/wiki/American_International_Grouphttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Public_companieshttp://en.wikipedia.org/wiki/Privately-held_companyhttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Pets.comhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/One.Telhttp://en.wikipedia.org/wiki/Sunbeam_Productshttp://en.wikipedia.org/wiki/Webvanhttp://en.wikipedia.org/wiki/Adelphia_Communications_Corporationhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/Parmalathttp://en.wikipedia.org/wiki/American_International_Grouphttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Bond_(finance)


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or otherwise raise additional funds to make any regular coupon payments and refund the

principal when the bonds mature.

B,o2+3+, o' 3*+ +o0o27

At the stock exchange, share prices rise and fall depending, largely, on marketforces. 2hare

prices tend to rise or remain stable when companies and the economyin general show signs

of stability and growth. An economic recession, depression, or financial crisis could

eventually lead to a stock market crash. /herefore the movement of share prices and in

general of the stock indexescan be an indicator of the general trend in the economy.


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MANAGEMENT OF STOCK E4CHANGE

M0=+2+03 o' .3o8 +


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SEBI: SECURITIES AND E4CHANGE BOARD OF INDIA

2E7I is the egulator for the 2ecurities @arket in India. riginally set up by the Bovernment

of India in #KK, it ac(uired statutory form in #$ with 2E7I Act #$being passed by the

Indian 3arliament. -haired by *pendra?umar 2inha, 2E7I is head(uartered in the popular

business district of 7andra0?urla complexin @umbai, and has !orthern, Eastern, 2outhern

and Western regional offices in!ew +elhi,?olkata,-hennaiand Ahmadabad.


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2E7I 7havan, @umbai ead(uarters of 2E7I

ORGANIATION DETAILS

ead(uarters @umbai, @aharashtra, India

Established #$

Hurisdiction India

ead -hairman

-hairman *pendra?umar 2inha

/erm :ebruary #K, $%## 0

/otal 2taffN#O &$&

OFFICIAL WEBSITE

Website www.sebi.gov.in
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/SEBI_Act_1992http://en.wikipedia.org/wiki/Chandrasekhar_Bhaskar_Bhavehttp://en.wikipedia.org/wiki/Bandra-Kurla_complexhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/C_B_Bhavehttp://en.wikipedia.org/wiki/Sebi#cite_note-sebi.gov.in-0http://www.sebi.gov.in/http://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/C_B_Bhavehttp://en.wikipedia.org/wiki/Sebi#cite_note-sebi.gov.in-0http://www.sebi.gov.in/http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/SEBI_Act_1992http://en.wikipedia.org/wiki/Chandrasekhar_Bhaskar_Bhavehttp://en.wikipedia.org/wiki/Bandra-Kurla_complexhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Ahmedabad


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FUNCTIONS AND RESPONSIBILITIES OF SEBI:

2E7I has to be responsive to the needs of three groups, which constitute the market"

/he issuers of securities

/he investors

/he market intermediaries.

2E7I has three functions rolled into one body (uasi0legislative, (uasi0judicial and (uasi0

executive. It drafts regulations in its legislative capacity, it conducts investigation and

enforcement action in its executive function and it passes rulings and orders in its judicial

capacity. /hough this makes it very powerful, there is an appeals process to create

accountability. /here is a 2ecurities Appellate /ribunal which is a three member tribunal and

is presently headed by a former -hief Hustice of a igh court 0 @r. Hustice !? 2odhi. A

second appeal lies directly to the 2upreme -ourt.

2E7I has enjoyed success as a regulator by pushing systemic reforms aggressively and

successively 6e.g. the (uick movement towards making the markets electronic and paperless

rolling settlement on /X$ bases8. 2E7I has been active in setting up the regulations as

re(uired under law.


34
http://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_India


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STOCK BROKERS


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STOCK BROKERS

2E7I registered stock 0 brokers interested in providing Internet based trading services will be

re(uired to apply to the respective stock exchange for a formal permission. /he stock

exchange should grant approval or reject the application as the case may be, and

communicate its decision to the member within thirty calendar days of the date of completed

application submitted to the exchange.

/he Exchange closely monitors outstanding position of top buying member0brokers and top

selling member0brokers on a daily basis. :or this purpose, it has developed various market

monitoring reports based on certain pre0set parameters. /hese reports are scrutini)ed by

officials of the 2urveillance +ept. to ascertain whether a member0broker has built up

excessive purchase or sale position compared to his normal level of business. :urther, it is

examined whether purchases or sales are concentrated in one or more scrips, whether the

margin cover is ade(uate, whether transactions have been entered into on behalf of

institutional clients and even the (uality of scrips, i.e., li(uid or illi(uid is looked into in order

to assess the (uality of exposure. /he Exchange also scrutini)es the pay0in position of the

member0brokers and the member0brokers having larger funds pay0in positions are at times, at

the discretion of the Exchange, re(uired to make advance pay0in on /X# day instead of on

/X$ day.

BASIC RE5UIREMENTS FOR STOCK BROKERS

/rading will be on existing stock exchanges through order routing system for execution of

trades. /herefore, stockbrokers are to comply with the following before the start of trade on

Internet.

#. /he broker must have a net worth of s. &% lakh if he wants to avail the facility of

Internet for his own.


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$. 3rovision for maintenance of ade(uate back up system.

'. /he software system to be used by him should be secured and reliable.

F. /o employ the (ualified staff for this purpose.

&. /o send ordertrade confirmation to the client also through e0mail.

G. /he contract notes must be issued to the clients as per existing regulation within $F

hours of the execution of trades.

L. /he broker and his client should use authentication technologies.

/he above are some of the important pre0re(uisites for the stockbroker should intend to take

benefits of trading on Internet. owever, detailed guidelines issued by the 2E7I for the stock

exchange


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KINDS OF STOCK BROKERS

! Co22/../o0 B,o8+,:0

!ear about all the brokers buy and sell securities for earning a commission for investor point

of view he is the most important person and responsibility is to buy and sell stoke for his

customer. It means that he acts as an agent of investor and earns commission for his services

rendered. /he broker is also an independent dealer in securities. e purchases and sells

securities in his own name but he is not allowed to deal with non0member.

"Jo;;+,"0

e is a professional speculator who works for a profit called turn1 he makes a continuous

auction in the market in the stoke in which he speciali)ed. e trades in the market evens for

small difference in the prices and helps to maintain li(uidity in the stoke exchange.

%Floo, B,o8+,:6

/he floor broker buys and sells shares for the other broker on the floor of the exchange. e is

an individual member owns his seat and receives his own commission on the orders he

execute. e helps other brokers when they are buy and as compensation receives a portion

the broker.

?O11 l/3 1+l+,:6

:or trading in stock exchange there a certain number of share a fixed to be transacted in a lot,

this is known as round lat which is usually a, #%% share a. Any thing less than the round lot

are add lot. If a person is in possession of add lot of share i.e. #%, $%, '%, F% etc. /hey he will

has to look for the add lot dealer.


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$B-1l/>l:6

e is the person who finance or provide credit facilities to the market for this service he

charges a fees called contango or backwardation charges. /he budliwala gives a fully secured

loan for period of $ to ' weeks.

A,;/3,=+-,:6

A person who is specialist in dealing with securities in different stoke exchange centers at the

same time. e makes a profit by the difference in the piece prevailing in different centers of

the market activity. :or example the rte of a certain scrip is higher in some stoke exchange

than other on. In this case the broker will buy the scrip from the marked lower price and will

sell the scrip in the market at higher price. /he profit of the arbitrageur depends on the ability

to get the prices from different centers before trading in other stoke exchanges.

RISK MANAGEMENT IN A BROKING FIRM

isk management in a 7roking Industry is a new concept in India, since it poses maximum

risk in the financial market, managing it was felt most essential by the regulatory bodies and

exchanges. /herefore !2E introduced for the first time in India, risk containment measures

that were common internationally but were absent from the Indian 2ecurities @arket. !2--=

has put in place a comprehensive risk management system, which is constantly upgraded to

pre0empt market failures. /hese measures were taken to reduce the brokers1 risks. Whereas

2E7I has given some guidelines under Investors 3rotection to protect investors risks. !2E

has given the following risk management measures


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STOCK TRADING


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STOCK TRADING

OVERVIEW

/he marketing of the securities on the stock exchange can be done through member of the

stock exchange. /hese members can be either individuals or corporate bodies.

:or the process of trading in stock exchange there is the basic need for a transaction between

an individual and the broker execute customer1s order to buy or sell on the stock exchange

trading ring. /he exchange of scrip between the member of the exchange in from of buying

or selling is called trading

7roker is the member of recogni)ed stock exchange and helps the customers in buying or

selling the securities for the brokerage that he receives.

PROCEDURE OF TRADING

! SELECTION OF BROKER

/he first step is buying or selling of share is to select a broker for transaction business on

behalf of the investor. /he trading of securities on the stock exchange can be done through

members of the exchange.

An investor prefers to select a broker who shall.

Act with due skill. -are and diligence in the conduct of all his business.

!ot create false market either singly or in concert with other.

" OPENING AN ACCOUNT WITH THE BROKER

/he next step is to open account with the broker. It helps the investor to provide his credit

worthiness, if the clients were not to do margin money with the broker.

% SELECTION OF SECURITIES


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/his is application for buying securities. /he investor may be consulted with broker and take

advise for selection of securities.

? SELECTION OF TIME FOR TRADING

/his is important to get the best advantage from buying or selling the securities.

$ PLACING AN ORDER

Darious method of placing an order with the broker has been evolved to give the broker

leverage when he is on the floor of the stock exchange.

PREPARATION OF CONTRACT NOTE

2E7I circular of Fth:eb. ## re(uires that all member of the recogni)ed stock exchange

issue contract note to the investors on the execution of trade. 7rokers, therefore issue contract

note to the client, which gives the name of the company, price of trade, brokerage, time of

execution, provision regarding arbitration etc. in term of the bye0laws of stock exchange, this

is statutory re(uirement and mandatory.

SETTLEMENT

/he settlement is the process where by payment is made by brokers who have made purchase

and share delivery by those brokers who have made sales.


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ONLINE SHARE TRADING

nline share trading is done with the help of computer, internet connection and with trading

or de0mat account is called online share trading, or we can say that online trading is the

trading of securities via the internet. If you would like to do online share trading then you

should have a computer, internet connection and online trading account. It is done via internet

means that all the transaction are settled electronically.

ADVANTAGES:

! /he first and main benefit of this is that in online trading the member does not need to go

to the share market for checking, which consumes a lot of time. All the information about

shares, stock market is just one click away and it has made trading much simple, easy and

attractive.

"+ependence on broker or anybody else is nil for placing or s(uaring off the order. In short

one is hisher own boss for trading of shares.

% Its not possible or viable for a broker to update customers about each and every news of

the market or any news which can have any influence on the share market. 2o if someone is

doing online trading himself, then a disaster can be averted. 3eople can get news and updates

on various websites and also on their online trading system and most of the information will

be free of cost.

? All the transactions and related documents can be seen online and can also be downloaded

to the 3- without depending on any broker. 2tatus of the amount can also be checked on

daily basis through online trading system.


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DISADVANTAGES

#. ne may face a problem of disconnection from internet and hence will not be able to login0

in and do share trading.

$. ne may also face problem like electricity cut0off and at that time one has to call his

broker and place the order for execution.

+ue to all of the above advantages it is clear that the trading in India is spreading like fire and

is surely going to increase in the future.


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OFFLINE SHARE TRADING

In offline trading the transactions are done through the phone and when to buy or sell is

directed through phone. In other words trading will be done by another person on one1s

behalf based on the instructions given by one, and then the other person can be a broker. /he

broker will do buying and selling of shares on one1s behalf depending on the instructions

given by one. /his type of trading was done in the past but nowadays most of the trading is

done through computers i.e. online. E.g. 2uppose that if @r. M wants to sell n number of

shares when the share price reaches s. #%%, then M will tell his broker to sell the share at s

#%% 6i.e. when the price of s. #%% is reached8.

!evertheless, with all the convenience of online trading there are still investors who prefer

the old fashion way of offline trading. ffline trading has lost some popularity but it is still

the main form of investing. O''l/0+ 3,1/0= o''+,. 207 ;+0+'/3. . >+ll

ADVANTAGES:

#. /he one benefit that an investor appreciates the most is that they are not alone when

making investment decisions.

$. /here are experienced and professional brokerage companies that handle their investments

for them.

'. Investors are not faced with the challenge of making these vital investment decisions4

especially, if they do not have the experience necessary to make the appropriate investments.

F. Also, there is someone there to answer any (uestions that may cause concerns.

!ot to mention, with offline trading mistakes are less likely to take place. !o one wants to

throw their money away or stand by and watch someone else throw their money away. It may

be wise to hire a professional to assist you in making the correct investment decisions if you

feel you lack the knowledge necessary.


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/he reason why online trading has emerged is due to the emergence of I/. +oing transactions

online is always advantageous and easy plus less time is taken by doing transactions online.

DISADVANTAGES"

Also following are the 1/.103=+.of doing transactions offline"#. !ot the cheapest fees available.$. =ost some of its competitiveness in attracting new customers with higher commission

rates.'. /ime consuming process.F. 2low process than online trading. A delay of even a second can change the value of a

particular stock greatly.


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DIFFERENCE BETWEEN ONLINE AND OFFLINE TRADING

/ype of competitive pricing for trade fees has not only encouraged investors to trade online,

but it has also changed the way in which people trade. :or instance, investors are now more

likely to make (uick trades and attempt to profit from short0term ownership of stock, since

they do not give away hundreds of dollars each time they make a trade.

Another of the differences between offline and online stock trading has to do with the role of

the stock broker his or herself. Whereas a traditional stock broker provided a certain amount

of management assistance in terms of a trader9s investments, online brokers are decidedly less

hands0on, and online investors have pretty much total control over what they do and when.

3art of this has to do with not being able to provide the individual attention that comes with

the steep commissions that traditional brokers charge traders, and this is another reason why

online traders have to be very informed and up0to0date.

nline stock trading is not going anywhere, and many investors absolutely love the

convenience and value of managing their own investments from the comfort of their homes.

While it is obvious that online trading was an attractive option for many investors, what was

unexpected is how much online trading has changed the strategies investors use.

@ajor advantage one has is offline trading is the help and stock tips guide received by the

dealer. Whereas in online though they get stock tips, but end of it the client is on his own.

Incase of any major ups and downs, the dealer would call and give some personal attention to

the offline client which is not possible for an online client


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COMPANY PROFILE


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FAIRWEALTH SECURITIES PRIVATE LIMITED

:airwealth Broup established in $%%&, is an

investment solutions firm providing

comprehensive investment services in all asset

classes by keeping -lient9s interest foremost, having its corporate office at @umbai and head

(uarters at +elhi !-. It1s a leading stock broking firm who started spreading its network

across India starting initially from +elhi !- in the year $%%&.

:airwealth Broup offers an extensive suite of investment solutions including etail 7roking,

Institutional 7roking, nline /rading, @obile /rading, +epository, +istribution, Insurance,

Wealth @anagement, eal Estate, Advisory, =oans C esearch. :airwealth follows tailor

made approach to cater to various customer 2egment including etail, !I9s, -orporate

ouses, and +omestic C :oreign Institutions. +evising appropriate Investment strategies that

suits Investors 3rofile C Appetite backed by valuable research is :airwealth9s main forte.

PHILOSOPHY

Brow with Intelligence

At :airwealth, we believe in growth which is backed by the detailed analysis and research

which makes us competent advisors to advise our customers over the investments and thus

enhance their wealth. -ustomer9s interest is taken as the foremost thing while making any

transaction at :airwealth. @aking the decisions with intelligence is the key factor which we

follow and create the desired results. +r. 2tock is an uni(ue initiative by :airwealth in this

direction which provides an interactive interface to our clients to guide them about their

investment and the ups and down of the financial market.


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KEY MANAGEMENT

MR DHIRENDER GABA

:ounder C @+, :airwealth 2ecurities =td.

A law graduate and @7A, :inance, @r. +hirender Baba has been associated with the stock

market and its operations since #&. e is since grown to become a reputed figure in the

financial services domain. aving closely worked with the unpredictable nature of trading for

#& years, @r. Baba could foresee the possible opportunities in the sector and thus gave shape

to :airwealth 2ecurities =td. in $%%&.

@r. Baba is valued by clients, competitors and market observers alike for his deep

understanding of the stock market, his analyses and advice to companies, as also his research

in stocks and investments. e is a crafty mind when it comes to long0term investments and

has a profound knowledge of macro and microeconomics. @uch like legends of the field as

Warren 7uffet, @r. Baba buys into the business model of a company and expertly judges the

longevity and growth potential. Among his top priorities are competitive ability, scalability

and management (uality of the enterprise.

*nder his experienced leadership, :airwealth 2ecurities has rapidly expanded and made a

widespread presence felt all over India, seamlessly growing into a financial services company

par excellence.


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MR NAVEEN GABA

+irector, :airwealth

e is a -o0promoter of the -ompany with an Art Braduate, having a wide experience of #L

years. e joined the business as a +irector of :airwealth and took charge of the entire 2ales

marketing and customer support division of the company. is prime area of focus is

institutional business and maintaining investor relations C also responsible for retail business

development. @r. !aveen Baba has been instrumental in encouraging professional marketing

in the organi)ation and has immense experience in the marketing of financial products and

services. *nder his dynamic leadership and experience, :airwealth has opened F%X branches

all over India.

MR ANIL DI4IT

+irector, :airwealth

e has the long experience of #' years in :inancial @arket and has been looking after the

-redit -ontrol +ivision for :airwealth for last #% years. @r. +ixit has been proven as an asset

for the company with time and has become the part of senior management with his sheer hard

work and excellent abilities to outperform in his working areas.

MS ATIMA MANKOTIA

+irector Y uman esources, -orporate 3lanning and -ommunications

An alumni of 2t 2tephen1s -ollege, Atima @ankotia has completed her @7A in uman

esource @anagement from M=I, Hamshedpur. With over $% years of experience in various

industries and organi)ations, she has travelled the world extensively gathering exposure to

international best practices. At the :airwealth Broup she is gearing to add positive new

dimensions to the organi)ation ensuring that it is at par with some of the best in the world.SHIKHAR GUPTA, Roll No.: 1212010100!

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2he brings to the table her vast experience in communication, human resources, people and

organi)ations and has been widely recogni)ed for her professional abilities.

MR PRAKASH THAKKAR

-E

@r. 3rakash /hakkar is a well know name in financial industry and has more than $' years of

vast experience. In his past experience he has served with leading broking houses as +irector

and -E. e has good analytical skills and specially in commodity and currency products.

e has the ability to understand business dynamics and to take prompt decisions, coupled

with his strong leadership background has enabled him to run the entire business.

MR RAKESH GUPTA

3rofessional Advisor, :airwealth

@r. akesh Bupta is a fellow member of the Institute of -hartered Accountants of India

6I-AI8 and has a wide experience of more than #G years in the -apital @arket. e has served

as +irector at 2@-, e has an in0depth knowledge and strong understanding of various

intricacies of :inancial @arket. is ability to understand the business dynamics, coupled with

his sound financial C accounting background and knowledge of marketing channels has

enabled him to manage the entire 7roking perations and 7usiness +evelopment activity of

:airwealth


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MR VIVEK ANAND

Dice 3resident 0 2ales

Divek aj Anand is a recogni)ed and awarded realty leader with over #L years of work

experience in !I, -orporate and -hannel 2ales. e has worked as ead of !I 2ales with

Investors -linic and India omes for over F years and has years of financial market

experience with Aditya 7irla Broup, Apollo Broup and financial domain of Wipro.

2pearheading :airwealth1s ousing foray from scratch, he aims to make the housing domain

the most profitable vertical of the family group


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CORPORATE ETHOS

V/./o0

/o be admired as a financial services enterprise having worldwide presence with global

processes and technology to help accomplish the goals of aspiring investors.

M/../o0

/o be known to protect and enhance client9s wealth with inimitable research

C valuable knowledge.

Vl-+.

RESEARCH-DRIVEN

+ecisions backed up with facts.

ACCESSIBLE & AR!ACHABLE

Always available for our clients C associates

CLIENT-CENTRIC

-lients drive our growth.

ETHICAL C!ND"CT

onesty in every transaction


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OUR REGISTRATIONS

Exchange egistration !o. :@- *ni(ue @embership -ode 6*@-8

@-M #$&%& @-M /-@ -3%FFG

!-+EM %%%$ !-+EM /-@ -3 %KLL

!@-E -l%$%& !@-E /-@ -3 %##

!2E I!7: $'#$L$''K Z 72E I!7%##$L$''F Z @-M02M I!E$G#$L$''K 6:airwealth

2ecurities =td.8 @-M/-@-3%FFG, !-+EM, /-@-3%KLL 6:airwealth

-ommodity 7roking 3vt. =td.8 Z 3@2 egn. !o. I!3%%%%%$K#L

OUR MEMBERSHIPS

!ational 2tock Exchange of India =td.

7ombay 2tock Exchange =td.

@ulti -ommodity Exchange of India =td.

!ational -ommodity C +erivatives Exchange =td.

@-M 2tock Exchange =td.

*nited 2tock Exchange of India

!ational @ulti -ommodity Exchange India =td.

!ational 2pot Exchange =td.

-entral +epository 2ervices India =td.


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PRODUCT @ SERVICES

etail 7roking

Institutional 7roking

nline /rading

+istribution

Insurance

Wealth @anagement

+epository 2ervices


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OBJECTIVE OF THE

STUDY


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OBJECTIVE OF THE STUDY

/he objectives of the proposed study are"

#8 Identify the specific factors that affect investor1s attitudes towards share trading.a8 Identify the specific factors that affect consumer attitudes towards on line and offline

share trading.b8 Identify the specific problems and challenges faced by Investors in online and offline

share trading.$8 -omparison between online and offline share trading methods.


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RESEARCH

METHODOLOGY


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RESEARCH METHODOLOGY

Uesearch design is an arrangement of conditions for collections and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.V

/he design includes an outline of what the researcher will do from writing the hypothesis and

its operational implications to the final analysis the data.

D3 Coll+3/o0 M+3*o1

+ata collection is a basic step and of vital importance. n which success or failure of the

study depends. All researchers can tap into two sources of data.

3rimary +ata

2econdary +ata

P,/2,7 D3

3rimary data are obtained by a study specifically designed to fulfill the data needs of the

problem at hand. 2uch data are original in character. /hese data are raw material. /hey are

the measurement observed and recorded as a part of original study. /hey are original in

character. /he investigator or researcher directly collects this data. /he basic form of

obtaining this data is by observing and (uestioning.

/he 3rimary data was a detailed interview schedule with the help of a detailed (uestionnaire.

/he samples were drawn purposively from various areas for the relevance of study. T*+

9,/2,7 13 >. oll+3+1 ;7 -./0= 3*+ -+.3/o0+, 2+3*o1

S+o01,7 D3

+ata which are not originally collected but rather obtained from published or unpublished

sources are known as secondary data.


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/hey are not originally drawn by the researcher as fresh data. /hese are collected by some

other person for this purpose and published. /hese types of data can be collected through

various sources.

I0 3*/. 9,+.+03 .3-17 >+ *+ -.+1 9,/2,7 01 .+o01,7 13 .o-,+

5UESTIONNAIRE


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DATA ANALYSIS AND INTERPREATATION

5! Ho> ol1 7o- ,+ /0 S3o8 T,1/0=

I0+.32+03 1+/./o0 P+,+03=+ o' ,+.9o01+03.

#6" Y+,. ""6? Y+,. %"

?6 Y+,. "?

Mo,+ 3*0 7+,. !

A0l7./. 01 /03+,9,+33/o0

:rom the survey it was found that most of the investors are trading since more than $ years.


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5"A3 >*/* ,3+. 1o 7o- >03 7o-, /0+.32+03 3o =,o>

I0+.32+03. =,o>3* ,3+ P+,+03=+ o' ,+.9o01+03.

S3+1/l7 !"

A3 0 +,=+ "

A3 '.3 ,3+ "To3l !##

A0l7./. @ I03+,9,+33/o0::rom the survey it was found that G$R respondents wants their

investment grow at fast rate whereas only $GR respondents were in the favour of investment

growth at average rate.

5% Ho> ',+-+03l7 1o 7o- /0+.3


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F,+-+07 o' /0+.32+03. P+,+03=+ o' ,+.9o01+03.

D/l7 !"

W++8l7 "#

Mo03*l7 %

Y+,l7 %"

To3l !##

A0l7./. @ I03+,9,+33/o0:

:rom the above table C chart it was found that 'GR respondents invest monthly, '$R invest

yearly and there were $%R respondents who invest weekly. /hus, it can be stated that

majority of the investors invest monthly in stock market.

5? W*3 9+,+03=+ o' 7o-, 00-l /0o2+ 1o 7o- /0+.3 /0 .*,+ 2,8+3

A00-l /0o2+ /0+.3+1 P+,+03=+ o' ,+.9o01+03.

U9 3o !# !?

!#6!$ ""

!$6"# ?#

Mo,+ 3*0 "# "?SHIKHAR GUPTA, Roll No.: 1212010100!

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To3l !##

A0l7./. @ I03+,9,+33/o0:

:rom the above table C chart, it was found that F%R respondents invest #&0$%R of their

annual income, $F respondents invest more than $%R of their annual income, $$ respondents

invest up to #%0#&R of their income and #FR respondents invest up to #%R of their income

in different investment avenues. /hus, it can be concluded that majority of investors invest

#%R to $%R of their monthly income.

5$ I0 >*/* +


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5 W*/* 379+ o' 3,1/0= 7o- -.+ 'o, /0+.32+03

O0l/0+ "

O''l/0+ "

A0l7./. @ I03+,9,+33/o0:

@ost of the respondents use offline trading.


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5 W*/* 2o1+ o' 3,1/0= 7o- '++l /. .'+,

O0l/0+ %?

O''l/0+

A0l7./. @ I03+,9,+33/o0:

@ost of the respondents think that ffline trading is safer than the online trading.


69


70/86


5 Do 7o- o0'/,2 ',o2 7o-, ;,o8+, '3+, 3*+ o,1+, /. +


71/86


5 H+ 7o- '+1 07 /..-+ >*/l+ 3,1/0= o''l/0+

Y+. $

No ?!

A0l7./. @ I03+,9,+33/o0:

@ost of the respondents have faced some issue while trading offline.


71


72/86


5!# I' Y+. >*3 8/01 o' /..-+ 7o- *+ '+1

S*,+ 9,/+ 1/''+,+0+ ?"

B-.7 3+l+9*o0+ l/0+ %

O3*+,. ""

A0l7./. @ I03+,9,+33/o0:

@ost of the respondents have found price difference issue while placing the order offline.


72


73/86


5!! Wo-l1 7o- ++, l/8+ 3o .>/3* /03o O0l/0+ T,1/0= 1-+ 3o 3*+.+ /..-+.

Y+.

No %!

A0l7./. @ I03+,9,+33/o0:

@ost of the respondents said that they may think to switch in nline trading after such issues

in trading.


73


74/86


FINDINGS


74


75/86


FINDINGS

Investors have full confidence in stock market and they are ready to adopt new

features of stock market.

Investors adopt partial investment strategy and they put some amount of earning in

stock market as part of investment.

@ostly investors still prefer to sit in broker1s office and trade.

ffline trading is still preference for old investors.

!ew age investors love to adopt new technologies and they prefer online trading.

/hough some investors has faced issues while trading offline i.e. late order execution.

2ome investors shown interest in online trading to issues in offline trading.

2ome Investors think that nline trading is cheaper and comfortable.

Investors still have security concern in online trading.

Investors think that offline trading is (uite safe and reliable as it keep them in tough

broker and they get more ideas about investment.


75


76/86


CONCLUSION


76


77/86


CONCLUSION

/he retail brokerage industry has experienced a number of changes in recent times,

particularly due to the shift in consumer behavior from using traditional full service

brokerages to discount firms.

7y doing this survey it is found that the consumer attitude towards share trading is very much

positive. /hey are willing to adopt new technology provided they are given proper knowledge

about it. And, brokerage companies which can (uickly adopt new technologies into the

system with reliable and ease in transactions will succeed and can tap greater pie of the

market.

/here are various factors which affect the attitudes of customers towards share trading"

3eople having more income are ready to take more risks and thus schemes should

introduce for them separately.

3eople of age more than &% years are more willing to put their money into bank

deposits. /hey should be targeted basically for the 3@2 as they want more security

and 3@2 till date has given good results.

@ostly old traders still prefer the ffline trading and they don1t want to rely on online

trading.

;outh and middle age don1t hesitate while taking risk. /hey want to earn money very

fast. @iddle aged people are moderate risk takers as they are at an age where they

have to keep many things in their mind and hence they don1t take much risk. ld age

people are low risk takers as they don1t want to lose their money and also they want to

accrue their wealth instead of losing it.


77


78/86


RECOMMENDATIONS


78


79/86


RECOMMENDATIONS

#. As it1s been observed that around most of the respondents are using offline trading, so there

is a greater scope to target people, who are not doing stock trading, by aggressive advertising

campaign and creating awareness about the brokerage company highlighting all the benefits

of technology and eliability factor.

$. Another thing that1s been found out during this survey is that people value services more

than cost. 3eople want good services and are ready for paying extra penny.

'. 3eople prefer Ease of transactions and security. 2o, brokerage companies should focus on

security and making transactions as simple as possible with simple usage of technology.

F. /here are some companies which don1t have tie ups with many banks, so that trading

account can be linked with the savings account of the brokerage company. 2o, a focus to go

for tie ups with major nationali)ed bank should be there.

&. -ompanies should provide knowledge to the customers regarding stock market. Aim

should not be making maximum profit at once. /he advantage of this will be that the

customer will trust broker and will recommend to the other people also.

G. /he company should provide a manual to their clients to ease them through the process of

trading.


79


80/86


LIMITATIONS


80


81/86


LIMITATION OF STUDY

@ost of the respondents were least interested in (uestionnaire.

All the respondents are of =ucknow city only.

It was difficult to get correct information from some of the people. 2tudy is limited to those traders who trade offline.

/heir response might be bias.

2tudy is limited to :airwealth 2ecurities 3rivate =imited only.


81


82/86


83/86


ANNE4URE


83


84/86


5UESTIONNAIRE

N2+:

A=+:

O-93/o0:

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#6" Y+,.

"6? Y+,.

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Mo,+ 3*0 Y+,.

5"A3 >*/* ,3+. 1o 7o- >03 7o-, /0+.32+03 3o =,o>

S3+1/l7

A3 0 +,=+

A3 '.3 ,3+

5% Ho> ',+-+03l7 1o 7o- /0+.3

D/l7

W++8l7

Mo03*l7

Y+,l7


84


85/86


5? W*3 9+,+03=+ o' 7o-, 00-l /0o2+ 1o 7o- /0+.3 /0 .*,+ 2,8+3

U93o !#

!#6!$

!$6"#

Mo,+ 3*0 "#

5$ I0 >*/* +


86/86


5 H+ 7o- '+1 07 /..-+ >*/l+ 3,1/0= o''l/0+

Y+.

No

5!# I' Y+. >*3 8/01 o' /..-+ 7o- *+ '+1

S*,+ 9,/+ 1/''+,+0+

B-.7 3+l+9*o0+ l/0+

O3*+,.

5!! Wo-l1 7o- ++, l/8+ 3o .>/3* /03o O0l/0+ T,1/0= 1-+ 3o 3*+.+ /..-+.

Y+.

No

Trading in Stock (SHIKHAR)

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