Consumer Satisfaction Towards Online Share Trading
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A STUDY ON CUSTUMER SATISFACTION TOWARDS ONLINE SHARE TRADING WITH SPACIAL REFRENCE TO AGRA CITY
A SYNOPSIS SUBMITTED FOR THE FUFILLMENT OF THE BACHELOR DEGREE OF COMMERCE (HONS.)
UNDER THE SUPERVISION OF Dr. SANJEEV BHATNAGAR (DEPARTMENT OF BUSINESS MANAGEMENT)
SUBMITTED BY: AMULYA RAJ 072011
DAYALBAGH EDUCATIONAL INSTITUTE (DEEMED UNIVERSITY) DAYALBAGH, AGRA (U.P.)
A STUDY ON CUSTUMER SATISFACTION TOWARDS ONLINE SHARE TRADING WITH SPACIAL REFRENCE TO AGRA CITY INTRODUCTION AND DESIGN OF THE STUDY Introduction: “Money is better then poverty, if only for financial reason” – Woody Allen India is a developing economy. It’s prospering in all spheres. Share Market is a compelling determination of the economy and the financial situation of a country. Share market is an area which fascinates each and every individual who is craving for more money. Some common phrases are “If we want to earn just try with share market. This is a good start to start education on investing – putting your money where it can gain greater returns then just earning interest in a highinterest account. Investments in shares or stock can be daunting as there is vast and various amounts of information on investments and everyone is ready and willing to take your money. Steps are to be taken for start Share trading As beginners we should understand one thing. If we are planning to invest in share market, first we have to categorize our self. Are we a long term investor ? Are we a sort term investor ? (Daily trading). Long term investor Its here we invest. We are most secured in this case because we don’t consider to be used for emergency. Any company will one day have a growth curve for more we have more chances to lose more. Short term investor (Risky)
Remember its here we play not invest. 1. Make investment break ups: If we have “x” RS in our hand don’t get carried away to buy shares for all “x” RS. Always we should have fifty percent in our hand. 2. Reinvest only when profits: Make the profit what we earn on the first trader (if so happens)to buy extra share. Suppose if our stock didn’t go up after first investment wait till (may be months) till our holding goes up. Since the liberalization, privatization and globalization, the foreign investment in our country is booming. Share Market is a dear indicator of the developing trend prevailing in our country. Statistics reveal that the trade volume has been increasing continuously, coupled with the ups & downs which is a nature of share trading. We are living in interlinked world. With growing volume of trade, it has become a necessity that people are aware of the intricacies of the web world.
Objective of the Study: 1. To understand the attitude of the on-line share traders.
2. To measure the effectiveness of broking site. 3. To conduct an enquiry among the share trading public about their experience with broking site. 4. To understand the dept up to which the on-line share traders are clear and of on-line share trading.
RESEARCH METHODOLOGY
“Research Methodology is the science of methods for conducting research work” Research methodology is a systematic way, which consists of series of action steps, necessary to effectively carry out research and the desired sequencing to these steps. • Formulating the objective of the study • Designing the methods of data collection • Selecting the sample plan • Collecting the data • Processing and analyzing the data • Reporting the findings Objective of Study Research Design Sample Design Data Collection Data Analysis Report of findings
RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is broadly classified into three types as • Exploratory Research Design • Descriptive Research Design • Causal Research Design For the purpose of the present project the Descriptive type of research design can be said to be most effective and most suitable, because in descriptive type of study the main emphasis is laid down over the existing situations and not over the causes which determine such effects.
Thus for that purpose Descriptive type of study has been selected as it seems to be most appropriate to fulfill the objective of the project.
SAMPLE DESIGN In the present survey study the sample design contained the list of the Stock dealers and Stock brokers Later on in the project certain other persons were contacted who were holding useful information regarding the concerned field of study. For the purpose of data collection non random sampling method was applied first. Later on the Snowball sampling method was also involved in the project as it was very necessary that only relevant information was collected. Otherwise it would have been only loss of efforts, money and of time.
DATA COLLECTION The present project direct interview with sample element was chosen, so as to make it sure that all probable attempts were made to collect the required information. The project is mainly based on the Primary data collected among the sample elements. Primary data was collected among the samples with the help of a questionnaire which was divided into two parts. • The first part of the questionnaire was given to the sample to fill it by him. • The second part of the questionnaire was holded by the interviewee and which was filled by him after consulting the sample. However some of the portion of the report required Secondary data. So it was also collected from some other sources. DATA ANALYSIS AND INTERPRETATION
Data analysis is the next step after the field survey is over. This portion of the research requires a lot of attention and patience, as the project may be distracted from its objectives very easily if the analysis has not been performed with due care and diligence. In this process all the information received is transformed in to some meaningful form of presentation such as tables or charts. The activity of data analysis should move according to following sub heads: 1. Editing: The first task in data processing is the editing. (Errors
and Omissions). 2. Coding: Coding is the process of classifying the information into meaningful categories. (Tabulating and Analyzing data.) 3. Tabulation: Tabulation comprises sorting of the data into different categories and counting the number of cases that belong to each category. 4. Analysis: Under this step various techniques and methods are applied for finding out the desired meaning from the data that has been collected from the survey.
REVIEW OF LITERATURE 1. ONLINE TRADING INFRASTRUCTURE (Article from Business India)
The emergence of online exchanges has facilitated faster transaction by providing online trading portals and brokerage house ease and flexibility. The Internet has indeed opened up new opportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its brokers and partners. In the developed countries majorly all the exchange transaction are conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trades successfully for some time. 2. WHY ONLINE TRADING ENTERED LATER IN INDIA? (Article from Business India)
The Indian exchanges and brokering houses have been very slow in moving their transactions online and the major reason has been the lot government regulations. The initial delay was de to laying down the specification for creating Closed User Groups (CUGs). This issue was resolved between the Department of Telecommunications (DoT) and the Finance Ministry around 1998 and after the soon came the online trading portals like ICICIDirect.com, motilaloswal.com, sharekhan.com and smartjones.com. Connectivity related issue was perhaps the most important technological factor. Through online trading everyday large volumes of data is being transacted. At BSE the awareage daily turnover in 2004-05 (April- March) was Rs 1244.10 crore and the number of awareage daily tredes was Rs 5.17 lakh. 3. INDIAN EXCHANGES: NSE AND BSE (Article from Capital Market)
The NSE and BSE are among the largest exchanges in the country handling vary large daily trading volumes, support large amount of data traffic, and have a very large nationwide network. The trading volumes in year 2000 was huge with the awareage daily turnover in the capital markets segment at NSC is around Rs 2300 crore and in the derivative segment, around Rs 1300 crore. The awareage daily traffic volume was around one million traders per day in the capital market segment and around 50,000 traders per day in the derivatives segment and there were around 13,000 registered users in both segment and an awareage of around 9500 users is logged in at a time. At BSE the daily turnover in 2004-05 (AprilMarch) was Rs 1244.10 crore and the number of awareage daily traders was Rs 5.17 lakh.
4. THE NETWORK DESIGN (Article from Business Today)
Any online exchange should always be-on, safe, secure, redundant and should have adequate backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that the basic design objective of NSE was to provide fair, equal and transparent access all NSE nation wide location and to provide connectivity to the trading members as soon as possible. The telecom sector is fairly liberal nowadays but way back in 1993 the technology was maturing and was very costly. The cost of lease lines was almost ten times as much as it is today. Satellite technology was very costly. The cost of lease line was almost ten times as much as it is today. Satellite technology was a bin since it allowed quicker deployment then leased lines. Today NSE has the country’s largest VSAT network with over 3000 VSATs and exports to grow to more then 4000 VSATs very soon. 5. NEAT-THE NSE ARCHITECTUR (Article from Capital Market)
NSE has deployed NIBIS (NSE’s Internet Based Information System) for real-time dissemination it of treading information over the Internet and NEAT a clientserver-based application to help its operations. All the trading information is stored in NEAT an in-memory database at the server end for achieving minimum response time and maximum system availability for user. The trading server software run on a fault-tolerant STRATUS mainframe ad the client software runs on Windows PCs.
6. RECOMMENDATION OF SEBI (Article from Capital Market)
The SEBI has also played an important role in the issue of the guidelines regarding online trading so that the changes of fraud and misrepresentation are minimized. The some of recommendation are as follows:
1. The online trading company must have a minimum net worth of Rs 50 lakh
2. The encryption technology should be there in the system used by the brokers to ensure the provision for confidentiality, security, justifiability and reliability of data. 3. The broker must maintain adequate back-up system and data storage capacity which must be checked by the stock exchanges. 7. ISSUES IN SELECTION OF AN E-BROKER (Article from Capital Market)
Individual investors compare the brokerage provided by various online traders. Brokerage can be a key differentiation among different scheme offered by ebrokers in the present competitive market place. For example icicidirect.com was the first to enter into e-broking and charge the highest brokerage (for delivery transaction) at 0.85 per cent per trade as compared to InvestSmart which charge 0.75 per cent and many more e-broking sites having different brokerage charge. 8. Growth According to an article by Krishnamoorthy B in 2005 after inception of online trading in India in the year 2000 online trading is gained momentum with trading volumes growing by 150 percent per annum in the years 2003-2005. The volume of all trades executed through the Internet on the National Stock Exchange had grown from less then Rs 100 crore (Rs 1 bilion) in june 2003 to over Rs 700 crore (Rs 7 billion) in july 2005 which was a handsome growth .
9. A Study of Fund Selection Behaviour of Individual Investors Towards Mutual Funds - with Reference to Mumbai City Kavitha Ranganathan Madurai Kamaraj University 2006
Abstract: Consumer behaviour from the marketing world and financial economics has brought together to the surface an exciting area for study and research: behavioural finance. The realization that this is a serious subject is, however, barely dawning. Analysts seem to treat financial markets as an aggregate of statistical observations,
technical and fundamental analysis. A rich view of research waits this sophisticated understanding of how financial markets are also affected by the 'financial behaviour' of investors. With the reforms of industrial policy, public sector, financial sector and the many developments in the Indian money market and capital market, Mutual Funds which has become an important portal for the small investors, is also influenced by their financial behaviour.
REFERENCES Dalal Street Journal’s STOCK MARKET BOOK How to make money trading with charts
Aswini Guljar
Investing rules from the markets
Philip Jenks
Intelligent stock market investing
N J Yasaswy
News And Magazines • Business World • Business Today
• Business India • Capital Market • The Economic Time • Business Line
WebSites www.tradesplace.in www.angelbroking.com www.sharekhan.com www.pdfcoke.com
CHAPTER SCHEME
Chapter 1: INTRODUCTION AND DESIGN OF THE STUDY Chapter 2: REVIEW OF LITEERATURE Chapter 3: COLLECTION OF DATA Chapter 4: FINDING AND ANALYSIS Chapter 5: SUGGESTION AND CONCLUSION
A SYNOPSIS SUBMITTED FOR THE FUFILLMENT OF THE BACHELOR DEGREE OF COMMERCE (HONS.)
UNDER THE SUPERVISION OF Dr. SANJEEV BHATNAGAR (DEPARTMENT OF BUSINESS MANAGEMENT)
SUBMITTED BY: AMULYA RAJ 072011
DAYALBAGH EDUCATIONAL INSTITUTE (DEEMED UNIVERSITY) DAYALBAGH, AGRA (U.P.)
A STUDY ON CUSTUMER SATISFACTION TOWARDS ONLINE SHARE TRADING WITH SPACIAL REFRENCE TO AGRA CITY INTRODUCTION AND DESIGN OF THE STUDY Introduction: “Money is better then poverty, if only for financial reason” – Woody Allen India is a developing economy. It’s prospering in all spheres. Share Market is a compelling determination of the economy and the financial situation of a country. Share market is an area which fascinates each and every individual who is craving for more money. Some common phrases are “If we want to earn just try with share market. This is a good start to start education on investing – putting your money where it can gain greater returns then just earning interest in a highinterest account. Investments in shares or stock can be daunting as there is vast and various amounts of information on investments and everyone is ready and willing to take your money. Steps are to be taken for start Share trading As beginners we should understand one thing. If we are planning to invest in share market, first we have to categorize our self. Are we a long term investor ? Are we a sort term investor ? (Daily trading). Long term investor Its here we invest. We are most secured in this case because we don’t consider to be used for emergency. Any company will one day have a growth curve for more we have more chances to lose more. Short term investor (Risky)
Remember its here we play not invest. 1. Make investment break ups: If we have “x” RS in our hand don’t get carried away to buy shares for all “x” RS. Always we should have fifty percent in our hand. 2. Reinvest only when profits: Make the profit what we earn on the first trader (if so happens)to buy extra share. Suppose if our stock didn’t go up after first investment wait till (may be months) till our holding goes up. Since the liberalization, privatization and globalization, the foreign investment in our country is booming. Share Market is a dear indicator of the developing trend prevailing in our country. Statistics reveal that the trade volume has been increasing continuously, coupled with the ups & downs which is a nature of share trading. We are living in interlinked world. With growing volume of trade, it has become a necessity that people are aware of the intricacies of the web world.
Objective of the Study: 1. To understand the attitude of the on-line share traders.
2. To measure the effectiveness of broking site. 3. To conduct an enquiry among the share trading public about their experience with broking site. 4. To understand the dept up to which the on-line share traders are clear and of on-line share trading.
RESEARCH METHODOLOGY
“Research Methodology is the science of methods for conducting research work” Research methodology is a systematic way, which consists of series of action steps, necessary to effectively carry out research and the desired sequencing to these steps. • Formulating the objective of the study • Designing the methods of data collection • Selecting the sample plan • Collecting the data • Processing and analyzing the data • Reporting the findings Objective of Study Research Design Sample Design Data Collection Data Analysis Report of findings
RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is broadly classified into three types as • Exploratory Research Design • Descriptive Research Design • Causal Research Design For the purpose of the present project the Descriptive type of research design can be said to be most effective and most suitable, because in descriptive type of study the main emphasis is laid down over the existing situations and not over the causes which determine such effects.
Thus for that purpose Descriptive type of study has been selected as it seems to be most appropriate to fulfill the objective of the project.
SAMPLE DESIGN In the present survey study the sample design contained the list of the Stock dealers and Stock brokers Later on in the project certain other persons were contacted who were holding useful information regarding the concerned field of study. For the purpose of data collection non random sampling method was applied first. Later on the Snowball sampling method was also involved in the project as it was very necessary that only relevant information was collected. Otherwise it would have been only loss of efforts, money and of time.
DATA COLLECTION The present project direct interview with sample element was chosen, so as to make it sure that all probable attempts were made to collect the required information. The project is mainly based on the Primary data collected among the sample elements. Primary data was collected among the samples with the help of a questionnaire which was divided into two parts. • The first part of the questionnaire was given to the sample to fill it by him. • The second part of the questionnaire was holded by the interviewee and which was filled by him after consulting the sample. However some of the portion of the report required Secondary data. So it was also collected from some other sources. DATA ANALYSIS AND INTERPRETATION
Data analysis is the next step after the field survey is over. This portion of the research requires a lot of attention and patience, as the project may be distracted from its objectives very easily if the analysis has not been performed with due care and diligence. In this process all the information received is transformed in to some meaningful form of presentation such as tables or charts. The activity of data analysis should move according to following sub heads: 1. Editing: The first task in data processing is the editing. (Errors
and Omissions). 2. Coding: Coding is the process of classifying the information into meaningful categories. (Tabulating and Analyzing data.) 3. Tabulation: Tabulation comprises sorting of the data into different categories and counting the number of cases that belong to each category. 4. Analysis: Under this step various techniques and methods are applied for finding out the desired meaning from the data that has been collected from the survey.
REVIEW OF LITERATURE 1. ONLINE TRADING INFRASTRUCTURE (Article from Business India)
The emergence of online exchanges has facilitated faster transaction by providing online trading portals and brokerage house ease and flexibility. The Internet has indeed opened up new opportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its brokers and partners. In the developed countries majorly all the exchange transaction are conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trades successfully for some time. 2. WHY ONLINE TRADING ENTERED LATER IN INDIA? (Article from Business India)
The Indian exchanges and brokering houses have been very slow in moving their transactions online and the major reason has been the lot government regulations. The initial delay was de to laying down the specification for creating Closed User Groups (CUGs). This issue was resolved between the Department of Telecommunications (DoT) and the Finance Ministry around 1998 and after the soon came the online trading portals like ICICIDirect.com, motilaloswal.com, sharekhan.com and smartjones.com. Connectivity related issue was perhaps the most important technological factor. Through online trading everyday large volumes of data is being transacted. At BSE the awareage daily turnover in 2004-05 (April- March) was Rs 1244.10 crore and the number of awareage daily tredes was Rs 5.17 lakh. 3. INDIAN EXCHANGES: NSE AND BSE (Article from Capital Market)
The NSE and BSE are among the largest exchanges in the country handling vary large daily trading volumes, support large amount of data traffic, and have a very large nationwide network. The trading volumes in year 2000 was huge with the awareage daily turnover in the capital markets segment at NSC is around Rs 2300 crore and in the derivative segment, around Rs 1300 crore. The awareage daily traffic volume was around one million traders per day in the capital market segment and around 50,000 traders per day in the derivatives segment and there were around 13,000 registered users in both segment and an awareage of around 9500 users is logged in at a time. At BSE the daily turnover in 2004-05 (AprilMarch) was Rs 1244.10 crore and the number of awareage daily traders was Rs 5.17 lakh.
4. THE NETWORK DESIGN (Article from Business Today)
Any online exchange should always be-on, safe, secure, redundant and should have adequate backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that the basic design objective of NSE was to provide fair, equal and transparent access all NSE nation wide location and to provide connectivity to the trading members as soon as possible. The telecom sector is fairly liberal nowadays but way back in 1993 the technology was maturing and was very costly. The cost of lease lines was almost ten times as much as it is today. Satellite technology was very costly. The cost of lease line was almost ten times as much as it is today. Satellite technology was a bin since it allowed quicker deployment then leased lines. Today NSE has the country’s largest VSAT network with over 3000 VSATs and exports to grow to more then 4000 VSATs very soon. 5. NEAT-THE NSE ARCHITECTUR (Article from Capital Market)
NSE has deployed NIBIS (NSE’s Internet Based Information System) for real-time dissemination it of treading information over the Internet and NEAT a clientserver-based application to help its operations. All the trading information is stored in NEAT an in-memory database at the server end for achieving minimum response time and maximum system availability for user. The trading server software run on a fault-tolerant STRATUS mainframe ad the client software runs on Windows PCs.
6. RECOMMENDATION OF SEBI (Article from Capital Market)
The SEBI has also played an important role in the issue of the guidelines regarding online trading so that the changes of fraud and misrepresentation are minimized. The some of recommendation are as follows:
1. The online trading company must have a minimum net worth of Rs 50 lakh
2. The encryption technology should be there in the system used by the brokers to ensure the provision for confidentiality, security, justifiability and reliability of data. 3. The broker must maintain adequate back-up system and data storage capacity which must be checked by the stock exchanges. 7. ISSUES IN SELECTION OF AN E-BROKER (Article from Capital Market)
Individual investors compare the brokerage provided by various online traders. Brokerage can be a key differentiation among different scheme offered by ebrokers in the present competitive market place. For example icicidirect.com was the first to enter into e-broking and charge the highest brokerage (for delivery transaction) at 0.85 per cent per trade as compared to InvestSmart which charge 0.75 per cent and many more e-broking sites having different brokerage charge. 8. Growth According to an article by Krishnamoorthy B in 2005 after inception of online trading in India in the year 2000 online trading is gained momentum with trading volumes growing by 150 percent per annum in the years 2003-2005. The volume of all trades executed through the Internet on the National Stock Exchange had grown from less then Rs 100 crore (Rs 1 bilion) in june 2003 to over Rs 700 crore (Rs 7 billion) in july 2005 which was a handsome growth .
9. A Study of Fund Selection Behaviour of Individual Investors Towards Mutual Funds - with Reference to Mumbai City Kavitha Ranganathan Madurai Kamaraj University 2006
Abstract: Consumer behaviour from the marketing world and financial economics has brought together to the surface an exciting area for study and research: behavioural finance. The realization that this is a serious subject is, however, barely dawning. Analysts seem to treat financial markets as an aggregate of statistical observations,
technical and fundamental analysis. A rich view of research waits this sophisticated understanding of how financial markets are also affected by the 'financial behaviour' of investors. With the reforms of industrial policy, public sector, financial sector and the many developments in the Indian money market and capital market, Mutual Funds which has become an important portal for the small investors, is also influenced by their financial behaviour.
REFERENCES Dalal Street Journal’s STOCK MARKET BOOK How to make money trading with charts
Aswini Guljar
Investing rules from the markets
Philip Jenks
Intelligent stock market investing
N J Yasaswy
News And Magazines • Business World • Business Today
• Business India • Capital Market • The Economic Time • Business Line
WebSites www.tradesplace.in www.angelbroking.com www.sharekhan.com www.pdfcoke.com
CHAPTER SCHEME
Chapter 1: INTRODUCTION AND DESIGN OF THE STUDY Chapter 2: REVIEW OF LITEERATURE Chapter 3: COLLECTION OF DATA Chapter 4: FINDING AND ANALYSIS Chapter 5: SUGGESTION AND CONCLUSION
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