girish sharekhan ltd

8/13/2019 GIRISH Sharekhan Ltd

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Summer Training Report

On

A Study Of Online Trading

At Sharekhan

Submitted In Partial Fulfillment of the Requirement

Of Bachelor of Business Administration

Training Superisor! Submitted By!

"r# Surinder Singh $irish %egi

&esignation! $"# Sales '()*(+'(,'-

Submitted To!

.Banarsidas /handi0ala Institute of Professional Studies1

&0arka1 %e0 &elhi2

.Affiliated to $uru $obind Singh Indraprastha 3niersity2

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ACKNOWLEDGEMENT

Success is an effort boundedactively, involvin t!e co"o#eration of all$

To create andfor%ulate t!is #ro&ect re#ort, ' (ould be t!an)ful to t!e

entire individual (!o Served %e as a true uide and e#ito%e of

)no(lede$A *ro&ect usually falls s!ort of its e+#ectations unless uided by

t!e ri!t #erson at t!e ri!t ti%e$

' (ould li)e to t!an) Mr$ d!a(al ,,A *ro&ect uide -'nternal. f o r

anyti%e and every ti%e uidance and continuous su##ort$ /is

e+#erience and %et!odoloy of #rovidin trainin !el#s % e not to

#erfor% t!e desi red activity but to acco%#lis!creativity$ ' also li)e to

t!an) %y #arents and %y fa%ily %e%bers (!o are al(ays a su##ort

for %e$

Above all, ' (ould li)e to t!an) t!e Al%i!ty God (it!out (!o%

t!is (or) could never !ave been co%#leted$

Giris! Nei

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DECLA0AT'ON

I hereby declare that this Project Report titled A STUDY

OF ONLINE TRADIN AT S!ARE"!AN# s$b%itted by %e

to &a'arsidas (ha'di)ala I'stit$te o* Pro*essio'al St$dies+

D)ar,a is a bo'a*ide )or, $'derta,e' d$ri'- the period

*ro% ./ 0$'e to /1 A$-$st by %e a'd has 'ot bee' s$b%itted

to a'y other U'i2ersity or I'stit$tio' *or the a)ard o* a'y

de-ree diplo%a 3 certi*icate or p$blished a'y ti%e be*ore4

5Si-'at$re o* the St$de't6

Na%e7 irish Ne-i

E'roll4 No47 /8198./8:/;

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ONA1'DE CE0T'1'CATE

This is to certi*y that as per best o* %y belie* the project

e'titled A Study Of Online Tradin At S!are)!an2 is thebo'a*ide research )or, carried o$t byGiris! Neist$de't o*

&&A+ &(IPS+ D)ar,a+ Ne) Delhi+ d$ri'- 0$ly


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A/4%O567&$7"7%T

I take this oortunity to e)ress my gratitude* high regards and sincere

thanks to these resected eoe who ha+e heed me throughout thisroject.

%u$mitted $y:

TAB67 OF /O%T7%TS

P,&I#/,% P,G0 N.


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0)ecuti+e %ummary 1

$jecti+es o4 study 2

#hater-1 Introduction! 3

1.1 +er+iew o4 nine trading 3-131.2 Pro4ie o4 the #omany 1'

- +er+iew o4 %H,05H,N /&". 1'

- 6ision 7 8ission 1

- 8arket share 19

- ,wards 7 ,chie+ements 1

- Product range 1;

#hater-2 %ituation e+iew 32

- %i$iograhy ';

,nne)ure . '?-2

@uestionnaire. 2-3

797/3TI:7 S3""AR;

&his roject is $ased on A, %&"B = N/IN0 &,"INGC at %harekhan

/imited.

=urther* in this Project

#hater-1 incudes re+iew o4 iterature 7 the introduction o4 the comany

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wherein I tod a$out the ro4ie o4 %harekhan imited.

#hater-2 incudes %ituation e+iew wherein I ha+e shown swot anaysis o4

comany.

#hater-3 shows the 4inancia anaysis o4 comany.

#hater-' incudes the /earningDs 7 =indings#

OB


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%H,05H,N and a$out its communication 4aciities. &hearoriate con4iguration to set the network* which woud ink the%H,05H,N to indi+idua F mem$ers.

&o know a$out the atest and 4uture de+eoment in the stocke)change trading system.

Stocks&he stock or caita stock o4 a $usiness entity reresents the origina caita aid into orin+ested in the $usiness $y its 4ounders. It ser+es as a security 4or the creditors o4 a$usiness since it cannot $e withdrawn to the detriment o4 the creditors. %tock is distinct4rom the roerty and the assets o4 a $usiness which may 4uctuate in uantity and +aue.>uying a stock 4or the ong term means that you want to own art o4 a comany and youthink that in the 4uture the comany wi $e ro4ita$e. I4 you $uy stock in a comany andthe comany er4orms we* the stocks rice shoud rise. I4 the comany 4ais* then thestock shoud 4ai you* too and go down. #omanies ist their stocks on the +arious stock

e)changes ocated throughout the .%. &he stock e)changes actuay comete with eachother 4or these istings* since comanies that attract more trading make more money 4orthe stock e)change that isted it. #omany stocks are assigned a ticker* or tradingsym$o $y the isting e)change. Bou may notice some we-chosen tickers that are easy toremem$er* ike "N, 4or the comany Genentech* a $iotechnoogy 4irm. r somecomanies ticker is the same as its name* Nike 4or e)ame.

Stock market

;
http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)


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, stock market or euity market is a u$ic market (a oose network o4 economictransactions* not a hysica 4aciity or discrete entity! 4or the trading o4 comany stockand deri+ati+esat an agreed riceJ these aresecuritiesisted on a stock e)changeas weas those ony traded ri+atey. &he siEe o4 the word stock market was estimated at a$outK39.9 triion % at the $eginning o4 cto$er 2;. &he totalword deri+ati+es market

has $een estimated at a$out K?1 triion 4ace or nomina +aue* 11 times the siEe o4 theentire word economy. &he +aue o4 the deri+ati+es market* $ecause it is stated in termso4 notiona +aues* cannot $e directy comared to a stock or a 4i)ed income security*which traditionay re4ers to an actua +aue. 8oreo+er* the +ast majority o4 deri+ati+escance each other out (i.e.* a deri+ati+e $et on an e+ent occurring is o44set $y acomara$e deri+ati+e $et on the e+ent 'otoccurring!. 8any such reati+ey iiuidsecurities are +aued as marked to mode*rather than an actua market rice. &he stocksare isted and traded on stock e)changes which are entities o4 a cororation or mutuaorganiEation seciaiEed in the $usiness o4 $ringing $uyers and seers o4 theorganiEations to a isting o4 stocks and securities together. &he argest stock market in thenited %tates* $y market ca is the New Bork %tock 0)change*NB%0*whie in #anada*

it is the &oronto %tock 0)change.

Tradin

Historicay* stock marketswere hysica ocations where $uyers and seers met andnegotiated.


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stock and a otentia seer asks a seci4ic rice 4or the stock. (>uying or seing atmarket means you wi accet any ask rice or $id rice 4or the stock* resecti+ey.!om$ay stock e)change(>%0!

BS7!- ,t the end o4 the ,merican ci+i war* the $rokers who thri+ed out o4 this war in1;'* 4ound a ace in a street* where they woud easiy assem$e and transact $usiness.&his street is nowadays* ouary known as ",/,/ %&00&. In 1;;* they 4ormay

esta$ished in >om$ay* and were known as ANati+e %hares and %tock >rokers,ssociationC. In 1;?* it acuired a remise in the same street and 4inay wasinaugurated in 1;?? with the name >om$ay %tock 0)change (>%0!.Indias remier stock e)change >om$ay %tock 0)change (>%0! can aso trace $ack itsorigin to as 4ar as 12 years when it started as a +ountary non-ro4it making association.Bou hear a$out it any time it reaches a new high or a new ow* and you aso hear a$out itdaiy in statements ike &he >%0 %ensiti+e Inde) rose L today. $+iousy* stocks andstock markets are imortant. %tocks o4u$ic imited comanies are $ought andsod at a stock e)change. >ut what reayare stock e)changesM 5nown aso asNews

on the stock market aears in di44erentmedia e+ery day. &he stock market or$ourse* a stock e)change is an organiEedmarketace 4or securities(ike stocks*$onds* otions! 4eatured $y thecentraiEation o4 suy and demand 4or thetransaction o4 orders $y mem$er$rokers*4or institutiona and indi+idua in+estors.

1
http://en.wikipedia.org/wiki/Marketplacehttp://www.thebizpapertoday.com/tbtstock/?http://www.thebizpapertoday.com/tbtstock/?http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#7http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#2http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#6http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#3http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#5http://en.wikipedia.org/wiki/Marketplacehttp://www.thebizpapertoday.com/tbtstock/?http://www.thebizpapertoday.com/tbtstock/?http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#7http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#2http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#6http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#3http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#5


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&he e)change makes $uying and seing easy. &he need 4or stock e)changes de+eoedout o4 eary trading acti+ities in agricutura and other commodities. "uring the midde,ges* traders 4ound it easier to use credit that reuired suorting documentation o4dra4ts* notes and$is o4 e)change. (=igure-1!Indias other major stock e)changeNationa %tock 0)change(N%0!* romoted $y eading

4inancia institutions* was esta$ished in ,ri 1??3. +er the years* se+era stocke)changes ha+e $een esta$ished in the major cities o4 India. &here are now 23recognised stock e)changes 8um$ai (>%0* N%0 and !* #acutta* "ehi* #hennai*,hmeda$ad* >angaore* >hu$haneswar* #oim$atore* Guwahati* Hydera$ad* Oaiur*5ochi* 5anur* /udhiana* 8angaore* Patna* Pune* ajkot* 6adodara* Indore and8eerut.

%S7:-rugescommodity traders gathered inside the house o4 a man caed >a' der &e$r?e* and in 13?they $ecame the >rugse >eurse* institutionaiEing what had $een* unti then* anin4orma meeting* $ut actuay* the 4amiy 6an der >eurEe had a $uiding in ,ntwerwhere those gatherings occurredJ the 6an der >eurEe had ,ntwer* as most o4 the

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http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#1http://www.nseindia.com/us/usindex.htmhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Brugeshttp://en.wikipedia.org/wiki/Antwerphttp://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#1http://www.nseindia.com/us/usindex.htmhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Brugeshttp://en.wikipedia.org/wiki/Antwerp


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merchants o4 that eriod* as their rimary ace 4or trading. &he idea uicky sreadaround =anders and neigh$oring counties and >eurEen soon oened in Ghent and,msterdam. In the midde o4 the 13th century* 6enetian $ankers $egan to trade ingo+ernment securities. In 131 the 6enetian go+ernment outawed sreading rumorsintended to ower the rice o4 go+ernment 4unds. >ankers in Pisa* 6erona* Genoa and

=orenceaso $egan trading in go+ernment securities during the 1'th century. &his wasony ossi$e $ecause these were indeendent city states not rued $y a duke $ut a councio4 in4uentia citiEens. &he "utch ater started joint stock comanies* which etsharehodersin+est in $usiness +entures and get a share o4 their ro4its - or osses. In192* the "utch 0ast India #omany issued the 4irst share on the ,msterdam %tock0)change.It was the 4irst comany to issue stocks and$onds.

Relation of the stock market to the modern

financial system&he 4inancia systems in most western countries has undergone a remarka$etrans4ormation. ne 4eature o4 this de+eoment is disintermediation. , ortion o4 the4unds in+o+ed in sa+ing and 4inancing* 4ows directy to the 4inancia markets instead o4$eing routed +ia the traditiona $ank ending and deosit oerations. &he genera u$icsheightened interest in in+esting in the stock market* either directy or through mutua4unds* has $een an imortant comonent o4 this rocess. %tatisticsshow that in recentdecades shares ha+e made u an increasingy arge roortion o4 househods 4inanciaassets in many countries. In the 1?s* in %weden*deosit accountsand other +ery iuidassets with itte risk made u amost 9 ercent o4 househods 4inancia weath*

comared to ess than 2 ercent in the 2s. &he major art o4 this adjustment in4inancia ort4oios has gone directy to shares $ut a good dea now takes the 4orm o4+arious kinds o4 institutiona in+estment 4or grous o4 indi+iduas* e.g.* ension 4unds*mutua 4unds* hedge 4unds* insurance in+estment o4 remiums* etc.

&he trend towards 4orms o4 sa+ing with a higher risk has $een accentuated $y new rues4or most 4unds and insurance* ermitting a higher roortion o4 shares to $onds. %imiartendencies are to $e 4ound in other industriaiEed countries. In a de+eoed economicsystems* such as the 0uroean nion* the nited %tates* Oaan and other de+eoednations* the trend has $een the same: sa+ing has mo+ed away 4rom traditiona(go+ernment insured! $ank deosits to more risky securities o4 one sort or another.iskier

ong-term sa+ing reuires that an indi+idua ossess the a$iity to manage the associatedincreased risks. %tock rices 4uctuate widey* in marked contrast to the sta$iity o4(go+ernment insured! $ank deosits or $onds. &his is something that coud a44ect not onythe indi+idua in+estor or househod* $ut aso the economy on a arge scae. &he4oowing deas with some o4 the risks o4 the 4inancia sector in genera and the stockmarket in articuar. &his is certainy more imortant now that so many newcomers ha+eentered the stock market* or ha+e acuired other risky in+estments (such as in+estmentroerty* i.e.* rea estate and coecta$es!.


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stock market rises. &ee+ision commentators* 4inancia writers* anaysts* and marketstrategists are a o+ertaking each other to get in+estors attention. ,t the same time*indi+idua in+estors* immersed in chat rooms and message $oards* are e)changinguestiona$e and o4ten miseading tis. Bet* desite a this a+aia$e in4ormation*in+estors 4ind it increasingy di44icut to ro4it.

The behaior of the stock trading

=rom e)erience e+eryone know that in+estors may temorariy mo+e 4inancia ricesaway 4rom their ong term aggregate rice trends. (Positi+e or u trends are re4erred toas$u marketsJ negati+e or down trends are re4erred to as$ear markets.! +er-reactionsmay occurso that e)cessi+e otimism (euhoria! may dri+e rices unduy high ore)cessi+e essimism may dri+e rices unduy ow. 0conomists continue to de$atewhether 4inancia markets are generay e44icient. ,ccording to one interretation o4 thee44icient-market hyothesis(08H!* ony changes in 4undamenta 4actors* such as theoutook 4or margins* ro4its or di+idends* ought to a44ect share rices $eyond the shortterm* where random noise in the system may re+ai. (>ut this argey theoreticacademic +iewointknown as hard 08Haso redicts that itte or no trading shoudtake ace* contrary to 4act* since rices are aready at or near euii$rium* ha+ing ricedin a u$ic knowedge4! &he hard e44icient-market hyothesis is sorey tested $y suche+ents as the stock market crash in 1?;* when the "ow Oones inde)ummeted 22.9ercentthe argest-e+er one-day 4a in the nited %tates. &his e+ent demonstrated thatshare rices can 4a dramaticay e+en though* to this day* it is imossi$e to 4i) ageneray agreed uon de4inite cause: a thorough search 4aied to detect a'y reasona$ede+eoment that might ha+e accounted 4or the crash. (>ut note that such e+ents areredicted to occur stricty $y chance* athough +ery rarey.! It seems aso to $e the casemore generay that many rice mo+ements ($eyond that which are redicted to occurrandomy! are 'otoccasioned $y new in4ormationJ a study o4 the 4i4ty argest one-dayshare rice mo+ements in the nited %tates in the ost-war eriod seems to con4irm this.Howe+er* a so4t 08H has emerged which does not reuire that rices remain at or neareuii$rium* $ut ony that market articiants not $e a$e tosyste%atically ro4it 4romany momentary market ine44iciencies. 8oreo+er* whie 08H redicts that a ricemo+ement (in the a$sence o4 change in 4undamenta in4ormation! is random (i.e.* non-trending!* many studies ha+e shown a marked tendency 4or the stock market to trend o+ertime eriods o4 weeks or onger. 6arious e)anations 4or such arge and aarenty non-random rice mo+ements ha+e $een romugated. =or instance* some research has shown

that changes in estimated risk* and the use o4 certain strategies* such as sto-oss imitsand 6aue at iskimits* theoreticay coud cause 4inancia markets to o+erreact. >ut the$est e)anation seems to $e that the distri$ution o4 stock market rices is non-Gaussian(in which case 08H* in any o4 its current 4orms* woud not $e stricty aica$e!. therresearch has shown that sychoogica 4actors may resut in e)aggerated stock ricemo+ements (contrary to 08H which assumes such $eha+iors cance out!. Psychoogicaresearch has demonstrated that eoe are redisosed to seeing atterns* and o4ten wiercei+e a attern in what is* in 4act* just 'oise. (%omething ike seeing 4amiiar shaes in

13
http://en.wikipedia.org/wiki/Bull_marketshttp://en.wikipedia.org/wiki/Bear_marketshttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Normal_distributionhttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Stock_market_crash_in_1987http://en.wikipedia.org/wiki/Dow_Jones_indexhttp://en.wikipedia.org/wiki/Normal_distributionhttp://en.wikipedia.org/wiki/Market_anomalyhttp://en.wikipedia.org/wiki/Value_at_Riskhttp://cnx.org/content/m11318/latest/http://en.wikipedia.org/wiki/Behavioral_financehttp://en.wikipedia.org/wiki/Bull_marketshttp://en.wikipedia.org/wiki/Bear_marketshttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Normal_distributionhttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Stock_market_crash_in_1987http://en.wikipedia.org/wiki/Dow_Jones_indexhttp://en.wikipedia.org/wiki/Normal_distributionhttp://en.wikipedia.org/wiki/Market_anomalyhttp://en.wikipedia.org/wiki/Value_at_Riskhttp://cnx.org/content/m11318/latest/http://en.wikipedia.org/wiki/Behavioral_finance


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couds or ink $ots.! In the resent conte)t this means that a succession o4 good newsitems a$out a comany may ead in+estors to o+erreact ositi+ey (unjusti4ia$y dri+ingthe rice u!. , eriod o4 good returns aso $oosts the in+estors se4-con4idence*reducing his (sychoogica! risk threshod.

,nother henomenonaso 4rom sychoogythat works against an o$jecti+eassessment is grou thinking. ,s socia animas* it is not easy to stick to an oinion thatdi44ers markedy 4rom that o4 a majority o4 the grou. ,n e)ame with which one may$e 4amiiar is the reuctance to enter a restaurant that is emtyJ eoe generay re4er toha+e their oinion +aidated $y those o4 others in the grou. In one aer the authorsdraw an anaogy with gam$ing. In norma times the market $eha+es ike a game o4rouetteJ the ro$a$iities are known and argey indeendent o4 the in+estment decisionso4 the di44erent ayers. In times o4 market stress* howe+er* the game $ecomes more ikeoker (herding $eha+ior takes o+er!. &he ayers now must gi+e hea+y weight to the

sychoogy o4 other in+estors and how they are ikey to react sychoogicay. &he stockmarket* as with any other $usiness* is uite un4orgi+ing o4 amateurs. Ine)eriencedin+estors rarey get the assistance and suort they need. In the eriod running u to the1?; crash* ess than 1 ercent o4 the anaysts recommendations had $een to se (ande+en during the 2 - 22 $ear market* the a+erage did not rise a$o+e L!. In the runu to 2* the media ami4ied the genera euhoria* with reorts o4 raidy rising sharerices and the notion that arge sums o4 money coud $e uicky earned in the so-caednew economystock market. (,nd ater ami4ied the goom which descended during the2 - 22 $ear market* so that $y summer o4 22* redictions o4 a "< a+erage$eow were uite common.!

Investment strategies

ne o4 the many things eoe aways want to know a$out the stock market is* How do Imake money in+estingM &here are many di44erent aroachesJ two $asic methods arecassi4ied as either 4undamenta anaysis ortechnica anaysis. =undamenta anaysisre4ers to anayEing comanies $y their 4inancia statements 4ound in %0# =iings*$usiness trends* genera economic conditions* etc. &echnica anaysis studies riceactions in markets through the use o4 charts and uantitati+e techniues to attemt to4orecast rice trends regardess o4 the comanys 4inancia rosects. ne e)ame o4 atechnica strategy is the &rend 4oowing method* used $y Oohn


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Online trading

nine stock trading is $ecoming a +ery ouar way in which to in+est in the stockmarket. rdinary e+eryday citiEens such as you and me can now trade stocks ike the roswithout aying the ridicuous $roker 4ees that are o4ten associated with trading on thestock market. &his doesnt mean there are no 4ees in+o+ed or that you wont $ediscouraged 4rom cariciousy trading stocks. usiness-to-$usiness(>2>! trading* o4ten conducted on e)changes* where arge

in+estment $anks and$rokerstrade directy with one another* transacting argeamounts o4 securities* and

>usiness-to-cient(>2#! trading* where retai (e.g. indi+iduas $uying and seing

reati+ey sma amounts o4 stocks and shares! and institutiona cients (e.g. hedge4unds* 4und managers or insurance comanies* trading 4ar arger amounts o4securities! $uy and se 4rom $rokers or deaers* who act as midde-men $etweenthe cients and the >2> markets

I4 one decides to go with some o4 the $igger names in the $usiness one shoudunderstand that he wi ay a itte more than he woud ay going with many o4the esser name 4irms and trading comanies. &he good news is that the $iggernames ha+e more to oose a4ter working 4or decades to esta$ish themse+es andde+eo a good reutation among traders. &his means that they are not going to $e4y $y night and are going to work to make sure you ha+e the $est ossi$eser+ice 4rom them 4or your 4uture in the stock market trade.

1
http://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Investment_bankshttp://en.wikipedia.org/wiki/Securities_lendinghttp://en.wikipedia.org/w/index.php?title=Business-to-client&action=edit&redlink=1http://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Investment_bankshttp://en.wikipedia.org/wiki/Securities_lendinghttp://en.wikipedia.org/w/index.php?title=Business-to-client&action=edit&redlink=1


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8any o4 these 4irms in addition to o44ering the a$iity to $uy* se* and trade onine wiaso o44er 4inancia anning 4or retirement* 4uture e)enses* and ad+ice on how to create

a 4i)ed income 4rom your in+estments. &hey wi o44er many tis* hints* and ad+ice 4reeo4 charge on their we$site whie aso romoting the ser+ices they o44er through discountsin hoes o4 gaining your $usiness 4or some o4 the higher ticket transactions that reayay their $is. nine in+estment ser+ices o44er consumers the oortunity to in+est withower commissions and 4ees which means you $ring more o4 the money home when a issaid and done and send 4ar ess on 4ees and e)enses associated with in+esting. >ysa+ing these 4ees you may $e doing yourse4 a huge ser+ice $ut kee in mind that thein+aua$e ad+ice o4 a $roker can o4ten mean the di44erence $etween mid successes andwid successes. I4 you can manage the 4ees it is a good an to at east consut with a$roker or 4inancia ad+isor or anner once or twice a year in order to get the most out o4your in+estment money.

,ccording to #hiang-Nan #hao * o$ert O. 8ocker * "orothy "oogite :-&he marketdownturn since 8arch 2 has osed a serious threat to $rokerage 4irms* articuarythose that o44er onine trading =indings o4 this study suggest that $roke rage 4irms shoud4ocus on imro+ing customer ser+ices* whie at the same time ro+iding ser+ices inaddition to onine trading. nine $rokerage 4irms shoud mo+e into the areas that ha+e$een traditionay dominated $y 4u ser+ice $rokerage 4irms and $anks.Introduction nine trading has $ecome a 4ormida$e 4orce in todays in+estment market*thanks to recent de+eoments in in4ormation technoogy. ,though set$acks in thetechnoogy industry discouraged indi+idua in+estors 4rom acti+ey trading* the totanum$er o4 onine trading accounts continues to grow. ,s the N,%",@ has droed 4romits a time high o4 * in 8arch 2* and the economic situation is continuing to

deteriorate* many in+estors ha+e withdrawn their 4unds 4rom the stock marketNe+ertheess* the interest in onine trading is e)ected to increase (12*1!.In ,ri 22* ,mericas third-argest discount $rokerage house* ,meritrade* agreed tourchase "atek nine Hodings #ororation* a ri+atey hed onine trading comany* inan a-stock transaction +aued at amost K1.2? $iion. &he mo+e woud trans4orm,meritrade o4 maha* Ne$raska* into the argest onine $rokerage 4irm in the .%. interms o4 euity trades er day* surassing industry eaders 0&rade Grou* Inc. and#hares %chwa$ #ororation. &he roosed com$ination comes as the onine tradingindustry aears to $e reco+ering graduay 4rom a se+ere recession that has romtedconsoidation. n the academic side* many recent studies ha+e shown that onine$rokerages ha+e mo+ed away 4rom o44ering ony onine trading* and are now addingmany other ser+ices (i.e.* $anking ser+ices! in order to sur+i+e in this +oatie market &hisstudy 4ocuses on how onine $rokerage 4irms can $etter ser+e the market 4rom the onineusers standoint. nine trading $ecame huge $usiness in the ate 1??s. &he ure o4reati+ey ow $rokerage costs 4or eectronic share trading* together with the caacity tomonitor rea-time market de+eoments 4rom a comuter screen* ha+e contri$uted to the4act that internet-$ased trading now comrises a$out 2L o4 a retai share trading.&he onine trading market has $ecome 4ooded with discount $rokers o44ering ow ricesand $etter transaction costs. %ome o4 the most nota$e onine discount $rokers are

19


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,meritrade* 0&rade* #hares %chwa$ and &"


18/59

out o4 e+ery ten trades that haens to $e a oser wi wie them out.

%tock market trading onine is a tye o4 secuation where education and ski candramaticay imro+e your odds o4 winning. isk management is a ski. educing yourstock market trading risk dramaticay increases the odds that you wi win. %tay 4ocusedon what you need to know and what you need to do to $e success4u trading the stockmarket onine. emem$er that money is just a $y-roduct o4 wise trading methods andactions. ,ccording to 8ark #ris:-It is common now 4or eoe to undertake stocktrading onine. Historicay there ha+e $een ,merican stock markets 4rom the 1s. InPhiadehia an e)change 4or trading currency was esta$ished to ena$e $usiness ownersto suort their $usiness and to grow the economy. In the eary 1;s* the New Bork%tock 0)change reaced the Phiadehia e)change. Initiay New Bork %tock 0)change

was a grou o4 $usiness eoe who met on a daiy $asis on


19/59

%harekhan is one o4 the to retai $rokerage houses in India with a strong onine tradingat4orm. &he comany ro+ides euity $ased roducts (research* euities* deri+ati+es*deository* margin 4unding* etc.!. It has one o4 the argest networks in the country with' share shos in 2; cities and IndiaDs remier onine trading ortawww.sharekhan.com.


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T=7 /O"PA%;

Name o4 the comany: %harekhan td.

Bear o4 0sta$ishment: 1?2

Headuarter: %harekhan %%5I ,-29 Phoeni) House Phoeni) 8is #omound /ower Pare 8um$ai - 8aharashtra* IN"I,- '13

Nature o4 >usiness: %er+ice Pro+ider

%er+ices: "eository %er+ices* nine %er+ices and &echnica esearch.

Num$er o4 0moyees: +er 3

rand in the retai $usiness o4 stock market.

"ission&o educate and emower the indi+idua in+estor to make $etter in+estmentdecisions through uaity ad+ice and suerior ser+ice.

Sharekhan is infact-S ,mong the to 3 $randed retai ser+ice ro+idersS No. 1 ayer in onine $usinessS /argest network o4 $randed $roking outets in the country ser+ing more than * * cients.

%harekhans management team is one o4 the strongest in the sector and has ositioned%harekhan to take ad+antage o4 the growing consumer demand 4or 4inancia ser+icesroducts in India through in+estments in research* an-Indian $ranch network and anoutstanding technoogy at4orm. =urther* %harekhans ineage and reationshi with%%5I Grou ro+ide it a uniue osition to understand and e+erage the growth o4 the4inancia ser+ices sector.%%5I #ororate =inance Pri+ate /imited (%%5I! is a eading India-$ased in+estment $ankwith strong research-dri+en 4ocus. &heir team mem$ers are widey resected 4or their

2
http://www.sharekhan.com/


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commitment to transactions and their seciaiEed knowedge in their areas o4 strength.

A5AR&S A%& A/=I7:7"7%TS

- %%5I has $een +oted as the &o "omestic >rokerage House in the researchcategory* twice $y 0uromoney %ur+ey and 4our times $y ,siamoney %ur+ey.

- %harekhan /imited won the #N># ,


22/59

PRO&3/TS A%& S7R:I/7S OF S=AR74=A% 6I"IT7&

(=igure-3!

METHODOLOGY:

&he data coection methods incude $oth rimary and secondary coection methods.Primary method: &his method incudes the data coected 4rom the uestionnaires andersona interaction with authoriEed mem$ers o4 %harekhan %ecurities imited.

22


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%econdary method: &he secondary data coection method incudes:-&he ecturers dei+ered $y the suerintendent.-&he $rochures and materia ro+ided $y %harekhan %ecurities imited.-&he data coected 4rom the magaEines o4 the N%0* economic times and 4rom internet.

&emat account!

%harekhan is a deository articiant. &his means that we can kee the shares indemateriaiEed 4orm in %harekhan. >ut 4or this one has to the demat account in%harekhan. "emateriaiEation is the rocess $y which a cient can get hysica certi4icatescon+erted into eectronic $aances maintained in his account with the "P.

In %harekhan* under demat account there are two tyes o4 terminas.

&BP0 = "08,&,##N& &08IN,/

"0P%I& (e4unda$e! #H,G0% (nonre4unda$e!

#/,%%I# s. s.

s.1 Ni

&,"0&IG0 s. s.1

s.1F2 Ni

Account opening!

ening a "P account with %harekhan-

ne can oen a "eository Particiant ("P! account* either through a %harekhan $ranchor through a %harekhan =ranchisee center.

&here is no 4ee 4or oening "P accounts with %harekhan. Howe+er a nomina deosit(re4unda$e! is charged towards ser+ices which wi $e adjusted against a 4uture $iings.

, in+estors ha+e to su$mit their roo4 o4 identity and roo4 o4 address aong with therescri$ed account oening 4orm.

23


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BRO47RA$7 STR3/T3R7 OF S=AR74=A%

BRO47RA$7!

I%TRA&A; &76I:7R;

/AS=8 7?3ITI7S .L .L

FnO .L

PR7PAI& S/=7"7 .2L .2L

Sharekhan has tie up 0ith the follo0ing banks!

H"=#

,)is >ank

I">I

#iti >ank

IndusInd >ank

nion >ank

I#I#I >ank.

"I%I"3" I%:7ST"7%T I% "3T3A6 F3%&!

IN60%&80N& 8INI88 ,8N&

8utua =und (,ny #omany!

%ystematic In+estment Pan (,ny #omany!

2'


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/3STO"7R

>usiness cass eoe (high cass!

High Net worth Indi+iduas

%er+ice cass eoe

Go+ernment 0moyees

Boung ,duts (1?-3 yrs.!

,duts (3- yrs.!

H= (Hindu ndi+ided =amiy!


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Its core serices are!

0uities* and "eri+ati+es trading on the Nationa %tock 0)change o4 India /td.(N%0!* and >om$ay %tock 0)change /td. (>%0!*

#ommodities trading on Nationa #ommodity and "eri+ati+es 0)change India(N#"0U! and 8uti #ommodity 0)change o4 India /td. (8#U!*

"eository ser+ices*

nine trading ser+ices*

IP %er+ices*

"ia-n-&rade

Port4oio management ser+ices* =undamenta and &echnica esearch ser+ices*

In addition to this they aso ro+ide ad+isory ser+ices and distri$utions 4ormutua 4unds.

%harekhan 6aue/ine (a monthy u$ication with re+iews o4 recommendations*stocks to watch out 4or etc.!

"aiy research reorts and market re+iew (High Noon 7 0age 0ye!

Pre-market eort

"aiy trading cas $ased on &echnica ,naysis

#oo trading roducts ("aring "eri+ati+es and 8arket %trategy!

Sharekhan First Step

&he %harekhan =irst%te is a $rand new rogram designed eseciay 4or those who arenew to in+esting in shares. , one ha+e to do is oen a %harekhan =irst%te accountandthey guide us through the in+esting rocess.

Features of Trading 5ith Sharekhan!

1. =reedom 4rom aerwork 2. Instant credit and money trans4er 3. &rade 4rom any net ena$ed P#'. ,4ter hour orders. nine orders on the hone9. &imey ad+ice and-research reorts. ea-time Port4oio tracking

;. In4ormation and Price aerts.

29


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WEEKLY ANALYSIS

5774 %o# (!

Had training 4or three days. In this training we were tod a$out %harekhan #omany*

history o4 %harekhan* organiEation structure* roducts* %harekhan research reorts*trading techniues* cients* "emat accounts* "eri+ati+es* and nine trading accounts in$rie4 - %eed &rade and #assic account* earned how to $uy and se shares through theseonine terminas* %aes techniue* %harekhanVs $rokerage.,s this was my 4irst week and had training 4or 3 days I got +ery ess time to understandthe roducts* market and otentia customers.

5774 %o# +!

Gained detaied knowedge a$out cassica account.#assica account is a we$-$ased roduct o4 sharekhan and consists o4

nine trading in 0uity 7 "eri+ati+e

"ia-n-&rade

nine &rading W >ank W demat

#ash trans4er

rder and trade con4irmation through e-mais

%inge screen inter4ace 4or cash and deri+ati+e

2


28/59


29/59

,G0 %&0 = 0%PN"0N&%

(=igure-'!

IN&0P0&,&IN-

It can $e seen that most o4 the eoe who are $etween 1 to 3 od are most in+o+ed inonne trading whie there are 4our eoe who are $etween 31 to ' and ony two area$o+e '.

2?

,G0 0%PN"0N&

1-3 1'31-' '

'-9 2

Age Chart

70%

20%

10%

15 to 30

31 to 45

46 to 60


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IN#80

(=igure-!

3

Income/Month!m"e# o$Mem"e#

%e&o' 15000 1215001 to30000 530001 to45000 1

("o)e 45000 2

Income Chart

60%25%

5%

10%

e&o' 15000

15001 to 30000

30001 to 45000

("o)e 45000


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IN&0P0&,&IN-&his is cear 4rom the chart that eoe ha+ing income ess than 1 are more in+o+edin onine trading and eoe are ha+ing income more than 1 $ut ess than 3and 3 eoe are ha+ing income more than 3.

0"#,&IN @,/I=I#,&IN

13

5

2

0 2 4 6 * 10 12 14

G#+,!+t-on

.o/t G#+,!+t-on

Othe#

Education Chart

!m"e# o$ Mem"e#

(=igure-9!

31


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IN&0P0&,&IN-It can $e seen that most o4 the eoe who are in+o+ed in onine trading are graduatesand resondents are ost graduates and 2 eoe ha+e di44erent education uai4ication.

,##N& P0NING

(=igure-!

32

(cco!nte$

!m"e#o$Mem"e#

e#on+&+c!nt+nce 6e$e##+&-&ent *e$e##+&-on &ent 1

+&& / +&&n 2e#on+oect)t 3

(cco!nt e$ h+#t

30%

40%

5%

10%

15%

.e#on+& +c!nt+ncee$e##+&-&ent

e$e##+&-on &ent

+&& / +&& n

.e#on+& .#oect )t


33/59

IN&0P0&,&IN-8any o4 the resondents oened their accounts through agent(cient! o4 the comany 7 9eoe oened $y ersona acuaintance whie 9 resondents used other mode o4 accountoening.

=00/ %,=0..M

33

(n'e#!m"e# o$Mem"e#

Ye 14o 6


34/59

14

6

0

2

4

6

*

10

12

14

Ye o

!m"e# o$ Mem"e#

(=igure-;!

IN&0P0&,&IN-

It is shown in the 4igure that L o4 resondents 4ee sa4e whie trading onine and 3Lare ha+ing 4ear o4 4raud.

8%& &,"0" %

3'


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7

*

3

1 1

0

1

2

3

4

5

6

7

*

E!-t M!t!+& !n,/ ommo,-t-e/ O E!-t-e/ Othe#

Most Traded Stock

!m"e# o$ Mem"e#

(=igure-?!

3

toc8Mem"e#

E!t 7M.!n, *

ommo,te 3O 1Othe# 1


36/59

IN&0P0&,&IN-It can $e seen that 'L resondents most trade in mutua 4und and eoe trade ineuity 7 3 in+est in commodities whie 1 erson trades in 4uture and otion and 1 inother stocks.

0UP0I0N#0

e9e#ence !m"e# o$

Mem"e#%e&o' 5 Ye+# 175 to 10 3

(=igure-1!

0#0I60 P",&0" IN=8,&IN

39

Online Trading Experience

*5%

15%

e&o' 5 Ye+#

5 to 10


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(=igure-11!

%##0%%=/>50

3

(n'e#

!m"e#o$Mem"e#

Ye o 11

;!cce$!&"#o8e#

!m"e# o$Mem"e#

;t#on


38/59

(=igure-12!

IN&0P0&,&IN- It can $e seen that most o4 resondents moderatey agree that their$roker is success4u in onine trading 7 3L just agree whie 1 erson is strongy agreeon the statement#

S5OT A%A6;SIS

%trengths

It is a ioneer in onine trading with a turn o+er o4 s.' crores and more than; eoes working in the organiEation.

%%5I the arent comany o4 %hare 5han has more than eight decades o4 trust andcredi$iity in the Indian stock market. In the ,sian 8oney >rokerDs o %%5Iwon the AIndiaDs $est $roking house 4or 2'C award.

%hare 5han ro+ides muti-channe access to a its customers through a strongonine resence with www.sharekhan.com* 2 share shos in 13 cities and aca-center $ased "ia-n-&rade 4aciity

3;


39/59

%hare 5han has dedicated research teams 4or 4undamenta and technica research.


40/59

,s interest on 4i)ed deosits with ost o44ice and $anks are a time ow* more and8ore sma in+estors are entering into stock market.

,$oition o4 ong term caita gain ta) on shares and reduction in short term

caita gain is making stock market as hot destination 4or in+estment among smain+estors.

Increasing usage o4 internet through $road$and connecti+ity may $oost a whoenew $reed o4 in+estors 4or trading in securities.

&hreats

,ggressi+e romotiona strategies $y cose cometitors may hamer %hare5hanDs accetance $y new cients.

/ack o4 su44icient $ranch-o44ices 4or seedy dei+ery o4 ser+ices.

ther ayers are ro+iding margin 4unds to in+estors on easy terms where asthere is no such 4aciity in share khan.

8ore and more ayers are +enturing into this domain which can 4urther reducethe earnings o4 %hare 5han.

,+aia$iity o4 nit /inked Insurance Poicies (/IPDs! and mutua 4unds in the market.

'


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FI%A%/IA6 A%A6;SIS

=inancia statement anaysis is a judgmenta rocess. ne o4 the rimary o$jecti+es is

identi4ication o4 major changes in trends* and reationshis and the in+estigation o4 thereasons underying those changes. &he judgment rocess can $e imro+ed $y e)erienceand the use o4 anaytica toos. Pro$a$y the most widey used 4inancia anaysistechniue is ratio anaysis* the anaysis o4 reationshis $etween two or more ine itemson the 4inancia statement. =inancia ratios are usuay e)ressed in ercentage or times.Generay* 4inancia ratios are cacuated 4or the urose o4 e+auating asects o4 acomanys oerations and 4a into the 4oowing categories:

/iuidity ratios measure a 4irms a$iity to meet its current o$igations. Pro4ita$iity ratios measure managements a$iity to contro e)enses and to earn a

return on the resources committed to the $usiness. /e+erage ratios measure the degree o4 rotection o4 suiers o4 ong-term 4unds

and can aso aid in judging a 4irms a$iity to raise additiona de$t and its caacityto ay its ia$iities on time.

044iciency* acti+ity or turno+er ratios ro+ide in4ormation a$out managementsa$iity to contro e)enses and to earn a return on the resources committed to the$usiness.

, ratio can $e comuted 4rom any air o4 num$ers. Gi+en the arge uantity o4 +aria$esincuded in 4inancia statements* a +ery ong ist o4 meaning4u ratios can $e deri+ed. ,standard ist o4 ratios or standard comutation o4 them does not e)ist. &he 4oowing ratioresentation incudes ratios that are most o4ten used when e+auating the credit

'1


42/59

worthiness o4 a customer. atio anaysis $ecomes a +ery ersona or comany dri+enrocedure. ,naysts are drawn to and use the ones they are com4orta$e with andunderstand.

6iquidity Ratios


43/59

#urrent /ia$iities

Profitability Ratios

Net Pro4it 8argin (eturn on %aes!, measure o4 net income doars generated $y each doar o4 saes.

=ormuaNet Income

Net %aes

e4inements to the net income 4igure can make it more accurate than this ratiocomutation. &hey coud incude remo+a o4 euity earnings 4rom in+estments* otherincome and other e)ense items as we as minority share o4 earnings and nonrecuringitems.

eturn on ,ssets8easures the comanys a$iity to utiiEe its assets to create ro4its.

=ormuaNet Income

(>eginning W 0nding &ota ,ssets! F 2

erating Income 8argin, measure o4 the oerating income generated $y each doar o4 saes.

=ormua

erating IncomeNet %aes

eturn on In+estment8easures the income earned on the in+ested caita.

=ormuaNet Income

/ong-term /ia$iities W 0uity

eturn on 0uity8easures the income earned on the sharehoders in+estment in the $usiness.

=ormuaNet Income

0uity

Gross Pro4it 8arginIndicates the reationshi $etween net saes re+enue and the cost o4 goods sod. &his ratioshoud $e comared with industry data as it may indicate insu44icient +oume ande)cessi+e urchasing or a$or costs.

'3


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=ormuaGross Pro4itNet %aes

Financial 6eerage Ratios

&ota "e$ts to ,ssetsPro+ides in4ormation a$out the comanys a$iity to a$sor$ asset reductions arising 4romosses without jeoardiEing the interest o4 creditors.

=ormua&ota /ia$iities

&ota ,ssets

#aitaiEation atioIndicates ong-term de$t usage.

=ormua/ong-&erm "e$t

/ong-&erm "e$t W wners 0uity

"e$t to 0uityIndicates how we creditors are rotected in case o4 the comanys inso+ency.

=ormua&ota "e$t

&ota 0uity

/ong-term "e$t to Net


45/59

whie a high e+e imies that the comanys working caita is working too hard.

=ormuaNet %aes

,+erage


46/59

Operating /ash Flo0Sales RatioT!is ratio, (!ic! is e+#ressed as a #ercentae, co%#ares a co%#any9s operating cashflo0to its net salesor reenues1 0hich gies inestors an idea of the companysability to turn sales into cash#

Formula6 Operating cash flo0

%et sales.reenues2

/ash Turnoer RatioT!e cas! turnover ratio indicates t!e nu%ber of ti%es t!at cas! turns over in a year

1or%ula Sales /ash

/ash Flo0 to 6ong Term &ebt RatioT!e cas! flo( to lon ter% debt ratio a##raises t!e ade4uacy of available funds to #ay

obliations$ 1or%ula

Cas! flo(6ong term debt

Operations /ash Flo0 to /urrent 6iabilities RatioIf the operations cash flo0 to current liabilities ratio keeps increasing1 it mayindicate that cash inflo0s are increasing and need to be inested#

Formula/ash flo0 from operationsCurrent liabilities

/ash Flo0 for Inesting to /ash Flo0s from Operating and FinancingThis ratio compares the funds needed for inestment to the funds obtained fromfinancing and operations#

=ormua #ash 4ows 4rom in+esting .#ash 4ows 4rom oerations W cash 4ows 4rom 4inancing

'9
http://www.investopedia.com/terms/o/operatingcashflow.asphttp://www.investopedia.com/terms/o/operatingcashflow.asphttp://www.investopedia.com/terms/n/netsales.asphttp://www.investopedia.com/terms/o/operatingcashflow.asphttp://www.investopedia.com/terms/o/operatingcashflow.asphttp://www.investopedia.com/terms/n/netsales.asp


47/59

SO6:I%$ C A%A6;SI%$ RATIOS!

iD%et profit margin E ()+#'+ ('' E ++#G+H **)#--

, higher ro4it margin indicates a more ro4ita$e comany that has $etter controo+er its costs comared to its cometitors. &his is comared with the ast yearDsro4it margin o4 comany.

iiD?uick ratioX (*)*#') E (#@( (+)G#)+

Idea @uick ratio is 1:1. #omany needs to imro+e this.

iiiD /urrent ratio E (,'-#G( E (#@* (+)G#)+

Idea @uick ratio is 2:1. #omany needs to increase its assets ordecrease its ia$iities#

iD Operating profit marginE +>*#G)('' E @,#'* **)#--

, heathy oerating margin is reuired 4or a comany to $e a$e to ay 4or its4i)ed costs* such as interest on de$t.

D Total debtequity ratio E >-,#,)' E '#>)

'


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((',#,(

&he normay acceta$e de$t-euity ratio is 2:1.atio ess than one means euityro+ides a majority o4 the 4inancing.

iD Return on inestmentE ()+#'+('' E -#>, (*')#>*

Higher ratio is $etter. In this case the ratio has increased as comared to theast yearDs ratio (;.23!.

iiD $ross profit margin E +,(#(> ('' E >'#,+H

**)#--

Higher the ratio $etter it is.

iiiD Return on equity E ()+#'+ E (@#,@ ((',#,(

iD/apitaliation ratio E >-,#,) E '#@( or @(H

(*')#>* /ow de$t and high euity e+es in the caitaiEation ratio indicate in+estment uaity.

D6ong term debt to net 0orking capital E >-,#,) E (#(( >)(#+-

iDFied assets turnoer ratio E **)#-- E '#), (()+#>+

, high ratio means a high rate o4 e44iciency o4 utiiEation o4 4i)ed asset and owratio means imroer use o4 the assets.

iiD&ebtor turnoer ratio E **)#-- E (#() ),,#)'

Higher ratio is $etter. In this case comanyDs net sae is more than the a+erage

';


49/59

de$tors.

iiiD/apital gearing ratio E ((',#,( E +#+@ >-,#,)

iDOperating cash flo0 ratio E )#(+' ('' E '#,*H **)#--

&he greater the amount o4 oerating cash 4ow* the $etter.

D/ash flo0 to long term debt E (@(#)- E '#+*

>-,#,)&he higher the ercentage ratio* the $etter the comanys a$iity to carry its totade$t. In this case* their de$t oad is higher than their oerating cash 4ows* gi+ing it aratio o4 ess than one* howe+er the ercentage ($eing $eow 'L! is considered ow.

iD/ash turnoer ratio E **)#-- E (#(G )*(#G>

iiDOperations cash flo0 to current liabilities E )#(+'' ('' E '#>-H ('+*#+(

,ny resut ess than 1 indicates that the comany is not a$e to iuidate its currentia$iities 4rom oerating cash 4owJ the comany wi ro$a$y ha+e to se assets*$orrow money or issue stock in order to meet its short term de$t o$igations.

iiiDRetained earnings to total assets E (,,#)> E '#(( (*')#>*

etained earnings to tota assets ratio near 1:1 (1L! indicates that growth has$een 4inanced through ro4its* not increased de$t. &his ow ratio indicates that

growth is not sustaina$e as it is 4inanced 4rom increasing de$t* instead o4rein+esting ro4its.

iD7quity multiplier E (*')#>* E (#>> ((',#,(

&he euity mutiier ratio discoses the amount o4 in+estment e+erage. , highereuity mutiier indicates higher 4inancia e+erage* which means the comany is

'?


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reying more on de$t to 4inance its assets.

D/ash flo0 for inesting to cash flo0 from operating and financing

E 8 +*)#*+'

)#(+J@-+#'G

E 8+*)#*+

@-,#+'

E 8'#**

/I8I&,&IN% = &H0 %&"B:

"esite o4 the training my e+e $est* there were sti some imitation which I thinkremains there to draw 4ruit4u concusion. &here were some ractica ro$ems whichcome across and coud not $e roery death with

&he ad+isory ser+ices $eing romised $y the $rokers woud $e o4 itte use

to in+estors ooking 4or an insight into the market.

,s a cient one wi access the N%0 through a ser+er o4 the onine$rokerage and this may in+o+e ueuing deays

&he comany does not ro+ide its 4inancia reort to anyone. %o the $aance

sheet* cash-4ow-statement 7 ro4it and oss account shown in this roject are notaudited and are o4 some otherDs comany.


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67AR%I%$S C FI%&I%$S

/0,NING%:"uring my summer training* I ha+e earned:

Imortance o4 in4ormation technoogy in the 4ied o4 stock $roking is immense.

%tock $roking comanies run with the he o4 I&. &he termina through which the

$rokers $uy and se shares is so4tware that cometey deends on the internet.

=or %harekhan* this termina has $een designed $y the so4tware comany

A%iderC. >uying and seing through internet is 4ast. ,s soon as the rices o4 the

shares goes u or comes down then they can $e sod or urchased instanty within

seconds. #ustomer eationshi is +ery necessary 4or the comany to retain the

customers.

In %harekhan /td. I ha+e earned a ot reating to the 4inance* earned the meaning

1


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o4 the words that are mosty used in the share market.

/earned a$out +arious roducts o4 the %harekhan /imited* /earned +arious

asects regarding %hare 8arket.

/earned how to use onine trading termina.

/earned the +arious oicies o4 the comany.

/earned a$out +arious roducts used in the share market eseciay "emat

accounts and "eri+ati+es.

Got the ractica knowedge o4 the market.

=IN"ING% ,N" >%06,&IN%:-

=uctuations are more in secondary market than any other market.

&here are more secuators than in+estors.

In4ormation ays a +ita roe in the secondary market.

Pre+iousy roing settement is &W days* now it changed to &W2 days and

4urther it wi $e changing to &W1 day.

It was aso o$ser+ed that many $roking houses o44ering internet trading aow

cients to use their con+entiona system as we just ensure that they do not

oose them and this instead o4 o44ering e-$roking ser+ices they $ecomes ser+ice

ro+iders.

&he num$er o4 ayers is increasing at a steady rate and today there are o+er a

doEen o4 $rokerage houses who ha+e oted to o44er net trading to their customers

and rominent among them are %H,0 5H,N* India $us* kotakstreet* I#I#I

direct.

2


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#N#/%IN ,N" 0#880N",&IN%

&hings ha+e changed 4or the $etter with the %H,05H,N going on-ine coued

with endea+or to stream ine the whoe trading system* things ha+e changed

dramaticay o+er the ast 3 to ' years. New and ad+anced technoogies ha+e

$reached geograhica and cutura $arriers* and ha+e $rought the countrywide

market to doorste.

&he introduction o4 on-ine trading woud in4uence the in+estors resuting in an

increase in the $usiness o4 the e)change. It has heed the $rokers handing a +ast

amount o4 transactions and this can $e an e44icient trading* dei+ering* settement

system with adeuate rotection to in+estors. &he trading o4 %H,05H,N o4 the

4irst day was s. 1.; crores.

"ue to in+ention o4 onine trading there has $een greater $ene4it to the in+estors

as they coud se F $uy shares as and when reuired and that to with onine

trading.

&he $rokerDs has a greater scoe than comared to the earier times $ecause o4

in+ention o4 onine trading.

&he concet o4 $usiness has changed today* this is a ser+ice oriented industry

hence the sur+i+a woud reuire them to ro+ide the $est ossi$e ser+ice to the

cients.

3


54/59


55/59

The Economic Times

BOOKS:-

Beri .!" #ar$eting %esearch

&pta !.B" #ar$eting #anagement.

A%%793R7

Balance sheet

"ar

('

"ar

'-

0uity share caita .' 9.9;

%hare aication money .' 11.3

Pre4erence share caita - -

eser+es 7 surus1*.9 ?;.13

%ecured oans 1.1 1.

nsecured oans '?9.; .1

&ota1*9.;9

1*'?.??

Gross $ock 1;.;3 1'3.9;

/ess : re+auation reser+e - -

/ess : accumuated dereciation 9.93 ''.?'

Net $ock ';.2 ?;.3

#aita work-in-rogress 1. '.1

In+estments1*1'.22

;9?.31

#urrent assets* oans 7 ad+ances1*?.;1

;.

/ess : current ia$iities 7 ro+isions1*2;.12

1.31

&ota net current assets '1.9? .'3


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"ar

('

"ar

'-

8isceaneous e)enses not written - -

&ota1*9.;9

1*'?.??

>ook +aue o4 unuoted in+estments 1*11.'?

;9?.2;

8arket +aue o4 uoted in+estments 3.2 .3

#ontingent ia$iities 2'.1 2.;

Num$er o4 euity sharesoutstanding (/acs!2;2.1

2;3'.

Cash flo# statement

"ar ('

"ar '-

Pro4it $e4ore ta) 233.31 11.';

Net cash4ow-oerating acti+ity .12 13.

Net cash used in in+esting acti+ity-29.92

-1;.1

Netcash used in 4in. acti+ity 3?2.;-2?.11

Net incFdec in cash and eui+nt 131.? 21.;;

#ash and eui+ant $egin o4 year '3.2 21'.3

#ash and eui+ant end o4 year 91.;' '3.2

9


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Profit loss account

?37STIO%%AIR7

, %&"B N N/IN0 &,"ING N %H,05H,N /&"

&he urose o4 this uestionnaire is to know the $eha+ior o4 in+estors a$out onine trading

"ar

('

"ar

'-

Income

erating income 99.?? '2.2

7penses

8ateria consumed - -

8anu4acturing e)enses 1'.2 ?3.32

Personne e)enses 192.92 139.?1

%eing e)enses 13.1; 9.3;

,dminstrati+e e)enses 1'.;3 ;.;1

0)enses caitaised - -

#ost o4 saes '1?.1' 3;3.'2

erating ro4it 2'9.; 1;.;

ther recurring income 2'.3 2?.3

,djusted P>"I& 21.1' 1;;.22

=inancia e)enses 13.;; 11.1

"ereciation 31.;9 2.9

ther write o44s - -

,djusted P>& 22.' 11.1

&a) charges .3' '.;;

,djusted P,& 1';. 13.93

Non recurring items .? -.3

ther non cash adjustments -3.?9 2.23

eorted net ro4it 12.2 1.;3

0arnigs $e4ore aroriation 2.22 22;.'

0uity di+idend ;.2 ?.'

Pre4erence di+idend - -

"i+idend ta) 1'.'; 13.

etained earnings 1.' 13.?
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58/59

and this is ony 4or academic urose.

1. NameYYYYYYYYY

2. ,ge

Z 1 to 3 Z 31 to '

Z '9 to 9 Z a$o+e 9

3. Income er month

Z >eow 1 Z 11 to 3

Z 31 to ' Z a$o+e '

'. 0ducation uai4ication

Z Graduation Z ost graduation

Z thers

. "o you know a$out onine tradingM

Z Bes Z No

9. How was account oenedM

Z Persona acuaintance Z e4erra-#ients

Z e4erra-Non #ients Z #aF


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?. In which stock you most trade onine

Z 0uity Z 8utua =unds

Z #ommodities Z =7 0uitie

Z ther

1. No. o4 years o4 onine trading e)erience in stocks at this 4irm

Z $eow yrs Z to 1

11. "o you recei+e udated onine in4ormation regarding the stock market 4rom your

deaerF$rokerM

ZBes ZNo

12. "o you $eie+e that your traderF$roker is +ery success4u in onine tradingM

Z %trongy ,gree Z,gree Z8oderate

Z"isagree Z%trongy "isagree

girish sharekhan ltd

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