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A

SUMMER INTERNSHIP REPORT

AN ANALYSIS OF CONSUMER ATTITUDES TOWARDSSHARETRADING: COMPARISION BETWEEN ONLINE SHARE

TRADINGAND OFFLINE SHARE TRADING

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE

DEGREEOf

MASTERS OF BUSINESS ADMINISTRATIONDepartment of Management Studies,

Jai Narain Vyas University,Jodhpur (Raj.)

2011-2013

Submitted to - Submitted by -Dr. Meeta Nihalani Kirti JaiswalHead of Department MBA(RMAT)

Semester3rd


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ACKNOWLEDGEMENT

This project is undertaken by me, as a part of my MBA (RMAT) course, in the outgrowth of

my experience of two month training in one of the reputed stock broking firms in India

SHARE KHAN.

I take great pleasure to thank and acknowledge the assistance and inspiration provided by -

Mr. Malay Joshi,HeadOnline Products and NRI Desk

Mrs. Shanti MantriHead, Back Department

Mrs. Sanchita Sharma - Manger (Public Relations)

Mrs. Mamta Shah- Executive Marketing

Mr. Javed AkhtarExecutive Marketing

who contributed in a substantial way during all the stages of preparation of this report. I also

express thanks to the staff of Share khan Securities for allowing me to be trained under their

expertise.

I wish to record my thanks to Mr.Sunil jain (Customer Relationship Manger) for giving me an

opportunity to work in the company.

This acknowledgement would be incomplete without a word of thanks to Dr. Meeta Nihalani,

who assisted me. I also express thanks to the faculty staff, library staff of the department andmy classmates for guiding me.


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CHAPTER SCEHME

1. Introduction

2. Review of literature

3. Concept of freelancer wedding planner

3.1 Qualification, education and experience

3.2 Skills and knowledge

3.3 Working condition

3.4 Being a wedding planner your job may consist of following

4. Scenario in India

4.1 Wedding exhibition and carnivals

4.2 Wedding malls

4.3 Effects of recession on wedding in India

5. Nature & Growth of Business

6. Advantages of begin a freelancer wedding planner

6.1 Getting paid as a wedding planner

6.2 Working freelance as an independent consultant

6.3 Having fun as an arranger of events

6.4 Freedom of being your own boss

6.5 Skills development

6.6 flexibility

6.7 National exposure

7. Objective of the study

7.1 Objectives


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7.2 Assumption

7.3 hypothesis

8. Research Methodology

8.1 Research design

8.2 Data collection method

8.3 Sampling unit

8.4 Sampling technique

8.5 Sampling size

8.6 Area of research

9. Analysis and interpretation

10. Findings of the study

11. Conclusion

12. References


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COMPANY PROFILE

Share khan Ltd. is one of the leading retail stock broking house of SSKI Group which is

running successfully since 1922 in the country. It is the retail broking armor the Mumbai-based

SSKI Group, which has over eight decades of experience in the stock broking business. Share

khan offers its customers a wide range of equity related services including trade execution on

BSE, NSE, Derivatives, depository

services, online trading, investment advice etc. The firms online trading and investment site-

www.sharekhan.com was launched on Feb 8,2000. The site gives access to superior content and

transaction facility to retail customers across the country. Known for its jargon-free, investor

friendly language and high quality research, the site has a registered base of over one lakh

customers. The content-rich and research oriented portal has stood out among its contemporaries

because of it steadfast dedication to offering customers best-of-breed technology

andsuperior market information. The objective has been to let customers make informed

decisions and to simplify the process of investing in stocks.

On April 17, 2002 Sharekhan launched Speed Trade, a net-based executableapplication that

emulates the broker terminals along with host of other information relevant to the Day Traders.

This was for the first time that a net based trading station of this caliber was offered to the

traders. In the last six months Speed Trade has become a de facto Standard for the Day

Trading community over the net.

Share khans ground network includes over 331 centers in 137 cities in India which provide a

host of trading related services.

Share khan has always believed in investing in technology to build its business. The company

has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,

Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign

Financial Technologies India Ltd, Spider Software Pvt Ltd. To build its trading engine and


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content. The Morakhiya family holds a majority stake in the company. HSBC, Intel &Carlyle are

the other investors. With a legacy of more than 80 years in the stock markets, the SSKI group

ventured into institutional broking and corporate finance18 years ago. Presently SSKI is one of

the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable

portion of the market in each of these segments. SSKIs institutional broking arm accounts for

7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic

Institutional portfolio investment in the country. It has 60 institutional clients spread over India,

Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations

revenue, with a daily turnover of over US$ 2million. The Corporate Finance section has a list of

very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector

tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients

include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and andShoppers

Stop.

PROFILE OF THE COMPANY:

Name of the company:

Share khan ltd.

Year of Establishment: 1925

Headquarter: Share Khan SSKIA-206 Phoenix House Phoenix Mills Compound Lower Parel

Mumbai - Maharashtra, INDIA- 400013

Nature of Business: Service Provider

Services: Depository Services, Online Services and Technical Research.

Number of Employees: Over 3500

Website:www.sharekhan.com

Slogan:Youre Guide to The Financial Jungle.

ACHIEVEMENTS OF SHAREKHAN:

Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc byBusiness Today, January 2004 edition.

Awarded Top Domestic Brokerage House four times by Euro money and Asia money.
http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/


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Pioneers of online trading in India amongst the top 3 online trading websites from India.Most preferred financial destination amongst online broking customers.

Winners of Best Financial Website award. Indias most preferred brokers within 5 years. Awaazcustomers Award 2005.

Future Plans:

2,00,000 plus retail customers being serviced through centralized call centers/ websolutions

Branches / Semi branches servicing affluent / aggressive traders through high skillfinancial advisor.

250 independent investment managers/ franchisee servicing 50,000 highly valued clients. New initiatives Portfolio management Services and commodities trading.

Vision:

To be the best retail brokering Brand in the retail business of stock market.

Mission:

To educate and empower the individual investor to make better investment decisions through

quality advice and superior service.

Share khan is in fact-

Among the top 3 branded retail service providers

No. 1 player in online business

Largest network ofbranded broking outlets in the country serving more than 7, 00,000 clients.


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Get everything you need at a Share khan outlet!

All you have to do is walk into any of our 640 share shops across 280 cities in India to get a

host of trading related services - our friendly customer service

staff will also help you with any accouts related queries you may have.

A Share khan outlet offers the following services:

Online BSE and NSE executions (through BOLT & NEAT terminals) Free access to investment advice from Share khans Research team Share khan Value Line (a monthly publication with reviews of recommendations, stocks

to watch out for etc)

Daily research reports and market review (High Noon &Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice Live Market Information Depository Services: Demat & Remat Transactions Derivatives Trading (Futures and Options) Commodities Trading IPOs & Mutual Funds Distribution Internet-based Online Trading: Speed Trade


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REASON TO CHOOSE SHAREKHAN LIMITED

Experience:

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia

Money broker's poll held recently, SSKI won the India's Best Broking House for 2004 ' award.

Ever since it launched Share khan as its retail broking division in February 2000, it has been

providing institutional level research and broking services to individual investors.

Technology:

With its online trading account one can buy and sell shares in an instant from any PC with an

internet connection. One can get access to its powerful online trading tools that will help him

take complete control over his investment in shares.

Accessibility:

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for

investors. These services are accessible through its centers across the country over the internet

(through the website www.sharekhan.com) as well as over the Voice Tool.

Knowledge:

In a business where the right information at the right time can translate into direct profits, one

can get access to a wide range of information on Share khan limiteds content-rich portal. One

can also get a useful set of knowledge-based tools that will empower him to take informed

decisions.

Convenience:

One can call its Dial-N-Trade number to get investment advice and execute his transactions.

Share khan ltd. has a dedicated call-centre to provide this service via Toll Free Number 1800-22-

7500 & 1800-22-7050 from anywhere in India.

Customer Service:

Share khan limiteds customer service team will assist one for any help that one may require

relating to transactions, billing, demat and other queries. Its

customer service can be contacted via a tollfree number, email or live chat on

www.sharekhan.com.

Investment Advice:

Share khan has dedicated research teams of more than 30 people for fundamental and technical

researches. Its analysts constantly track the pulse of the market and provide timely investment
http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/


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advice to its clients in the form of daily research emails, online chat, printed reports and SMS on

their mobile phone.

SSKI Group Companies-

SSKI Investor Services Ltd (Share khan) S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance I dream Productions Palm spring estates Pvt Ltd. Fin flow Investment Pvt Ltd. I dream Production UK Pvt Ltd. Share khan Commodities Pvt Ltd. Archfund Properties Pvt Ltd.

SWOT ANALYSIS

Strengths:

It is a pioneer in online trading with a turn over of Rs.400crores and more than 800peoples working in the organization.

SSKI the parent company of Share Khan has more than eight decades of trust andcredibility in the Indian stock market. In the Asian Money Brokers poll SSKI won the

Indias best broking house for 2004 award.

Share Khan provides multi-channel access to all itscustomers through a strong online presence withwww.sharekhan.c

om, 250 share shops in 130 cities and call-center based Dial-n-Trade facility

Share Khan has dedicated research teams forfundamental and technical research. Whichconstantlytrack the pulse of the market and provide timelyinvestment advice free of costto its clients which has a strike rate of 70-80%.

Weakness:

Localized presence due to insufficient investments for country wide expansion. Lack of awareness among customers because of non-

aggressive promotional strategies (print media, newspapers, etc).


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Lesser emphasis on customer retention. Focuses more on HNIs than retail investors whichresults in meager market-

share as compared to closecompetitors.

Opportunities:

With the booming capital market it can successfully launch new services and raise itsclients base.

It can easily tap the retail investors with small savingthrough promotional channels like print media, electronicmedia, etc.

As interest on fixed deposits with post office and banks a real time low, more and moresmall investors are entering into stock market.

Abolition of long term capital gain tax on shares and reduction in short term capital gainis making stock market as hot destination for investment among small investors.

Increasing usage of internet through broadband connectivity may boost a whole newbreed of investors for trading insecurities.

Threats:

Aggressive promotional strategies by close competitors may hamper Share Khansacceptance by new clients.

Lack of sufficient branch-offices for speedy delivery of services.

Other players are providing margin funds to investors on easy terms whereas there is nosuch facility in share khan.

More and more players are venturing into this domain which can further reduce theearnings of Share Khan.


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EXECUTIVE SUMMARY

The objectives of the proposed study are --

1) Identify the specific factors that affect consumer attitudes towards share trading.

a) Identify the specific factors that affect consumer attitudes towards online

share trading.

b) Identify the specific factors that affect consumer attitudes towards offline

share trading.

2) Comparison between online and offline share trading methods.

The 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 no t to fe rret out cause -

ef fect re l a t i ons h i p . Th e p r i mar y da t a was co l l ec t ed t h r ough ques t i onna i r e f i

lling and by conductingtelephonic interviews. The 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. There is a need of creating awareness among them for share trading

and the tremendous potential it has. They are doing trading on the old methods which were

used in the past. Now with the advent of technology there are many options available to the

traders which they can use without any fear. The trend is moving towards the online share

trading but still it has a lot to cover. The traders are more of young age and middle age and dont

fear from risk taking but the lack of knowledge doesnt allows them to do so. So the

s t ock b r ok i ng compan i es s hou l d t ake meas ur es t o empower t he no r ma l

investors so that they can trade with the latest technologies available.

Target the youth as they are most potential customers of the stock market as their

in terest towards stock trading is increasing. The stock broking companies should educate


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the investors by giving them timely help in the form of reports and tips. The com panies

should try to work in more transparent w ay . Pe op le wan t go od servi ce s an d

are rea dy for pa yin g ext ra pen ny. Peo ple pre fer Eas e of transactions and

security. So, brokerage companies should focus on security and making transactions as simple as

possible with simple usage of technology. The stock broking companies should also go for tie-

ups with the leading banks.


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LITERATURE SURVEY

The stock market has been a part of people's lives throughout the twentieth century. Millions

of people around the world have money invested in their countries own respective markets. Since

the coming of age of online trading, more people have been investing their money in

stocks than ever before because of the advantages it offers. Online trading allows

people to trade st ocks qu ickly wi thou t the help of a broker, le tt ing the investors

have more control over the ir transact ions. The competition between companies has helped

decrease the cost of making the transactions. In addition to that, ordinary people now have access

to information that could only be seen by brokers. Overall, online trading saves time, money and

gives power to the investor rather than the broker.

The combined effects of financial services companies striving to drop the cost of

provi ding customer service and the significant rise in individual investors' interest in taking

control of their own inves tment s cont inues to increase the use of onlin e securities

trading. Further, many individual investors rely on the internet as a means of learning as

much as they can about specific investments before executing a stock o r bond trade

online, and this factor alone is changing the landscape of fi na nc ia l se rv ic es .

I t i s s een t ha t t he f i nanc i a l s e r v i ces f i r ms a r e wa l k i ng a f i ne l ine be t ween

automating transactions by putting powerful investment tools in the hands of

individual investors, while at the same time educating them of the financial benefits

of long-term investing. With the advancement of online trading individual investors

have more control over their funds than

ever b e f o r e , y e t w i t h t h a t f r e e d o m c o m e s a h i g h l e v e l o f r e s p o n s i b i

l i ty to make sure the advice , appl i ca t ions and tool s they ga in access f rom

financial services firms are in fact the best match with their investment needs.

For this industry, analysis can be conducted in an effort to determine who has the power, the

customers or the suppliers? Competitive forces provide buyers or suppliers with an

advantage in terms of who holds the bargaining power.


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Tumbling markets, falling share prices.... make us appear the trading exercise very lucrative.

But still puzzled, where will we be able to choose the right lot from the markets.

The best way to predict the future isto invent it.

3.1 History of Stock Market

It was in the year 1875 that the working of stock exchange in India started. BSE is

the oldest stock market in India. Indian stock trading started with 318 persons taking

membership in Native Share and Stock Brokers Association, which is now known as the

Bombay Stock Exchange or BSE in short. In1965, BSE got permanent recognition from

the Government of India. National Stock Exchange (NSE) comes second to BSE in terms

of popularity. BSE and NSE represent themselves as synonyms of Indian stock market. The 30

stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled based on

t he pe r f o r mance o f t he s t ocks o f 30 f i nanc i a l l y s ound benchmar k

companies. In 1990 the BSEcrossed the 1000 mark for the first time. It crossed 2000,

3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was

the liberal financial policies announced by the then financial minister Dr. Man Mohan

Singh. The buoyant mood of the market was suddenly gone with Harshad Mehta

scam. It came to public knowledge that Mr. Mehta, also known as the big-bull of

Indian stock market diverted huge funds from banks through fraudulent means. He

pla yed wi th 270 mi llion shares of about 90 companies . Mi ll ions of smal l-scal e

investors became victims to the fraud as the Sensex fell flat shedd ing 570 points.

Thus, from that day it became very clear that the stock market is not a place where

you can earn money easily without taking into considerations about your environmental

changes. It also made it very clear that the small investors should themselves as safe as possible

because of the uncertainty in the market. To prevent such frauds, the Government formed The

Securities and Exchange Board of India (SEBI), through an Act in 1992. SEBI oblige severalrigid measures to protect the interest of investors. Now with the inception of online trading

and daily settlements the chances for a fraud is nil as the stock broking companies had

to make it very to each and every investor bout the various issues of the stock market. Sensex

crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was

crossed in June and the 8000 mark on September 8 in 2005. After the liberalization, when the


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gates were

openf o r t h e f o r e i g n i n v e s t o r s t h e I n d i a n s t o c k m a r k e t w a s f l o o d e d

w i t h t h e FD I s ( f o r e i gn d i r e c t invest men ts) and the mar ket

has shown tremendous amount of volatility. And very recently market has even

touched the 21,000 mark.

3.2 Stock Market

The market or place, where securities, viz. shares are exchanged or traded or simply where

buying or selling of shares takes place, is called stock exchange or stock market. In India there

are two types of stock exchanges:

1 . Na t i ona l S t ock Exchange ( NSE)

2 . B o m b a y S t o c k E x c h a n g e ( B S E )

NSE is a Mumbai-based larges t stock exch ange in India in te rms of dai ly

turnover and number of trades. Though it is mutually-owned by a set of leading

financial institutions like banks, insurance companies but its ownership and

management operate as separate entities. It is the second fastest growing stock

exchange in the world with a recorded growth rate of 16.6%. It was incorporated

in November 1992 as a tax paying company. In April 1993 it was recognized as a stock

exchange under the Securities Contracts Act, 1956. The capital market (equities) segment of the

NSE commenced its operations in November 1994, while operations in derivatives segment

commenced in June 2000. It is the third largest Stock Exchange in the world in terms of number

of trades in equities.

B S E i s t h e o l d e s t s t o c k e x c h a n g e i n A s i a a n d a l s o t h e b i g g e s t i n

the wor ld in t e rms of l i s t ed companies wi th 4800 l i s t ed companies as of

August 2007. It was established in 1875. It played a pivotal role in the development of

its index SENSEX which is tracked worldwide. It has a PAN India presence in 417 cities andtowns.

In a nation with middle class population of above 200 million, most of whom

dream of a better, financially comfortable tomorrow, the stock market is obviously

seen as the perfect place to invest when you consider that stock markets can make

you rich in a very short span o f t ime provided you play your cards correctly. But the


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scams in the last centuries have made the investors to play it safe, ifthey dont know the rules of

the game. In the past few years though have seen a wave of technology enhancements

sweeping through the Indian share markets, wiping out archaic conventions. Due to

this we have seen many changes coming into the picture like online share trading gradually

coming to India. These technological innovations have been brought out most proactively by

NSE.

The online share trading started way back in February 2000 with the Geojit Securities

conducting the first online transaction where 100 shares of Reliance was traded by

SEBI Chairman D R Mehta for Geojit Chairman A P Kurien. Since then a lot has

changed in the Stock market. Currently, onlinetrading volumes in India are just

about 20% of the total trades. Slow off the blocks, but online share

Trading in India is poised to grow very fast in the future. From a base of about Rs 3

crore in April2000, online trading volume has risen to nearly In the stock market, basically

trading of shares is done apart from commodities trading. Trading is the process of buying at

lower price and then selling it at a higher price for earning profits. Share trading is one of the

most successful trading and it has become simpler, fast, and secure from offline trading or phone

trading into online trading. Online trading is done with the help of internet. One of the biggest

problems with the stock market is that there are no guarantees. After doing a lot of research at

your home still it may be possible that the stock which you had picked falls to oblivion. Share

trading is done in mainly two ways:

1 . O n l i n e s h a r e t r a d i n g

2 . O f f l i n e s h a r e t r a d i n g

3.3 ONLINE SHARE TRADING

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

with trading or demat 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

t rad ing the n you sho uld hav e a com put er , internet connect ion and online


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trading account. It is done via internet means that all the transaction is settled

electronically.

Advantages:

1. The 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.

2. Dependence on broker or anybody else is nil for placing or squaring off the order. In short one

is his/her own boss for trading of shares.

3. 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. So if someone is doing

online trading himself, then a disaster can be averted. People 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.

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

to the PC without depending on any broker. Status of the amount can also be checked on daily

basis through online trading system.

Disadvantages

1. One may face a problem of disconnection from internet and hence will not be able to login-inand do share trading.

2. One may also face problem like electricity cut-off and at that time one has to call his brokerand place the order for execution. Due 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.

3.4 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 ones behalf based on

the instructions given by one, and then the other person can be a broker. The broker will do

buying and selling of shares on ones behalf depending on the instructions given by one. This


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type of trading was done in the past but nowadays most of the trading is done through computers

i.e. online. E.g. Suppose that if Mr. X wants to sell n number of shares when the share price

reaches Rs. 100, then Will tell his broker to sell the share at Rs 100 (i.e. when the price of Rs.

100 is reached). Nevertheless, with all the convenience of online trading there are still investors

who prefer the old fashion way of offline trading. Offline trading has lost some popularity but it

is still the main form of investing. Offline trading offers many benefits as well.

Advantages:

1. The one benefit that an investor appreciates the most is that they are not alone when making

investment decisions.

2. There are experienced and professional brokerage companies that handle their investments

for them.

3. Investors are not faced with the challenge of making these vital investment decisions;

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

4. Also, there is someone there to answer any questions that may cause concerns.

Not to mention, with offline trading mistakes are less likely to take place. No 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. The reason why online trading has emerged is due to the

emergence of IT. Doing transactions online is always advantageous and easy plus less time is

taken by doing transactions online. Also following are the

Disadvantages of doing transactions offline:

1. Not the cheapest fees available.

2. Lost some of its competitiveness in attracting new customers with higher commission rates.

3. Time consuming process.

4. Slow process than online trading. A delay of even a second can change the value of a

particular stock greatly.

3.5 PURPOSE OF STOCK MARKET

The basic purpose of stock market is to provide capital for investment and for the investors

liquidity. For large companies to emerge and function effectively there is a need to pool risk

capital which


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30individual entrepreneurs cannot bring in on their own or with the help of relatives, friends and

acquaintances. The stock market is one of the most important sources for companies to raise

money. This allows businesses to raise additional capital for expansion or for financial needs by

selling shares of the company. Selling of shares is like selling of the ownership of the company

in public market. Share prices also affect the wealth of households and their consumption. Thus,

central banks keep an eye on the control of stock market and on the smooth operation of

financial systems functions. The collection and delivery of shares is also very important to

eliminate the risk to an

individual buyer or seller. The smooth functioning of all these activities facilitates economic gro

wth and increased prosperity.

3.6 RELATION BETWEEN STOCK MARKET AND MODERN FINANCIAL SYSTEM

There is a most remarkable transformation in the financial systems in most countries. One such

transformation is disintermediation. The heightened interest of general public in investing in the

stock market, either through equities or through mutual funds A portion of the funds involved in

saving and financing flows directly to financial markets instead of being routed via banks

deposit operations. Recent trends have shown that shares have made up an increasingly large

proportion of households financial assets. In all developed economic systems such as EU, the

United States, Japan and other nations, the trend has been same: saving has moved away from

traditional bank deposits to more risky securities of one sort or another.

3.7 PRESENT STATE OF STOCK MARKET

At present the stock market is not doing fine but thats a natural phenomenon to happen, i.e.

anything that goes up at one point of time, it has to come down at some other point of time. That

is what is happening with the stock market. But here lies a big opportunity for investors. Share

prices for most of the stocks are at their 52 week down. Hence, it is an appropriate time to buy

any share (obviously your pocket should allow that to happen) and forget about selling them for

at least 1 year or according to your needs (when you want to exit).There are many reasons for

this situation of the stock market such as rise in fuel prices, inflation, and recession cycle in the

USA, increasing fiscal deficit due to tons of subsidies, etc. Stock market may fluctuate as per

positive or negative news, political factors and many other factors. Selling on part of the FIIs and


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bearish sentiment of the investors have kept the market in pressure as selling has been witnessed

from the last couple of weeks. Nifty 50 had broken the psychology level of 4800 and even4600

and it is likely to break even 4200 mark. It is very difficult to believe that Indian stock market

has gone below 14000 points after crossing 20000 points mark at one time. From last few

months, India stock market is on constant down fall and investors have suffered huge losses

accounting for billions of dollars. Moreover, people still do not have clear idea about whether to

invest in stock market in present condition or remain away from it. Some experts have even

predicted that market can slide below 10,000 points in worst conditions because stock market is

reacting negatively to rise in inflation and increasing crude oil prices. Right now its a right time

to buy stocks. Another thing is that if someone is new to the stock market then he/she should not

go for trading, better to go for investments i.e., go for long term investment, which will always

increase wealth.

3.8 CONSUMER BEHAVIOR

It is the study of how, when, what, and why people buy. Its elements blend with the elements

of marketing and psychology. It helps us to understand the buyer decision making process, bothi

ndividually and in groups. It helps us to study the characteristics of individual consumers like

demographic, psychographic, and other behavioral variables in an attempt to understand peoples

needs and wants. The study of consumer behavior helps the firms and organizations in improving

their marketing strategies by understanding various issues such as:

1. How consumer thinks, feels, and select between different alternatives? (e.g., brands, products)

2. How is consumer influenced by his or her environment? (e.g., culture, family, friends)

3. Consumer knowledge or information processing abilities.4.How marketers can adapt and

improve their marketing campaigns and strategies to reach the consumers more effectively.

4.1 REASONS FOR STUDYING CONSUMER BEHAVIOR

Consumer analysis helps managers in many ways like:

1. Designing the marketing mix.

2. Segmenting the market place accordingly to consumer needs and wants.

3. Positioning and differentiating products of their companies differently to each consumer.

4. Provides knowledge about overall human behavior.


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5. Provides the recent trend in the market among the consumer preferences.

4.2 FACTORS THAT INFULENCE CONSUMER BEHAVIOR

The factors that influence consumer behavior are divided into mainly two categories:

1. Internal Factors: The internal factors include the psychological factors such as:

a) Needs and motives

b) Personality

c) Perception

d) Learning) Attitudes

f) Involvement

2. External Factors: The external factors include the factors from the environment such as:

a) Socio-cultural factorsSocietal values, economic factors, media, reference groups, etc.

b) Demographic CharacteristicsAge, gender, income, educational level, occupation, social

class, ethnic group, etc.


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RESEACRH METHODOLOGY

Research objective:

Primary objectives: of the proposed study are:

1.) Identify the specific factors that affect consumer attitudes towards share trading.

i) Identify the specific factors that affect consumer attitudes towards online share trading.

ii) Identify the specific factors that affect consumer attitudes towards offline share trading.

2.) Comparison between online and offline share trading methods.

Secondary objective: To learn about the working of share market. The 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 cause-effect relationship. The

phenomena to be studied, consumer attitudes or behavior, is not new in the field of research but

is of utmost importance for the companies to strategies their future steps by increasing the

understanding of the current consumer behavior pattern in this age of electronic services era. The

first source of secondary data needed for the study was collected from the database of the

customers of Share khan Ltd. And other sources for the secondary data are internet, from where

we got the database of the people who were interested in stocktrading.The primary data was collected through questionnaire filling and by conducting telephoni

cinterviews. The questionnaire was administered to those people who are doing stock trading

and were selected in terms of their trading habits.

The questionnaire is designed in structured form and most of the questions were multiple choice

questions. And some open ended questions were also included in the questionnaire. Respondents

were asked to complete 5 point Likert scale in some questions. The data collected was analyzed

to see if there are any demographic differences between the users of online and

offline trading in an effort to investigate the general belief that the younger. More educated and

the more affluent the population are more likely to adopt online share trading. Also, all the

factors were tried to be accommodated in the study which were expected to affect the adoption of

online trading. The factors being cost of adoption, security concerns, convenience, ease of use,


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internet accessibility and speed, trust in ones broker. A total of 50 respondents participated in

this limited

survey. The objective was to gather a highly representative sample as the sample represents

geographically and the respondents were chosen in terms of their trading habits. The statistical

tool for doing the analysis on the primary data is SPSS. As it is known statistics is a

tool to make decisions.

RESEARCH METHODOLOGY:

6.2.1 COLLECTION OF DATA

For collecting the primary data from the users a questionnaire was designed. Thisquestionnaire

was administered to the individuals who already are investing or trading in the stock market.

Sample questionnaire is attached in annexure.

6.2.2 SAMPLING METHODOLOGY

Sampling locationsJODHPUR

Sampling unitspeople investing in stock market.

Sampling techniquesprobability sampling (convenient sampling).

Sample size50

Mode of surveyPersonalized interviews- Questionnaire- Telephonic interview

6.2.3TIME FRAME - 2ndMay to 30thJune

6.3 Questionnaire Design: In our survey, answers were of interest not intrinsically but because

there exists a relationship to something we were supposed to measure. Our questionnaire was


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reliable and provided consistent results. In comparable situations, and valid; answers correspond

to what they are intended to measure. It is always what they are intended to measure. It was

always important to us to remember that the answers are valuable to us to the extent that it can be

shown to have a predictable relationship to factor subjective states that are of interest. There

were two main objectives in mind while designing the questionnaire:

To maximize the proportion of subjects answering our questionnaire that is, theresponse rate.

To obtain accurate relevant information for our survey.

6.4.2 Survey Place

Since we surveyed only those people who are investing in the stock market so we had contacted

the respondents over the phone and. The rest were filled by the investors who are coming to the

Connaught place share trading shops and branches.

6.5 SAMPLING AND SAMPLE SIZE

6.5.2 Sampling Method

The method which is selected for the research is convenient sampling, all elements of the frame

are treated equally and it is not subdivided or partitioned. Furthermore each possible sample of a

given size (n) has a known and equal probability. Since there are each and every type of peoplecoming to Connaught place from every corner of Delhi NCR so there was an equal chance of any

person to be asked and surveyed. This implies that every element is selected independently of

every other element. The samples were drawn by a random procedure from a sampling frame.

We can even say that this method is equal to a lottery system in which names are placed in a

container, the container is shaken and the names of the winner are then drawn out in an unbiased

manner. In the same way our sample also consists of getting selected on an equal chance from

the population. The two benefits of doing our research project is that it is

Easily understood Results projectable

6.5.3 Population

A population is the aggregate of all the elements that share a common set of characteristics and

that compromise the universe for the purposes of the marketing research problem. Information


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about population parameters may be obtained by taking a consensus or a sample. Typically, we

seek to take action on the population which invests in share market and do trading in shares,

mutual funds and commodities. So according to our Industry guide Mr. Nitin Vats, in the Whole

Delhi NCR there are approximately 5 and half lakh traders and investors. Since our population

cannot be brought under one cluster and strata thus we were not confined to just one area. Also

our population was scattered all around the NCR so we tried to take the attributes and features of

the whole population by interviewing the investors who are coming in to the Connaught place.

We even made calls to many traders by calling randomly and asking them if they are willing to

be a part of our survey. Thus, we conducted telephonic interviews also.

Sample

A sample is a subgroup of the population selected for participation in the study. Samplecharacter

istics, called statistics, are then used to make inferences about the population

parameters.The inferences that link the sample characteristics and population parameters are esti

mation procedures and tests of hypothesis.

6.5.4 Sample Size

Sample size refers to the number of elements or subjects included in the study without any

biasness.

FUTURE OF SHARE TRADING WITH INDIAN PROBLEMS

While analyzing the e-broking scenario in India some of the structural aspects need to be kept in

mind. Firstly, the breadth of participation in India in the stock market is very low. The awareness


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among the people is still not up to the mark. The stock broking companies should take this as

achallenge and should come up with some new and innovative ways of trading easily andconveni

ently. The broking companies should go for some tie-

ups with the leading private andgovernment banks so that it would be easier for the traders to

transfer their funds as and when required. Even the brokers should increase the level of services.

Like of we take the present market situation, they are not in a position to convince the traders

to invest more as this is the best time for investments. Traders still want to play it safe on their

part but lacking the knowledge about the market is also very dangerous. So the companies should

try and increase the knowledge of the traders so that they can do more trading in the falling

market also. Secondly, internet penetration in India is very low. In other foreign markets, online

brokerages are advertised heavily. But India the online trading so far has not seen similar levels

of aggressive advertising, with the exception of some leading broking companies like ICICI

Direct, Home Trade and Share khan ltd. apart from this, there is one more limitation of the

Indian stock market that only the scrips that have been compulsorily dematerialized can be

traded on the net. Thirdly, the brokerage charges in India are very low with brokers charging

from 0.85 to 1.30 per trade. Thus, the scope for expansion of the market through reduction in

brokerage is far lower. Fourthly, technology bottlenecks are responsible for online trading to a

large extent and it has not taken off the ground. The main cause poor bandwidth is

prominently one of the main reasons behind this. The three main technological obstacles which

are responsible for online trading are internet penetration, bandwidth, and poor quality of ISP.

Fifthly, a physical presence is a must for any investor in India. An average investor calls his

broker for confirming about the execution of his order and thus the purpose of online trading is

lost at that point itself. This happens because if the connection is lost in the middle of execution

then the investorcant be sure about his order status and thus makes a call to his broker. As the

online trading is still at the grass root level and most traders going for offline trading, thus a

physical presence is a crucial for any brokerage firm in India.


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During the survey, one more thing came to lime light that banking, broking and depository

platforms, though all linked to same trade, function on entirely different platforms. Integrating

all of these is a major obstacle. In spite of the all the hassles and issues

Futurelooks quite bright

. Big players like Reliance, Airtel and BSNL are laying optic fibre across the country and the

connectivity issue will mostly be solved. Although the risk appetite of the traders has reduced but

the participation level has increased a lot and is stabilizing to high levels. The trend towards

online trading is increasing very rapidly and this is shown by its rapid acceptance in developed

and structured capital markets. NSE and BSE have also influenced the daily traders to learn the

methods of online trading. Even the SEBI rules have also been very strict now and the initial

fear of entering into the markets is also reducing gradually. The volatility in the stock market is

also limited and varies according to the category in which the shares of any particular company

are. The dematerialization of shares is also been made mandatory by SEBI and hence online

trading has this advantage of flourishing in near future. The number of online stock broking

companies is also on a move and more and more companies are giving the option of online

trading to their customers at very low rates which are almost negligible as compared to the

advantages the online trading has. Assurances to secure online transactions are very high as most

of the stock broking firms are using algorithms that use double encryption.

MOBILE TRADINGTHE FUTURE

The buying and selling of shares using the mobile phones is the next step of technology

advancement. As the mobile technology is increasing day-by-day, the mobile trading is not very

far. Even the leading stock broking firms are also ready for this. They are seeing a substantial

growth in this segment. The broking houses are waiting for the permission from the stock

exchanges to offer mobile trading and stock exchanges are awaiting the permission from the

SEBI. The technology is ready, mobile operators are ready and stock broking houses are waiting

in the wings too. With the fast connections through mobile phones with technologies like GPRS

and EDGE (coming to India in near future) mobile trading would be very easy and one execute

their orders through phones. Already the stock broking are providing streaming quotes, tips and

research reports on the mobile phones. Users can see the market rates, enter, modify, cancel

orders, and view their positions and transaction through a fully secure channel. From the phone


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based trading to online trading, the stock market has covered a very large distance and now from

online trading to mobile trading is not very far. There are various supporting reasons behind this

advancement:

Growth in database the registered base of online trading customers is approximatelyaround22 lakh till the start of 2008 and is growing very fast. A large portion of this is

young professional who are in software, engineering, BPOs and other industries. These

are not intimidated by the technology and are ready to adopt new technology very

frequently.

Untapped potential rules in various companies are different. Some allow theiremployees to do trading in their offices hours and some dont, so they do trading either in

their homes or with their laptops or cybercafs. So if the trading facility were made

available on the mobile phones too then a large number of customers would use this

facility.

High volumes it may be possible that trades per person may be low but the volumescould be high. This will also earn more revenues for the broking houses and mobile

company also.

Risk in times of crisis or volatile market, online trading is less risky as one second isalso very important in the stock market. The one second can even make you or destroy

you.

Less intimidatingusing mobile is much easier than using internet. As mobile is in usefrom a very long time and people also finding it easy to use. Thus trading on mobile will

much easier and user friendly to people as they dont have many problems using mobile

phones.

CONCLUSION


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With increased globalization, companies need to conduct continuous analysis in order to

developstrategies to address the contemporary condition of competitive markets. Industry analysi

s is necessary to determine the forces of competition. The 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 to online investing

through e-trading. By doing this survey it is found that the consumer attitude towards share

trading is very much positive. They are willing to adopt new technology provided they are given

proper knowledge about it. And, brokerage companies which can quickly adopt new

technologies into the system with reliable and ease in transactions will succeed and can tap

greater pie of the market. There are various factors which affect the attitudes of customers

towards share trading:

People having more income are ready to take more risks and thus schemes shouldintroduce for them separately.

People of age more than 50 years are more willing to put their money into bank deposits.They should be targeted basically for the PMS as they want more security and PMS

till date has given good results

Brokerage being an important factor for many people but as such brokerage charged butmany stock brokers are very less so more expansion of the customer database on the basis

of reducing brokerage is not possible but they should try and improve their services as

they matter the most for all the traders.

The investors are more in their youth age and middle age and they are much moreinclined towards using the services of Share khan ltd. People trust Share khan more as the

tips given by the Share khan have a greater percentage of accuracy. So Share khan has

become a brand and it should try to increase its customers database by launching various

schemes.


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Youth and middle age dont hesitate while taking risk. They want to earn money veryfast. Middle 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 dont take much risk. Old age people are

low risktakers as they dont want to lose their money and also they want to accrue their

wealth instead of losing it.

RECOMMENDATIONS


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1. As its been observed that around 48% of the respondents are using online trading and only

13% of the respondents are doing 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 Reliability factor.

2. Another thing thats been found out during this survey is that people value services more than

cost. People want good services and are ready for paying extra penny.

3. People prefer Ease of transactions and security. So, brokerage companies should focus on

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

4. There are some companies which dont have tie ups with many banks, so that trading account

can be linked with the savings account of the brokerage company. So, a focus to go for tie ups

with major nationalized bank should be there.

5. Companies should provide knowledge to the customers regarding stock market. Aim should

not be making maximum profit at once. The advantage of this will be that the customer will trust

broker and will recommend to the other people also.

6. The company should provide a manual to their clients to ease them through the process of

online trading.

LIMITATIONS


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Sometimes there are unknown reasons on the basis of which markets operate and thefindings of the project may not hold true in such cases. That is the reason why the market

is sometimes called as Irrational creature.

Mostly investors who invest in the stock market have money and they just want to investwith no predefined objectives in mind and hence they rely upon the suggestions of the

distributors and marketing executives, which deviates the actual behavior from the

expected behavior

.

Lack of awareness of stock market: since the area is not known before, it takes a lot oftime in convincing people to invest in share market.

Some respondents are unwilling to talk or they dont have time to respond.

Misleading concepts: some people think that shares are too risky and are just anothername ofgamble. But its not at all risky for long term investors.

summer inter

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