Consumer awareness in stock markets - Free Essay Example

Report On Internship Undertaken At Royal Technosoft Pvt ltd Aziz Ahmed Kagzi Dhirubhai Ambani Institute Of Information And Communication Technology, Gandhinagar Supervisor Prof. P.M. Jat On Site Supervisor Mr. Tejas Shah Royal Technosoft Pvt ltd, 2nd floor, Surbhi Complex, c.g road, Opposite municipal market, Ahmedabad, Gujarat. Abstract This document gives an insight into the project that was given to me as a part of my internship and training period. This document includes maintain and cope up with the growing competition from the various online trading providers, company needs to find potential clients, also the new investors and satisfy their needs. The project also helps in understanding the trend of the scripts of the particular sector (banking sector) in different market condition. All these steps help me to understand how to cope up with different types of people and their diversified need and satisfaction level. INTRODUCTION Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a very low cost per transaction. Trading can even be done through Computer-Mediated Communication (CMC) use of mobile devices such as hand computers and cellular phones. The stock market has grown so that some argue that it represents a countrys economy. This growth has been enjoyed largely to the credibility and reputation that the stock market has earned. PURPOSE There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose. Since this industry is growing having growth rate that attract me for doing in this field that I can gather more and more knowledge about the share market. It was the great experience in that field. Research was carried out to find that which brokerage house, people prefer and to figure out what people want while investing in stock market. This study suggests that people are reluctant while investing in stock and commodity market due to lack of knowledge. Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that the people are interested to invest in stock market but they have lack of knowledge. Through this report we were also able to understand, what are our Companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s strong and weak points, on the basis of which we come to know what can be the basis of pitching to a potential client. SCOPE I would like to tell that now a day on line trading is a booming field for investor because they can generate more returns as compared to other fields. I got experience regarding on line trading when I went to market for survey because I met no of person for knowing awareness of on line trading, Dmat account, and comparative analysis between different stock brokers. This project will help for those who do not have the knowledge about the trading and services offered by the different broker company. It will also help for the people who are interested in the trading and in share market. This will also helpful for the company because it is containing the cooperative analysis of the different broker company, it also contains the strong and weak points of company. By that way they can remove their weaknesses and can add more and more costumers in their series because people are facing a lot of problem regarding online trading. Hence this project has multidimensional scope OBJECTIVE To know about the awareness of the consumers towards stock brokers and share market. To study the market share of company in the Share market and identify the areas of competitive advantage over other players. To study about consumer awareness satisfaction, about operational Services procedures of company. To study about the difficulties faced by the clients/trades while trading with company. To identify the lacuna in the present system suggesting the measures improvement in current Trading system. To study about the on line terminal terms and Dmat account of company. DEMATERIALISATION Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialized form are held in a Demat account. Dematerialization Process An investor having securities in physical form must get them dematerialized, if he intends to sell them. This requires the investor to fill a Demat Request Form (DRF) which is available with every DP and submit the same along with the physical certificates. Every security has an ISIN (International Securities Identification Number). If there is more than one security than the equal number of DRFs has to be filled in. The whole process goes on in the following manner: ii.Rematerialisation The process of getting the securities in an electronic form, converted back into the physical form is known as Rematerialisation. An investor can rematerialize his shares by filling in a Remat Request Form (RRF). The whole process goes on as follows: TOOLS AND TECHNOLOGIES USED 1. Calculate Index Index value = ÃŽÂ £(market cap of securities)/index divisor 2. Investor Terminal (IT) Investor Terminal is equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa. Trader Terminal (TT) Few popular features of trader terminal are: Fast trade execution with instant trade confirmation. Live streaming quotes and price watch on any number of stocks. Intra day charts, updated live, tick-by-tick. Live margin, position, marked to market profit loss report. Set any number of price alerts on any number of scrips. Flexibility to customize screen layout and setting. Facility to customize any number of portfolios watch lists. Facility to cancel all pending orders at one click. Facility to square off all transactions at one click. Top Gainers, Top Losers, Most Active, updated live. Index information; index chart, index stock information live. Market depth, i.e. Best 5 bids and offers, updated live for all stocks. Online access to both accounts and DP to check live updated Order and Trade Book. Facility to place after market orders. Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks. Online intra-day technical calls. Historical charts and technical analysis tools. LIMITATIONS The various Limitations are: Lack of awareness of Stock market:- Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in (Initial Public Offerings)IPOà ¢Ã¢â€š ¬Ã¢â€ž ¢s. Mostly people comfortable with traditional brokers:- As people are doing trading from their respective brokers , they are quite comfortable to trade via phone. Lack of Techno Savy people and poor internet penetration:- Since most of the people are quite experienced. They are not techno. savy and also internet penetration is poor in India. Some respondents are unwilling to talk:- Some respondents either do not have time or willing does not respond as they are quite annoyed with the phone call. Inaccurate Leads : Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number. Misleading concepts:- Some people think that Shares are too risky and just another name of gamble but they donà ¢Ã¢â€š ¬Ã¢â€ž ¢t know its not at all that risky for long investors. CONCLUSIONS On the basis of the study it is found that company has better services Provider than the other stockbrokers because of their timely research and Personalized advice on what stocks to buy and sell. Company provides the facility on line trading as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOà ¢Ã¢â€š ¬Ã¢â€ž ¢s are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while ità ¢Ã¢â€š ¬Ã¢â€ž ¢s going to be biggest market in India. The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market. The awareness of equity market is not up to marks among the people for which people is not attracting in t his market. But the future is bright of the equity market in the coming future .If we do more and more activities regarding equity market and mutual funds then we can add more and more customers for company. ACKNOWLEDGMENT It gives me great pleasure to present the project report entitled à ¢Ã¢â€š ¬Ã…“Online trading of sharesà ¢Ã¢â€š ¬Ã‚ . Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of competition and success, training is like a bridge between theoretical and practical working; willingly I prepared this particular Project. I would like to thank my onsite mentor Mr. Tejas Shah and Royal Technosoft for constantly guiding, motivating and encouraging me. I also thank my project Guide for giving me their valuable inputs for the project. Last but definitely not the least my gratitude goes to Prof. P M Jat (Project Coordinator, M.Sc.IT-2015) and Prof. Maitrayee Mukerji (Project Coordinator, M.Sc.IT-2015) for their valuable support for traineeà ¢Ã¢â€š ¬Ã¢â€ž ¢s professional. REFERENCES HTTP://WWW.CAPITALINE.COM HTTP://WWW.SHAREKHAN LTD.COM . HTTP://WWW.HDFCSECURITY.COM HTTP://WWW.KARVY.COM WWW.CDSL.COM HTTP://WWW.BSEINDIA.COM HTTP://WWW.INDIAINFOLINE.COM/ WWW.INDIABULLS.COM WWW.SCRIBD.COM