General Awareness of Share Market

A
Research Report
On

“General Awareness Regarding Stock Market in Jalandhar.”

Submitted To:
Punjab Technical University, Jalandhar.

In partial fulfillment of the degree in Master of Business

Administration (MBA).

Project Guide: Submitted by:

Ms. Ishpreet kaur Kirandeep kaur (458)
Asst. Lect. CTIMIT Tushar Sharma (525)

(Session 2009- 2011)

CT Institute Of Management & IT
Jalandhar.

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General Awareness of Share Market

DECLARATION

I here declare that the survey entitled,” LETTER OF CREDIT” that

no part of this work has been submitted for any other degree of any other
University .I also undertake that my work is purely academic and
no part has been copied or taken from anywhere.

Kirandeep kaur

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CERTIFICATE

This is to certify that the project report “Awareness of Stock market.” submitted

by Ms. Kirandeep kaur and Mr. Tushar Sharma is a bonafide piece of work

conducted under my supervision and guidance. No part of this work has been

submitted for any other degree of any other university. The data source has been

duly acknowledged. It may be considered for evaluation in partial fulfillment of the

degree Master of Business Administration.

Ms. Ishpreet kaur

Lecturer and project guide
CT Institute of Management and IT
Jalandhar.

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General Awareness of Share Market

ACKNOWLEDGMENT
It gives me a great pleasure in acknowledging the invaluable assistance extended
to us by various personalities in the successful completion of this report.

Rare are the competent and indefatigable lecturers and guides, who
bestow their fortunes upon students, particularly in research field. Words are often
too weak to express one’s inner feeling, especially the sense of indebtedness. At
the first place I am highly thankful to my institute which provided me an
opportunity to undergo such project work. My heartfelt thanks are also towards our
esteemed teachers and guide Mr. Harish Mehta who helped in completing my
project report with ease and for his continuous motivation encouragement and
timely guidance.

I pay my thanks to my friends for the help/guidance rendered to us as well

as for providing the required data and information for completing the project
report.
Above all I owe a deep debt and gratitude to friends for their encouragement.
The inspiration from them became the light on the way for the completion of this
report.

Kirandeep Kaur

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PREFACE

Today’s competitive age, the person who gets the fastest information and uses it,
win. Information is very important resources just like other physical resources such
as men, material, machinery and money. The right information provided to the
right time can choose right persons for the right job. Information plays a very
significant role in decision making to as it provides alternatives from which a
choice can be made. MBA is the stone to management carrier in order to achieve
practical, positive and course results the class rooms learning needs to be
effectively to the situation existing outside the class rooms.

In the present context not only the theoretical knowledge is important, but the
practical exposure of that theoretical knowledge has an equal importance too. To
tame or to become an expert in a particular discipline a person needs practical
doses of that knowledge from time to time. So keeping this thing into view and to
get a practical exposure, we conducted a survey in Jalandhar, about “Awareness of
Stock market”. By doing this survey we came to know the satisfaction level of
people by investing into stock.

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INDEX

S.NO CHAPTER PAGE NO.

1 Introduction 1-18

2 Objectives 19-20

3 Research Methodology 21-23

4 Data Interpretation 24-36

5 Findings 37

6 Limitations 38

7 Recommendations 39

8 Conclusion 40

9 Bibliography 41

10 Annexure 42-45
 Questionnaire.

11 Data Sheet 46-49

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INTRODUCTION

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INTRODUCTION

The single word that drives any market is “One stop shop for all financial services
except cheques”.

Stock market started in 1644; a wall street was built on the lower end of Manhattan
‘Island’ by Dutch to protect against British attacks.

Wall Street can trace its name back to 1653. Originally it was set up for defense
and not for commerce. Settlers of Dutch descent, who were always on the lookout
from attacks by Native Americans and the British built a 12 foot stockade fence.
Little did they know that this fence would go on to become the center of financial
activity in the world. The wall lasted a good while, until 1685. At that point the
wall was torn down and a new street was built. The British called it Wall Street.

The Rise of the Stock Exchanges

What helped Wall Street rise to pre-eminence was the emergence of two great
Stock Exchanges, which gave order to the chaotic trading and gave birth to the
financial markets as we know them today.

The year was 1790. The place was Philadelphia. The occasion was the founding of
the first stock exchange in America. Two years later a group of New York
merchants met to discuss how to take command of the securities business. The
merchants, a group of 24 men, founded what is now known as the New York Stock
Exchange. But in early 1817, the merchant group from New York, distressed at the
sorry state of their stock exchange, sent a representative to Philadelphia to observe
how things were being done. Upon arriving with news about the robust exchange

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in Philadelphia, the New York Stock and Exchange Board was soon formally
organized.

The exchange opened up shop on Wall Street. As for the New York Stock
Exchange, it has since moved past its humble beginnings to the point where its
system now facilitates billions of dollars worth of trades each day. But there was a
gradual build up to this sort of status. In the early 1900s massive amounts of
money were made on Wall Street. But the boom period could not be sustained
indefinitely. And in 1929 this principle came front and center as the stock market
crash of 1929 seared the national.nay, global. Psyche and triggered what was to be
called the Great Depression.

While many of the powers that be realized that the markets could not sustain a
boom forever, very few publicized this view, choosing instead to let the market be
its own judge, jury and executioner. As a result of the laissez-faire attitude, many
people rich and poor alike, Lost a lot of money.

But the stock market crash of 1929 was just the beginning of sorrows for Wall
Street. For while the economy eventually recovered from its catastrophic losses,
the market excesses that had factored into the crash in the late 1920s seeped back
into the picture. The result was the stock market crash of 1987, which saw the Dow
Jones suffer what was the largest single-day loss in the stock market history.

Since then, the government and the industry have tried to put measures in place to
curtail, if not entirely eliminate, the possibility of such a large-scale crash. The
stock markets are now an integral part of the global economy, and so proper
safeguards to reduce the risks of another disastrous crash are necessary.

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But while efforts have been made to reduce the risk, the possibility for another
stock market crash can never be ruled out.

Current Stock Market

The current "stock market" is comprised of 300,000 computers situated on trader’s

desks. These computers are networked together using sophisticated protocols. This
level of information sharing makes pricing an almost exact science.

These 300,000 computers are further linked to another 26 million computers

worldwide. These computers are located in banks, small businesses, and large
corporations. These computers comprise the banking networks which make
computerized transactions possible.

Finally, these computers are connected to another 300 million+ computers which
connect and disconnect from the financial markets daily. In New York City alone,
these transactions amount to over $2.2 trillion dollars daily

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Stock Market in India:

In India stock market started in 1874 ‘The native share and stock broker
association’ it is also known as ‘The Bombay stock exchange’.

In India there are total 24 stock exchanges but there are two main stock exchanges
i.e.

1. BSE {Bombay stock exchange}

2. NSE {National stock exchange}

BSE:

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage.
BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities Contracts
(Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of
the Indian capital market is widely recognized. It migrated from the open outcry
system to an online screen-based order driven trading system in 1995. Earlier an
Association of Persons (AOP), BSE is now a corporatized and demutualised entity
incorporated under the provisions of the Companies Act, 1956

Today, BSE is the world's number 1 exchange in terms of the number of listed
companies and the world's 5th in transaction numbers. The BSE Index, SENSEX,
is India's first stock market index that enjoys an iconic stature, and is tracked
worldwide. It is an index of 30 stocks representing 12 major sectors.

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NSE:

The National Stock Exchange of India Limited was incorporated in November

1992 as a tax-paying company unlike other stock exchanges in the country.
It recommended promotion of a National Stock Exchange by financial institutions
(FIs) to provide access to investors from all across the country on an equal footing.
On its recognition as a stock exchange under the Securities Contracts (Regulation)
Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt
Market (WDM) segment in June 1994. The following years witnessed rapid
development of Indian capital market with introduction of internet trading,
Exchange traded funds (ETF), stock derivatives and the first volatility index –
India VIX in April 2008.

With this, now both the retail and institutional investors can participate in equities,
equity derivatives, currency and interest rate derivatives, giving them wide range
of products to take care of their evolving needs.

Financial market is a mechanism that allows people to buy and sell the
securities, commodities and other fungible items of value at lower transaction costs
and at prices that reflect the efficient market-hypothesis.

Financial market have evolved significantly over hundreds of years and are
undergoing constant innovation to improve liquidity.

Both general markets (where many commodities are traded) and specialized
markets (where only one commodity is traded) exist. Markets work by placing
many interested buyers and sellers in one "place", thus making it easier for them to
find each other. An economy which relies primarily on interactions between buyers

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and sellers to allocate resources is known as a market economy in contrast either to

a command economy or to a non-market economy such as a gift economy.

In finance, financial markets facilitate:

 The raising of capital (in the capital markets)

 The transfer of risk (in the derivatives markets)
 International trade (in the currency market)

and are used to match those who want capital to those who have it.

Typically a borrower issues a receipt to the lender promising to pay back the
capital. These receipts are securities which may be freely bought or sold. In return
for lending money to the borrower, the lender will expect some compensation in
the form of interest or dividends.

The financial market can be divided into different sub types:-

 Capital markets which consist of-

- Stock market, which provide financing through the issuance of shares or
common stock and enables the subsequent trading thereof.
- Bond markets, which provide financing through the issuance of bonds
and enables the subsequent trading thereof.

 Commodity markets, which facilitates the trading of commodities.

 Money markets, which provide short term debt financing and investment.

 Derivatives market, which provide instruments for the management of

financial risk.

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The capital market consists of two markets:-

1. Primary Market.
2. Secondary Market.

The primary market is that part of the capital markets that deals with the issuance
of new securities. Companies, governments or public sector institutions can
obtain funding through the sale of a new stock or bond issue. This is typically done
through a syndicate of securities dealers. The process of selling new issues to
investors is called underwriting. In the case of a new stock issue, this sale is
an initial public offering (IPO). Dealers earn a commission that is built into the
price of the security offering, though it can be found in the prospectus.

Features of primary markets are:

 This is the market for new long term equity capital. The primary market is
the market where the securities are sold for the first time. Therefore it is also
called the new issue market (NIM).
 In a primary issue, the securities are issued by the company directly to
investors.
 The company receives the money and issues new security certificates to the
investors.
 Primary issues are used by companies for the purpose of setting up new
business or for expanding or modernizing the existing business.
 The primary market performs the crucial function of facilitating capital
formation in the economy.
 The new issue market does not include certain other sources of new long
term external finance, such as loans from financial institutions. Borrowers in the

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new issue market may be raising capital for converting private capital into
public capital; this is known as "going public."
 The financial assets sold can only be redeemed by the original holder.

Methods of issuing securities in the primary market are:

 Initial public offering;

 Rights issue (for existing companies);
 Preferential issue.

The SECONDARY MARKET, also known as the aftermarket, is the financial

market where previously issued securities and financial instruments such
as stock, bonds, options, and futures are bought and sold. The term "secondary
market" is also used to refer to the market for any used goods or assets, or an
alternative use for an existing product or asset where the customer base is the
second market (for example, corn has been traditionally used primarily for food
production and feedstock, but a "second" or "third" market has developed for use
in ethanol production). Another commonly referred to usage of secondary market
term is to refer to loans which are sold by a mortgage bank to investors such
as Fannie Mae and Freddie Mac.

 With primary issuances of securities or financial instruments, or the primary

market, investors purchase these securities directly from issuers such
as corporations issuing shares in an IPO or private placement, or directly
from the federal government in the case of treasuries. After the initial
issuance, investors can purchase from other investors in the secondary
market.

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 The secondary market for a variety of assets can vary from loans to stocks,
from fragmented to centralized, and from illiquid to very liquid. The major
stock exchanges are the most visible example of liquid secondary markets -
in this case, for stocks of publicly traded companies. Exchanges such as
the New York Stock Exchange, NASDAQ and the American Stock
Exchange provide a centralized, liquid secondary market for the investors
who own stocks that trade on those exchanges. Most bonds and structured
products trade “over the counter,” or by phoning the bond desk of one’s
broker-dealer. Loans sometimes trade online using a Loan Exchange.

 Secondary marketing is vital to an efficient and modern capital market. In

the secondary market, securities are sold by and transferred from
one investor or speculator to another. It is therefore important that the
secondary market be highly liquid (originally, the only way to create this
liquidity was for investors and speculators to meet at a fixed place regularly;
this is how stock exchanges originated, see History of the Stock Exchange).
As a general rule, the greater the number of investors that participate in a
given marketplace, and the greater the centralization of that marketplace, the
more liquid the market.

 Fundamentally, secondary markets mesh the investor's preference for

liquidity (i.e., the investor's desire not to tie up his or her money for a long
period of time, in case the investor needs it to deal with unforeseen
circumstances) with the capital user's preference to be able to use the capital
for an extended period of time.

Accurate share price allocates scarce capital more efficiently when new projects
are financed through a new primary market offering, but accuracy may also matter
in the secondary market because: 1) price accuracy can reduce the agency costs of

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management, and make hostile takeover a less risky proposition and thus move
capital into the hands of better managers, and 2) accurate share price aids the
efficient allocation of debt finance whether debt offerings or institutional
borrowing.

DEMAT
The term Demat, in India, refers to a dematerialized account. For individual Indian
citizens to trade in listed stocks or debentures the Securities Exchange Board of
India (SEBI) requires the investor to maintain a Demat account. In a demat account
shares and securities are held in electronic form instead of taking actual possession
of certificates. A Demat Account is opened by the investor while registering with
an investment broker (or sub broker). The Demat account number which is quoted
for all transactions to enable electronic settlements of trades to take place.

Access to the demat account requires an internet password and a transaction

password as well as initiating and confirming transfers or purchases of securities.
Purchases and sales of securities on the Demat account are automatically made
once transactions are executed and completed.

he demat account reduces brokerage charges, makes pledging/hypothecation of

shares easier, enables quick ownership of securities on settlement resulting in
increased liquidity, avoids confusion in the ownership title of securities, and
provides easy receipt of public issue allotments.

It also helps you avoid bad deliveries caused by signature mismatch, postal delays
and loss of certificates in transit. Further, it eliminates risks associated with
forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account
holders can also avoid stamp duty (as against 0.5 per cent payable on physical

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shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits
as stock splits and bonuses.

Object Of Demat System

India has adopted this system in which book entry is done electronically. It is the
system where no paper is involved. Physical form is extinguished and shares or
securities are held in electronic mode. Before the introduction of the depository
system by the Depository Act, 1996, the process of sale, purchase and transfer of
shares was a huge problem and the safety perspective was zero.

Demat Benefits
 The benefits are enumerated as follows:

 Its a safe and convenient way to hold securities

 Immediate transfer of securities is there

 There is no stamp duty on transfer of securities

 Elimination of risks associated with physical certificates such as bad

delivery, fake securities, delays, thefts etc

 There is a major reduction in paperwork involved in transfer of securities,

reduction in transaction cost etc

 No odd lot problem, even one share can be sold thus there is an advantage

 Change in address recorded with DP gets registered with all companies in

which investor holds securities electronically eliminating the need to
correspond with each of them separately.

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 Transmission of securities is done by DP eliminating correspondence with

companies;

 Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

 Holding investments in equity and debt instruments in a single account.

Benefit to the Company

 The depository system helps in reducing the cost of new issues due to less
printing and distribution cost. It increases the efficiency of the registrars and
transfer agents and the Secretarial Department of the company. It provides
better facilities for communication and timely services with shareholders,
investor etc.
 Benefit to the Investor The depository system reduces risks involved in
holding physical certificated, e.g., loss, theft, mutilation, forgery, etc. It
ensures transfer settlements and reduces delay in registration of shares. It
ensures faster communication to investors. It helps avoid bad delivery
problem due to signature differences, etc .It ensures faster payment on sale
of shares. No stamp duty is paid on transfer of shares. It provides more
acceptability and liquidity of securities.
 Benefit to Brokers the depository system reduces risk of delayed settlement.
It ensures greater profit due to increase in volume of trading. It eliminates
chances of forgery – bad delivery. It increases overall of trading and
profitability. It increases confidence in investors.

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Disadvantages of Demat

 The disadvantages of dematerialization of securities can be summarized as

follows:

 Trading in securities may become uncontrolled in case of dematerialized

securities.

 It is incumbent upon the capital market regulator to keep a close watch on

the trading in dematerialized securities and see to it that trading does not act
as a detriment to investors.

 The role of key market players in case of dematerialized securities, such as

stock-brokers, needs to be supervised as they have the capability of
manipulating the market.

 Multiple regulatory frameworks have to be confirmed to, including the

Depositories Act, Regulations and the various By-Laws of various
depositories.

 Additionally, agreements are entered at various levels in the process of

dematerialization. These may cause anxiety to the investor desirous of
simplicity in terms of transactions in dematerialized securities.

 However, the advantages of dematerialization outweigh its disadvantages

and the changes ushered in by SEBI and the Central Government in terms of
compulsory dematerialization of securities is important for developing the
securities market to a degree of advancement. Freely traded securities are an
essential component of such an advanced market and dematerialization
addresses such issues and is a step towards the advancement of the market.

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Demat conversion

Converting physical holding into electronic holding (dematerializing

securities) In order to dematerialize physical securities one has to fill in a
DRF (Demat Request Form) which is available with the DP and submit the
same along with physical certificates one wishes to dematerialise. Separate
DRF has to be filled for each ISIN Number. The complete process of
dematerialization is outlined below:

•Surrender certificates for dematerialization to your depository participant.

•Depository participant intimates Depository of the request through the
system.

•Depository participant submits the certificates to the registrar of the Issuer

Company.

•Registrar confirms the dematerialization request from depository.

•After dematerializing the certificates, Registrar updates accounts and

informs depository of the completion of dematerialization.

•Depository updates its accounts and informs the depository participant.

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INVESTING in equities is riskier than and definitely demands more time than
other investments. However, it can probably be more rewarding than you can
imagine and certainly very exciting! World over, and even in India, stocks have
outperformed every other asset class over the long run. Stocks are probably your
best bet against inflation too.

If equities tempt you but you are scared to take the plunge during these volatile
times, here's a complete step-by-step guide on investing in equities.

Step 1: Understand how the stock market works

When you read you begin with A-B-C. When you sing you begin with Do-Re-Mi.
And when you invest in stocks you begin with business-company-shares.

Before you embark on your journey to invest in equities, teach yourself how the
stock market works.

Step2: Learn how to choose a stock

Understood the markets; it is important to know how to go about selecting a
company, a stock and the right price. A little bit of research, some smart
diversification and proper monitoring will ensure that things seldom go wrong.

Step 3: Decide how much to invest

Since equities are high risk, high return instruments, how much you should invest
would really depend on how much risk you can tolerate. Take this quiz to find out
what your risk profile is.

Once you have done that, use this asset allocation test to calculate exactly how
much of your savings you should invest in equities.

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Step 4: Monitor and review

Monitoring your equity investments regularly is recommended. Keep in touch with

the quarterly-results announcements and update the prices on your portfolio
worksheet at least once a week. You can use Money control’s Portfolio to update
the prices of your equity holdings.

Also, review the reasons you earlier identified for buying a stock and check
whether they are still valid or there have been significant changes in your earlier
assumptions and expectations. And use an annual review process to review your
exposure to equity shares within your overall asset allocation and rebalance, if
necessary. Ideally, revisit the Risk analyzer at every such review because your risk
capacity and risk profile could have undergone a change over a 12-month period.

Finally, ensure that you keep these steps into mind while investing and sail
smoothly into your financial bright future.

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CYCLE OF MARKET EMOTIONS

When a person invests into the share market he/she suffers from different phases,
these phases are as follows:

Optimism
Excitement
Relief

Euphoria
Hope

Anxiety
Depression

Fear

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OBJECTIVES OF
THE
STUDY

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OBJECTIVES OF THE STUDY

 To study the concept of awareness of share market in general public.

 To know what an investor think before investing into shares.

 To know the satisfaction level of various investors who are investing into
shares.

 To know what are the perceptions of people towards the share market.

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RESEARCH

METHODOLOGY

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RESEARCH
Research is a movement from known to unknown. It is actually a voyage of
discovery. Research may be defined as-
“Systematized effort to gain any branch of knowledge”.
In simple words the search for knowledge through objective and systematic
method of finding solution to a problem is research.

RESEARCH METHODOLOGY

Research methodology is a careful investigation or inquiry in a systematic method

and finding solution to problem in a research. It comprises of defining and
redefining problems , formulating hypothesis or suggested solutions , collecting
and evaluating data , making deductions and reaching conclusions and at last
carefully testing the conclusion to determine whether they fit us formulating
hypothesis.

DATA SOURCE

For completing these project two types of data were taken into consideration i.e.
primary data and secondary data.

PRIMARY DATA: -

In order to conduct any kind of research we always need data. Data can always be
in two forms:

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The data, which is not present in records and publication as well as researchers,
have to gather a fresh data from the study conducted by him is called primary data.
The primary data used for the research is collected by-

 Questionnaire Method

This is the method of data collection in which the data is collected with the help of
questionnaire. A questionnaire consist of number of questions, used to given to the
respondents who write down their replies in the space provided for that. The
questionnaires are mainly consisting of choice or close ended, but few open- ended
questions are also asked.

SECONDARY DATA

The secondary data is that which somebody else already collects. This is available
on different sources like newspapers, Internet etc.

Research Sample Unit

Sample unit refers to the geographical area in which the research is carried out.
Our research covering area of Jalandhar city.

Research Sample Size

Our sample size is 100.

TYPE OF SAMPLING: CONVENIENCE SAMPLING

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TOOL FOR ANALYSIS: Percentage method.

DATA ANALYSIS
AND
INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

The data has been processed and analyzed by tabulation interpretation so that
the findings can be easily understood. The findings are presented in the best
possible way. Tables and graphs have been used for illustration of principal
findings of the research.

1. Are you aware of share market?

TABLE 4.1: General awareness among people.

People aware Yes No

%age of 78% 22%
Respondents
Number of 78 22
respondents

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22%

Yes
No

78%

GRAPH 4.1: Number of people aware

Inference: From the above graph it is clear that out of sample of 100 people
about 78% are aware of share market and 22% are not well aware of it.

2.If yes, what is the source of your information from the following:

TABLE 4.2: Source of information.

SOURCES Number of %age of

respondents Respondents
Newspaper or 45 45%
Television
Family 6 6%
Magazines 16 16%
Friends and Peers 11 11%

GRAPH 4.2:

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14%

Newspaper and
Television
21%
Family
58%
Magazines
Friends and
8% Peers

Inference: Since people are aware enough about the share market. About 45% of
respondents get information from television and newspaper, 6% from family, 16%
from magazines and 11% respondents get information from friends and peers.
Total 78% of respondents are aware from these sources.

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3.Are you aware of Demate Account?

GRAPH 4.3: Number of respondents aware about Demate Account

37%
Yes
No
63%

TABLE 4.3:

People aware Yes No

%age of 63% 37%

Respondents
Number of 63 37
respondents

Inference: The above data shows that 63% of respondents are aware with the
facility of demate account and 37% are not aware of dematerialization.

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4.Have you ever invested in share market?

TABLE 4.4: Number of respondents invests in stock market.

Invested Yes No

%age of 59% 41%

Respondents
Number of 59 41
respondents

GRAPH 4.4:

41% Yes
59% No

Inference: From the above data we analyzed that total 59% of people invest in the
stock market and 41% do not invest in stock market.

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5. If, yes then in which market do you invest in?

TABLE 4.5: Invest in which market.

Markets Number of %age of
respondents Respondents
Primary market 8 8%

Secondary market 51 51%

GRAPH 4.5:

14%

Primary
market
Secondary
market

86%

Inference: According to the responses of people out of 57% of people 51% invest
in secondary market and 8% invest in primary market.

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6. What are your criteria for investment if you are investing or not.
TABLE 4.6:
Criteria for Number of %age of Respondents
investment respondents
Returns 55 55%
Business 12 12%
Security 6 6%
Growth 27 27%

GRAPH 4.6:

60%

50%

40%

30%

20%

10%

0%
Returns Business Security Growth

Inference: The above graphic presentation shows that most of the people invest
because of Returns it’s about 55% and 12% see business, 6% security and 27%
growth.

7. What is/ will your duration of investment?

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TABLE 4.7: Responses regarding duration of investment

GRAPH 4.7:

Duration of Number of %age of Respondents

investment respondents
Short term 32 32%
Long term 20 20%
Medium term 48 48%

60%
50%
40%
30%
20%
10%
0%
Short term Long term Medium term

Inference: The above graph shows that 32% people will invest for short term
period ,only 20% will invest for long term and most of the people about 48% will
invest for medium term.

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8. What percentage of your income do you or you will invest in

shares?
TABLE 4.8: %age of income will invest.
%age of income Number of %age of Respondents
respondents
Less than10% 24 24%

10-30% 46 46%

30-50% 28 28%

More than 50% 2 2%

GRAPH 4.8:

50%
40%
30%
20%
10%
0%

Inference: This presentation shows that 24% of people will prefer to invest their
less than 10% of income in shares, 46% will invest 10-30%, 28% will invest 30-
50%, and only 2% of respondents will invest more than 50% of their income in
shares.

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9. Are you satisfied with your investment?

TABLE 4.9:

Levels of satisfaction Number of %age of

Respondents Resondents
Highly satisfied 11 11%
Satisfied 28 28%
Dissatisfied 8 8%
Highly dissatisfied 0 0%
Can’t say 12 12%
GRAPH 4.9:

20% 19% Highly

satisfied
Satisfied
Dissatisfied
14%
Highly
dissatisfied
47% Can't say

Inference: These figures shows that maximum %age of respondents are satisfied
it’s about 28%, 11% are highly satisfied, 8% are dissatisfied and 12% have no
opinion of satisfaction and there is no respondent in favour of highly
dissatisfaction.

LIKERT SCALE:-

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Levels of Number of TOTAL

satisfaction Respondents
Highly satisfied 1 11 11
Satisfied 2 28 56
Dissatisfied 3 8 24
Highly 4 0 0
dissatisfied
Can’t say 5 12 6O
TOTAL 151

MEAN SCORE :- 151/100 = 1.51

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10. If you are highly satisfied or dissatisfied, what are the reasons?
Ans. As there is no respondent in favour of highly dissatisfaction so there is no
such reasons are present. But in case of highly satisfaction each respondent have
subjective reasons.

Most of respondents are highly satisfied because of good

returns on their investment

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11. Are you looking forward to more invest in the share market or if
you are not investing yet , would you like to invest?

\TABLE 4.11:
Responses Number of %age of Respondents
respondents
Yes 47 47%
No 26 26%
Can’t say 27 27%

GRAPH 4.11:

27%
Yes
47% No
Can't say

26%

Inference: From the above presentation it is clear that 47% of respondents will
more invest in the share market, 27% people will stable with their investment and
27% respondents have no opinion for further investment.

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FINDINGS
Listed below are the findings of our survey.

 Majority of the population surveyed is aware of Share Market which is

78% of the total.

 Television & newspaper deliver the maximum information about share

market to the people as compared to Magazines, family and friends.

 59% of the population surveyed invests in share market and a majority out
of it invests in Secondary market.

 Returns is the major reason for investing as against business, security or

growth

 Investment in medium term securities is more than investment in long term

followed by short term.

 Majority of the respondents are satisfied, with 23% highly satisfied, and
11%dissatisfied.

 Recession hitting the market we found not more than 50 % of the

respondents wants to invest more in share market in near future.

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LIMITATIONS OF THE STUDY

The sample size was limited.

The paucity of time and resources was the major constraints.

The sample was taken from the population residing in Jalandhar so the
results are not applicable to whole of India.

Non-co-operation of some respondents has also affected the research results.

Being an opinion survey a lot of subjectivity is involved in the study.

The possibility of respondents being biased cannot be ruled out.

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RECOMMENDATIONS

There is a lack of knowledge and awareness regarding share market. Efforts

should be directed towards increasing awareness and knowledge of
investors.

It is up to the investor to decide how much risk he is willing to take in order

to do this he must be aware of the different types of risks involved with his
investment decision.

Investor can create a favorable environment for investment or vice-versa. An

investor should follow the investing steps which are given above, to have
favorable returns.

The very important relationship to understand is the risk returns and trade
off. An investor should have full knowledge about market so as to minimize
their risk on investment.

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CONCLUSION

After Surveying 100 respondents we have reached the conclusion that today
majority of the population is aware about Share market and the source that gets the
maximum credit for its knowledge spreading is Television & newspapers.
Amongst the people who are aware of share market just a portion of it is actively
investing in it. The favorite of all is secondary market, with a very few people
investing in primary market. A return is the major factor governing the investment
decision amongst the respondents. With recession hitting the market respondents
don’t have much inclination of investing in market in the near future, but we hope
this phase would soon be over and we will see more money in circulation and our
economy flourishing.

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BIBLIOGRAPHY

BOOKS:

Kothari, C.R., “Research Methodology: Method and techniques”.

Gupta, Sharma, “Financial Management”, Kalyani Publications.

Gupta, Sharma, “Management of Financial Market”, Kalyani

Publishers.

INTERNET SITES:

www.moneycontrol.com

www.cnbc18.com

www.ndtvprofit.com

www.cdslindia.com

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ANNEXURE

QUESTIONNAIRE
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AWARENESS OF SHARE MARKET

Note: Information revealed will be kept confidential and will
only be used for research purposes.

Personal information
Name: …………………………………………
Occupation: ……………………………….
Age: ……………………………………
Address: ……………………………………
Gender: ………………………………………
Contact No: …………………………………

Questionnaire
Q1. Are you aware of share market?

(a) Yes (b) No

Q2. If yes, what is the source of shares information from the

following:

(a)Newspaper or T.V (b) Family

(c)Magazines (d) Friends, Peers.

Q 3) Are you aware of Demat Account?

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(a) Yes (b) No

Q4. Have you ever invested in share market?

(a) Yes (b) No

Q5. If yes, then in which market you invest in?

(a)Primary Market

(b)Secondary Market

Q6.what will be your criteria for investment, whether you are

investing or not.

(a) Returns (b) Business

(c)Security (d) Growth

Q7. What is/ will your duration of investment?

(a)Short term (b) long term

(c) Medium Term

Q8.What percentage of your income do you or you will invest in

shares?
(a)Less than 10% (b) 10-30%

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(c) 30-50% (d) More than 50%

Q9. Are you satisfied with your investment?

(a)Highly satisfied (b) Satisfied

(c)Dissatisfied (d) highly dissatisfied

(e)Can’t say

Q10. If you are highly satisfied or dissatisfied, what are the

Reasons ?
Ans.

Q11. Are you looking forward to more investment in the share

market? If you are not investing yet, would you like to invest?
(a)Yes (b) No

Q12. Any Comments.

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DATA SHEET

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