Investor Perception towards Online Trading in Chennai D. Anitha Kumari Essay Example
Investor Perception towards Online Trading in Chennai D. Anitha Kumari Essay Example

Investor Perception towards Online Trading in Chennai D. Anitha Kumari Essay Example

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  • Pages: 4 (986 words)
  • Published: July 18, 2016
  • Type: Essay
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The purpose of this study is to examine the functioning of online trade share markets and their capacity to meet the requirements of investors. It also aims to gain insight into how investors perceive trading in the share market online and pinpoint areas for service improvement. The findings from a survey conducted with 113 respondents in Chennai indicate that investors recommend the online share market to others. To enhance services, share brokers should ensure timely communication with dealers and avoid delays in order processing. Customer confidence can be reinforced by promptly issuing cheques. Moreover, efforts should be made to reduce the time required for opening new accounts to 3-4 days.

Keywords: Online trade, Share Market, Online operations, Stock markets.

Introduction

The internet revolution is transforming society by altering c

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ommunication and business practices. It allows us to access customized systems that cater to our individual requirements, empowering us to enhance decision-making and self-service. This transformation in the business landscape is reshaping the financial sector and changing investment methods.

Internet stock trading is an exciting way to trade stocks, with transactions happening quickly. Web-based stock trading has become popular, with specialized websites offering convenient trades. However, there are risks involved, as the markets can change rapidly. Those interested in online stock trading should gather information and learn about day trades to make informed decisions. Gaining knowledge will lead to wisdom and better earning potential.

In order to succeed in internet stock trading or day trading, it is essential to obtain a comprehensive

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education and accumulate as much information as possible. Failure and financial loss are likely without this. It is crucial to have a thorough understanding of the stock and current market trends in order to effectively plan trading strategies. Experts recommend that beginners consider working with a small firm that has a website during the first one or two years. This enables them to gain experience and become acquainted with the industry. These internet firms often offer valuable advice and guidance to assist investors in learning and finding their comfort zone in online investments.

In the US, online trading began in 1983 with the introduction of electronic stock trading, initially for ecommerce. Over time, it became an alternative to the traditional financial system. By the late 1990s, most stock exchanges automated their processes and moved away from "open outcry" methods. This advancement in technology increased the popularity and acceptance of online broking for stock trading. As software technology improved, online trading platforms became faster, more sophisticated, and more secure. The current focus is on creating a seamless and risk-free trading process. In India, online trading involves internet-based investment through various leading portals as well as major stock houses like the National Stock Exchange and Bombay Stock Exchange.

Online Trading India offers a range of facilities.

In order to participate in trading various securities, the investor must register for an online trading portal and accept the terms and conditions outlined in the agreement. The online trading portal remains connected to stock exchanges and designated banks at all times, ensuring accurate order processing. Investors have the option to receive email notifications or utilize the interface

to stay updated on their trading activities and monitor their order statuses. Additionally, the brokerage provides research materials on their websites, enabling clients to make well-informed investment choices.

The purpose of Anil Sharma and Neha Seth's (2012) study was to review the available literature on stock market integration and provide a comprehensive bibliography for future researchers. They aimed to organize and analyze the findings and results of previous studies on stock market integration. The study aimed to classify the literature and provide easy access to the research in this field. Their study identified the classifications made in previous literature on this topic.

Research on stock market integration has increased in recent years, especially from 2005 to 2010. Emerging economies have also been a focus of attention in this area. Chien-Ta Bruce Ho and K.B. Oh (2008) conducted a study that examined the performance of online stock broking. They found that seven companies were CCR-efficient in terms of operating efficiency, while five companies were CCR-efficient in terms of operating effectiveness. Surprisingly, only two companies were found to be CCR-efficient in both areas. It is important to note that there is no clear correlation between efficiency and effectiveness.

The effects of the Internet on stock market trade volume and volatility in the Dhaka Stock Exchange in Bangladesh were investigated by Mohammad Ali Ashraf and Hasanur Raihan Joarder (2009). Their study found that the Internet had a significant impact on the volume and volatility of the Dhaka stock market. Additionally, Nidhi Walia and Ravinder Kumar (2007) examined investors' preferences for traditional and online trading, as well as their perceptions of online trading. They also compared the current

usage of online trading with offline trading.

This study highlights that only 28 out of every 100 investors engage in online trading, raising the question of why many investors have failed to recognize the significance of technology in stock trading. The study's prominent discoveries include the conservative nature of Indian investors, who tend to stick with their current brokers, while internet traders prefer online trading due to its transparency and ability to exert full control over the trading terminal.

Need of the Study.

The report assesses investors' perceptions of online share trading, including their risk appetite across various sectors. It highlights the convenience and transparency offered by online trading for novice and small-scale investors. Additionally, the report aims to attract investors by showcasing the different features of the company's trading platform and supporting its overall objectives.

The study's scope.

The objective of this study is to examine and comprehend the investor psychology when selecting a product or service in order to facilitate the positioning of financial products. Moreover, it assists in evaluating investors' genuine opinions and mindsets, thereby allowing for the fulfillment of their future expectations and ultimately leading to an increase in sales volume.

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