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DEPARTMENT OF MANAGEMENT STUDIES S.R.M INSTITUTE OF SCIENCE AND TECHNOLOGY S.R.M DEEMED UNIVERSITY
CERTIFICATE
This is to certify that the project entitled A study on customer satisfaction on share trading submitted in partial fulfillment of the requirement for the award of Degree of Master of Business Administration affiliated to S.R.M Deemed University is a bonafide work done by I.Balaji under my guidance. To the best of my knowledge this is his original effort.
ACKNOWLEDGEMENT
I record my heartful thanks to Dr. A. Chandra Mohan professor Department of Management studies S.R.M Deemed University Kattankulathur, under whose guidance, interest and co-operation I could complete the project successfully.
My sincere thanks to Mr. Muthu Kumar Vice president Single window securities.
At last but not the least, I thank everyone, who was very help ful from behind the screen.
I.Balaji.
1. Share
Introduction
In financial term a share is a unit of account for various financial instruments including stocks, mutual funds, and limited partnerships. In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. By owning a share we can earn a portion and by selling shares we get capital gain. So, our return is the dividend plus the capital gain. However, we also run a risk of making a capital loss if we have sold the share at a price below our buying price.
Every transaction in the stock exchange is carried out through licensed members called brokers. To trade in shares, we have to approach a broker however, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders. The general investors should identify a sub-broker for regular trading in shares and place his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it. Demat refers to a dematerialized account.
Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.
If we wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account
in your application.
It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as we have to open an account with a bank if we want to save our money, make cheque payments etc, Nowadays, we need to open a demat account if we want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. We have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say our portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in our demat account. So you don't have to possess any physical certificates showing that we own these shares. They are all held electronically in our account. As you buy and sell the shares, they are adjusted in our account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Is a demat account a must? Nowadays, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more.
Primary and secondary market There are two ways for investors to get shares from the primary and secondary markets. In primary markets, securities are bought by way of public issue directly from the company. In Secondary market share are traded between two investors.
PRIMARY MARKET
Market for new issues of securities, as distinguished from the Secondary Market, where previously issued securities are bought and sold. A market is primary if the proceeds of sales go to the issuer of the securities sold.
This is part of the financial market where enterprises issue their new shares and bonds. It is characterized by being the only moment when the enterprise receives money in exchange for selling its financial assets.
SECONDARY MARKET
The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. To explain further, it is trading in previously issued financial instruments. An organized market for used securities. Examples are the New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE), National Stock Exchange NSE, bond markets, over-thecounter markets, residential mortgage loans, governmental guaranteed loans etc Bull market: A bull market is a financial market where prices of instruments (e.g., stocks) are, on average, trending higher. The bull market tends to be associated with rising investor confidence and expectations of further capital gains. A market in which prices are rising. A market participant who believes prices will move higher is called a "bull". A news item is considered bullish if it is expected to result in higher prices. An advancing trend in stock prices that usually occurs for a time period of months or years. Bull markets are generally characterized by high trading volume. Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. Bear markets are the opposite--stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation. A key to successful investing during a bull market is to take advantage of the rising prices. For most, this means buying securities early, watching them rise in value and then selling them when they reach a high. However, as simple as it sounds, this practice involves timing the market. Since no one knows exactly when the market will begin its climb or reach its peak, virtually no one can time the market perfectly. Investors
often attempt to buy securities as they demonstrate a strong and steady rise and sell them as the market begins a strong move downward. Portfolios with larger percentages of stocks can work well when the market is moving upward. Investors who believe in watching the market will buy and sell accordingly to change their portfolios. Speculators and risk-takers can fare relatively well in bull markets. They believe they can make profits from rising prices, so they buy stocks, options, futures and currencies they believe will gain value. Growth is what most bull investors seek.
Bear Market
The opposite of a bull market is a bear market when prices are falling in a financial market for a prolonged period of time. A bear market tends to be accompanied by widespread pessimism. A bear market is slang for when stock prices have decreased for an extended period of time. If an investor is "bearish" they are referred to as a bear because they believe a particular company, industry, sector, or market in general is going to go down.
Commodities The growing popularity of commodity derivatives as an asset class has caught the attention & imagination of the investing community worldwide. The Indian Commodities Market is also taking giant strides, growing at a scorching pace and well poised to occupy its rightful place in the world. This has provided the investors with new emerging investment opportunities in the arena of commodities. Commodity Derivatives trading in India is now done through the electronic trading platform of two popular exchanges NCDEX (National Commodity & Derivative Exchange Limited) and MCX (Multi Commodity Exchange). The various commodities being traded on the exchanges include precious metals, crude oil, agro-commodities amongst others.
Comdex Limited is a member of both the exchanges (MCX & NCDEX) that allows trading in all the commodities traded in both the exchanges. Presently, trading in commodities is restricted to futures contracts only.
Portfolio Management Services Portfolio Management Services provides the benefits of diversification across assets, sectors, and funds. Experts of Portfolio Management, who have many years of investment experience. They combine best of breed investment of avenues as they aim to achieve optimal returns at managed levels of risk.
Constant monitoring of our portfolios asset mix to ensure it will always be effectively positioned to meet your long-term objectives. Our portfolio managers will adjust the asset mix to reflect the current economic climate and to benefit from opportunities
Performance-linked fees Constant disclosure of the portfolio on daily and monthly basis
It defines the customized risk and return Great flexibility of deploying and exposing the initial investment to the market. High water mark level for profit sharing No transaction and custodian charges Diversification across asset classes and investment styles Investment objectives and goals presented clearly through a personalized profile Encourages a disciplined approach to investing over a longer time horizon
1. Primary objective To find out the investors awareness and satisfaction in dealing with share market. 2. Secondary Objectives i. ii. iii. iv. To study what factors influence the investors to invest in the share market. To find out the satisfaction level of the brokers service. To analyze fear of traders while earning profit or loss. To analyze the qualities necessary for traders. And to analyze the situations faced by the traders.
RESEARCH METHODOLOGY
(a) Research type: Descriptive The researcher have used Descriptive research for his study
(b) Type of data used The researcher has used primary data for his study
(c) Source of data The source of primary data is from the shareholders.
(d) Tools for data collection The researcher has used questionnaire for collection the data required for the study.
(f) Sampling method The researcher has used judgment sampling method for locating sampling unit.
(g) Population The population for the study consists of share holders.
(h) Sampling unit The sampling unit for the study is share holders.
(k) Tools for Analysis The researcher has used the percentage analysis in his study.
(m) Tools for presentation The researcher has used (a) Table. (b) Pie chart, bar chart and column chart.
The share broker to profile his customers can use the study.
Limitations of the study: # Un availability of shareholders due to their busy schedule was a big constraint. # Short time period was inadequate for concluding detailed study among the respondents # The study is limited to Chennai Territory. # The study is limited under constraint. Some of the respondents have answered vaguely to the questions.
3. Company profile Single window securities are one of the leading retail financial services company with 5 locations in Tamil nadu. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over branch managers are dedicated to serve clients unique needs.
Singe window is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with realtime service & 24/7 access to all information and products. Our flagship single window offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. We are creating a world of Smart Investor.
Single window offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financialgoals.
Single window managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, and it provides full access to all our products and services through multi-channels
S. No.
Gender
No. of Respondents
1 2
104 16 120
Inference From the above table it is clear that 86.66% of the respondents are male and 13.34% of the respondents are female.
Gender
13.34
86.66
S. No.
Age group
No. of Respondents
1 2 3 4
13 56 43 08 120
Inference From the above table its clear that 10.83% of the respondents are in the age group of 21-30 and 46.66% of the respondents are in the age group of 31-40, and 35.83% of the respondents are in the age group of 41-50 and 6.68% of the respondents are in the age group of 51 and above.
S. No.
Educational qualification
No. of Respondents
% of the Respondents
1 2 3 4
04 65 34 17 120
Inference From the above table it is clear that 3.33% of the respondents have done their higher secondary and 54.16% of the respondents are undergraduates, and 28.33% of the respondents are post graduates and the remaining 14.18% of the respondents are diploma holders.
Educational Qualification
60 50 40 30 20 10 0 Higher Under Post Secondary Graduate Graduate Diploma
S. No.
Years in trading
No. of Respondents
% of the Respondents
1 2 3 4
11 38 46 25 120
Inference 9.17% of the respondents have 1 to 4 years experience in share trading and 26.67% of the respondents have 5 to 8 years experience, 38.33% of the respondents have 8 to 12 years experience and 25.83% of the respondents have above 12 years experience in share trading.
5-8yrs
8-12yrs
S. No.
Occupation
No. of Respondents
1 2 3 4
48 33 18 21 120
Inference 40% of the respondents are private employees, and 27.5% of the respondents are government employees, and 15% of the respondents are professionals, and 17.5% of the respondents are doing their own business.
Table 6 Table showing the source through which you became aware about share market
S. No.
No. of Respondents
1 2 3 4
03 68 31 18 120
Inference From the above table it is clear that 2.5% of the respondents became aware of the share market by the help of share brokers, and 56.67% of the respondents became aware about advertisement and 25.83% of the respondents came to know through their friends and relatives, and 15% of the respondents became aware through other sources.
Table 7 Table showing motivational factor made the respondents deal in share market investment
S. No.
Motivational factor
No. of Respondents
% of the Respondents
1 2 3 4
33 57 26 04 120
Inference From the above table 27.5% of the respondents have said that advertisement made them motivated to deal in share market, and 47.5% of the respondents have said that their own interest created to deal in share, and 21.16% of the respondents have said that through friends motivation they are dealing in share market, and 3.33% of the respondents have said that through other source they became interested in dealing share market.
S. No.
Share preferred
No. of Respondents
1 2 3
25 11 84 120
Inference From the above table 20.83% of the respondents have said that they prefer primary market, and 9.17% of the respondents have said that they prefer secondary market, and 70% of the respondents have said that they prefer both primary and secondary market.
Primary
Secondary
Both
S. No.
Sources
No. of Respondents
1 2 3 4
14 -8 3
Others Total
-25
-100
Inference From the above table 56% of the respondents have said that they prefer primary market as they are safety. 32% of the respondents have said that they are initially given a discount. And 12% of the respondents have said that they are un aware about the secondary market.
S. No.
Movement watched
No. of Respondents
1 2
Yes No Total
92 28 120
Inference From the above table it is clear that 76.67% of the respondents have said that they watch the share movement, and 23.33% of the respondents have said that they will not watch the share movement.
Table 11 Table showing the sources through which they get regular information regarding Shares
S. No.
Particulars
No. of Respondents
1. 2. 3. 4. 5.
15 10 8 81 6 120
Inference From the above table 12.5% of the respondents have said that they get regular information from the television, and 8.33% of the respondents have said that they get information from the newspaper, and 6.67% of the respondents have said that they get information from magazines, and 67.5% of the respondents have said that they get information from brokers, and 5% of the respondents have said that get information other sources.
S. No.
Particulars
No. of Respondents
% of the Respondents
1 2 3
41 55 24 120
Inference From the above table 34.17% of the respondents have said that they expect a high profit, and 45.83% of the respondents have said that they expect a normal profit, and 20% of the respondents have said that they expect a low profit.
Table 13 Table showing the respondents tendency if the market condition suddenly increases
S. No.
Reason
No. of Respondents
1 2
52 68 120
Inference From the above table 43.33% of the respondents have said that they if the market condition suddenly increases they wait for a high profit and 56.67% of the respondents have said that they will reap the normal profit.
Table 14 Table showing the market condition going against the respondents expectation he will
S. No.
Reasons
No. of Respondents
73
47 120
39.17 100
Inference From the above table 60.83% of the respondents have said that if the market conditions going against their expectation they wait and expect a change in trend, and 39.17% of the respondents have said that they will with draw from the market.
With draw from the market Wait and expect a change in trend
Table 15 Table showing the need of advice from brokers for trading of the respondents
S. No.
Particulars
No. of Respondents
% of the Respondents
1 2
Yes No Total
86 34 120
Inference 71.67% of the respondents have said that they expect advice from the brokers, and 28.33% of the respondents have said that they will not expect the help from the brokers for trading.
No
Yes
S. No.
Satisfaction level
No. of Respondents
1 2 3
8 58 10
4 5
40 4 120
Inference The above table showing the satisfaction level of the respondents. 6.67% of the respondents have said that they are highly satisfied with the brokers service, and 48.33% of the respondents have said that they are satisfied with the dealer service, and 8.33% of the respondents have said that they are neither satisfied nor dis-satisfied, and 33.33% of the respondents have said that they are dis satisfied with the brokers service and 3.34% of the respondents have said that they are highly dis satisfied with the broker service.
60 50 40 30 20 10 0 Highly satisfied Satisfied Neither satisfied not dissatisfied Satisfaction level of respondents with share broker's service Dissatisfied HighlyDissatisfied
Table 17 Table showing the respondents recommendation to their close friends & relatives
S. No.
Particulars
No. of Respondents
% of the Respondents
1 2
Yes No Total
98 22 120
Inference The above table shows respondents recommendation to others or not. 81.67% the respondents have said that they will recommend to their friends and relatives, and 18.33% of the respondents have said that will not recommend to his friends and relatives.
90 80 70 60 50 40 30 20 10 0 Yes No
Table 18 Table showing the reason for dislike to recommend the share market
S. No.
Particulars
No. of Respondents
% of the Respondents
1 2 3
12 2 1 15
Inference From the above table it is clear that 80% of the respondents have said that they dislike recommending to their friends and relatives due to heavy risk involved in share dealing, and 13.34% of the respondents have said that they will not recommend as they depend on persons, and 6.66% of the respondents have said that they will not recommend because they are not interested.
5. Findings 1. 86.66% of the respondents are male. 2. 46.66% of the respondents are in the age group of 31-40. 3. 54.16% of the respondents are undergraduates. 4. 38.33% of the respondents have 8 to 12 years experience in share trading. 5. 40% of the respondents are private employees. 6. 56.67% of the respondents became aware about share through advertisement. 7. 47.5% of the respondents have said that their own interest created to deal in share. 8. 20.83% of the respondents have said that they prefer primary market. 9. 56% of the respondents have said that they prefer primary market as they are safety. 10. 76.67% of the respondents have said that they watch the share movement regularly. 11. 67.5% of the respondents have said that they get information from brokers regarding share. 12. 45.83% of the respondents have said that they expect a normal profit than higher profit. 13. 56.67% of the respondents have said that they will reap the normal profit if the market condition increases. 14. 60.83% of the respondents have said that if the market conditions going against their expectation they wait and expect a change in trend. 15. 71.67% of the respondents have said that they expect advice from the brokers for share dealing. 16. 48.33% of the respondents have said that they are satisfied with the dealer service. 17. 81.67% the respondents have said that they will recommend to their friends and relatives. 18. 80% of the respondents have said that they dislike recommending to their friends and relatives due to heavy risk involved in share dealing.
6. Suggestion
1. The customers felt that the share brokers are not providing more information regarding the share market. So they should provide information to all customers. 2. And the share brokers are relaying only on large volume customers, they should concentrate on all customers.
7. Questionnaire
A STUDY ON CUSTOMER SATISFACTION ON SHARE TRADING 1. Name 2. Gender 3. Age: (a) 20-30 (c) 40 50 4. Educational Qualification: (a) Higher Secondary (c) Post Graduate (b) Under Graduate (d) Diploma (b) 30-40 (d) Above 50
5. Your Trading Experience (a) 1-4 yrs (d) 12&above 6. Occupation (a) Private employee (b) Govt. Employee (b) 5-8yrs (c) 8-12yrs
(c) Professional
(d) Business
7. The source through which you became aware about share market? (a) Brokers (c) Friends and Relation (b) Advertisement (d) other source
8. What motivated you to invest in share? (a) Advertisement (c) Friends (b) Own interest (d) Others _____________
9. Which type of share you mostly prefer (a) Primary (b) Secondary (c) Both
10. What are the reasons for preferring primary market? (a) Safety (b) Discount (c) Less Price
12. If yes, from which sources you get regular information regarding Shares?
(a) T.V
(b) Newspaper
(c) Magazines
(d) Brokers
(a)High
(b) Normal
(c) Low
14. When the market position suddenly takes upward trend you will
15. When the market position is going against your expectation you will
16. Will your broker advice you while share trading? (a) Yes (b) No
(b) Satisfied
(d) Dissatisfied
18. Will you recommend your friends & Relatives to invest in share
Thank you