A MAJOR PROJECT REPORT

ON

Investors attitude towards share market

with special reference to Durg -Bhilai

Submitted in partial fulfillment for the award of the degree

Master of Business Administration
Chhattisgarh Swami Vivekanand Technical University, Bhilai

Submitted by,
AKASH SINGH
MBA – Semester IV
(Session 2008-2009)

Approved By, Ms. Meenakshee

Dr. Sumita Dave Sharma
HOD Lecture
(MBA)
Guided By,
 Shri Shankaracharya
Institute of Management
and Technology
Junwani, Bhilai (C.G.) - 490020

ii | P a g e
CERTIFICATE

This is to certify that the project “Investors attitude

towards share market with special reference to

Durg – Bhilai.” submitted to Shri Shankaracharya

Institute of Management & Technology, Bhilai in

partial fulfillment of the requirement for the award of

Master of Business Administration (MBA) is a bona fide

work carried out by Akash Singh, a student of MBA

IV Sem, under my supervision and guidance.

M
s
.
M
e
e
n
a
k
s
h
e
e

S
h
a
 r
m
a
L
e
c
t
u
r
e
r
(
M
B
A
)
,
S
S
I
M
T
,
B
h
i
l
a
i

[ii]
 Shri Shankaracharya
Institute of Management
and Technology
Junwani, Bhilai (C.G.) – 490020

DECLARATION

I, Akash Singh, a student of MBA IV Semester 2008,

at Shri Shankaracharya Institute of Management &

Technology hereby declare that this Project Report

under the title “Investors attitude towards share

market with special reference to Durg – Bhilai.”

is the record of my original work under the guidance

of Ms. Meenakshee Sharma. This report has never

been submitted to anywhere else for award of any

degree/diploma.

Place: Bhilai
AKASH SINGH
Date : 28.04.2009
MBA – Semester IV

[iii]
ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to Ms.

Meenakshee Sharma and all the faculty members who have shared
their valuable time and made possible through their direst co-
operation.
My special thanks to for being a constant source
inspiration and encouragement during the making of this project
report.
Above all this work is dedicated to my parents and
friends whose encouragement, inspiration and sacrifice made me
tough so that I could complete this research work.

Place: Bhilai
AKASH SINGH
Date : 28.04.2009
MBA – Semester IV

[iv]
TABLE OF CONTENTS

i. CERTIFICATE
ii

ii. DECLARATION
iii

iii. ACKNOWLEDGEMENT
iv

iv. TABLE OF CONTENTS

v

v. EXECUTIVE SUMMARY
vi

1. INTRODUCTION

01

2. LITERATURE REVIEW

03

3. RESEARCH METHODOLOGY

17

4. DATA ANALYSIS AND RESULTS

24

5. INTERPRETATION OF FINDINGS

36

6. RECOMMENDATIONS

37

7. LIMITATIONS

38

[v]
8. CONCLUSION

39

vi. REFERENCES

40

vii. APPENDICES

41

[vi]
EXECUTIVE SUMMARY

The project report entitled “ Investors attitude towards share

market with special reference to Durg - Bhilai. ” has prepared for
the share market, updating the information on various broking
house, objectives, management programmers to built customer
awareness, executive’s awareness.
The purpose behind this research is to get an exposure of
corporate world as well as working culture and working condition
by getting associated with research .If this report proves to be
fruitful to anybody/any organization by any means, I will consider
my work worthwhile.
This research helps in understanding practical applicability,
which is a part from theoretical concept.

The study gave me a very satisfactory experience while getting

some knowledge of the topic. During the survey it has been seen
that the stock market is one of the most important sources for
companies to raise money. This allows businesses to be publicly
traded, or raise additional capital for expansion by selling shares of
ownership of the company in a public market. The liquidity that an
exchange provides affords investors the ability to quickly and easily
sell securities. This is an attractive feature of investing in stocks,
compared to other less liquid investments such as real estate.

[vii]
INTRODUCTION

India is a developing economy. Its prospering in all spheres. Share Market is

a compelling determinant of the economy and the financial situation of a
country. Ever since the liberalization, privatization and globalization, the foreign
investment in our country is booming. Share Market is a clear indicator of the
developing trend prevailing in our country. Statistics reveal that the trade
volume has been increasing continuously, coupled with the ups & downs which
is a nature of share trading. We are living in an interlinked world. With growing
volume of trade, it has become a necessity that people are aware of the
intricacies of the web world.

SENSEX the benchmark indicator of share trading has more than tripled
ever since on-line share trading commenced. It has become imperative to be a
participant of this mode of trading. Recently, the crisis in the financial market
resulted in global inflation. The share market was a clear indicator of the
prevailing prices.

Share trading is a way for faster earning and losing money. In the recent
years, a volatile market could be witnessed. In the desire to earn money in a
quick manner, more and more people have ventured out into share trading. Lack
of awareness of many investors have made them loose lakhs of money in the
Stock Market. Wise play by many others have made them earn in crores. At such
a time, it would be interesting to know the attitude of the players and the
conditions in the market. A survey about investors and the share market in such a
time would be educative to tomorrow’s investors. It could also lead to
improvements in the conditions prevailing in Coimbatoe City that would
facilitate increase in the share trading. Several website provide information about
the stock market. They educate people about share trading and guide them
through each step. On-line share trading has become so common. Still, many of

[1]
them are unaware of the intricacies involved in share trading. Where the
American NASDAQ is in the commanding position, Hong Kong, Tokyo etc are
some of the Asian exchanges being quoted repeatedly when it comes to news
about the share market. SENSEX is not far behind. Indian bourses are also often
quoted.
Our Finance Minister P. Chidambaram is always optimistic when it comes to
the role of the stock markets in the economy. Quite often, we hear that the
markets are down or they are in an upbeat. Conditions being such, it is necessary
to take stock of the market activity and the awareness of the investors in our
town.

[2]
LITERATURE REVIEW

HISTORY OF SHARE MARKET

Indian Share Market started functioning from 1875. The name of the first share
trading association in India was Native Share and Stock Broker's Association which
later came to be known as Bombay Stock Exchange (BSE). This association kicked of
with 318 members.
Stock Exchange :- A common platform where buyers and sellers come together to
transact in stocks and shares. It may be a physical entity where brokers trade on a
physical trading floor via an "open outcry" system or a virtual environment.

What are the Sensex & the Nifty?

The Sensex is an "index". What is an index? An index is basically an indicator. It

gives you a general idea about whether most of the stocks have gone up or most of the
stocks have gone down.

The Sensex is an indicator of all the major companies of the BSE.

The Nifty is an indicator of all the major companies of the NSE.

If the Sensex goes up, it means that the prices of the stocks of most of the major
companies on the BSE have gone up. If the Sensex goes down, this tells you that the
stock price of most of the major stocks on the BSE have gone down.

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the
top stocks of the NSE.

Just in case you are confused, the BSE, is the Bombay Stock Exchange and the
NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is
situated at Delhi. These are the major stock exchanges in the country. There are other
stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the

[3]
BSE and the NSE.Most of the stock trading in the country is done though the BSE & the
NSE.
Besides Sensex and the Nifty there are many other indexes. There is an index
that gives you an idea about whether the mid-cap stocks go up and down. This is called
the “BSE Mid-cap Index”. There are many other types of indexes.

Indian Share Market mainly consists of two stock exchanges :-

Bombay Stock Exchange (BSE)

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Bombay Stock Exchange is the oldest stock exchange not only in India but in
entire Asia. Its history is synonymous with that of the Indian Share Market history. BSE
started functioning with the name, The Native Share and Stock Broker's Association in
1875. It got Government of India's recognition as a stock exchange in 1956 under
Securities Contracts (Regulation) Act, 1956. At the time of its origin it was an
Association of Persons but now it has been transformed to a corporate and demutualised
entity.

BSE is spread all over India and is present in 417 towns and cities. The total
number of companies listed in BSE is around 3500. Bombay Stock Exchange's trading
system is popularly known as BOLT (BSE's Online Trading System). It makes the trade
efficient, transparent and time saving. In BSE, the trades that takes place are :-

• Equity or Shares
• Derivatives (Futures and Options)
• Debt Instruments

The main index of BSE is called BSE SENSEX or simply SENSEX. It is

composed of 30 financially sound company stocks which are liable to be reviewed and
modified from time-to-time. The index calculation is done on the methodology of “Free-
float Market Capitalization” method. This method is also followed by the leading
bourses like Dow-Jones. During early 1990s it was at 1000 mark, 5000 in 1999, and
8000 in September 2000 but at the time of writing the article (30.05.07) it is hovering

[4]
around 14500. The credit behind this meteoric rise of the Indian bourse goes to the pro-
market New Economic Policy adopted by the government in July, 1991. This
momentum of SENSEX reflects the splendorous performance of Indian Inc. and the
consequent success story of the Indian economy.

National Stock Exchange (NSE)

National Stock Exchange (NSE) is the leading most stock exchange in India in
terms of total volume traded. It is based in Mumbai but has its presence in over 1500
towns and cities. In terms of market capitalization, NSE is the second largest bourse in
Sought Asia.

National Stock Exchange got its recognition as a stock exchange in July 1993 under
Securities Contracts (Regulation) Act, 1956. The products that can be traded in NSE
are :-

• Equity or Share
• Futures (both index and stock)
• Options (Call and Put)
• Wholesale Debt Market
• Retail Debt Market

NSE provides its customers with a fully automated screen based trading system
known as NEAT system with speedy, efficient and transparent transactions. The stocks
are hold in a demutualised format helping in fast, transparent and efficient preservation
and transactions. The risk management system of National Stock Exchange is of highest
quality and can be used as a benchmark for other bourses.

NSE's leading index is Nifty 50 or popularly Nifty and is composed of 50

diversified benchmark Indian company stocks. Nifty is constructed on the basis of
weighted average market capitalization method.

Regulatory Authority of Indian Share Market

SEBI or Securities and Exchange Board of India is entitled to protect the

investors' interests, regulate and develop securities market in India. It passes laws for
streamlining the Indian share market for efficient outcomes.

[5]
 Portfolio investments of the Foreign Institutional Investors (FIIs) are increasing
steadily which shows increasing reliance of the FIIs on the Indian Share Market.

The upbeat mood of the Indian bourses got a trip because of the infamous
Harshad Mehta Scam. He had fraudulently diverted huge sum of money from the banks
and manipulated 270 million shares and causing mayhem for the small investors and
BSE was on its knees shedding 570 points in a day.

But with the introduction of online trading system and high end risk management
facilities the chances of scams and fraudulent practices has been reduced sharply. This
has led to increased investor confidence on the market and consequently helped in
mopping up the volume of trade of the Indian bourses.
Indian Share Market is the reflection of the overall performance of the Indian
Corporates and is seeing new highs regularly. So, it is in an upbeat mood. Economists
predict that the economy will be growing around 10% in the near future and we hope to
see more and more bullish trends in the due course of time. Hence, Indian Share Market
along with the Indian Inc. is signaling positive signs to the investors for a robust growth
trajectory.

THEORY OF SHARE MARKET

PRIMARY AND SECONDARY MARKET

Here 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. This is part of the
financial market where enterprises issue their new shares and bonds. It is characterised
by being the only moment when the enterprise receives money in exchange for selling
its financial assets.

[6]
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-the-counter
markets, residential mortgage loans, governmental guaranteed loans etc.

Electronic Trading :- Electronic trading eliminates the need for physical

trading floors. Brokers can trade from their offices, using fully automated screen-based
processes. Their workstations are connected to a Stock Exchange's central computer via
satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers
reach the Exchange's central computer and are matched electronically.

Stock :- The word stock simply refers to a supply. You may have a stock of
Tshirts in your closet, or a stock of pencils in your desk. In the financial market, stock
refers to a supply of money that a company has raised. This supply comes from people
who have given the company money in the hope that the company will make their
money grow. A market is a public place where things are bought and sold. The term
"stock market" refers to the business of buying and selling stock. The stock market is
not a specific place, though some people use the term "Wall Street"—the main street in
New York City's financial district—to refer to the U.S. stock market in general.

Why Companies issue stock :- If a company wants to grow—maybe build

more factories, hire more people, or develop new products—it needs money. It could get
a loan from a bank. But then it would owe money. By issuing stock, a company can
raise money without going into debt. People who buy the stock are giving the company
the money it needs to grow. Not every company can issue stock. A business owned by
one person (a proprietorship) or a few people (a partnership) cannot issue stock. Only a
business corporation can issue stock. A corporation has a special legal status. Like a

[7]
school, its existence does not depend on the people who run it. Under the law it is
separate from the people associated with it, and has special legal rights and
responsibilities as well as its own unique name.

How to make money in the stock market?

This article is a COMPLETE guide to the basics of making money in the

stock market! If you are considering investing in the stock market, you MUST read this
article! We have explained all the concepts and talked about all the "myths" that people
have about the stock market!

Why People Buy it :- Owning stock in a company means owning part of that
company. Each part is known as a share. If a company has issued 100 shares of stock,
and you bought one, you own 1% of that company. People who own stock are called
stockholders, or shareholders. Stockholders hope the company will earn money as it
grows. If a company earns money, the stockholders share the profits. Over time, people
usually earn more from owning stock than from leaving money in the bank, buying
bonds, or making other investments.

Funny fractions :- In April 2002, all stock exchanges in the U.S. began
trading their stocks in dollars and cents. For instance, the price of a particular stock
might go up $1.10. This means that the price of a stock increased $1.10 over its previous
price. If a share of stock had been worth $10, it would now be worth $11.10. This is
different from the earlier system, when stocks were traded in fractions based on 1/8th. If
a stock worth $10 went up 1 and 5/8ths, it meant that the stock had risen $1 plus 5/8ths
of a dollar in price, or a total of $1.62. In other words, if each share had been worth $10
previously, it would now be worth $11.62. But why divide each dollar into eighths when
it could simply be divided into hundredths—a hundred pennies, to be exact? It's because
the U.S. dollar is a relatively new kind of currency. When the stock market opened at
the end of the eighteenth century, prices were based on the Spanish dollar, which is
divided into eighths.

[8]
 Bears and Bulls :- Bears are cautious animals who don't like to move too
fast. Bulls are bold animals who might charge right ahead. An investor is said to be
"bearish" if he or she believes the stock market will go down. A "bearish" investor will
buy stock cautiously. A "bullish" investor believes the market will go up. He or she will
charge ahead and put more money into the market. An investor can be bearish or bullish
about a particular kind of stock. Likewise, the term "bear market" describes a time when
stock prices have been falling on the whole. A "bull market" is a period when stock
prices are generally rising.

SEBI:

How is the market regulated?

In India, capital markets are regulated by the Securities and Exchange

Board of India (Sebi). The capital market regulator came into existence in 1992 through
a special act passed by Parliament. The formation of Sebi was a fall-out of the securities
scam involving stockbroker Harshad Mehta who, with the help of a handful of banks,
succeeded in artificially jacking up stock prices. In the light of the swings it has shown
in recent weeks,fe takes a Closer Look at various issues concerning market volatility and
how Sebi plays regulator:

Who regulates the Indian capital market?

Sebi regulates the entire capital market and the stock exchanges (SE) are a
very significant part of it. Besides, SEs, Sebi regulates mutual funds (MFs), foreign
institutional investors (FIIs), stockbrokers, merchant bankers, depositories, venture
capital, portfolio managers and other related entities.
A major portion of Sebi’s time and energy goes in regulating the
secondary market, which is the cash market where the trading of listed stocks takes
place. Sebi has created a separate division called the secondary markets division to look
after the day-to-day regulatory function of the segment. Recently, this division was
renamed the markets regulation department.

[9]
What is the risk containment measures Sebi reso-rts to for curbing market
volatility?

Besides discharging its day-to-day regulatory function, Sebi also keeps a

close watch on price movements and volatility in the market. To curb this volatility,
which was the order of the day till recently, the regulator along with the bourses takes
various steps for risk containment and tightening of the surveillance mechanism.

These steps may include tightening of various margins or relaxing them,

depending on the situation. Different types of margins are the best weapon at the
disposal of the regulator. It is through this measure that the regulator can control price
volatility of stock. When the price of the stock is rising unabatedly or it is supported
without any fundamentals, the SEs in consultation with the regulator can hike the
margins to contain volatility.

Other stricter measures to contain volatility include shifting them to the

trade-to-trade segment where every order (buy or sell) results in compulsory delivery
and no netting is allowed.

Does the Union finance ministry have a role to play in monitoring price movements
in stock markets?

The ministry of finance too keeps a watchful eye on the stock market
through its capital market division, headed by an officer of the rank of joint secretary.
Though the ministry does not interfere in the day-to-day affairs of the market regulator,
it does step in when major market movements happen. For instance, the one recently
when the 30-share Sensex of the Bombay Stock Exchange (BSE) dipped 1,111 points
intra-day and trading had to be halted for half-an-hour. On that day, the finance ministry
got in touch with the capital market regulator as well as the banking sector regulator the
Reserve Bank of India to prevent any liquidity problems.

[10]
What steps has Sebi taken in the recent past to curb market volatility?

Sebi recently tightened the margining system in the cash market. The
cash market margins which are based on Value at Risk (VaR) will also be updated five
times a day in line with the derivatives market. The new Sebi measure will come into
force from July 10 for BSE and NSE, while for the other SEs it will be implemented
from August 28, 2006.
Currently, in the cash market VaR margin rate is calculated at the
end of the trading day and then applied to the open positions of the subsequent trading
day. However, in the derivative market, the risk parameter files for computation of the
margins are updated intra-day.

HOW SHARE MARKET WORKS

In order to understand what stocks are and how stock markets work,
we need to dive into history--specifically, the history of what has come to be known as
the corporation, or sometimes the limited liability company (LLC). Corporations in one
form or another have been around ever since one guy convinced a few others to pool
their resources for mutual benefit.

The first corporate charters were created in Britain as early as the

sixteenth century, but these were generally what we might think of today as a public
corporation owned by the government, like the postal service.

Privately owned corporations came into being gradually during the

early 19th century in the United States , United Kingdom and western Europe as the
governments of those countries started allowing anyone to create corporations.

In order for a corporation to do business, it needs to get money from

somewhere. Typically, one or more people contribute an initial investment to get the
company off the ground. These entrepreneurs may commit some of their own money,
but if they don't have enough, they will need to persuade other people, such as venture
capital investors or banks, to invest in their business. They can do this in two ways: by

[11]
issuing bonds, which are basically a way of selling debt (or taking out a loan, depending
on your perspective), or by issuing stock, that is, shares in the ownership of the
company.

Long ago stock owners realized that it would be convenient if there

were a central place they could go to trade stock with one another, and the public stock
exchange was born. Eventually, today's stock markets grew out of these public places.

STOCK

A corporation is generally entitled to create as many shares as it

pleases. Each share is a small piece of ownership. The more shares you own, the more
of the company you own, and the more control you have over the company's operations.
Companies sometimes issue different classes of shares, which have different privileges
associated with them.

So a corporation creates some shares, and sells them to an investor

for an agreed upon price, the corporation now has money. In return, the investor has a
degree of ownership in the corporation, and can exercise some control over it. The
corporation can continue to issue new shares, as long as it can persuade people to buy
them. If the company makes a profit, it may decide to plow the money back into the
business or use some of it to pay dividends on the shares.

PUBLIC MARKETS

How each stock market works is dependent on its internal

organization and government regulation. The NYSE (New York Stock Exchange) is a
non-profit corporation, while the NASDAQ (National Association of Securities Dealers
Automated Quotation) and the TSE (Toronto Stock Exchange) are for-profit businesses,
earning money by providing trading services.

Most companies that go public have been around for at least a little
while. Going public gives the company an opportunity for a potentially huge capital
infusion, since millions of investors can now easily purchase shares. It also exposes the
corporation to stricter regulatory control by government regulators.

[12]
 When a corporation decides to go public, after filing the necessary
paperwork with the government and with the exchange it has chosen, it makes an initial
public offering (IPO). The company will decide how many shares to issue on the public
market and the price it wants to sell them for. When all the shares in the IPO are sold,
the company can use the proceeds to iInvest in the business.

STOCK BROKER

A stock broker is a person or a firm that trades on its clients

behalf, you tell them what you want to invest in and they will issue the buy or sell order.
Some stock brokers also give out financial advice that you a charged for.

It wasn’t too long ago and investing was very expensive because
you had to go through a full service broker which would give you advice on what to do
and would charge you a hefty fee for it.

Three different types of stock brokers.

1. Full Service Broker - A full-service broker can provide a bunch of services such
as investment research advice, tax planning and retirement planning.

2. Discount Broker – A discount broker let’s you buy and sell stocks at a low rate
but doesn’t provide any investment advice.

3. Direct-Access Broker- A direct access broker lets you trade directly with the
electronic communication networks (ECN’s) so you can trade faster. Active traders such
as day traders tend to use Direct Access Brokers.

Importance of stock market

Function and purpose

The stock market is one of the most important sources for companies
to raise money. This allows businesses to be publicly traded, or raise additional capital

[13]
for expansion by selling shares of ownership of the company in a public market. The
liquidity that an exchange provides affords investors the ability to quickly and easily sell
securities. This is an attractive feature of investing in stocks, compared to other less
liquid investments such as real estate.

History has shown that the price of shares and other assets is an
important part of the dynamics of economic activity, and can influence or be an
indicator of social mood. An economy where the stock market is on the rise is
considered to be an up coming economy. In fact, the stock market is often considered
the primary indicator of a country's economic strength and development. Rising share
prices, for instance, tend to be associated with increased business investment and vice
versa. Share prices also affect the wealth of households and their consumption.
Therefore, central banks tend to keep an eye on the control and behavior of the stock
market and, in general, on the smooth operation of financial system functions. Financial
stability is the raison d'être of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning

that they collect and deliver the shares, and guarantee payment to the seller of a security.
This eliminates the risk to an individual buyer or seller that the counterparty could
default on the transaction.

The smooth functioning of all these activities facilitates economic

growth in that lower costs and enterprise risks promote the production of goods and
services as well as employment. In this way the financial system contributes to increased
prosperity.

Relation of the stock market to the modern financial system

The financial system in most western countries has undergone a

remarkable transformation. One feature of this development is disintermediation. A
portion of the funds involved in saving and financing flows directly to the financial
markets instead of being routed via the traditional bank lending and deposit operations.
The general public's heightened interest in investing in the stock market, either directly
or through mutual funds, has been an important component of this process. Statistics

[14]
show that in recent decades shares have made up an increasingly large proportion of
households' financial assets in many countries. In the 1970s, in Sweden, deposit
accounts and other very liquid assets with little risk made up almost 60 percent of
households' financial wealth, compared to less than 20 percent in the 2000s. The major
part of this adjustment in financial portfolios has gone directly to shares but a good deal
now takes the form of various kinds of institutional investment for groups of individuals,
e.g., pension funds, mutual funds, hedge funds, insurance investment of premiums, etc.
The trend towards forms of saving with a higher risk has been accentuated by new rules
for most funds and insurance, permitting a higher proportion of shares to bonds. Similar
tendencies are to be found in other industrialized countries. In all developed economic
systems, such as the European Union, the United States, Japan and other developed
nations, the trend has been the same: saving has moved away from traditional
(government insured) bank deposits to more risky securities of one sort or another.

The stock market, individual investors, and financial risk

Riskier long-term saving requires that an individual possess the ability

to manage the associated increased risks. Stock prices fluctuate widely, in marked
contrast to the stability of (government insured) bank deposits or bonds. This is
something that could affect not only the individual investor or household, but also the
economy on a large scale. The following deals with some of the risks of the financial
sector in general and the stock market in particular. This is certainly more important
now that so many newcomers have entered the stock market, or have acquired other
'risky' investments (such as 'investment' property, i.e., real estate and collectables).

With each passing year, the noise level in the stock market rises.
Television commentators, financial writers, analysts, and market strategists are all
overtaking each other to get investors' attention. At the same time, individual investors,
immersed in chat rooms and message boards, are exchanging questionable and often
misleading tips. Yet, despite all this available information, investors find it increasingly
difficult to profit. Stock prices skyrocket with little reason, then plummet just as quickly,
and people who have turned to investing for their children's education and their own

[15]
retirement become frightened. Sometimes there appears to be no rhyme or reason to the
market, only folly.

This is a quote from the preface to a published biography about the

long-term value-oriented stock investor Warren Buffett.[5] Buffett began his career with
$100, and $105,000 from seven limited partners consisting of Buffett's family and
friends. Over the years he has built himself a multi-billion-dollar fortune. The quote
illustrates some of what has been happening in the stock market during the end of the
20th century and the beginning of the 21st century

Some important things which should be follow by investors

Investors should know “unforgettable basics” before they enter the

world of investing in stocks. The stock market is a field dominated by savvy investors
who know the ins-and-outs of the market. For people who are not “on the inside”, the
stock market can be a VERY dangerous place.

Don't even consider "tips" that tell you about "hot stocks". Consider
the source: There are many people in the market who put in all their time and effort in
promoting certain stocks. They do this because they have their money invested in those
stocks. If they can get enough people to buy the stock and they can get the stock price to
rise, they will sell the stock for a huge price, the stock price will crash and they will
walk off to promote another stock.

Always use your own brain: It's extremely important.investors must

always use their own brain. Relying on the advice of others, no matter how well
intentioned it may be, is almost always a complete disaster. Make sure you dig in and
really examine the "facts about the companies" before you invest. Ignore press releases
which have very little substance, and rely on "hype" to tell the company's story.

And finally the most important tip!!!

Only invest money you can afford to lose!! Sure this is a basic point, but

[16]
many many people miss it. You should only invest money that you can honestly afford
to lose!! Everyone enters into investments with the idea of earning big profits, but in
many cases, this never works. (Especially if you are new to investing in the stock
market!)

Please understand that the above tips are tips for beginners. Once you
really get into the stock market you do not need to follow these rules anymore. But if
you are a new investor, you MUST follow these rules. They are for your own safety.

But then again, nothing comes free. Everything has a price. You will have
to loose some money, make some bad decisions and then only will you really
understand the market. You cannot understand the market by just looking at it from far.
By following these rules, you will basically not loose too much.

[17]
RESEARCH METHODOLOGY

Research Objecti

Details of the research method used and why it has been used in

your study

Questionnaire Design

Sampling Design

Data Collection

[18]
Research Objectives

A. To understand the attitude of the online- share traders in Durg/Bhilai.

B. To conduct an enquiry among the share trading public in Durg/Bhilai about their
experience with broking house.

C. To understand the depth up to which the share trader are clear & aware of
trading.

D. To know about the investment option available before the investorin share
market.

[19]
Research methodology

Research reference to a search for knowledge, it can also be defined

research as a scientific systematic search for pertinent information on a specific topic. In
fact research is an art of scientific investigation. Redman and Mory defined research as a
systematized effort to gain new knowledge some people consider research as a
movement, A movement from the known to unknown.

Research is an academic activity and as such the term should be

used in a technical sense. According to Clifford Woody research comprises defining and
redefining problems, formulating hypothesis or suggested solutions, collecting,
organizing and evaluating data, making deductions and reaching conclusion, and at last
carefully tasting he conclusions to determine whether they fit the formulating
hypothesis.

Research is thus an original contribution to the existing stock of

knowledge making for its advancement. It is the pursuit of truth with the help of study,
observation, comparisons and experiment. In short the search for knowledge through
objective and systematic method of finding solution to a problem is research. Thus
systematic approach concerning generalization and formulation of a theory is also
research.

The research processes carried out according to the designed series

of steps which are required to be taken in the chronological order. The major research
steps are as follows:

1. Formulating the research problem.

2. Choice of research design.

3. Determining sources of data.

[20]
 4. Determining data collection form.

5. Determining sampling design and sample size.

6. Organizing and conducting field survey.

7. Processing and analyzing collective data.

8. Preparing the research report.

Formulating the research problem

The first step of process is formulating the problem. In order to

identify the research problem three categories of systematic situations namely overt
difficulties, latent difficulties and unnoticed opportunities should be studied. Overt
difficulties are those which are quit apparent. Latent difficulties are those which are not
so apparent. Unnoticed opportunities indicate the potential for growth in a certain area;
such opportunities are not clearly seen some effort is required to explore them. A
researcher may recognize two or more problems at a time. Then he has to determine the
priorities.

Research Design

The formidable problem that follows the task of defining the research
problem is the preparation of the design of the research project, popularly known as the
“research design”. Decisions regarding what, where, when, how much, by what means
concerning an inquiry or a research study constitute a research design. “A research
design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure”.
One may split the overall research design in to the following parts:

[21]
 (1) SAMPLING DESIGN: This deals with the method of selecting items to be
observed for the given study.

(2) OBSERVATIONAL DESIGN: This relates to the conditions under which the
observations are to be made.

(3) STATISTICAL DESIGN: These concerns with the question of how many items
are to be observed and how the information and data gathered are to be analyzed
.
(4) OPERATIONAL DESIGN: This deals with the techniques by which the
procedures specified in the sampling, statistical and observational designs can be carried
out.

Different types of research design

There are mainly three types of research design
1. Exploratory research
2. Descriptive research
3. Causal research

Sources of data

The task of data collection begins after a research problem has been
defined are research design chalked out. While deciding about the method of data
collection to be used for the study, the researcher should keep in mind two types of data
that is primary and secondary.

Primary data:
The primary data are those which are collected a fresh and for the
first time, thus happened to be original in character. There are several methods of
collecting primary data, particularly in a surveys and descriptive researches important
ones are:
1. Observational method

[22]
 2. Interview method

Secondary data:
The secondary data, on the other hand, are those which have already
been passed through the statistical process. When the researcher utilizes secondary data
then he has to look in to various sources from where he can obtained them. Secondary
data may either be published data or unpublished data. Usually published data are
available in:
Various publications of foreign governments or of international
bodies and their subsidiary organization, Technical journals, Books, magazines and
newspaper reports and publication of various associations connected with business and
industry, banks, stock exchange etc.

Reports prepared by research scholars, universities, economist etc in different fields.

Public records and statistics, historical documents, and other sources of
published information

Sample Design
A sample design is a definite plan for obtaining a sample from a
given population. It refers to the technique or the procedure the researcher would adopt
in selecting items for the samples. Sample design may as well lay down the number of
item to be included in the sample that is a size of the sample. Sample design is
determined before data are collected.

Types of sampling design

There are different types of sample design based on two factors viz.
the representation basis and the element selection technique. On the representation basis,
the sample may be probability sampling or it may non probability sampling. Probability
sampling is based on the concept of random selection, whereas non probability sampling
is “non - random” sampling. On element selection basis, the sample may be either
unrestricted or restricted. When each sample element is drown individually from the

[23]
population at large, and then the sample so drown is known as “unrestricted sample”,
whereas all other forms of sampling are covered under the term “restricted sampling”.
Thus sample designs are basically of two types’ viz. non-probability sampling and
probability sampling

1. Non-probability sampling design

Non-probability sampling is also known by different names such as

deliberate sampling purposive sampling and judgment sampling. In this type sampling,
items for the sample are selected deliberately by researcher; his choice concerning the
items remains supreme. In other words, under non probability sampling the organizer of
the inquiry purposively choose the particular units of the universe for constituting a
sample on the basis that the small mass that they so select out of a huge one will be
typical or representative of the whole.

2. Probability sampling design

Probability sampling is also known as “random sampling ” or

chance sampling. Under this sampling design, every item of the universe has an equal
chance of conclusion in the sample. The results obtained from probability or random
sampling can assured in term of probability that is we can measure the errors of
estimation or the significance of result obtained from random sample. Random sampling
is considerate as the best technique of selecting a representative sample.

Thus in short the research methodology of the survey is following:-

Research Design Descriptive Design

Data collecting Primary data collected through

questionnaire. Secondary data from books,
Magazines, Internet.

[24]
 Sample size 50
Sampling technique Random sampling.
Medium of collection Survey using questionnaire
sample
Geographical area Durg - bhilai.

DATA ANALYSIS AND RESULTS

Q.1- Do you invest in share market?

Answers Number of
Respondents

Yes 50

No 0

[25]
 50
50

40

30 Yes

No
20

10
0
0
Number of Respondents

INTERPRETATION:

This study done on fifty respondents and all are investor of share
market.

Q.2- What induced you to begin share trading?

Answers Number of respondents

Reference by friends 12

On-line advertisement 13

Advise by financial consultant 25

[26]
 25
25
Reference by
20 friends

15 13
12 On-line
advertisement
10

5 Advise by
financial
0 consultant
Number of respondents

INTERPRETATION:

In this study, it was found that there are 25 number of respondents

are influenced by their financial consultant to invest in share market, 13 respondents are
influenced by on-line advertisement and the least 12 respondents are influenced by their
friends.

Q.3- Are you professional traders?

Answers Number of respondents

Yes 24

No 26

[27]
 26
26

25.5
Yes
25
No
24.5
24
24

23.5

23
Number of respondents

INTERPRETAION:

From this study, I found that 52% respondents are non professional
trader whereas 48% respondents are professional trader.

Q.4- Which site do you use for trading?

Answers Number of respondents

Anand Rathi 08

Karvy 09

Sharekhan 12

Kotak securities 14

[28]
 Others 07

14
14
12 Anand Rathi
12
10 9 Karvy
8
8 7
Sharekhan
6
4 Kotak
securities
2
Others
0
Number of respondents

INTERPRETATION:

From the above graph we can say that Kotak Securities are use by
large number of investor for their trading. In the second place Sharekhan is preferred by
the investor and the Anand Rathi stand in third position, whereas 8 respondents prefer
Karvy to invest their funds. There are also some investor who use different site for their
trading.

Q.5- Is the information provided by your stock broker sufficient?

Answers Number of respondents

Yes 23

[29]
 No 27

28
26 27
24
22 23
No
20
Number of Yes
respondents

INTERPRETATION:

The above graph shows that the 54% investors are satisfied with
the information provided by their stock broker and 46% are not satisfied with the
information provided by their stock broker.

Q.6- Why do you invest in shares?

[30]
 Answers Number of respondents

Rise slowly and steadily 12

Slow and volatile behavior, 26

but give higher return

The above both 12

rise slowly and

steadily

24% 24%
slow and
volatile
behavior but
give higher
return
52% the above both

INTRPERATION:

52% respondents have the opinion that it has slow and volatile
behavior but give higher return. 24% respondents have opinion that it give rise slowly
and steadily and rest 24% respondents says that it give both rise slowly and steadily and
also higher return.

[31]
Q.7- What you think about online trading?

Answers Number of respondents

Simple 40

Hard 10

40 40

35
30
25
Simple
20
15 Hard
10
10
5
0
Number of respondents

INTERPRETATION:

[32]
 During the survey it was found that there are 80% respondents
have opinion that the online- trading is simple and there are 20% respondents who face
difficulty on online-trading.

Q.8- Is the commission charged by the trading reasonable?

Answers Number of respondents

Yes 38

No 12

40 38

35
30
25
20 Yes
No
15 12
10
5
0
Number of respondents

[33]
INTERPRETATION:

From the survey done, it was found that 76% of the respondents
have opinion that the commission charged by them is reasonable and the rest 12%
respondents says that the commission charged in he trading is not reasonable.

Q.9- Do you feel that trading volume increase in near future?

Answers Number of respondents

Yes 18

No 32

[34]
 36%

yes
no

64%

INTERPRETAION:

Majority of respondents 64% feel that trading volume will not

increase in near future and there are also 36% respondents who feel that the trading
volume will definitely increase in near future.

Q.10- Does the above affect your investment?

Answers Number of respondents

[35]
 Yes 34

No 16

34
35

30

25

20
16 Yes
15 No

10

0
Number of respondents

INTERPRETATION:

The above graph shows that 68% respondents feel that

fluctuation in trading in near future will affect their investment and 32% respondents
says that fluctuation in trading volume will not affect them.

Q.11- Crisis of today’s market does affect your investment?

[36]
 Answers Number of respondents

Yes 04

No 46

50 46
45
40
35
30
25 Yes
20 No
15
10
4
5
0
Number of respondents

INTERPRETATION:

From the above it was cleared that 92% respondents are affected
by the market crisis whereas there are 08% respondents who say that today’s market
crisis didn’t affect their investment because of their long-term plan.

[37]
Q.12- What you notice before investing in any type of shares?

Answers Number of respondents

Company’s profile 14

Market value 26

Sector comparison 10

20%
28% company's
profile
market value

sector
52% comparison

INTERPRETAION:

From the study it was found that 52% respondents analysis market
value before investing in shares. There are 28% respondents who analysis company’s
profile before investing and there are also 20% of respondents who analysis sector
comparison to make their investment.

[38]
INTERPRETATION OF FINDINGS

 Most of the investors are influenced by their financial consultants for investing
in share market.

 Maximum investors are non professional traders in share market.

 Kotak Securities & Sharekhan is preferred by the large number of investor for
trading in Durg/Bhilai.

 Mostly investor are satisfied with the information provided by their stock broker.

 The main goals of investment of investor is higher return.

 Investor feel convenient with online- trading.

 Charges imposed on investor by trading house is reasonable.

 The current fluctuation in trading will extremely affect the investment of the
customer in near future.

 Investor analysis the market value, company’s profile and sector comparison
before investing in stock.

[39]
RECOMMENDATIONS

• Investors relation seminars should be conducted at least once in a month

so that share market give more effective services or make more facility to
the investors

• They should also make arrangement to familiarize portfolio management

for clients/investors

• Investors who are new to investing in the share market should only invest
money that he can afford.

• It's extremely important that investors must always use their own brain.
Relying on the advice of others, no matter how well intentioned it may
be, is almost always a complete disaster.

[40]
LIMITATIONS

Any research or study always has some limitations under which this has
to be undertaken. This one too was not an exception. These limitations are poised by the
environment … some external and some inherent. This study has been conducted with
utmost consideration to the adequacy of data and quality of information, though as
mention earlier the reliance on the sources can not be minimized to zero in context of
precision. The limitation can be enlisted as hereunder:-

1. The perception level of the respondents.

2. Availability of documents as sources of secondary information.
3. Reliability of information collected from various public information sources such
as magazines and website.
4. Respondents are not willing to fill the questionnaire.
5. Sometimes the respondents are not available at their place.
6. Very often the respondent do not express their true feelings, in such case their
habit, preference, practice, cannot be assessed correctly.
7. Some of the respondents refuse to give the important information best known to
them.

However in spite of these limitations all efforts have been put to make
the report correct, genuine, and fulfilling the objectives of the reports.

[41]
CONCLUSIONS

This gave me a very satisfactory experience while getting some

knowledge of the topic” Investors attitude towards share market with special reference
to Durg - Bhilai .

On the whole, I am able to get very good knowledge of my topic,

during the whole study I found that in the present scenario most of the investors prefer
online as well as offline trading. Every investors want to earns maximum profit with
minimum investment, this is a main reason behind investing the money in share market.
But at the same time they should take care of their funds that whether they are able to
pay if market goes downward or bear loss or not .

[42]
REFERENCES

Kothari C. R. “Research Methodology” Wishwa Prakashan (second edition-2005.)

Magazines: Dalal Street
News Paper:Economics Times

www.stockmarketguide.in

www.indiashare.mobi

www.indiainfoline.com

www.amfiindia.com

[43]
APPENDICES

1) Name:_____________________________________________________

2) Age: i) below 30 [ ] ii) 30 – 50 [ ]

iii) above 50 [ ]

3) Gender: i) Male [ ] ii) Female [ ]

4) Educational Qualification
i) School level [ ] ii) Diploma [ ]
iii) Under Graduate [ ] iv) Post Graduate [ ]
v) others – please specify [ ]

5) Income:
i) below 10,000 [ ] ii) 10,000 – 20,000 per month [ ]
iii) 20,000 – 30,000 per month [ ] iv) above 30,000 [ ]

6) Do you invest in share market?

i) Yes [ ] ii) No [ ]

7) What induced you to begin share trading?

i) Reference by friends [ ] ii) On-line advertisements [ ]
iii) Advice by financial consultants [ ]

8) Are you professional trader?

i) Yes [ ] ii) No [ ]

9) Which site do you use for trading?

i) Anandrathi [ ] ii) Karvy [ ]
iii) Sharekhan [ ] iv) Geojit [ ]

[44]
 v) if others, please state [ ]

10) Is the information provided by your on-line stock broker sufficient?

i) Yes [ ] ii) No [ ]

11) Why do you invest in shares?

i) Rise slowly & steadily [ ]
ii) Slow a volatile behavior, but give higher return [ ]
iii) Both i) & ii) [ ]

12) What you think about online- trading?

i) Simple [] ii) hard [ ]

13) Is the commission charged by the trading is reasonable?

i) Yes [ ] ii) No [ ]

14) Do you feel that the trading volume will increase in near future?
i) Yes [ ] ii) No []

15) Does the above affect you?

i) Yes [ ] ii) No [ ]

16) Crisis of today’s market does affect your investment?

i) Yes [ ] ii) No [ ]

17) What you notice before investing in any type of shares?

i) Company’s Profile [ ] ii) Market Value [ ]
iii) Sector comparison [ ]

18) What are your suggestions to develop share trading in Durg/Bhilai?

____________________________________________________________
____________________________________________________________
________

[45]