Transactions on Engineering and Sciences ISSN: 2347-1964 (Online) 2347-1875 (Print)

Volume 4, Issue 3, July-September 2016

A Study on Customer Perception towards Online

Share Trading
Balamurugan Muthuraman
Assistant Professor, Department of Administrative and Financial Sciences, Oman College of Management &
Technology, Oman.
Abstract: A stock broker is a qualified and regulated professional who buys and sells shares and other
securities through market makers on behalf of investors. In its efforts to modernize the markets in the
country, the SEBI has taken the steps to lay foundatation for internet based trading in India. In olden
days there were only few investment avenues for prospective investors. But today more investment
alternatives are available for the investors. Therefore the investors can choose the best investment
alternative suitable to their requirements. In the advent of information technology stocks can be traded
on internet also. Constructive uses of new technologies have always contributed positively towards
improving human life standards and the economy of a country. Such online trading, in equity markets
have increased trade volumes and number of investors trading in stock markets.
Keywords: perception, share, internet tradingetc.
I. INTRODUCTION
In the Indian context online trading can be rightly called as a recent phenomenon, which took root with
the change of century that is April 2000. Earlier trading on stock exchanges in India used to take place
through open outcry without use of information technology for immediate matching or recording of trades.
Electronic trading eliminates the need for trading floors. Brokers can trade from their offices, using fully
automate screen-based processes. Their workstations are connected to a stock Exchanges Central computer
via satellite using Very Small Aperture Terminus (VSATs) it enables market participants, irrespective of
their geographical locations to trade with one another and it provides equal access to everybody and even
till date online trading is not much popular among investors for which a list of factors can be blamed.
II. SCOPE OF THE STUDY
This study is aimed at collecting information from the share investing public Madurai to know about
their with respect to online share trading. would be helpful to find out trend prevailing among the investor
public such as how they choose the brokerage houses, frequency of trading, factors considered for making
the buying and selling decision, type of trading preferred and the opinion about the technical tools among
the investors in the Madurai.
III. REVIEW OF LITERATURE
Online Stock trading in India: An empirical investigation, a research report by Nidhi Walia and
Ravinder Kumar (2007), this study reveals that out every investors only 28 trade online, which points out a
question as why investors were not able to realize the importance of technology in stock trading. The major
findings of the study are that Indian investors are more conservative, they do not change easily and India
traditional traders still choose brokers for trading, whereas net traders are more comfortable with online
trading for its transparency and complete control of the terminal.
IV. OBJECTIVES OF THE STUDY
The study is based on the following objectives. They are
1. To identify the perception of the customer towards online share trading.
2. To find out the factors that is considered by the customer before choosing a brokerage house.
3. To find out the type of trading preferred by the customer and the factor through which the customer
make their buying and selling decisions.
Hypotheses:
There is no relationship between investors level and amount of investment in online share trading.
There is no relationship between gender and place of trading.
There is no relationship between experience of the investors and losses faced by them in online
share trading.
V. METHODOLOGY
Data Source: For this study data has been collected from primary and secondary sources.

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Transactions on Engineering and Sciences ISSN: 2347-1964 (Online) 2347-1875 (Print)
Volume 4, Issue 3, July-September 2016
Primary Data: Primary data is collected from the selected respondents by using structured questionnaire. The
selected respondents are the investors in Madurai, TamilNadu, India, who are interested in online share
trading.
Secondary data: Secondary data which are related to the theory of online share trading has been collected
from the books, journals, magazines and websites.
Sample Design: A sample of 150 respondents/ investors has been taken on the basis of convenient random
technique. The respondents taken for the study consists of investors from the Srivaikundam Taluk only. The
respondents include business men, employees, and others who are interested in online share trading.
Tools for Analysis: The primary data which are collected through the structured questionnaire for the
purpose of the study is analyzed with the help of various statistical tools such as percentage analysis and
Chi-square Test.
Limitations of the Study:
To study share market is a very vast topic and the search is just limited to a small portion.
Sometime was difficult to male the respondents understand the purpose of the survey.

VI. ANALYSIS & INTERPRETATION

Table 1: Analysis of relationship between the experience of the investors and losses faced by them in
online share trading

Years of Loss Faced by the Investors

Total
Trading Facing the Loss Not Facing the loss
Below 3 years 98 16 114
Above 3 years 22 14 36
Total 120 30 150

Sources: Primary Data

Calculated value: 10.57
Level of Significance: 5%
Degree of freedom: (R-1)*(C-1)
= (2-1)*(2-1)
=1*1=1
Table value: 3.841
Inference:
The table shows that the calculated value of x2 =10.57 is greater than the table value of x2=3.841 so the
hypothesis is rejected. Therefore definitely there is a relationship between the experience of the investors
and losses faced by them in online share trading.
Table 2: Analysis of relationship between gender and place of trading

Place of Trading
Gender Stock broker Browsing Total
Home
office centre
Male 232 88 6 126
Female 8 13 3 24
Total 40 101 9 150
Calculated value: 3.23
Level of significance:5%
Degree of freedom :(R-1)*(C-1)
=(2-1)*(3-1)
=1*2=2
Table value: 5.991
Inference:
The table shows that the calculated of x2=3.23 is less than the table value of x2=5.991 so the hypothesis is
accepted. Therefore definitely there is no relationship between gender and place of trading.

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Transactions on Engineering and Sciences ISSN: 2347-1964 (Online) 2347-1875 (Print)
Volume 4, Issue 3, July-September 2016
Findings of the study:
The important findings of the study which the researcher found through the analysis of primary data
collected from selected sample respondents of online share trading with special reference Madurai.
Majority of the investors (58%) in online share trading are belonging to the age group of 20-30 years
of age.
Male investors (84%) are very much interested in online share trading.
Most of the investors (60%) are doing their share trading through online for less than 2 years.
44% of the investors in Srivaikundam taluk are having their demat account in India Info brokerage
house.
Some of the investors (36.4%) are unsatisfied towards their return due to the frequent losses face by
them.
80% of the investors are facing losses in their trading.
The main reason of the investors to choose the online share trading is quick order execution which is
ranked as I by them.
The investors are considering the failure of computer as the main risk involved in online share
trading.
There is relationship between the experience of the investors and loss faced by them in online share
trading.
There is no relationship between the gender and place of trading.
Suggestions:
Online share trading can be highlighted as one of means to earn extra income among the public by
the brokerage house.
To create awareness among the investors, to bring knowledge about online share trading to each
and every class people.
All brokerage houses should collect brokerage chargers uniformly. It helps to attract new investors.
The investor should always watch the market level before investing to avoid the losses.
The investor who is newly entering in to online share trading should buy familiar and blue-chip
stocks to trade safely.
VII. CONCLUSION
The problem is that the people who are newly entered in to trading dont have full knowledge
regarding the online trading they rely upon the suggestions given by their brokerage houses. They find it
difficult to trade them as a wrong entry made by them can bring them huge losses. To conclude finally the
online trading has the bright future as the investor are convenient to trade through online as compare to
traditional method and the percentage of the share trading done by the investors through online trading is
increasing day by day.
REFERENCES
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[2] Mintzber, H. (1994), The Rise and Fall of Strategic Planning, Prentice Hall.
[3] Aaker, D.A. (1996b), "Measuring Brand Equity across products and markets", California Management
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[4] Bodie, Z. Kane, A. and Marcus, A.J., (1999), Investments, 4th edition, McGraw Hill, Singapore
[5] Damodaran, A., (1996), Investment Valuation: Tools and Techniques for determining the value of any
asset, John Wiley & Son, New York.
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Consumer Goods Companies", Journal of Academy of Marketing Science, Vol 26, No 4, pp 260-273.
[7] www.onlinetrading.co.in
[8] www.articlebase.com
[9] www.eninearticles.com
[10] www.sebi.gov.in

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