INTRODUCTION TO STOCK

MARKETS AND INVESTOR

BEHAVIOUR

BY:
SHAKTI SHUKLA
INTRODUCTION

Stock market
Stock Market is a place where securities like equity
shares, preference shares, debentures and the
Government securities are traded. Its main function
is to provide the mechanism for the exchange of
securities at a price that is Fair and equitable. Stock
market not only helps business undertakings in
private sector but also help Government
undertakings in raising funds from public.
 It is the performance index or a barometer of general
economic conditions and economic growth of a
country.
INVESTOR BEHAVIOUR
Investor behavior is the study that includes all the
steps of the investment decision making process.
Investment behaviours encompasses all the
behaviours that the investor displays in searching
for, purchasing, using, evaluating, and disposing of
investment related products and services that they
expect will satisfy their needs.
Types of Stock markets

Primary stock market:- Primary market is also

called new issue market. Here, new securities are
floated/issued. New securities may be issued by both
the existing organizations or newly set up ventures.
Secondary market:- Secondary market is the
market for old and already issued securities. These
are traded on stock exchanges both in physical and
dematerialized form.
DIFFERENCE BETWEEN PRIMARY AND SECONDARY STOCK
MARKET

The primary market is direct from the company issuing the

stock or bond to the buyer. The secondary market is after
the initial public offering(IPO), people buy and sell on the
Stock Exchange, NASDAQ or over the counter market or
the pink sheets.

For example, IBM issues some new stock. Someone buys it

(usually an underwriter, but maybe the public). Assuming
IBM sells direct to the public and I buy it for $50 and it
goes up to $ 60 and you want to buy it and I want to sell it.
So I sell through a broker and you buy through a broker
which represents a sale in the secondary market.
ORIGIN OF STOCK MARKET IN INDIA

The origin of the stock market in India goes back to

the 18th century.
An important early event in the development of the
stock market in India was the formation of the
Native Share and Stock Brokers Association in
Bombay in 1875. It is this association that became
the famous Bombay Stock Exchange in later years.
The central government introduced a comprehensive
legislation called the Securities Contracts
(Regulation) Act in1956. According to this
regulation, it became mandatory on the part of the
stock exchange to seek government recognition.
IN 1994 by VSAT(Very Small Aperture
Terminal)terminals brought a revolution in the form
of on-line trading in the Indian markets.
TYPES OF INVESTORS

1: Individual Investors
2: Institutional Investors
Individual Investors :- .Individual investor include
public and peoples. These investors may be
aggressive who prefer maximization of return or
defensive those prefer to invest in less risky stocks
with the aim of safety of funds and regular income.
Contt.

Institutional Investors:- . Institutional Investors

include Investment Companies, Banking and Non
Banking Companies etc. with large amounts of
surplus funds to be invested in various profitable
avenues.
RESEARCH METHODLOGY

It is systematic process of finding answer to our

queries.
1 What are we doing?
2Why are we doing?
3And how are we doing?
. It throws light on the problem, objectives, scope,
and limitation of research study.
Study conducted to understand the Investors Behaviour

Title
Investor Behaviour with regards to
Investments in Stock Market in Hisar.
Objectives of study
1: To know the investors perception OR behaviour
towards investment in stock market.
2: To find out the sources of information of
investors.
Contt.

Scope of study
The scope of the study is limited to the city of Hisar and retail
investors from Hisar city have been considered as respondents.
Limitation of the study
1: Due to shortage of time and money sample size was restricted.
2: Some respondent were reluctant to provide accurate views
about investment.
Convenience sampling technique was used due to paucity of
time and effort . Random or judgment sampling might have
given better results.
ANALYSIS AND INTERPRATION

IT IS THE FOURTH STAGE OF DATA GATHERED

ANALYSIS:- The gathered data are first classified,

codified, tabulated and then analyzed. Various
statistical tools help us in proper analysis.

INTERPRETATION:- Interpret the analyse data in

such a way which enable us to solve the problem in
hand.
 1 Investors Profile

Investor profile the age, occupation, income, and

education etc. of respondents selected for the study.
A) Age of Investors
Age No. of respondent Percentage

Less than 40 Yrs. 40 26.67

40-50 Yrs. 62 41.33

Above 50 Yrs. 48 32

Total 150 100

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Income

The table given below shows income level of the respondents:

Income/month No. of respondents Percentage

Less than Rs.10000 32 21.34
Rs.10000-25000 94 62.66
More than Rs.25000 24 16
Total 150 100

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Apart from that there are many other factors which
we studied while analysing the data:-
1Frequency of sale or purchase.
2 Reputation of the company.
3 profile of company.
4 Dividents.
CONCLUSION

1 This revealed that most of the investors prefer to

trade at least once a week (56%), while 24% trade on
daily basis.
2 The study revealed that majority of respondents
consider reputation of the company as the most
important factor for making investments. Profits of
the company and dividends were other important
factors. Companies, therefore, must focus to build
and retain good image.
3 The study showed 80% of investors prefer to trade
on NSE and only 20% investors prefer BSE.
4 In the opinion of respondents, timely
payment gets first priority in dealing with the
Brokers/sub brokers followed by service provided
and timely delivery.
THANK YOU