REVIEW II

A STUDY ABOUT ONLINE STOCK TRADING IN INDIA

A Second review report
(Submitted by MARSLIN SUNIL ANTONY .M, Roll No: 0905MBA0641, Reg No: 68609100210)

NEED FOR THE STUDY:

In Online share trading the trading is done by using computer and internet connection. In other words trading done through computer having internet connection is called online share trading. Instead of going to any share broker you can do trading yourself using online share trading method. In this method you must have a computer and internet connection or else you can make use of internet cafe. Nowadays due to internet facility lots of things have become easier as compared to earlier days. So making use of the great internet facility you can start your own online share trading

REVIEW OF LITERATURE Online trading marks a watershed in the application of technology in conductingtrading business in stock markets. This book is divided into four sections. The firstsection deals with fundamentals and framework, the second section focuses on the implication of online trading the third section describes the implications for onlineinvestors. The fourth section is about the technology advancements in online trading. The first section on fundamentals and Framework deals with the evolution of online trading, basic concepts, background and trading mechanisms involved. The opening article, share trading: Moving to the Net, by Dr. T R Rajarajan traces the evolution of securitiestrading from traditional system to trading through the internet. It discusses the tradingmechanism through the major components of online trading, viz, banking, depositories,technology and other infrastructure. trading: Moving to the

Net, by Dr. T R Rajarajan traces the evolution of securitiestrading from traditional system to trading through the internet. It discusses the tradingmechanism through the major components of online trading, viz, banking, depositories,technology and other infrastructure. trading: Moving to the Net, by Dr. T R Rajarajan traces the evolution of securitiestrading from traditional system to trading through the internet. It discusses the tradingmechanism through the major components of online trading, viz, banking, depositories,technology and other infrastructure. Information technology has replaced the age-old share trading method with thefaster and more accurate online stock trading. The second article. Online trading:Trading @ the speed of light, By Mayura jaiswal, deeepad vashist and Abhay Kumar,traces the growth of online trading from the year 2000 using statistics on volume of online trading from the year 2000 using statistics on volume of online trading, number of e-broking firms, brokerages and demographic patterns. Online trading has dramaticallychanged the way stock business has been conducted over the years. In the next article,online trading: Issues and concerns, by Anup Bagchi, the author suggests that online trading should balance a technology centric approach to transactions with the humanfactor for a successful transition from traditional to online trading. In his interview, jadesmith (HSBC treasury and capital markets) discusses various aspects of online trading:the types of transactions conducted online, different value propositions in the onlinemarketing and the future trends in etrading.

For this study, researches and case study are taken from the below website.

http://www.daytradingshares.com/online_share_trading _tips.html http://stocks.about.com/od/tradingbasics/a/Basictradin g.htm

http://www.day-trading-stocks.org/stock-tradingbasics.html

PRIMARY OBJECTIVE
To study about Online Stock Trading in India and what are the benefits for the users from this. And to know what kind of role it plays in buying and selling of stocks through Internet.

SECONDARY OBJECTIVES

a) To utilize the various new technologies. b) To Study the new requirements and analyze. c) To reach the end users requirements in a better way. d) To study and analyze the user requirements.

METHODOLOGY
A Research cannot be conducted abruptly. Researcher has to proceed systematically in the already planned direction with the help of a number of steps in sequence. To make the research systematized the researcher has to adopt certain methods. The methods adopted by the researcher for completing the projects are called Research Methodology. In other words, research methodology is simply the plan of action for a research, which explains in detail how data is to be collected, analyzed and interpreted. Data becomes information only when a proper methodology adopted. Thus we can say methodology is a tool, which process the data to reliable information. The present attempt is to highlight the research methodology adopted in this project. Research is logical and systematic gathering and analysis of

information, pertaining an issue or problem for the purpose of arriving at a certain conclusion. Research design is the basic framework, which provides guidelines for the research process. It is a map or blue print according to which the research is to be concluded. Research design ensures that 1) The study will be relevant to the problem, and 2) The study will employ economical procedures.

Research design Data Source Research Approach

: Descriptive research : Primary and secondary source : Questionnaire

DATA COLLECTION METHOD: There are two types of data collection namely, Primary Data: In this project, the primary data required for the study was collected using the SURVEY METHOD. The data collected from personal interaction with a stock broker and a user. Primary Data Secondary Data

Secondary Data: The secondary data collection method includes the collection of data form magazines and various books relating to the investments capital market and other related topics.

DATA COLLECTION TOOL The used for the survey method was STRUCTURED UNDISGUISED QUESTIONNAIRE. A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Dichotomous questions, Multiple Choice questions, close ended

questions and direct questions found the questionnaire. Questionnaires have advantages over some other types of surveys in that they are cheap, do not require as much as effort from the questioner as verbal or telephone surveys, and often have standardized answers that make it simple to compile data. SAMPLING: Sampling may be defined as the selection of some part of an aggregate or totality. On the basis of which a judgment or interference about aggregate or totality is made. Research conducted by considering only few units of population is called as sampling.

SAMPLING TECHNIQUE Initially, a rough draft was prepared a pilot study was done to check the accuracy of the Questionnaire and certain changes were done to prepare the final questionnaire to make it more judgmental. SAMPLING UNIT The respondents who were asked to fill out the. These respondents comprise of the persons dealing in stock trading. The people have been interviewed in the open market, in front of the companies, telephonic interviews and through other sources also. SAMPLING SIZE: The size of the sample needed can be determined from the amount of reliability and precision in the result of the survey and from the sample design used. The sample size is 18. Type of study Source of Data Research Approach Research Instrument : : : : Descriptive Study Primary & Secondary Survey Questionnaire

Place of Study Research Tools

: :

Chennai Percentage Analysis

DATA ANALYSIS Percentage Analysis TABLE SHOWING PARTICIPANTS OF THE RESPONDENTS

Particular s Users Brokers Total

Interference:

No Of respondents 7 11 18

Percentage 39 61 100

39% of the respondents are users and 61 % of the respondents are brokers.

TABLE SHOWING THE EXPERIENCE OF THE RESPONDENTS

Particulars 0 - 5 years 5 - 10 years 11 - 15 years 16 years & above Total

Interference:

No Of respondents 11 5 2 0 18

Percentag e 61 28 11 0 100

61% of the respondents have 0 5 years experience, 28% of the respondents have 5 10 years of experience, 11% of the respondents have 11 15 years experience.

WORK TO BE DONE

Some more statistical tools are to be added. Finding and suggestions are to be arrived. Comparison of Online Stock trading site. Merits of Online Stock Trading. Online stock trading role in mutual funds and in currency trading Preparation of final project report.

REFERENCES
1. Websites

www.google.com www.wikipedia.com www.onlinestocktrading9.in www.chittorgarh.com

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