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A STUDY ON CUSTOMER SATISFACTION ON
SHARE TRDING
A Project report submitted in fulfillment of the requirements for The degree of
MASTER OF BUSINESS ADMINISTRATION
BY I. Balaji
(REG.NO. 35104051)
DEPARTMENT OF MANAGEMENT STUDIES
S.R.M INSTITUTE OF SCIENCE AND TECHNOLOGY
S.R.M DEEMED UNIVERSITY
KATTANKULATHUR – 603 203
June 2006
S.R.M Deemed University
Kanchipuram District.
Kattankulathur 603 203
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.
Dr. A. Chandra Mohan
Faculty Guide
Place: Chennai
Date:
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. Introduction Share 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.
How does one trade in shares?
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 DP’s (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-the-
counter 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.
Advantage of Portfolio Management Services
• Constant monitoring of our portfolio’s 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
OBJECTIVES OF THE STUDY
1. Primary objective
To find out the investors awareness and satisfaction in dealing with share
market.
2. Secondary Objectives
i. To study what factors influence the investors to invest in the share market.
ii. To find out the satisfaction level of the brokers service.
iii. To analyze fear of traders while earning profit or loss.
iv. 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.
(e) Type of survey
The researcher has used sampling survey.
(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.
(i) Sampling size
Sample size is 120
(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.
SCOPE AND LIMITATIONS OF THE STUDY
Scope of the Study:
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 real-
time 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
Table 1
Table showing the gender wise classification
S. No. Gender No. of
Respondents
% of the
Respondents
1 Male 104 86.66
2 Female 16 13.34
Total 120 100
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
86.66
13.34
Table 2
Table showing the Age group of respondents
S. No. Age group No. of
Respondents
% of the
Respondents
1 21-30 13 10.83
2 31-40 56 46.66
3 41-50 43 35.83
4 51 & above 08 6.68
Total 120 100
Inference
From the above table it’s 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.
05
101520253035404550
21-30 31-40 41-50 51 & above
Age group of the respondents
Table 3
Table showing the respondents Educational Qualification
S. No. Educational qualification No. of Respondents % of the
Respondents
1 Higher Secondary 04 3.33
2 Under Graduate 65 54.16
3 Post Graduate 34 28.33
4 Diploma 17 14.18
Total 120 100
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.
0
10
20
30
40
50
60
HigherSecondary
UnderGraduate
PostGraduate
Diploma
Educational Qualification
Table 4
Table showing the respondents experience in trading
S. No. Years in trading No. of Respondents % of the
Respondents
1 1-4 yrs 11 9.17
2 5-8yrs 38 26.67
3 8-12yrs 46 38.33
4 12&above 25 25.83
Total 120 100
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.
Trading Experience of the respondents
1-4 yrs
5-8yrs
8-12yrs
12&above
Table 5
Table showing the respondents occupation
S. No. Occupation No. of
Respondents
% of the
Respondents
1 Private employees 48 40
2 Govt employees 33 27.5
3 Professionals 18 15
4 Business 21 17.5
Total 120 100
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.
05
10152025303540
Privateemployees
Govtemployees
Professionals Business
Occupation Of the respondents
Table 6
Table showing the source through which you became aware about share market
S. No. Aware about share market No. of
Respondents
% of the
Respondents
1 Brokers 03 2.5
2 Advertisement 68 56.67
3 Friends and Relation 31 25.83
4 Other source 18 15
Total 120 100
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.
0
10
20
30
40
50
60
Brokers Advertisement Friends andRelation
Other source
Source through which they became aware
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 Advertisement 33 27.5
2 Own interest 57 47.5
3 Friends 26 21.67
4 Others 04 3.33
Total 120 100
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.
0
10
20
30
40
50
Advertisement Own interest Friends Others
Motivational factor made the respondents to trade
Table 8
Table showing the type of share mostly preferred by respondents
S. No. Share preferred No. of
Respondents
% of the
Respondents
1 Primary 25 20.83
2 Secondary 11 9.17
3 Both 84 70
Total 120 100
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.
Type of market preferred by the respondents
Primary
Secondary
Both
Table 9
Table showing the reason for preferring primary market
S. No. Sources No. of
Respondents
% of the
Respondents
1 Safety 14 56
2 Discount -- --
3 Less Price 8 32
4 Unaware of secondary
market
3 12
5 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.
0
10
20
30
40
50
60
Safety Discount Less Price Unaware ofsecondary
market
Others
Reason for preferring primary market
Table 10
Table showing the movement watched by the respondents regularly
S. No. Movement watched No. of
Respondents
% of the
Respondents
1 Yes 92 76.67
2 No 28 23.33
Total 120 100
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.
Share movement watched by respondents
0
10
20
30
40
50
60
70
80
90
Yes No
Table 11
Table showing the sources through which they get regular information regarding
Shares
S. No. Particulars No. of
Respondents
% of the
Respondents
1. T.V 15 12.5
2. Newspaper 10 8.33
3. Magazines 8 6.67
4. Brokers 81 67.5
5. Others 6 5
Total 120 100
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.
0
10
20
30
40
50
60
70
T.V Newspaper Magazines Brokers Others
Source through which they get information
Table – 12
Table showing the respondents expectation of profit
S. No. Particulars No. of Respondents % of the
Respondents
1 High 41 34.17
2 Normal 55 45.83
3 Low 24 20
Total 120 100
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.
0
10
20
30
40
50
High Normal Low
Respondents expectation of profit
Table 13
Table showing the respondent’s tendency if the market condition suddenly increases
S. No. Reason No. of
Respondents
% of the
Respondents
1 Wait for high profit 52 43.33
2 Reap the normal profit 68 56.67
Total 120 100
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.
0
10
20
30
40
50
60
Wait for high profit Reap the normal profit
I f the market condition suddenly increases
Table 14
Table showing the market condition going against the respondent’s expectation he
will
S. No. Reasons No. of
Respondents
% of the
Respondents
1 Wait and expect a change in
trend
73 60.83
2 With draw from the market 47 39.17
Total 120 100
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.
If market condition goes against the
respondents view
Wait and expect a change in
trend
With draw from the market
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 Yes 86 71.67
2 No 34 28.33
Total 120 100
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.
Respondents expect guidelines from
brokers
Yes
No
Table 16
Table showing the satisfaction level of the broker’s service
S. No. Satisfaction level No. of
Respondents
% of the
Respondents
1 Highly satisfied 8 6.67
2 Satisfied 58 48.33
3 Neither satisfied not
dissatisfied
10 8.33
4 Dissatisfied 40 33.33
5 Highly-Dissatisfied 4 3.34
Total 120 100
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 broker’s service and 3.34%
of the respondents have said that they are highly dis satisfied with the broker service.
Satisfaction level of respondents with share broker's service
0102030405060
Hig
hly
satis
fied
Sat
isfie
d
Nei
ther
satis
fied
not
diss
atis
fied
Dis
satis
fied
Hig
hly-
Dis
satis
fied
Table 17
Table showing the respondents recommendation to their close friends & relatives
S. No. Particulars No. of Respondents % of the
Respondents
1 Yes 98 81.67
2 No 22 18.33
Total 120 100
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.
0
10
20
30
40
50
60
70
80
90
Yes No
Respondents Interest in recommending shareto theirfriends and relatives
Table 18
Table showing the reason for dislike to recommend the share market
S. No. Particulars No. of Respondents % of the
Respondents
1 Risk 12 80
2 Depends upon person 2 13.34
3 Not interest 1 6.66
Total 15 100
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.
0
10
20
30
40
50
60
70
80
Risk Depends uponperson
Not interest
Reason for not recommending to their friends and relatives
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.
3. Through this the trading can be increased
7. Questionnaire
A STUDY ON CUSTOMER SATISFACTION ON SHARE TRADING 1. Name 2. Gender 3. Age:
(a) 20-30 (b) 30-40
(c) 40 – 50 (d) Above 50
4. Educational Qualification: (a) Higher Secondary (b) Under Graduate (c) Post Graduate (d) Diploma 5. Your Trading Experience (a) 1-4 yrs (b) 5-8yrs (c) 8-12yrs (d) 12&above 6. Occupation (a) Private employee (b) Govt. Employee (c) Professional (d) Business (e) Others ______________ 7. The source through which you became aware about share market?
(a) Brokers (b) Advertisement
(c) Friends and Relation (d) other source
8. What motivated you to invest in share? (a) Advertisement (b) Own interest (c) Friends (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 (d) Unaware of secondary market
(e) Others ___________
11. Do you regularly watch the movement?
(a) Yes (b) No
12. If yes, from which sources you get regular information regarding
Shares?
(a) T.V (b) Newspaper (c) Magazines
(d) Brokers (e) Others _____________
13. The expectation of profit will be
(a)High (b) Normal (c) Low
14. When the market position suddenly takes upward trend you will
(a)Wait for high profit
(b) Reap the normal profit
15. When the market position is going against your expectation you will
(a)Wait and expect a change in trend
(b)With draw from the market
16. Will your broker advice you while share trading?
(a) Yes (b) No
17. Are you satisfied with your share broker’s service?
(a) Highly satisfied (b) Satisfied
(c) Neither satisfied nor dissatisfied
(d) Dissatisfied
18. Will you recommend your friends & Relatives to invest in share
market?
(a) Yes (b) No
Thank you
