A STUDY ON SOCIO-ECONOMIC CHARACTERISTICS OF INDIAN SHARE MARKET INVESTORS [WITH SPECIAL REFERENCE TO COIMBATORE]
ABSTRACT This paper while discussing the characteristics of the Indian individual investors along makes an attempt to discover the relationship between a dependent variable like Risk Tolerance level and independent variables such as Age, Gender of an individual investor on the basis of the survey. Indian investors are high income, well educated, salaried, and independent in making investment decisions and conservative investors. The research design constitutes the blue print for the data collection, measurement and analysis of data. The descriptive research design has been employed for the present study. It is the overall operational pattern or framework of the research that stipulates what information is to be collected from which sources by what procedures. The results indicate that majority of the investors are regular traders. KEYWORDS: Investors, Share market, CSE.
INTRODUCTION There is an extraordinary growth in the investment sector both in terms of volume and number of investors in India over the past decade due to the deregulation of Indian financial sector. There is a spurt of various investment products with numerous options to lure the investors to invest. The commodity market is getting momentum, the reality market is booming, the Gold market is at its peak, the capital market reforms also boosted the investors to invest huge fund in share market, the advancement in technology also heighten the investment opportunities to the small and medium investors at present. The number of regional stock exchanges in India has increased to 22. Equity shares as an investment option has come a long way from the mere higher dividend expectations to the greater capital appreciation. Price discovery through Book Building process has given tremendous boost to the Initial public offers (IPO) and further public offers (FPO). The structure of the Indian investment market -Investor, Issuer, intermediaries and Regulator, has strengthened by the SEBI Act and their continuous monitoring and various regulatory reforms. The pattern and dimension of investment has changed over time. The investment Scenario of Indian Financial market wears a new look, with a overwhelming response
International Journal of Multidisciplinary Research Vol.1 Issue 5, September 2011, ISSN 2231 5780
not only from the Indian investors but also from foreign institutional investors. The quality of ever changing regulations, the payment guarantee by the depositories, Productive involvement of the Government, vibrant intermediaries and up to date and technologically advanced exchanges, all have instilled a sense of confidence among the investors in India. A stock market or equity market is a public entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the start of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price. Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who...
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