A Study of Customer Preference Towards Various Stock Brokerage Firms in Indore

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RESEARCH PROPOSAL

A Study of Customer Preference towards various Stock Brokerage Firms in Indore

November 20, 2012

Submitted To : Submitted By : Dr. Yamini Karmarkar Dhwanil Mehta IM 2K9 36 Himanshu Patidar IM 2K9 47 Title

A Study of Customer Preference towards various Stock Brokerage Firms in Indore.

Index
S.No.ParticularsPage No.
1INTRODUCTION03
2RESEARCH QUESTION04
3RESEARCH OBJECTIVE04
4RESEARCH METHODOLOGY05
5EXPECTED OUTCOMES09
6LIMITATIONS OF RESEARCH09

Introduction
This research is regarding the secondary market trading in India and its main objective is to understand customers’ preference towards stock brokerage firms in Indore. In the last decade, India’s GDP has raised from 414 billion dollar in 2001 to 1.85 trillion dollars in 2012. This growth in size of Indian economy has been complimented by 8 fold increase in the market capitalization of the Indian companies. So people are now investing more in stock market to increase the value of their money. Capital markets are in existence in India since a long time. There are about 11 million DEMAT accounts and 1 million daily active traders in India. Indian stock market is one of the oldest stock markets in Asia with a glorious past that caters to the huge population of India and gives them investment opportunities. In 1875 Bombay Stock Exchange (BSE) was established by 22 brokers. From that time onwards the Indian Stock market has grown in leaps and bounds, and has become a forceful and competent stock market in the international level. Earlier days a stock was represented by a stock certificate which was a piece of paper that was proof of your ownership. But in today’s computer age, your stock is stored electronically by your broker. This is done to make the shares easier to trade. In the past, when a person wanted to sell his shares that person physically took the certificates down to the broker. But now stocks can be purchased with a click of mouse.

Definition of key terms
1.Stock Brokerage Firms- A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers. 2.DEMAT Account- The term "demat", in India, refers to a dematerialized account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. 3.Trading Account- A trading account works as an intermediary between the savings account and demat account. When you want to buy shares, first the money is transferred from your savings account to trading account. 4.Consumer Preference- A consumer preference explains how a consumer ranks a collection of goods or services or prefers one collection over another. This definition assumes that consumers rank goods or services by the amount of satisfaction, or utility, afforded.

Research Question
What are the factors that influence the customer preference towards choosing a stock brokerage firm?

Objectives
1.To study the factors influencing the people at the time of opening a DEMAT and Trading account. 2.To know the personal views of people regarding choices among various stock brokerage firms in Indore.

Research Methodology
Theoretical Framework
Variables
Explanatory Variables-
1.Age- This variable is used to get input of age of customers in years. 2.Income Level- This variable is used to get input of annual income level of the...
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