SUMMER INTERNSHIP PROJECT

WOMEN INVESTORS AWARENESS TOWARDS CAPITAL MARKET

A project with Sharekhan

Submitted in partial fulfilment for the award of

Post Graduate Diploma in Management (PGDM- Batch: 2020-2022)

Submitted By

Name: Pooja Kumari

Roll no: 020-II-238

Programme: PGDM

Specialization: Finance and Human Resource Management

Institute of Marketing and Management New Delhi

Marketing Tower, B-1, Qutub Institutional Area New Delhi, Delhi 110016

DECLARATION
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I hereby declare that this project work titled “WOMEN INVESTORS AWARENESS
TOWARDS CAPITAL MARKET” is a record of original work done by me under the
guidance of industry mentor Mr Sonu Verma, sales manager at Share khan and that this
project work has not formed the basis for the award of any Degree/
Diploma/Associateship/Fellowship or similar title to any candidate of any University.

I assert that the statements made and conclusions drawn are an outcome of my research work.

I further certify that

I. The work contained in the report is original and has been done by me under the
supervision of my faculty mentor Dr Tanu Manocha, Assistant Professor.
II. The work has not been submitted to any other institutions for any other degree
/diploma/ certificate in this university or any other university of India or abroad.
III. I have followed the guidelines provided by the university in writing the report.
IV. Whenever I have used materials (data, theoretical analysis and text) from other
sources, I have given due credit to them in the text of the report and giving their
details in the references.

Pooja Kumari Place: New Delhi

Name and signature of the student Date: 03/03/2022

Specialization: PGDM (Finance & Human Resource Management)

Roll. No: 020-I- 238

Dr Tanu Manocha

Name and Signature of the Faculty Mentor

CERTIFICATE FROM THE COMPANY

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 ACKNOWLEDGEMENT

A project report is never the sole product of a person whose name appears on the cover. I
deem it a time bound privilege and function to delicate this page of mine to helping hands for

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their cooperation & guidance that enabled me to dedicate time and efforts in framing analysis
in conceivable system.

I would like to take this opportunity to thanks and acknowledge my deep sense of gratitude to
Mr Sonu Verma, Assistant Sales Manager of SHAREKHAN LTD. for his guidance and pain
taking supervision during course of my project work. His valuable advice, constructive
criticism for assigning my study really helping me out in the project. I also thanks him for
providing full facilities required in submitting our report within a limited time span.

I also wish to place on record my gratitude to my faculty guide and mentor, Dr Tanu
Manocha whose keen interest, timely and constant encouragement and generous cooperation
gave me confidence and strength to progress this report. I would be failing my duty if I don’t
mention my family, friends & classmates who helped me at various moments during my
project.

Name: Date

Pooja Kumari 21/02/2022

EXECUTIVE SUMMARY

There is growing completion between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to choose. Research was carried out to find

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which brokerage house people prefer and figure out what people prefer while investing in
stock market.

This study suggests that people are reluctant while investing in stock and commodity market
due to lack of knowledge.

Main purpose of investment is returns and liquidity, commodity market is less preferred by
investors due to lack of awareness. The major findings of this study are that people are
interested to invest in stock market but they lack knowledge.

Through this report we were also able to understand, what our Company’s (Share Khan Ltd)
are. Positive and strong points, on the basis of which we come to know what, can be the
basis of pitching to a potential client. We also came to know about the level of women
investors’ awareness towards capital market.

We also gave suggestions to the company, how can it run campaign to aware women
investors and ensure their participation in stock market.

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 TABLE OF CONTENTS

S.No Topic Page No.

 Declaration by the student 2

 Certificate from the company 3

 Acknowledgement 4

 Executive summary 5

CHAPTER 1 INTRODUCTION 7-8

1.1 About the Company 9-10
1.2 Sector details 11-35
CHAPTER 2 PROJECT /TASK DETAILS 36
2.1 Objective of the study 37-38
2.2 Methodology 39-43
CHAPTER 3 ANALYSIS & FINDINGS 44-52

CHAPTER 4 CONCLUSIONS & RECOMMENDATIONS 53

4.1 Conclusions 54-55
4.2 Recommendations 56
4.3 Limitations 57

ANNEXURES 58
A-1 Bibliography 59
B-1 Questionnaire 60-62
C-1 Plagiarism Report 63

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 CHAPTER 1

INTRODUCTION
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Capital Markets are venues where savings and investments are channelled between the
suppliers who have capital and those who are in need of capital. The entities that have capital
include retail and institutional investors while those who seek capital are businesses,
governments, and individuals.
Capital markets are used to sell financial products such as equities and debt securities.
Equities are stocks, which are ownership shares in a company. Debt securities, such as bonds,
are interest-bearing IOUs.

These markets are divided into two different categories: primary markets—where new equity
stock and bond issues are sold to investors—and secondary markets, which trade existing
securities. Capital markets are a crucial part of a functioning modern economy because they
move money from the people who have it to those who need it for productive us.

ABOUT THE COMPANY

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 Founded February 2000

Headquarters Mumbai

India

Country of origin India

Founder(s) Shripal Morakhia

CEO Jaideep Arora

Industry Financial services

Parent BNP Paribas

URL Sharekhan.com

Sharekhan is the 5th largest retail brokerage full-service brokerage firm and the 8th largest
stock broker in India with 676631 customers. Sharekhan is one of the pioneers of online
trading in India. It offers a broad range of financial products and services including securities
brokerage, mutual fund distribution, loan against shares, ESOP financing, IPO financing and
wealth management.

Background

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Sharekhan was founded by Mumbai-based entrepreneur Shripal Morakhia in 2000.
Sharekhan pioneered the online retail brokerage industry and leveraged on the first wave of
digitization, when dematerialization (demat) of securities came into effect and electronic
trading was introduced in the stock exchanges.

In India, Sharekhan has 4800+ employees, and is present in over 575 cities through 153
branches, and more than 2,500 businesses Partners.The Company has 1.4 million customer
base and on an average, executes more than 4 lakh trades per day.

Acquisition of Sharekhan by BNP Paribas Sharekhan is now a fully owned subsidiary

of BNP Paribas, it was rebranded as Sharekhan by BNP Paribas

SECTOR DETAILS

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 Understanding the Stock Market

A stock market, equity market, or share market is the aggregation of buyers and sellers
of stocks (also called shares), which represent ownership claims on businesses; these may
include securities listed on a public stock exchange, as well as stock that is only traded
privately, such as shares of private companies which are sold to investors through equity
crowd funding platforms. Investment in the stock market is most often done
via stockbrokerages and electronic trading platforms. Investment is usually made with
an investment strategy in mind.

Stocks can be categorized by the country where the company is domiciled. For
example, Nestlé and Novartis are domiciled in Switzerland and traded on the SIX Swiss
Exchange, so they may be considered as part of the Swiss stock market, although the stocks
may also be traded on exchanges in other countries, for example, as American depositary
receipts (ADRs) on U.S. stock markets.

Size of the markets

The total market capitalization of all publicly traded securities worldwide rose from US$2.5
trillion in 1980 to US$93.7 trillion at the end of 2020.

As of 2016, there are 60 stock exchanges in the world. Of these, there are 16 exchanges with
a market capitalization of $1 trillion or more, and they account for 87% of global
market capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are
all in North America, Europe, or Asia.

By country, the largest stock markets as of January 2021 are in the United States of America
(about 55.9%), followed by Japan (about 7.4%) and China (about 5.4%).

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 Interior hall of the Helsinki Stock Exchange in Helsinki, Finland, 1965

A stock exchange is an exchange (or bourse) where stockbrokers and traders can buy and

sell shares (equity stock), bonds, and other securities. Many large companies have their
stocks listed on a stock exchange. This makes the stock more liquid and thus more attractive
to many investors. The exchange may also act as a guarantor of settlement. These and other
stocks may also be traded "over the counter" (OTC), that is, through a dealer. Some large
companies will have their stock listed on more than one exchange in different countries, so as
to attract international investors.

Stock exchanges may also cover other types of securities, such as fixed-interest securities
(bonds) or (less frequently) derivatives, which are more likely to be traded OTC.

Trade in stock markets means the transfer (in exchange for money) of a stock or security
from a seller to a buyer. This requires these two parties to agree on a price. Equities (stocks or
shares) confer an ownership interest in a particular company.

Participants in the stock market range from small individual stock investors to larger
investors, who can be based anywhere in the world, and may
include banks, insurance companies, pension funds and hedge funds. Their buy or sell orders
may be executed on their behalf by a stock exchange trader.

Some exchanges are physical locations where transactions are carried out on a trading floor,
by a method known as open outcry. This method is used in some stock exchanges
and commodities exchanges, and involves traders shouting bid and offer prices. The other
type of stock exchange has a network of computers where trades are made electronically. An
example of such an exchange is the NASDAQ.

A potential buyer bids a specific price for a stock, and a potential seller asks a specific price
for the same stock. Buying or selling at the Market means you will accept any ask price or
bid price for the stock. When the bid and ask prices match, a sale takes place, on a first-come,
first-served basis if there are multiple bidders at a given price.

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The purpose of a stock exchange is to facilitate the exchange of securities between buyers
and sellers, thus providing a marketplace. The exchanges provide real-time trading
information on the listed securities, facilitating price discovery.

The New York Stock Exchange (NYSE) is a physical exchange, with a hybrid market for

placing orders electronically from any location as well as on the trading floor. Orders
executed on the trading floor enter by way of exchange members and flow down to a floor
broker, who submits the order electronically to the floor trading post for the
designated market maker ("DMM") for that stock to trade the order. The DMM's job is to
maintain a two-sided market, making orders to buy and sell the security when there are no
other buyers or sellers. If a bid–ask spread exists, no trade immediately takes place – in this
case the DMM may use their own resources (money or stock) to close the difference. Once a
trade has been made, the details are reported on the "tape" and sent back to the brokerage
firm, which then notifies the investor who placed the order. Computers play an important
role, especially for program trading.

The NASDAQ is an electronic exchange, where all of the trading is done over a computer
network. The process is similar to the New York Stock Exchange. One or more
NASDAQ market makers will always provide a bid and ask the price at which they will
always purchase or sell 'their' stock.

The Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was
automated in the late 1980s. Prior to the 1980s, it consisted of an open outcry
exchange. Stockbrokers met on the trading floor of the Palais Brongniart. In 1986, the CATS
trading system was introduced, and the order matching system was fully automated.

People trading stock will prefer to trade on the most popular exchange since this gives the
largest number of potential counter parties (buyers for a seller, sellers for a buyer) and
probably the best price. However, there have always been alternatives such as brokers trying
to bring parties together to trade outside the exchange. Some third markets that were popular
are Instinet, and later Island and Archipelago (the latter two have since been acquired by
Nasdaq and NYSE, respectively). One advantage is that this avoids the commissions of the
exchange. However, it also has problems such as adverse selection. Financial regulators have
probed dark pools.

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 Market participant

Market participants include individual retail investors, institutional investors (e.g., pension

funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds,
investor groups, banks and various other financial institutions), and also publicly traded
corporations trading in their own shares. Robo-advisors, which automate investment for
individuals are also major participants.

Participation by race and gender

The racial composition of stock market ownership shows households headed by whites are
nearly four and six times as likely to directly own stocks than households headed by blacks
and Hispanics respectively. As of 2011 the national rate of direct participation was 19.6%, for
white households the participation rate was 24.5%, for black households it was 6.4% and for
Hispanic households it was 4.3%. Indirect participation in the form of 401k ownership shows
a similar pattern with a national participation rate of 42.1%, a rate of 46.4% for white
households, 31.7% for black households, and 25.8% for Hispanic households. Households
headed by married couples participated at rates above the national averages with 25.6%
participating directly and 53.4% participating indirectly through a retirement account. 14.7%
of households headed by men participated in the market directly and 33.4% owned stock
through a retirement account. 12.6% of female-headed households directly owned stock and
28.7% owned stock indirectly.

History

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The term bourse is derived from the 13th-century inn named "Huis ter Beurze" (center)
in Bruges. From predominantly Dutch-speaking cities of the Low
Countries (like Bruges and Antwerp).

In 12th-century France, the courtiers de change was concerned with managing and regulating
the debts of agricultural communities on behalf of the banks. Because these men also traded
with debts, they could be called the first brokers. The Italian historian Lodovico Guicciardini
described how, in late 13th-century Bruges, commodity traders gathered outdoors at a market
square containing an inn owned by a family called Van der Beurze, and in 1409 they became
the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting. The
idea quickly spread around Flanders and neighboring countries and "Beurzen" soon opened
in Ghent and Rotterdam. International traders, and specially the Italian bankers, present in
Bruges since the early 13th-century, took back the word in their countries to define the place
for stock market exchange: first the Italians (Borsa), but soon also the French (Bourse), the
Germans (börse), Russians (birža), Czechs (burza), Swedes (börs), Danes and Norwegians
(børs). In most languages the word coincides with that for money bag, dating back to the
Latin bursa, from which obviously also derives the name of the Van der Beurse family. In the
middle of the 13th century, Venetian bankers began to trade in government securities. In
1351 the Venetian government outlawed spreading rumors intended to lower the price of
government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in
government securities during the 14th century. This was only possible because these were
independent city-states not ruled by a duke but a council of influential citizens. Italian
companies were also the first to issue shares. Companies in England and the Low Countries
followed in the 16th century. Around this time, a joint stock company—one whose stock is
owned jointly by the shareholders—emerged and became important for colonization of what
Europeans called the "New World".

One of the oldest known stock certificates, issued by the VOC chamber of Enkhuizen, dated

9 Sep 1606.

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Courtyard of the Amsterdam Stock Exchange (Beurs van Hendrick de Keyser) by Emanuel
de Witte, 1653.

The Dutch East India Company (founded in 1602) was the first joint-stock company to get a
fixed capital stock and as a result, continuous trade in company stock occurred on the
Amsterdam Exchange. Soon thereafter, a lively trade in various derivatives, among which
options and repos, emerged on the Amsterdam market. Dutch traders also pioneered short
selling – a practice which was banned by the Dutch authorities as early as 1610.

Crowd gathering on Wall Street (New York City) after the 1929 crash, one of the worst stock
market crashes in history.

There are now stock markets in virtually every developed and most developing economies,
with the world's largest markets being in the United States, United Kingdom, Japan, India,
China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and
the Netherlands.

Importance

Even in the days before perestroika, socialism was never a monolith. Within the Communist

countries, the spectrum of socialism ranged from the quasi-market, quasi-
syndicalist system of Yugoslavia to the centralized totalitarianism of neighboring Albania.

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One time I asked Professor von Mises, the great expert on the economics of socialism, at
what point on this spectrum of statism would he designate a country as "socialist" or not. At
that time, I wasn't sure that any definite criterion existed to make that sort of clear-cut
judgment. And so I was pleasantly surprised at the clarity and decisiveness of Mises's answer.
"A stock market," he answered promptly. "A stock market is crucial to the existence
of capitalism and private property. For it means that there is a functioning market in the
exchange of private titles to the means of production. There can be no genuine private
ownership of capital without a stock market: there can be no true socialism if such a market is
allowed to exist."

— Murray Rothbard in “Making Economic Sense” (2006)

Function and purpose

The stock market is one of the most important ways for companies to raise money, along with
debt markets which are generally more imposing but do not trade publicly. This allows
businesses to be publicly traded, and raise additional financial capital for expansion by selling
shares of ownership of the company in a public market. The liquidity that an exchange
affords the investors enables their holders to quickly and easily sell securities. This is an
attractive feature of investing in stocks, compared to other less liquid investments such
as property and other immoveable assets.

History has shown that the price of stocks and other assets is an important part of the
dynamics of economic activity, and can influence or be an indicator of social mood. An
economy where the stock market is on the rise is considered to be an up-and-coming
economy. The stock market is often considered the primary indicator of a country's economic
strength and development.

Rising share prices, for instance, tend to be associated with increased business investment
and vice versa. Share prices also affect the wealth of households and their consumption.
Therefore, central banks tend to keep an eye on the control and behavior of the stock market
and, in general, on the smooth operation of financial system functions. Financial stability is
the raison d'être of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and
deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk
to an individual buyer or seller that the counterparty could default on the transaction.

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The smooth functioning of all these activities facilitates economic growth in that lower costs
and enterprise risks promote the production of goods and services as well as possibly
employment. In this way the financial system is assumed to contribute to increased
prosperity, although some controversy exists as to whether the optimal financial system is
bank-based or market-based.

Recent events such as the Global Financial Crisis have prompted a heightened degree of

scrutiny of the impact of the structure of stock markets (called market microstructure), in
particular to the stability of the financial system and the transmission of systemic risk.

Relation to the modern financial system

A transformation is the move to electronic trading to replace human trading of

listed securities.

Behaviour of stock prices

NASDAQ in Times Square, New York City

Changes in stock prices are mostly caused by external factors such

as socioeconomic conditions, inflation, exchange rates. Intellectual capital does not affect a
company stock's current earnings. Intellectual capital contributes to a stock's return growth.

The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that

asset prices reflect all available information at the current time.

The 'hard' efficient-market hypothesis does not explain the cause of events such as the crash
in 1987, when the Dow Jones Industrial Average plummeted 22.6 percent—the largest-ever
one-day fall in the United States.

This event demonstrated that share prices can fall dramatically even though no generally
agreed upon definite cause has been found: a thorough search failed to detect any 'reasonable'
development that might have accounted for the crash. (Note that such events are predicted to

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occur strictly by randomness, although very rarely.) It seems also to be true more generally
that many price movements (beyond those which are predicted to occur 'randomly') are not
occasioned by new information; a study of the fifty largest one-day share price movements in
the United States in the post-war period seems to confirm this.

A 'soft' EMH has emerged which does not require that prices remain at or near equilibrium,
but only that market participants cannot systematically profit from any momentary 'market
anomaly'. Moreover, while EMH predicts that all price movement (in the absence of change
in fundamental information) is random (i.e. non-trending), many studies have shown a
marked tendency for the stock market to trend over time periods of weeks or longer. Various
explanations for such large and apparently non-random price movements have been
promulgated. For instance, some research has shown that changes in estimated risk, and the
use of certain strategies, such as stop-loss limits and value at risk limits, theoretically
could cause financial markets to overreact. But the best explanation seems to be that the
distribution of stock market prices is non-Gaussian (in which case EMH, in any of its current
forms, would not be strictly applicable).

Other research has shown that psychological factors may result in exaggerated (statistically
anomalous) stock price movements (contrary to EMH which assumes such behaviours 'cancel
out'). Psychological research has demonstrated that people are predisposed to 'seeing'
patterns, and often will perceive a pattern in what is, in fact, just noise, e.g. seeing familiar
shapes in clouds or ink blots. In the present context, this means that a succession of good
news items about a company may lead investors to overreact positively, driving the price up.
A period of good returns also boosts the investors' self-confidence, reducing their
(psychological) risk threshold.

Another phenomenon—also from psychology—that works against an objective assessment

is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly
from that of a majority of the group. An example with which one may be familiar is the
reluctance to enter a restaurant that is empty; people generally prefer to have their opinion
validated by those of others in the group.

In one paper the authors draw an analogy with gambling. In normal times the market behaves
like a game of roulette; the probabilities are known and largely independent of the investment
decisions of the different players. In times of market stress, however, the game becomes more

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like poker (herding behavior takes over). The players now must give heavy weight to the
psychology of other investors and how they are likely to react psychologically.

In the period running up to the 1987 crash, less than 1 percent of the analysts'
recommendations had been to sell (and even during the 2000–2002 bear market, the average
did not rise above 5%). In the run-up to 2000, the media amplified the general euphoria, with
reports of rapidly rising share prices and the notion that large sums of money could be
quickly earned in the so-called new economy stock market.

Stock markets play an essential role in growing industries that ultimately affect the economy
through transferring available funds from units that have excess funds (savings) to those who
are suffering from funds deficit (borrowings) (Padhi and Naik, 2012). In other words, capital
markets facilitate funds movement between the above-mentioned units. This process leads to
the enhancement of available financial resources which in turn affects the economic growth
positively.

Economic and financial theories argue that stock prices are affected by macroeconomic
trends. Macroeconomic trends include such as changes in GDP, unemployment rates, national
income, price indices, output, consumption, unemployment, inflation, saving, investment,
energy, international trade, immigration, productivity, aging populations, innovations,
international finance. increasing corporate profit, increasing profit margins, higher
concentration of business, lower company income, less vigorous activity, less progress, lower
investment rates, lower productivity growth, less employee share of corporate
revenues, decreasing Worker to Beneficiary ratio (year 1960 5:1, year 2009 3:1, year 2030
2.2:1), increasing female to male ratio college graduates.

Many different academic researchers have stated that companies with low P/E ratios and
smaller-sized companies have a tendency to outperform the market. Research has shown that
mid-sized companies outperform large cap companies, and smaller companies have higher
returns historically.

Irrational behaviour
Sometimes, the market seems to react irrationally to economic or financial news, even if that
news is likely to have no real effect on the fundamental value of securities itself. However,
this market behaviour may be more apparent than real, since often such news was anticipated,
and a counter reaction may occur if the news is better (or worse) than expected. Therefore,

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the stock market may be swayed in either direction by press releases,
rumours, euphoria and mass panic.

Over the short-term, stocks and other securities can be battered or buoyed by any number of
fast market-changing events, making the stock market behaviour difficult to predict.
Emotions can drive prices up and down, people are generally not as rational as they think,
and the reasons for buying and selling are generally accepted.

Behaviourists argue that investors often behave irrationally when making investment

decisions thereby incorrectly pricing securities, which causes market inefficiencies, which, in
turn, are opportunities to make money. However, the whole notion of EMH is that these non-
rational reactions to information cancel out, leaving the prices of stocks rationally
determined.

The Dow Jones Industrial Average biggest gain in one day was 936.42 points or 11%.

Crashes

Further information: List of stock market crashes and bear markets

Robert Shiller's plot of the S&P Composite Real Price Index, Earnings, Dividends, and
Interest Rates, from Irrational Exuberance. In the preface to this edition, Shiller warns, "The
stock market has not come down to historical levels: the price-earnings ratio as I define it in
this book is still, at this writing [2005], in the mid-20s, far higher than the historical average...
People still place too much confidence in the markets and have too strong a belief that paying
attention to the gyrations in their investments will someday make them rich, and so they do
not make conservative preparations for possible bad outcomes."

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Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by Robert
Shiller (Figure 10.1) The horizontal axis shows the real price-earnings ratio of the S&P

Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price

divided by the prior ten-year mean of inflation-adjusted earnings). The vertical axis shows the
geometric average real annual return on investing in the S&P Composite Stock Price Index,
reinvesting dividends, and selling twenty years later. Data from different twenty-year periods
is color-coded as shown in the key. Shiller states that this plot "confirms that long-term
investors—investors who commit their money to an investment for ten full years—did do
well when prices were low relative to earnings at the beginning of the ten years. Long-term
investors would be well advised, individually, to lower their exposure to the stock market
when it is high, as it has been recently, and get into the market when it is low."

Attempt to prevent a re-occurrence of the events of Black Monday. A stock market crash is
often defined as a sharp dip in share prices of stocks listed on the stock exchanges. In parallel
with various economic factors, a reason for stock market crashes is also due to panic and
investing public's loss of confidence. Often, stock market crashes end speculative economic
bubbles.

There have been famous stock market crashes that have ended in the loss of billions of dollars
and wealth destruction on a massive scale. An increasing number of people are involved in
the stock market, especially since the social security and retirement plans are being
increasingly privatized and linked to stocks and bonds and other elements of the market.
There have been a number of famous stock market crashes like the Wall Street Crash of

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1929, the stock market crash of 1973–74, the Black Monday of 1987, the Dot-com bubble of
2000, and the Stock Market Crash of 2008.

1929

One of the most famous stock market crashes started October 24, 1929, on Black Thursday.
The Dow Jones Industrial Average lost 50% during this stock market crash. It was the
beginning of the Great Depression.

1987

Another famous crash took place on October 19, 1987 – Black Monday. The crash began in
Hong Kong and quickly spread around the world.

By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%,
Spain 31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. Black
Monday itself was the largest one-day percentage decline in stock market history – the Dow
Jones fell by 22.6% in a day. The names "Black Monday" and "Black Tuesday" are also used
for October 28–29, 1929, which followed Terrible Thursday—the starting day of the stock
market crash in 1929.

The crash in 1987 raised some puzzles – main news and events did not predict the catastrophe
and visible reasons for the collapse were not identified. This event raised questions about
many important assumptions of modern economics, namely, the theory of rational human
conduct, the theory of market equilibrium and the efficient-market hypothesis. For some time
after the crash, trading in stock exchanges worldwide was halted, since the exchange
computers did not perform well owing to enormous quantity of trades being received at one
time. This halt in trading allowed the Federal Reserve System and central banks of other
countries to take measures to control the spreading of worldwide financial crisis. In the
United States the SEC introduced several new measures of control into the stock market in an

2007-2009
This marked the beginning of the Great Recession. Starting in 2007 and lasting through 2009,
financial markets experienced one of the sharpest declines in decades. It was more
widespread than just the stock market as well. The housing market, lending market, and even
global trade experienced unimaginable decline. Sub-prime lending led to the housing bubble
bursting and was made famous by movies like The Big Short where those holding large
mortgages were unwittingly falling prey to lenders. This saw banks and major financial

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institutions completely fail in many cases and took major government intervention to remedy
during the period. From October 2007 to March 2009, the S&P 500 fell 57% and wouldn't
recover to its 2007 levels until April 2013.

2020
The 2020 stock market crash was a major and sudden global stock market crash that began on
20 February 2020 and ended on 7 April.

Circuit breakers
Since the early 1990s, many of the largest exchanges have adopted electronic 'matching
engines' to bring together buyers and sellers, replacing the open outcry system. Electronic
trading now accounts for the majority of trading in many developed countries. Computer
systems were upgraded in the stock exchanges to handle larger trading volumes in a more
accurate and controlled manner. The SEC modified the margin requirements in an attempt to
lower the volatility of common stocks, stock options and the futures market. The New York
Stock Exchange and the Chicago Mercantile Exchange introduced the concept of a circuit
breaker. The circuit breaker halts trading if the Dow declines a prescribed number of points
for a prescribed amount of time. In February 2012, the Investment Industry Regulatory
Organization of Canada (IIROC) introduced single-stock circuit breakers.

New York Stock Exchange (NYSE) circuit breakers

% drop in S&P 500

trading halt
Index

Trading will halt for 15 minutes only if drop occurs before 3:25
7%
p.m.

Trading will halt for 15 minutes only if drop occurs before

13%
3:25 p.m.

20% Trading will stop for the day

Stock market index

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 US Stock Market Value by Sector
The movements of the prices in global, regional or local markets are captured in price indices
called stock market indices, of which there are many, e.g. the S&P,
the FTSE ,the Euronext indices and the NIFTY & SENSEX of India. Such indices are
usually market capitalization weighted, with the weights reflecting the contribution of the
stock to the index. The constituents of the index are reviewed frequently to include/exclude
stocks in order to reflect the changing business environment.

Derivative instruments
Financial innovation has brought many new financial instruments whose pay-offs or values
depend on the prices of stocks. Some examples are exchange-traded funds (ETFs), stock
index and stock options, equity swaps, single-stock futures, and stock index futures. These
last two may be traded on futures exchanges (which are distinct from stock exchanges—their
history traces back to commodity futures exchanges), or traded over-the-counter. As all of
these products are only derived from stocks, they are sometimes considered to be traded in a
(hypothetical) derivatives market, rather than the (hypothetical) stock market.

Leveraged strategies
Stock that a trader does not actually own may be traded using short selling; margin
buying may be used to purchase stock with borrowed funds; or, derivatives may be used to
control large blocks of stocks for a much smaller amount of money than would be required by
outright purchase or sales.

Short selling
In short selling, the trader borrows stock (usually from his brokerage which holds its clients
shares or its own shares on account to lend to short sellers) then sells it on the market, betting

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that the price will fall. The trader eventually buys back the stock, making money if the price
fell in the meantime and losing money if it rose. Exiting a short position by buying back the
stock is called "covering". This strategy may also be used by unscrupulous traders in illiquid
or thinly traded markets to artificially lower the price of a stock. Hence most markets either
prevent short selling or place restrictions on when and how a short sale can occur. The
practice of naked shorting is illegal in most (but not all) stock markets.

Margin buying

In margin buying, the trader borrows money (at interest) to buy a stock and hopes for it to
rise. Most industrialized countries have regulations that require that if the borrowing is based
on collateral from other stocks the trader owns outright, it can be a maximum of a certain
percentage of those other stocks' value. In the United States, the margin requirements have
been 50% for many years (that is, if you want to make a $1000 investment, you need to put
up $500, and there is often a maintenance margin below the $500).

A margin call is made if the total value of the investor's account cannot support the loss of the
trade. (Upon a decline in the value of the margined securities additional funds may be
required to maintain the account's equity, and with or without notice the margined security or
any others within the account may be sold by the brokerage to protect its loan position. The
investor is responsible for any shortfall following such forced sales.)

Regulation of margin requirements (by the Federal Reserve) was implemented after the Crash
of 1929. Before that, speculators typically only needed to put up as little as 10 percent (or
even less) of the total investment represented by the stocks purchased. Other rules may
include the prohibition of free-riding: putting in an order to buy stocks without paying
initially (there is normally a three-day grace period for delivery of the stock), but then selling
them (before the three-days are up) and using part of the proceeds to make the original
payment (assuming that the value of the stocks has not declined in the interim).

Types of financial markets

Financial markets can be divided into different subtypes:

For the assets transferred

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 Money market : It is traded with money or financial assets with short-term maturity and
high liquidity, generally assets with a term of less than one year.
 Capital market : Financial assets with medium and long-term maturity are traded, which
are basic for carrying out certain investment processes.

Depending on its structure

 Organized market
 Non-organized markets denominated in English (" Over The Counter ").

According to the negotiation phase of financial assets

 Primary market : Financial assets are created. In this market, assets are transmitted

directly by their issuer.
 Secondary market : Only existing financial assets are exchanged, which were issued at a
previous time. This market allows holders of financial assets to sell instruments that were
already issued in the primary market (or that had already been transmitted in
the secondary market) and that are in their possession, or to buy other financial assets.

According to the geographical perspective

 National markets. The currency in which the financial assets are denominated and the
residence of those involved is national.
 International markets. The markets situated outside a country's geographical area.

According to the type of asset traded

 Traditional market. In which financial assets such as demand deposits, stocks or bonds

are traded .
 Alternative market. In which alternative financial assets are traded such as portfolio
investments, promissory notes, factoring, real estate (e.g. through fiduciary rights), in
private equity funds, venture capital funds, hedge funds, investment projects (e.g.
infrastructure, cinema, etc.) among many others.

Other markets

 Commodity markets, which allow the trading of commodities

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 Derivatives markets, which provide instruments for managing financial risk
 Forward markets, which provide standardized forward contracts to trade products at a
future date
 Insurance markets, which allows the redistribution of varied risks
 Foreign exchange market, which allows the exchange of foreign currencies

Investment strategies

Many strategies can be classified as either fundamental analysis or technical

analysis. Fundamental analysis refers to analyzing companies by their financial
statements found in SEC filings, business trends, and general economic conditions. Technical
analysis studies price actions in markets through the use of charts and quantitative techniques
to attempt to forecast price trends based on historical performance, regardless of the
company's financial prospects. One example of a technical strategy is the Trend
following method, used by John W. Henry and Ed Seykota, which uses price patterns and is
also rooted in risk management and diversification.

Additionally, many choose to invest via passive index funds. In this method, one holds a
portfolio of the entire stock market or some segment of the stock market (such as the S&P
500 Index or Wilshire 5000). The principal aim of this strategy is to maximize diversification,
minimize taxes from realizing gains, and ride the general trend of the stock market to rise.

Responsible investment emphasizes and requires a long-term horizon on the basis

of fundamental analysis only, avoiding hazards in the expected return of the
investment. Socially responsible investing is another investment preference.

Taxation
Taxation is a consideration of all investment strategies; profit from owning stocks, including
dividends received, is subject to different tax rates depending on the type of security and the
holding period. Most profit from stock investing is taxed via a capital gains tax. In many
countries, the corporations pay taxes to the government and the shareholders once again pay
taxes when they profit from owning the stock, known as "double taxation".

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The stock market allows numerous buyers and sellers of securities to meet, interact, and
transact. Stock markets allow for price discovery for shares of corporations and serve as a
barometer for the overall economy. Since the number of stock market participants is huge,
one can often be assured of a fair price and a high degree of liquidity as various market
participants compete with one another for the best price.

A stock market is a regulated and controlled environment. In the United States, the main
regulators include the Securities and Exchange Commission (SEC) and market participants
under the purview of the Financial Industry Regulatory Authority (FINRA). Since the stock
market brings together hundreds of thousands of market participants who wish to buy and
sell shares, it ensures fair pricing practices and transparency in transactions. While earlier
stock markets used to issue and deal in paper-based physical share certificates, the modern-
day computerized stock markets operate electronically.

Though it is called a stock market and is primarily known for trading stocks/equities, other
securities—such as exchange-traded funds (ETFs)—are also traded in the stock markets.

How the Stock Market Works

In a nutshell, stock markets provide a secure and regulated environment where market
participants can transact in shares and other eligible financial instruments with confidence,
with zero to low operational risk. Operating under the defined rules as stated by the
regulator, the stock markets act as primary markets and secondary markets.

As a primary market, the stock market allows companies to issue and sell their shares to the
common public for the first time through the process of an initial public offering (IPO). This
activity helps companies raise necessary capital from investors. It essentially means that a
company divides itself into a number of shares (for example, 20 million shares) and sells a
part of those shares (say, 5 million shares) to the public at a price (for instance, $10 per
share).

To facilitate this process, a company needs a marketplace where these shares can be sold.
This marketplace is provided by the stock market. If everything goes according to plan, then
the company will successfully sell the 5 million shares at a price of $10 per share and collect

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$50 million worth of funds. Investors will get the company shares, which they can expect to
hold for their preferred duration, in anticipation of rising in share price and any potential
income in the form of dividend payments. The stock exchange acts as a facilitator for this
capital-raising process and receives a fee for its services from the company and its financial
partners.

Following the first-time share issuance IPO exercise called the listing process, the stock
exchange also serves as the trading platform that facilitates regular buying and selling of the
listed shares. This constitutes the secondary market. The stock exchange earns a fee for
every trade that occurs on its platform during secondary market activity.

Special Considerations

The stock exchange shoulders the responsibility of ensuring price

transparency, liquidity, price discovery, and fair dealings in such trading activities. As
almost all major stock markets across the globe now operate electronically, the exchange
maintains trading systems that efficiently manage the buy and sell orders from various
market participants. They perform the price-matching function to facilitate trade execution at
a price that is fair to both buyers and sellers.

A listed company may also offer new, additional shares through other offerings at a later
stage, such as through rights issues or follow-on offerings. They may even buy
back or delist their shares. The stock exchange facilitates such transactions.

The stock exchange often creates and maintains various market-level and sector-specific
indicators, like the S&P (Standard & Poor’s) 500 index or the Nasdaq 100 index, which
provide a measure to track the movement of the overall market. Other methods include the
Stochastic Oscillator and the Stochastic Momentum Index.

The stock exchanges also maintain all company news, announcements, and financial
reporting, which can usually be accessed on their official websites. A stock exchange also
supports various other corporate-level, transaction-related activities. For instance, profitable
companies may reward investors by paying dividends that usually come from part of the

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company’s earnings. The exchange maintains all such information and may support its
processing to a certain extent.

Functions of a Stock Market

A stock market primarily serves the following main functions:

Fair Dealing in Securities Transactions

Depending on the standard rules of supply and demand, the stock exchange needs to ensure
that all interested market participants have instant access to data for all buy and sell orders,
thereby helping in the fair and transparent pricing of securities. Additionally, it should also
perform efficient matching of appropriate buy and sell orders.

For example, there may be three buyers who have placed orders for buying Microsoft shares
at $100, $105, and $110, and there may be four sellers who are willing to sell Microsoft
shares at $110, $112, $115, and $120. The exchange (through automated trading systems)
needs to ensure that the best buy and the best sell are matched, which in this case is at $110
for the given quantity of trade.

Efficient Price Discovery

Stock markets need to support an efficient mechanism for price discovery, which refers to
the act of deciding the proper price of a security and is usually performed by assessing
market supply and demand and other factors associated with the transactions.

Let’s say a U.S.-based software company is trading at a price of $100 and has a market
capitalization of $5 billion. A news item comes in that the European Union (EU) regulator
has imposed a $2 billion fine on the company, which essentially means that 40% of the
company’s value may be wiped out. While the stock market may have imposed a trading
price range of $90 and $110 on the company’s share price, it should efficiently change the
permissible trading price limit to accommodate for the possible changes in the share price,
or else shareholders may struggle to trade at a fair price.

Liquidity Maintenance

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While getting the number of buyers and sellers for a particular financial security are out of
control for the stock market, it needs to ensure that whoever is qualified and willing to trade
gets instant access to place orders that should get executed at a fair price.

Security and Validity of Transactions

While more participants are important for the efficient working of a market, the same market
needs to ensure that all participants are verified and remain compliant with the necessary
rules and regulations, leaving no room for default by any of the parties. Additionally, it
should ensure that all associated entities operating in the market adhere to the rules and work
within the legal framework given by the regulator.

Support All Eligible Types of Market Participants

A marketplace is made up of a variety of participants, which include market
makers, investors, traders, speculators, and hedgers. All of these participants operate in the
stock market, with different roles and functions. For instance, an investor may buy stocks
and hold them for the long term, spanning many years, while a trader may enter and exit a
position within seconds. A market maker provides necessary liquidity in the market, while a
hedger may like to trade in derivatives for mitigating the risk involved in investments. The
stock market should ensure that all such participants are able to operate seamlessly, fulfilling
their desired roles to ensure that the market continues to operate efficiently.

Investor Protection
Along with wealthy and institutional investors, a very large number of small investors are
also served by the stock market for their small amount of investments. These investors may
have limited financial knowledge and not be fully aware of the pitfalls of investing in stocks
and other listed instruments. The stock exchange must implement necessary measures to
offer the necessary protection to such investors to shield them from financial loss and ensure
customer trust.

For instance, a stock exchange may categorize stocks in various segments depending on
their risk profiles and allow limited or no trading by common investors in high-risk stocks.
Exchanges often impose restrictions to prevent individuals with limited income and
knowledge from getting into risky bets of derivatives.

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Balanced Regulation
Listed companies are largely regulated, and their dealings are monitored by market
regulators, such as the above-mentioned SEC. Additionally, exchanges mandate certain
requirements—for example, timely filing of quarterly financial reports and instant reporting
of any relevant developments—to ensure that all market participants become aware of
corporate happenings. Failure to adhere to the regulations can lead to suspension of trading
by the exchanges and other disciplinary measures.

Stock Market Participants

Along with long-term investors and short-term traders, many different types of players are
associated with the stock market. Each has a unique role, but many of the roles are
intertwined and depend on each other to make the market run effectively.

 Stockbrokers, also known as registered representatives in the United States, are

licensed professionals who buy and sell securities on behalf of investors. The brokers
act as intermediaries between the stock exchanges and the investors by buying and
selling stocks on behalf of the investors. An account with a retail broker is needed to
gain access to the markets.
 Portfolio managers are professionals who invest portfolios, or collections of
securities, for clients. These managers get recommendations from analysts and make
the buy or sell decisions for the portfolio. Mutual fund companies, hedge funds, and
pension plans use portfolio managers to make decisions and set the investment
strategies for the money that they hold.
 Investment bankers represent companies in various capacities, such as private
companies that want to go public via an IPO or companies that are involved in
pending mergers and acquisitions. They take care of the listing process in compliance
with the regulatory requirements of the stock market.
 Custodians and depot service providers are institutions that hold on to customers’
securities for safekeeping to minimize the risk of their theft or loss. These institutions
also operate in sync with the exchange to transfer shares to/from the respective
accounts of transacting parties based on trading on the stock market.

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  Market makers are broker-dealers who facilitate the trading of shares by
posting bid and ask prices and maintaining an inventory of shares. They ensure
sufficient liquidity in the market for a particular (set of) share(s) and profit from the
difference between the bid and the ask price that they quote.
 Speculators engage in directional bets in the market with individual stocks or broader
indexes. Speculators can take long positions by buying shares, or a short position
by short selling. Some speculators hold on to their positions for a relatively long time
based on fundamental or technical analysis. Others trade quickly and often, as in the
case of day traders.
 Arbitrageurs are traders who identify mispricing in the market for relatively low-risk
profits. By doing so, they keep the market more efficient. Algorithmic and high-
frequency trading (HFT) programs are often engaged in this type of arbitrage.
 Stock exchanges operate as for-profit institutes and charge a fee for their services.
The primary source of income for these stock exchanges is the revenue from the
transaction fees that are charged for each trade carried out on its platform.
Additionally, exchanges earn revenue from the listing fee charged to companies
during the IPO process and other follow-on offerings. An exchange also earns from
selling market data generated on its platform—such as real-time data, historical data,
summary data, and reference data—which is vital for equity research and other uses.
Many exchanges will also sell technology products, such as a trading terminal and
dedicated network connection to the exchange, to the interested parties for a suitable
fee.

Significance of the Stock Market

The stock market is one of the most vital components of a free-market economy. It allows
companies to raise money by offering stock shares and corporate bonds. It lets common
investors participate in the financial achievements of the companies, make profits
through capital gains, and earn money through dividends—although losses are also possible.
While institutional investors and professional money managers do enjoy some privileges
owing to their deep pockets, better knowledge, and higher risk-taking abilities, the stock
market attempts to offer a level playing field to common individuals.

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The stock market works as a platform through which savings and investments of individuals
are efficiently channelled into productive investment opportunities. In the long term, this
helps in capital formation and economic growth for the country.

Examples of Stock Markets

The first stock market in the world was the London Stock Exchange. It was started in a
coffeehouse, where traders used to meet to exchange shares, in 1773. The first stock
exchange in the United States was started in Philadelphia in 1790. The Buttonwood
Agreement, so named because it was signed under a buttonwood tree, marked the beginnings
of New York’s Wall Street in 1792. The agreement was signed by 24 traders and was the
first American organization of its kind to trade in securities. The traders renamed their
venture as the New York Stock and Exchange Board in 1817.Bombay Stock Exchange and
National Stock Exchange.

PRODUCTS AND SERVICES:

 Equity – Initial Public Offering (IPO) – Secondary trading (cash and derivative) –
PMS – Online Trading – Depository Services – Investment Advisory (fundamental
and technical) – Mutual Fund - Arbitrage
 Commodity - Derivatives
 Debt – Government Securities – Primary Placements – Advisory • – Mutual Fund –
Relief bonds, etc.
 Forex – Interbank broking
 Merchant Banking – Amalgamation & Merger– Private Equity – Public Offering.

OUR SERVICES
Equity and Derivatives Trading: Equity trading is offered to retail clients through different
channels in the Bombay Stock Exchange (BSE) & the National Stock Exchange of India
(NSE), for the cash and the derivatives segments. Investors are serviced through a PAN
India network of over 650 associates / locations comprising of 585 franchisee and 65
company branches. (as on July 2021)

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 CHAPTER 2

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 1. PROJECT / TASK DETAILS

Task Assigned:-

1. A) Market analysis of any two aviation companies listed in Nifty.

 IndiGo
 SpiceJet

B) Market analysis of any two Electronics companies listed in Nifty.

 Havells India Ltd

 Bajaj Electronics
2. Opening, closing, high, low prices of the stocks
3. Analysis of Forex and Commodity Market.
4. Analysis of Future & Options Trading

NEED OF STUDY:-
The world has become more materialistic and when it comes to money everyone is
cautious as to how to earn money, what sources he should search for, and what can
make his life satisfactory, when it comes to spending. In spite of the fact, that regular
and formal education is offered at various level, the general level of ignorance at
financial literacy still remain a major problem. It is necessary that people should be
formally educated about their economic and monetary needs, right understanding
about finance and functioning of economy.
For women, who want to become financially independent, awareness towards capital
market has become important, so that they can take independent decision about
sources of investment, mode of investment, and methods of right deployment of
finance.

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 Significance of the Study
The dimensions of the investor’s attitude factors towards investment decision and
investment satisfaction reveal the stock market investors in India. From the marketing
point of view, it would help to achieve competitive advantages particularly when
deciding to make a strategic planning on investment. Understanding the importance of
relationships among the constructs would broaden perspective of reinvestment
intention in order to ensure long term profitability. The stock market in India is fast
growing and every day new investors are entering into the market. There are several
myths the investors have about the market and systematically invest in stock market.
It could be used by the various factors that are to be considered to reduce their market
risk, besides earning a fair return. The market predictions probably change many
times, so that the return cannot be measured accurately. To help the stock brokers,
executives and financial experts, it is providing more number of tips with regard to
investments in the stocks used to be traded in the market. Further, the researcher
warns the investors to consider different investment portfolios and minute details
considered by the respondents before going in the stock selection in the stock market.
This study may help the individual investor and will be highly beneficial, by giving
valuable information at the time of investment in the stock market. Hence, this study
helps in making a decision regarding investment by investors, Brokerage Company
and financial institution. And also the study was guided by objectives with a purpose
of tracking investor's attitudes and decision towards stock market investments. Even
though the Government of India has established many supervisory bodies to take over
the various operations of the stock market, it has not yet attained stability.

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 OBJECTIVE OF STUDY:-

1. To study the women investor’s awareness towards capital markets.

2. To know the kind of capital market inputs required by women.
3. To identify the problems faced by women in acquiring necessary capital market
inputs.
4. To suggest measures to develop right kind of capital market information model for
women.

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 To attain the objectives of this study existing literatures were studied
The foundation of any research lies on the studies undertaken in the past, as it
provides the empirical study. Assessing the impact of investment in different
investment avenues, it provides a sketch of literature relevant to scope, preference and
satisfaction of investor. Many researchers have been tried to classify the investors on
the basis of their risk and the type of their investment. The empirical evidences of this
study also suggest the factors like age, income, education and marital status of an
individual. In this study he concluded that men are less risk averse than women, less
educated investor are less likely to take risk and age factor is also important in risk
tolerance and also wealthy investors are more risk tolerance than the less wealthy
investors. Investors likes to invest regularly and this investment behaviour is highly
related to educational background. The time taken for investment decision making
process is occupation and reading habit of investors about investment decisions. Some
study evidences grown in real interest rate, grown in per capita income, spread of
banking facilities and the rate of inflation as statistically positive influences on
domestic savings. Accumulated savings converted into investment total savings
comprises of domestic, corporate, foreign and household. The study proves that there
is a significant difference between male and female investors on awareness of stock
market investment; there is a significant difference among the age, educational and
occupational groups with respect to awareness; there is also a significant difference
among the investors of different age and occupational groups, in respect of awareness.
The study mainly aims to trace the theoretical frame work of the stock market
investments and to develop the conceptual model of satisfaction of towards stock
market. The main objectives of this study are to examine the factors which influence
the investment pattern and the attitude of respondents towards different investment
patterns .This study makes attempts to analyse the investment pattern, saving
objective and preferences of individual investor’s for various investment options
available in India. From the research point of view, such a study will help in
developing and expanding knowledge in this field of personal finance and investment.
Inclination towards safe, secure and tax beneficial investment is more than that of
risky or high return investment. With lower income segment, one cannot create wealth
but with good combination of investments, one can create a better and respectable
living. The study shows that there is no relationship between age and Investment
Avenue this may be due to degree of awareness regarding investment and risk averse.

40 | P a g e
 It also shows that the married women are not willing to invest in high risky securities.
The objective of this study tells about savings pattern, factors influencing the decision
making process of savings and investment, to do risk profiling of investors and to
assess the conceptual knowledge, awareness level and perception about Mutual funds.
Research shows that most of the working people do not plan their savings and believe
that their current savings will be enough to take care of their post retirement needs.
Research implies that there is significant relationship between gender and MF
investment and also annual income of the investors does have an impact of MF
investment. The study attempts to know the preferences and analyse the significance
of demographic factors that influence the investor's decision towards making
investments. Priorities based on characteristics of investments, period of investment,
information source, frequency of investment and analytical abilities were analysed
using the demographic factors like gender, income, savings age, education,
occupation, and family size. This research study intends to examine the impact of
financial literacy, accounting information, openness to experience and information
asymmetry on individual investors’ decision making through the empirical research of
the people living in Vasant Kunj New Delhi.

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 RESEARCH METHODOLOGY:-

Research Design

Research design provides the frame for data collection and analysis .The study uses

descriptive exploration design and exploratory design to identify the factors that affecting
the opinions of the women investors. The design uses questionnaire as the
main instrument for collecting data and helps the experimenter to generalise the findings to
a larger population. It helps to collect quantitative data which
could be analysed using deducible statistics. The questionnaire is divided into
three corridor mindfulness position, factors impacting investment opinions, and satisfaction.
.

Considering the nature of exploration the data needed shall be both quantitative and

qualitative in nature.

The explanation of the study is as follows

1. There's nonstop increase for women in every sectors and member of the society
2. Adding independence has changed the mind-set and approach of women.
3. Mindfulness towardsthe capital request will help women to use their plutocrat through
proper investment openings.

Sample and Population
The term Women, restricts the compass of the study and hence this covers a small segment of
society:
1. Women working in formal and systematized sector
2. Women working Private and Transnational associations.
3. Working women who are working at pastoral or operation staff position.

4. House wives and college girls

the territorial macrocosm shall be Delhi region

The estimated population of the responded is presumed to be 100 for the sake of convenience.

The data representation shall be from 2 orders and the sample size shall be 100.

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System of data collection
the data collected for the study is by using primary as well as secondary data.
Primary data
1.This has been collected from the class of repliers as stated over.
2. Also some introductory information has been collected from
the institute creating mindfulness towards capital requests.
Secondary Data

Secondary data was collected from following sources:

1. Books regarding capital request mindfulness.
2. Reports published by banking and fiscal agencies regarding creation of Capital Markets.
3. Checks conducted by different agencies regarding awareness of women towards capital
market.
4. Independent exploration work done in various institutions and Universities.

Research design provides the frame for data collection and analysis the study uses

descriptive exploration design and exploratory design to identify the factors that affecting
the opinions of the women investors. The design uses questionnaire as the
main instrument for collecting data and helps the experimenter to generalise the findings to
a larger population.
It helps to collect quantitative data which is analysed using Microsoft Excel

Percentage Analysis: Percentage analysis is the method to represent raw streams of data as a
percentage (a part in 100 percent) for better understanding of collected data. Percentage
Analysis is applied to create a contingency table from the frequency distribution and
represent the collected data for better understanding.

Cross-Sectional tables: Cross-sectional study is a research tool used to capture information

based on data gathered for a specific point in time. The data gathered is from a pool of
participants with varied characteristics and demographics known as variables. Age, gender,
income, education, geographical locations, and ethnicity are all examples of variables. The
variables, or demographics, used in a single study are based on the type of research being
conducted and on what the study aims to prove or validate. The research findings help

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remove assumptions and replace them with actual data on the specific variables studied
during the time period accounted for in the cross-sectional study

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 CHAPTER 3

ANALYSIS AND FINDINGS

The descriptive design is used in the study. The primary data was collected using the
questionnaire and 100 people responded to the same and the following analysis were done
using percentage method on Microsoft Excel.

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 Knowledge Level High Moderate Low Total

Age Group

Between 15and 17 0 2 2 4
Between 18 and 29 15 12 20 47
Between 30 and 39 5 2 10 17
Between 40 and 49 8 5 5 18
Between 50and 59 1 2 5 8
Above 60 1 2 3 6
Total 30 25 45

Table 1: Describes age groups and knowledge about financial instruments

This shows that women from Vasant Kunj New Delhi have basic knowledge of
various investment options. There is a negative correlation between the age and
knowledge level of women. The younger generation woman has more knowledge
about the financial instrument. As the age is increasing, the knowledge level is
decreasing. Today younger generation women have more education opportunity and
more exposure to practical work which was earlier not possible.

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 The younger generation women are more upgraded and they have more knowledge
related to technology, so they can easily try and apply for different online investment
technique and tools.

Figure3.1: Major Investment avenues

1.1. Modes of Investments

1. Equity share
2. Mutual funds
3. Public provident funds
4. Bank deposit/Fixed deposits
5. Gold silver
6. Insurance
7. Real estate
8. National pension schemes
1.2. Parameters of investment
1. Return
2. Risk
3. Liquidity
4. Tax benefits
5. Safety
We can say that majority of the women prefer to save their money, but not on financial
investment option .We come to know that 31.7% of the women are not interested in any of
this investment option and those women who are interested in investment they like to do the
savings on gold. This chart also describes that very few of the women take initiative to invest

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 on Mutual funds and PPF. The reason behind this is due to lack of knowledge, awareness, and
safety is the reason due to which women are not investing in such investment avenues.

Figure: 3.2 Dependence on their husband to make investment decision

The above pie chart represents that 72% of the women rely on their on their husband while
taking investment decision remaining and 28% of women are taking investment decision by
their own .These finding indicates women highly depend on their husband for their
investment decision .The reason for not making investment on their own might be male
dominance in some area.

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 Awareness towards capital market

30 YES
NO

70

Figure:3. 3. Awareness towards capital market

The above Pie chart represents that 70% of population is aware about the capital market. Out
of this age group 21-29 is highly informed about the capital market.

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 Source of Information

20

Broker
40 TV/News Paper
Friend
Internet
15

25

Figure: 3. 4 Source of Information

The above Pie Chart show the different sources of information which shows that 40% of
information is coming from internet, 25% from friends, 20% from broker and remaining 20 %
from TV/News Paper.

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 Purpose of Investment

Children's Education
30 30 Financial Security
Tax Deduction
Retirement
Health Care
Regular Source of Income

3.2
5
10

Figure: 3. 5 Purpose of the Investment

Above figure shows different purposes for investment. 30% of people invest to get regular
source of income and another 30% for children education, 10% for retirement,5% for health
care and 3.2% for financial security.
It was also found that no investments were made in order to get tax deduction.

Percent of Income goes for Investment

5

25 0-5%
40 5-10%
10-15%
Above 15%

30

Figure: 3. 6 Percent of total income goes for investment

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 The above figure shows the percentage of income goes to investment. From this figure we
find that 40% of investors invest 0-5% of their salary in capital market, 30% of investors
invest their 5-10% of salary, 25% of investors invest 10-15% of their salary and 5% investors
invest above 15% of their salary.

Risk Taking Ability

10

30
15 Very Large
Large
Medium
Small
Very Small

20

25

Figure: 3.7 Risk Taking Ability in Investors

The above pie chart shows the risk taking ability of investors. It has been found that 10%of
investors take very large risk, 15% large, 20% medium, 25%small and 30% of investors take
very small risk. This shows that risk appetite is not very high among the investors.
:

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 Major findings of the study are:

1. Women belong to age group (below 30) are the major investors as comparing to
above 60 age groups. It shows that youngsters are more interested in stock market
investment.
2. Married women are willing to take more risk in anticipation of more profit as
compared to unmarried women.
3. In qualification wise graduated and post graduated women are ready to invest in
stock market because mainly literate people are take part in stock market as compared
to illiterate population.
4. Salaried women are ready to invest in stock market as compared to business
professional and other categories.
5. Year of experience for women investors are below 3 years. It shows that they are
new to stock market.
6. Women investor consider financial factor as the most important attribute which
greatly influences their investment decisions.

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 CHAPTER 4

CONCLUSIONS AND RECOMMENDATIONS

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 Conclusions

The primary findings of the study is that 87.73% women investors are aware about
investment avenues towards financial assets in terms of post office monthly income
scheme, bank deposits, LIC schemes, chit funds, share market as well as bond market and
91.45% women investors are aware about investment avenues in physical assets in terms
of gold and real estate market. From the study it is concluded that women’s are less
aware of stock market as an investment avenue and the number of women investors in
stock market is comparatively very low. The level of satisfaction of women investors is
average. Hence there is a wide scope in further analysis in this area including more
number of respondents. Hence the study concluded that there is more need of awareness
classes among women investors to enhance their knowledge and to improve their status.
Organic Descriptive statistics shows that illiterate home maker in the age of 31-45 years
have a thorough understanding and expert knowledge about investment in financial assets
and physical assets than others. But correlation analysis points out that there is a
significant association between the level of awareness towards financial and physical
assets and the demographics in terms of marital status and education. At the same time,
correlation analysis points out that there is a significant association between the sources
of information for financial and physical assets athwart demographics in the case of
marital status and education. Exploratory factor analysis reveals that two demographics
(marital status and education), three sources of information (family members, friends and
agents) and six level of awareness towards investment in physical and financial assets
(gold, real estate, POMIS, bank deposits, share market and mutual funds) are the quality
indicators to examine the influence of level of awareness on the sources of information
and demographics in the case of investment behaviour in Vasant Kunj. Multiple
regression test results show that marital status and education level of women investors
influences to invest in physical assets (gold and real estate) and financial assets (POMIS,
share market and mutual funds but not bank deposits). It has been observed that family
members and friends are the source of information in case of gold, friends and agents are
the source of information in the case of real estate whereas family members and agents
are the source of information for POMIS, family members and friends are the source of
information for bank deposits and finally, family members, friends and agents are the

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 source of information for share market and mutual fund schemes. A regular savings and
investment planning may directed to regular investment habit and regular investment
habit may leads to increase the standard of living followed by a secured life. Thus,
savings and investment behaviour can aid to the growth of country’s economy as well.

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 Recommendations

Considering the findings our study propose some action plan in order to increase the level
of awareness and investment behaviour of women investors in New Delhi.

First of all, segment-wise training and education of women investors should be

undertaken for different age group especially for the illiterate, graduate and post-graduate
level women investors. Investment companies and private institutions along with
government required to take initiative so that women having lower level of education and
income can come forward for the spontaneous investment decision.

Secondly, the habit of financial planning should be developed among women investors.
For doing so, family and different social or educational institutions are the best root for
grooming up regarding investment planning so that unmarried women also become
encouraged equally even in relation to married women investors in New Delhi.

Thirdly, a healthy and regular savings and investment habits should have been increased.
But it may be only possible subject to the availability and facility given for micro,
medium or large type of investment schemes across different region. This is how, women
bearing different occupation specially the students can be motivated and hold an
investment culture.

Fourthly, organise of some savings and investment related seminar and workshops are
needed for increasing awareness. This is how investors having different age, occupation
and educational background may get investment avenues related information and also be
aware of interest to go for not only in physical assets but also in the financial assets.

Finally, awareness level of women investors regarding tax savings schemes is Moderate
in New Delhi. All kind of women investors especially service women can invest more in
tax savings schemes and also may feel secure to go for different tax saving schemes like
post office, bank, LIC, bond and mutual funds are available in India for decreasing her tax
liability. These will not only increase the individual income, it will increase the
government revenue also. So, financial education and its training will increase the
awareness level and the sources of information.

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 LIMITATIONS OF STUDY:-

1. Only women investors have been taken into consideration.

2. The study is confined only to Delhi.

3. The sample size is restricted to 100 hundred only.

4. Sample size is very small to generalize the findings all over the country

5. Mode of internship was online (work from home), poor data connectivity and technical
glitch during classes.

6. During internship, I hardly get 2 weeks’ time period to interact with industry experts and
know about the share market and the role of women and Awareness of women towards the
capital market.

7. Got the project topic at the end of the internship period most of the study has been done
through internet and books available on the various websites and research paper of other
researchers.

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 BIBLIOGRAPHY

Journals

Financial Literacy: Indian Scenario” Asian Journal of Research in Banking and Finance Vol.2
Issue 4, April 2012, ISSN 2249 7323

“Difference in Gender Attitude in Investment Decision Making in India” Research Journal of

Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 Vol 2, No 12, 2011
Unpublished Dissertations and thesis

“Why Do Women Invest Differently Than Men?” Vickie L. Bajtelsmit, Alexandra Bernasek,
Colorado State University

“Men engage in more overall risky behaviour than women” (2000) Zuckerman and Kuhlman

“A Survey of Financial Literacy among Students, Young Employees and the Retired in India”
(2012), Sobhesh Kumar Agarwalla

Books

IM Panday - Fnacial Mangement,Vikash Publishing House New Delhi

Research Methodology -Nagender Nargundakar

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 QUESTIONNAIRE

Name:
Age:
Occupation:
Qualification:

1. Are you aware of saving and investment concept?

Yes No

2. From which source you come to know about different investment options:

a) Broker b) Television/News Paper

c) Friend d) Other

3. What are the purposes of your investment?

a) Children’s education b) Financial security c) Tax deduction

d) Health care e) Retirement f) Regular source of income

4. What are the factors from the following which you think affect your investment
decision?

a) Stock market movements b) Changing price of gold

c) Government policies d) level of income

5. What portion of your income do you make use for investments?

a) 0-5% b) 5-10% c) 10-15% d) Above 15%

6. What do you think is the most important criteria for selecting a particular
investment avenue?

a) Past performance b) Profit/return c) Risk involved d) Others

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 7. Do you believe in the concept High Risk-High Returns?

a)Yes b) No

8. What amount of risk do you feel you have taken with your past financial decisions?

a) Very large b) Large c) Medium d) Small

e) Very small

9. Imagine that you have some money to invest and a choice of two investment
products, which option would you choose?

a) A product with a low average annual return but almost no risk of loss of the initial
amount

b) A product with a higher average annual return but some risk of losing part of the
initial investment

c) A mixture of the two products

10. Are you aware about the different tax benefits available?

a) Yes b) No c) Maybe

11. How soon do you expect to get the return on investments?

a) Within 1 year b) 1-3 years c) 3-5 years d)Above 5 years

12. How much satisfied are you with your current investment plan?

a) Highly satisfied b) Fairly satisfied c) Somewhat satisfied

d) Not satisfied

13. Do you wish to switch from your current investment plan for a better return?

a) Yes b) No c) Maybe

14. Consider the following investment options & state what percentage of your savings
you would like to invest on each?

a) Financial instruments
b) Equity shares/Debentures

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 c) Land/Property
d) Provident fund schemes
e) Bonds
f) Insurance policies
g) Fixed Deposits
h) Gold
i) Mutual funds
j) Post office schemes

15. Are you dependent on male member of your family for taking financial decision?

a) Yes b) No

9. what are the purposes of your investment?

Children’s education financial security tax deduction health care
Retirement regular source of income
10. what are the factors from the following which you think affect your investment decision?
Stock market movements changing price of gold government policies
level of income
11. what portion of your income do you make use for investments?
0-5% 5-10% 10-15% Above 15%
12. what do you think is the most important criteria for selecting a particular investment
avenue?
Past performance profit/return risk involved others
13. do you believe in the concept High Risk-High Returns?
Yes No
14. what amount of risk do you feel you have taken with your past financial decisions?
Very large large medium small very small
15. imagine that you have some money to invest and a choice of two investment products,
which option would you choose?
 A product with a low average annual return but almost no risk of loss of the initial
amount
 A product with a higher average annual return but some risk of losing part of the
initial investment
 A mixture of the two products
16. are you aware about the different tax benefits a

17. how soon do you expect to get the return on investments?

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Within 1 year 1-3 years 3-5 years Above 5 years
18. how much satisfied are you with your current investment plan?
Highly satisfied fairly satisfied somewhat satisfied not satisfied
19. do you wish to switch from your current investment plan for a better return?
Yes No Maybe
20. Consider the following investment options & state what percentage of your savings you
would
like to invest on each?
Financial instruments 5-10% 10-20% 20-30% More than 30%
Equity shares/Debentures

Land/Property

Provident fund schemes

Bonds

Insurance policies

Fixed Deposits

Gold

Mutual f

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 PLAGRISM REPORT

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