© 2019 IJRAR June 2019, Volume 6, Issue 2 www.ijrar.

org (E-ISSN 2348-1269, P- ISSN 2349-5138)

A Study on The Problems Faced By Investors

Towards Online Share Trading
R.SHIJI1 S.JEEVITHA PRIYA2
1. R. Shiji, Assistant professor, Department of B.Com (AF) & B.Com (BA), PSGR Krishnammal
College for Women.
2. S.Jeevitha Priya2, III B.Com A&F, PSGR Krishnammal College for Women.

ABSTRACT

Online share trading may include trading in bonds, stocks, shares, on online method. This paper
investigated investors problems faced by the investors. The technical problems faced by the investors
while trading shares through online using were analysed percentage analysis. Primary data were collected
from the respondents through the structured questionnaire. Simple percentage analysis is the tool which is
used for this study. From this study we conclude that the problems which can be faced by our investors
could be solved.

Keywords : Online trading, Problems, Investors

I.INTRODUCTION

Online trading involves investment activity takes place over the internet and it does not require physical
presence of the broker. An investor must register with an online trading portal for doing online trading. Investors
get into agreement with the firm to trade in different activities per the terms and conditions given on the
agreement. Online trading allows you to check out the status of your orders either through the interface cannot be
accessed by a third party. Online trading also gives the options like to link their bank account, Demat account into
single interface.

OBJECTIVE OF THE STUDY

The main objective of the study is to know about the problems faced by investors towards online share
trading.

ADVANTAGES OF THE STUDY

 One of the advantages of online trading is the reduction in transaction costs and high fees associated with
traditional mortgage firms.
 Time is often of the essence when you trade stocks, so the speed of using online trading portal is a benefit
to many investors.
 It is very easy for people to see how their investments are doing in real time.
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 It is providing valuable information and helping optimize traders.

DISADVANTAGES OF THE STUDY

 Easier to invest too much too fast.

 No personal relationship with brokers.
 It is the internet connection is too slow or it is interrupted you can lose out on a potentially important.
 Online trading to simply assume a trade was not completed can cost you money.

SCOPE OF THE STUDY

Online trading has become big business and the internet has helped many business achieve a great goal of
success.

II.REVIEW OF LITERATURE
Panda et al. (2011): He revealed that majority of investors depend on newspapers as the source of information.
Mostly people who invested in shares they were ranked financial journals and business magazines next to
newspapers. Many investors believed they were not able to get the required information from the company in time.
Many investors were found to face problems while selling securities.

Kasisomayajula (2012): He found that many investors are facing problems for trading in stock market due to lack
of information of stock market. Investors are more founded to invest their money in post office schemes, banks
etc. and they are very confined towards share trading.

Abdul Rahim (2013): Analysed the problems and prospects of online share trading practices in India and found
that the main benefit derived out of online share trading is wider choice followed by better value and source of
information. Results also revealed that inadequate technology is the major problems faced by online share traders
followed by lack of professional management.

Prabakaran (2017): Found that all investors considered other relevant information in relating to share market
before entering the online share trading. The higher income people make the investment in shares via online
trading, because that they knew the all kinds of information as well as facing their risk.

III. RESEARCH METHODOLOGY

TOOLS USED FOR ANALYSIS

 SIMPLE PERCENTAGE METHOD

Percentage Analysis is carried out for all the questions specified in the questionnaire. This
analysis illustrated the classification of respondents falling under each category Diagrams and charts depicted
are in support of the analysis.

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IV. FINDINGS OF THE STUDY

Type of investors

Cumulative
Frequency Percent Valid Percent Percent

Valid Hereditary investor 32 32.0 32.0 32.0

New generation investor 68 68.0 68.0 100.0

Total 100 100.0 100.0

INTERPRETATION
The above table represents the type of investors of the respondents among that, majority (68%) of the
respondents are new generation investor and 32% of the respondents are hereditary investor.

Size of investment

Cumulative
Frequency Percent Valid Percent Percent

Valid Below Rs.1 lakh 32 32.0 32.0 32.0

Rs.1 lakh-Rs.2 lakh 46 46.0 46.0 78.0

Rs.2 lakh- Rs.3 lakh 6 6.0 6.0 84.0

Above Rs. 3 Lakh 16 16.0 16.0 100.0

Total 100 100.0 100.0

INTERPRETATION
The above table represents the size of investments of the respondents among that, majority (46%) of the
respondents are invest Rs.1 lakh-Rs.2 lakh, 32% of the respondents are invest below Rs. 1 lakh, 16% of the
respondents are invest above Rs.3 lakh and 6% of the respondents are invest Rs.2 lakh-Rs.3 lakh.

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PROBLEMS FACED BY THE INVESTORS

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INTERPRETATION

Items Strongly Agree Neutral Disagree Strongly

S.no agree disagree
Freq % Freq % Freq % Freq % Freq %
1. Too much of debt on 30 30 56 56 13 13 1 1 0 0
trading
2. Insufficient economic 20 20 56 56 22 22 2 2 0 0
growth to service that debt
3. Too many functionally 26 26 30 30 36 36 8 8 0 0
insolvent banks
4. Effect of politicians in 22 22 48 48 20 20 10 10 0 0
online share trading
5. Poor investment skills of 30 30 32 32 30 30 4 4 4 4
investors in trading
6. High market volatility 22 22 42 42 26 26 6 6 4 4

7. Lack of capital for 32 32 32 32 30 30 4 4 2 2

investment
8. Lack of market knowledge 32 32 30 30 26 26 12 12 0 0
for investing in online share
trading
9. Stock market crashes 30 30 42 42 16 16 8 8 4 4

10. Loss of money due to 22 22 30 30 26 26 12 12 10 10

unknowing factors about
online share trading
 Majority of the respondents are agreed with the problems of debt on trading, insufficient economic growth,
effect of politicians, poor investment skills, high market volatility, lack of capital investments, stock
market crashes, loss of money due to unknowing factors in online share trading.
 The respondents are strongly agree with the problems of lack of capital investments and lack of market
knowledge.
 The respondents are neutrally agreed with the problem of insolvent banks.

V. CONCLUSION
Based on the findings of the study quite a few practical and productive suggestions have been offered. If
their suggestions of the study are appropriately taken into consideration by concerned authorities and investors
satisfaction on online share trading system in the study area would be undoubtedly improved and stock market
growth and our country’s economic development would ultimately also be achieved.

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REFERENCES
 Panda et al (2011) "A study on the problems faced by imvestors towards online share trading",
International Journal of Management Reviews 13 (2), 199-217, 2011.
 Kasisomayajula (2012) "A study on the problems faced by imvestors towards online share trading,"

Kasisomayajula (2012), study was to understand the working of … January 2006 Volume 5, Number 1 55.

 Abdul Rahim (2013)"A study on the problems faced by imvestors towards online share trading,"
International Journal of Marketing, Financial Services& Management Research, ISSN-2277-3622,
Volume-2, No.4 (April 2013) by Dr.A.Abdul Rahim.
 Prabakaran (2017) "A study on the problems faced by imvestors towards online share trading," Prabakaran,
V., (2017). A Study on Factors Influencing the Intention to Online Share Trading, International Journal of
Recent Research and Applied Studies, Vol. 4, No.4 (29), April, pp. 120 - 126.

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