Chapter :- 3

LITERATURE
REVIEW
 REVIEW OF LITERATURE

A focused reading………
with a specific
Purpose

In his book, Gupta (1972) investigated the functioning of Indian stock exchanges and
made many suggestions to improve their functioning. the study It emphasizes the need to
regulate the amount of speculation to meet liquidity and price continuity requirements.
Suggest a convening company Sell securities simultaneously on multiple exchanges to
improve liquidity. The study also calls for keeping emissions costs low to protect a small
number of Investor

Gupta (1981) In a comprehensive study titled "Return on New Equity Issues," Gupta
(1981) asserts that the performance of newly issued equity shares, particularly those of
newly established companies, merits independent examination. The `fixed price‟ at which
new issues are issued is a significant factor influencing the rate of return on new issues to
the original buyers. Both capital growth and dividends are included in the return on equity.
This study looks at the variability of equity return rates over time and provides reliable
estimates of those rates.

An assessment of the investment decisions made by Indian investors is provided by

Jawaharlal (1992). He tried to learn about their knowledge of and familiarity with
financial information, as well as how much use they make of it. Many different types of
individual investors find that the information provided by the companies is generally
insufficient to meet their needs, and there is a general perception that the .Their reaction to
the company's annual report and other statements is negative.

In 1992, Nabhi Kumar Jain provided specific advice on both purchasing and selling
shares. He suggested that the investors purchase stock in a developing business within a
developing sector. Purchase shares by spreading your investment across several expanding
businesses that are involved in various but similarly rapidly expanding economic sectors.
He recommended selling the stock as soon as the business reaches or nearly reaches its
growth peak. Additionally, as soon as you realize you
 have Made a mistake when choosing the shares at first. The only way to determine
when to purchase and sell expensive shares is to evaluate each share in the portfolio
separately to determine its merits and demerits before making a decision.

According to Raco (2019), research this. Relationship between students' economic

level Literacy, gender identity, and education It requires not only experience and
knowledge, but also regulations. Guarantees and investment success, finance advice, risk,
tax planning, stock market valuation, Business computing, diversification, investment It
was available worldwide and borrowing costs were minimal. Some of the topics included
in the survey employed by researchers. researchers draw The conclusion is that this does
not apply to most college students. Knowledgeable about personal investing and finance
Topics such as market capitalization, International trade, the impact of change Interest and
tax calculation and planning. Also, as a result, women Students had much lower
comprehension than men. Regarding personal investment, students and This is especially
true when it comes to shared values. business mathematics, fund manager profitability,
Especially international trade.

. According to Areiqat (2019), Compared to married men, single women

Significantly improved risk avoidance in the manufacturing industry Financial and
Financial Decisions. Previous research On the theme of gender and risk aversion Already
showing contradictory results. regardless of It is widely believed that women tend to have
much less of it. It's adventurous that the man did some tests Since the 1980s, women have
realized that it really is. They take just as many risks as men. as As a result, women and
men often break up Investment decisions. Looking at the investment amount The report on
men and women shows that they are men. have a much larger share Women have a lot of
property, but they make a lot of speculative investments. Higher proportion of risky assets.

According to Shirarahi (2020) “Prime Investors”. The concern is over the exercise of
control. Investor behavior is Authority from multiple behavioral experts. dealer Who will
act quickly and effectively, and who will act quickly and effectively? It will be great if you
continue to pay attention to their portfolio. It has a huge impact on their financial future.
many Research shows that women invest their money more They are more cautious and
cautious than men. of Research shows that women typically invest in the following ways:
They have lower strategic demands than men. common things A theory that can explain
these results is as follows. Women pose a threat and are now more dangerous than men.
lower socio-economic and social status; Research shows they face bigger problems For
example, employment-related risks It is not reflected in the amount of stock held. in In
general, studies have found that it is women Investors choose less risky portfolios.
Investment practices suggest women were doing this very strong aversion to investing
load.

Pyare Lal Singh (1993) in his study titled “Indian Capital Market – Functional
Analysis” presents the primary market as a permanent source of supply. Moderate. It
mobilizes savings from different economic sectors such as households, public and private
business sectors. number of investors From 2 million in 1980 to 15 million in 1990 (7.5
times). When financing project costs for companies with different funding sources The
share of securities increased from 35.01% in 1981 to 52.94% in 1989. The percentage of

the total amount of issued securities is the percentage of corporate bonds/ Bonds have
increased significantly over the past few years, from 16.21% to 30.14%.

L.C.Gupta (1992) found that there is wild speculation in the Indian stock market.
overly speculative personality The Indian stock market reflects a very high concentration
of the market. Extremely high trading speed on speculative counters, operating with a
small number of stocks while ignoring the rest. What he wanted to say was Excessive
short-term speculation can lead to ``artificial prices.'' Artificial prices are prices that are
not justified by expected profits, dividends, etc. Financial power and assets, or those
brought about by speculators through rumors, manipulation, etc. He concluded that such
artificial prices are linked As history has proven time and time again, it will eventually fall
apart.

Metawa (2018) summarizes this. A study comparing male and female investors We tried
to match in terms of taking risks. There is a consensus on why women invest differently.
Women are found to be more hesitant Decision-makers as a whole, this is especially true
As shown, when it comes to money decisions both through laboratory and real-world
research.

Sunil Damodar (1993) evaluated 'derivatives', especially 'futures', as tools for short-
term risk management. Derivatives have become one, he said. It is an essential tool for
financial managers whose primary goal is to manage or reduce risks associated with their
portfolios. he announced that he would overwrite The special thing about "financial
futures" in risk management is that these instruments are usually most valuable when
short-term risk management is required, i.e., when short-term risk management is required.
H.For one thing years or less. These are usually the cheapest and easiest to use to defend
or profit from. short-term price. Low execution costs also make it highly suitable for
frequent short-term trading for more effective risk management. R. Venkataramani (1994)
identified the uses and dangers of derivatives. If the derivative product has any effect, it
may lead to a dangerous situation not clearly understood. Being off-balance sheet
products, derivative products are traded more than spot market products, and as a result,
derivative products are suffering. Especially because of their sensitive nature. He drew
investors' attention to "over-the-counter" (OTC) products traded on a. Bank. OTC products
(such as options and futures) are tailored to a customer's specific needs and act as the
perfect hedge. he emphasized the use of Futures as a hedging instrument because they are
cost-effective.