STUDENT DECLARATION

I SHASHANTH PRASAD hereby declare that, this dissertation title “A

STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING
FIRMS.” is based on original project, original study conducted by me, under
the guidance of Dr. MAHESH KUMAR K.R of department of Commerce
APS College of Commerce. Further, I declare that, this report has not been
submitted earlier for the award of any Degree or Diploma of Bengaluru
Central University or any other University in India or outside India.

Place: BENGALURU SHASHANTH PRASAD

Date: (REG NO: CM190034)
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my guide Dr.

MAHESH KUMAR K.R. as well as our principal Dr. Parmeshwar and our
coordinator Dr. B.S Sudha who gave me the golden opportunity to do this
wonderful project on the topic “A STUDY ON COMPARATIVE ANALYSIS
OF STOCK BROKING FIRMS.”, which also helped me in doing a lot of
research and I came to know about so many new concepts. I am really thankful
to all of them.
Secondly, I would also like to thank my parents, family and friends who helped
me a lot in finalizing this project within the limited time frame.
 TABLE OF CONTENT

SL.NO CHAPTERS PAGE.NO

1 INTRODUCTION 1-34

2 LITRATURE REVIEW 35-41

3 COMPANY PROFILE 36-68

4 DATA ANALYSIS AND 69-88

INTERPRETATION
5 CONCLUSION AND FINDINGS 89-93

BIBILIOGRAPHY 94

ANNEXURE 96
 LIST OF TABLES
TABLE PAGE
NO TABLE NAME NO
1.1 WHAT IS STOCK? 03
1.2 ADVANTAGES OF STOCK 08
1.3 STOCK EXCHANGE OF INDIA 12
1.4 OBJECTIVES OF SEBI 23
2.1 LITRATURE REVIEW 36
2.2 RESEARCH OBJECTIVES 39
2.3 DATA COLLECTION 40
2.4 LIMITATIONS 41
WORK STRUCTURE OF SHARE
3.1 KHAN 44
SERVICES PROVIDED BY SHARE
3.2 KHAN 45
REASONS TO CHOOSE SHARE
3.3 KHAN 51
3.4 BRANCHES ALL OVER INDIA 54
3.5 SWOT ANALYSIS 55
Comparative analysis of zerodha
3.6 and sharekhan 70
AWARENESS ABOUT SHARE
4.1 MARKET 79
4.2 PURPOSE OF INVESTMENT 81
SOURCE OF NEWS ABOUT
4.3 BROCKING FIRM 83
HIERACHY LEVEL OF BROCKING
4.4 FIRM 86
5.1 OBSERVATION 90
5.2 FINDINGS 91
5.3 SUGGESTION 92
6.1 BIBILIOGRAPHY 94
6.2 ANNEXURE 96
A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

CHAPTER-1

INTRODUCTION

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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

ABSTRACT

A stock brokerage is an investment services company that is primarily involved in the business of
buying and selling stocks and other financial securities on behalf of its clients in return fora fees
or commission. The industry operates under close government regulations that aim to protect the
investing public. A stock brokerage may not open for business without filing for appropriate
registrations and obtaining certain memberships. A stock brokerage may focus on different
investment services and clients. It must also be able to provide a wide range of security information
to clients for investment research and trade selections. As per Section 65(93) of Finance Act, 1994
“Stock-broker” means a person, who has either made an application for registration or is registered
as a stock broker, in accordance with the rules and regulations made under the Securities and
Exchange Board of India Act, 1992. A retail brokerage serves only individual investors, whereas
an institutional brokerage has the capacity to handle large order flows from institutional investors
such as mutual funds. The objectives of the study are to study the investor’s perception regarding
investment in stock market and to study the investor’s behaviour toward market trend on his
investment. To study the comparison of broking firms in terms of service provided by them to the
investors.
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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

What is stock?

The word stock simply refers to a supply. You may have a stock of T-shirts in your closet of a
stock of pencils in your desk, In the financial market, stock refers to a supply of money that a
company has raised. This supply comes from people who have given the company money in the
hope that the company will make their money grow. A market is a public place where things are
bought and sold. The term "stock market" refers to the business of buying and selling stock.

Or

"Stock Market" is a term that is used to refer both to the physical location for buying and selling
stocks, and to the overall activity of the market within a certain country. When you bear The, stock
market was down today," it refers to the combined activity of many stock exchanges The correct
term for the physical location for trading stocks is the "Stock Exchange A country may have many
different stock exchanges Usually a particular company's stocks are traded on only exchange.
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although large corporations may be listed in several

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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

Why companies issue stock?

If a company wants to grow-maybe build more factories, hire more people, or develop new
products-it needs money. It could get a loan from a bank. But then it would owe money. By issuing
stock, a company can raise money without going into debt. People who buy the stock are giving
the company the money it needs to grow. Not every company can issue stock. A business owned
by one person (a proprietorship) or a few people (a partnership) cannot issue stock. Only a business
corporation can issue stock A corporation has a special legal status. Like a school, its existence
does not depend on the people who run it. Under the law it is separate from the people associated
with it, and has special legal rights and are responsibilities as well as its own unique name And
Why People Buy It. Owning stock in a company means owing part of that company Each part is
known as a share. If a company has issued 100 shares of stock, and we bought one we own 1% of
that company People who own stock are called stockholders or shareholders. Stockholder hope the
company will can money as it grows. If a company earns money. the stockholders share the profit
over time, people usually earn more from owning stock than leaving money in the bank. Buying
bonds making other investments.
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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

WHY DO INVESTORS BUY STOCKS?

Generally, investors buy stocks because they believe that the company will continue to grow and
thus the value of the stock will rise too .Buying the stocks of already well-known companies is
relatively safe, but investors who acquire stock in a new company are facing a much more
substantial risk, but they have much more to gain too For instance, those people who bought
Microsoft shares in the 80s and kept them for a long time saw an exponential rise in their value-
something most investors only dream of.

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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

How Do You Buy Shares of Stock?

1. Decide whether to go through an online brokerage firm or through a face-to-face broker.

2. After evaluating a stock, decide the prices you'd like to purchase at, so you know whether to make
a "market" or "limited" order.
3. To save on broker fees, you can buy some stocks directly from the company.

10 Great Ways to Learn Stock Trading as a New Investor

New investors taking their first steps towards learning the basics of stock trading should
have access to multiple sources of quality education. Just like riding a bike, trial and error coupled
with the ability to keep pressing forth will eventually lead to success.

 Open a stock broker account

 Read books
 Read articles
 Find a mentor
 Study the greats

 Read and follow the market

 Consider paid subscriptions
 Go to seminars, take classes
 Buy your first recaps

 stock or practice trading through a simulator

 Passive Index and follow Warren Buffett
 Sign up for our free Sunday market
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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

WHAT IF IT ISN'T LISTED ON AN EXCHANGE?

Buying partial ownership in a smaller company can still be done of course, but that will be entirely
different kind of investment, one that has nothing to do with stocks. These types of investment are
much less liquid and are much riskier. This is called a "Private Placement" while stock on an
exchange is called "Publicly Traded"

Theoretically, publicly traded stock provides more protection because the transaction is monitored
by the Securities and Exchange board of India (SEBI). Because publicly traded stocks must be
traded on a stock exchange, an individual investor always needs a broker who makes transactions
for him. Basically, brokers are people who take orders to buy or sell a certain stock in exchange
for a small commission on the sale. (In other words, they are just glorified sales people) Stock
orders may include instructions to buy or sell stock at a certain price (Limit orders) or simply to
trade them for whatever the present price is (market orders). When the order arrives to a broker,
he executes it (or rather, tries to execute it) by finding a buyer or seller willing to trade for the
ordered price. As you probably see, the other side of transactions is represented by another broker
acting on some instructions, 100
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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

ADVANTAGES OF STOCKS

Stocks have several advantages over savings investments. Since each share equals partial
ownership in a company, they give the holder some influence over every major decision the
company faces. The decisions are made on one share one vote basis and shareholders are often
asked to vote on all important decisions that
company is to make.

What is more, being a shareholder entitles you to

take part in any profits the company makes.
They are issued as a dividend once or twice a
year, depending on the decision made by company
the directors. As the company grows the value of the stock rises and the profits distribution along
with that.

When the company suffers losses, you aren't asked to give anything in, but the value of the stocks
you have will almost surely fall. If you compare the stocks with classical savings investments like
bonds, bank certificates of deposit etc, you will quickly notice that they have greater potential to
cam more money quickly but they are much riskier investment. as the chances of loss is real
However if you know your share about how the stock market works and what the various
investment strategies are, you can minimize losses. Most investors find out that they do much
better business on the stock market than would be ever possible with any kind of savings
investment.
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 A STUDY ON COMPARATIVE ANALYSIS OF STOCK BROKING FIRM

One Man, 5,000 Votes?

Stockholders in a company usually have voting rights. They vote on such issues as who will be
elected to the board of directors-the group of people who oversee company decisions and whether
to buy other companies. Stockholders typically have one vote for each share they own. Every vote,
counts but a stockholder with 5,000 shares will have more influence on the company than someone
with only one share Most companies have annual meetings, where stockholders cast votes and ask
questions of the company's leaders. If they cannot attend, stockholders may use an absentee ballot
to vote. Shareholders also receive quarterly and annual reports that tell them how the company is
doing

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