“A COMPARITIVE STUDY OF CONSUMER BEHAVIOUR TOWARDS INVESTMENT STRATEGIES OF ANGEL BROKING”

Object Required

ANGEL BROKING

Principle

MARKETING MANAGENMENT

Theory

Introduction

          What is trading?

The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades.

This was time consuming and inefficient. This imposed limits on trading volumes and efficiency.

In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fully automated screen based trading system (SBTS) where a member can punch into the computer quantities of securities and the prices at which he  likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party.

SBTS electronically matches orders on a strict price/time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. It enables market participants, irrespective of their geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the market.

It provides full anonymity by accepting orders, big or small, from members without revealing their identity, thus providing equal access to everybody. It also provides a perfect audit trail, which helps to resolve disputes by logging in the trade execution process in entirety. This sucked liquidity from other exchanges and in the very first year of its operation, NSE became the leading stock exchange in the country, impacting the fortunes of other exchanges and forcing them to adopt SBTS also. Today India can boast that almost 100% trading take place through electronic order matching.Technology was used to carry the trading platform from the trading hall of stock exchanges to the premises of brokers. NSE carried the trading platform further to the PCs at the residence of investors through the Internet and to handheld devices through WAP for convenience of mobile investors. This made a huge difference in terms of equal access to investors in a geographically vast country like India.The trading system operates on a strict price time priority. All orders received on the system are sorted with the best priced order getting the first priority for matching i.e., the best buy orders match with the best sell order. Similar priced orders are sorted on time priority basis, i.e. the one that came in early gets priority over the later one. Orders are matched automatically by the computer keeping the system transparent, objective and fair. Where an order does not find a match, it remains in the system and is displayed to the whole market, till a fresh order comes in or the earlier order is cancelled or modified. The trading system provides tremendous flexibility to the users in terms of kinds of orders that can be placed on the system. Several time -related (immediate or cancel), price-related (buy/sell limit and stop loss orders) or volume related (Disclosed Quantity) conditions can be easily built into an order. The trading system also provides complete market information on-line. The market screens at any point of time provide complete information on total order depth in a security, the five best buys and sells available in the market, the quantity traded during the day in that security, the high and the low, the last traded price, etc. Investors can also know the fate of the orders almost as soon as they are placed with the trading members. Thus the NEAT system provides an Open Electronic Consolidated Limit Order Book (OECLOB).Limit orders are orders to buy or sell shares at a stated quantity and stated price. If the price quantity conditions do not match, the limit order will not be executed. The term ‘limit order book’ refers to the fact that only limit orders are stored in the book and all market orders are crossed against the limit orders sitting in the book. Since the order book is visible to all market participants, it is termed as an ‘Open Book’.

CORPORATE HIERARCHY

The trading member has the facility of defining a hierarchy amongst its users

of the NEAT system. This hierarchy comprises:

Corporate Manager

Conclusion

Conclusion should be drawn with direct reference to the objective of the study. This project is directed towards the effectiveness of knowing the fact about risk return. The overall effectiveness depends upon the interaction with the people. A communication system is necessary to maintain the uniformity an d balance in the flow of information within the company. Now – a – days, the trading stock exchange is growing rapidly. For the past two decades, Angel Broking have been working hard to bring to the reach of the retail investors, the opportunities of wealth creation presented by the financial markets. So, people are keen to become a part of this broking house and investing amount in it. A large number of clients are satisfied and are happily trading with Angel Broking. SUGGESTIONS:  Although Angel Broking hold a major share yet they need to emphasize on their marketing strategies to make the consumer aware more and more about their latest Services and updates.  Service should be Provide easyness to the customers.  So, more service Branch should be offered..  Better offers can be made to attract the customers off season demand..  Company should provide extra Services like Trading Note through Courier. Large advertisement board is suggested. BIBLIOGRAPHY BIBLIOGRAPHY BOOKS • Investment Analysis and portfolio Management(I.M. PANDEY) • “Financial Institutions and Markets” (L.M.Bhole Tata Mc Graw-Hill Publishing Company Limited) • RESEARCH METHODOLOGY(C.R. KOTHARI) • RESEARCH METHODOLOGY(G.C BERI) NEWSPAPERS • Business Standard • Business Times • Economic Times INTERNET • www.reliancemoney.com • www.nseindia.com • www.bseindia.com • www.indiabulls.com • www.kotaksecurities.com • www.motilaloswal.com • www.icicidirect.com • www.traderji.com • www.religaresecurities.com • www.demataccount.com • www.angel.com • www.birla QUESTIONNAIRE QUESTIONNAIRE 1.Are you aware about the derivatives market in India (a) yes (b) no (c) Don’t know 2. Do you agree that the derivative market operates as an anti-risk mechanism in the stock market? (a)Strongly Agree (b) Agree (c) Neutral (d)Disagree (e)Strongly Disagree 3. What according to you are the prominent limitations for the operation of derivatives in the Indian Stock Market? (a)Lack of transparency (b) inadequate infrastructure (c) both I and II (d)Do not Know 4. What are the factors that are driving the growth of financial derivatives in the Indian equity market? (a) Increased vitality in asset Price in financial market (b) Increased integration of national financial market (c) Market improvement in communication facilities and sharp decline in their cost (d) Development of more sophisticated risk management tools, providing economic agents a wider choice of risk management strategies (e) Innovations in the derivatives markets 5.Are you aware about the regulatory role played by SEBI in the derivative market in India? (a) yes (b) no (c) Don’t know 6.Do you agree that risk factors are inherent in the financial instrument of Derivatives? (a)Strongly Agree (b) Agree (c) Neutral (d)Disagree (e)Strongly Disagree 7. Which according to you is the most potential risk threat in the Derivatives market? (a) Credit Risk (b) Market risk (c)Legal risk (d)Operation Risk (e) other Risk. 8.Do you agree that the risk management system existing in your financial institution is potential enough to deal with all types of risks associated with Derivatives management? (a)Strongly Agree (b) Agree (c) Neutral (d)Disagree (e)Strongly Disagree 9. Do you agree that foreign exchange derivatives are more volatile to risk factors? (a)Strongly Agree (b) Agree (c) Neutral (d)Disagree (e)Strongly Disagree 10.What measures would you suggest to minimize the risk associated with Derivatives? You can choose more than one option (a)future exchange (b) Asset and Liability Driven Transactions (c) Through a suitable Derivative Policy(d) Other measures (e) Do not know 11. If you prefer online Trading then the reasons for it? (i) Privacy (ii) User friendly & Time Saving (iii) Convenience (IV) All The Above 12. Which Brokerage Firm do you prefer for Online Trading? (i) ICICI Direct (ii) Angel (iii) India bulls (iv) Kotak Securities (v)Any other 13.Do you invest to get tax deduct

Published Date

29 May, 2018