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Finance Management | "Investors' Perception on Investment Alternatives and Online Stock Broking Service"

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Investors' Perception on Investment Alternatives and Online Stock Broking Service

- by Dr. V. V. S. K. Prasad *

Page - 1

A stock broker is a qualified and regulated professional who buys and sells shares and other securities through market makers on behalf of investors. In its efforts to modernize the markets in the country, the SEBI has taken the steps to lay foundation for internet based trading in India.

In the olden days there were only few investment avenues for prospective investors. But to day galore of investment alternatives are available for the investors. Therefore the investors are in dilemma to choose the best investment alternative suitable to their requirements viz., return, risk, growth, tax savings etc.,

In the advent of information technology stocks can be traded on internet also. In the Indian context online trading can be rightly called as a recent phenomenon, which took root with the change of century that is April, 2000, and even till date online trading is not much popular among investors for which a list of factors can be blamed.

Hence, the present paper is undertaken with a view to examine the perception of the investors and their awareness on various investment alternatives available today, and how much interest they show on internet stock trading as against to traditional system.

Objectives of the Study

The present paper focuses on the following objectives:

  • To review the literature on online stock broking services
  • To examine on various financial services offered by the companies
  • To evaluate the quality of online stock broking services
  • To study investors perception on the online / internet financial services delivery system
  • Review of Literature

    In the Indian context online trading can be rightly called as a recent phenomenon, which took root with the change of century i.e. April, 2000, and even till date online trading is not much popular among investors for which a list of factors can be blamed.

    This fact is more clear from the information available that where number of stock exchanges in India have grown from 7 exchanges in 1946 to total 23 stock exchanges till 2005. Only 2 stock exchanges are providing online share trading. Indian stock exchanges have started adopting technology because it proves the necessary impetus for the organization to retain its competitive edge and ensure timelines and satisfaction in customer services.





    Dr. V. V. S. K. Prasad holds B.Com. from Andhra University, M.Com. (Accounting & Finance) from Acharya Nagarjuna University and MBA (Finance) from Ambedkar Open University. He also finished his Doctoral Research on "Leadership Styles & Organizational Effectiveness" from Ranchi University in 1992. Since then, he has been in teaching profession. He is currently serving as Professor MBA at The Hindu College, Machilipatnam.

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