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Analysis & Discussion

In their study Nidhi Walia and Ravindra Kumar (2007) found that although technology is bringing boom in Indian economy still majority of people have not realized the importance of technology particularly in stock trading as it was evident from the data that out of total sample of 100 investors just 28% were trading online.
Thus while designing the questionnaire an attempt was made to find out the reasons and problems, which are hindering the growth of online trading. For this purpose responses of NT and TT were recoded separately on 3 point Lickert Scale. As TT has never tried online trading, they were asked to give their opinion (NT - Net Traders, TT - Traditional Traders). As they perceive problems, which can encounter online trading. Results of the study show that most of the investors both NT and TT agree that online technology is more prone to failure because for this trading process, the kind of technology and communication network require are not available in our country. However, it was also found that some of the TT have misconception about online trading that this trading process lacks transparency and leads to an increase in transaction cost. Responses given by NT reveal that the major problems indicated by them is that this system still require more advanced technologies which provides security along with authenticity. In this regard 75% NT admitted that online trading in India requires strong technology base. On major problem indicated by TT is that they don't participate in net trading because there is a risk of system failure (approximately 95.31% TT admitted to this fact) Concluding results show that NT who are using online stock trading are not facing acute problem in it but TT feel that online trading is not an accurate process of stock trading.

Almost same type of results with some variations were found in this study which was conducted at twin cities of Hyderabad and Secunderabad of Andhra Pradesh.

Conclusions

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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.