Abstract
A Study on the Issues and Challenges in Online Share Trading – The stock exchange is one among the gripping determinants of the economy and plays a main role within the country’s financial state. In today’s dynamic environment billion of people are connected to the Internet and Indian stock market has also witnessed these changes. The use of online trading increased dramatically within the mid- too late-’90s with the introduction of affordable high-speed computers and internet connections. Online share trading generally requires an online trading platform offered by most online brokers for order execution. This research investigated the challenges faced by the investors in online share trading. Majority of the investors faced the problem of insufficient information and technical problems during online share trading. Primary data were collected from the respondents through the structured questionnaire with the sample of 178 investors. Data collected have been analyzed and tested using SPSS. From this research we conclude that there are lots challenges but that can be solved by a successful implementation of online share trading.
Online Share Trading Definition
Online trading is simply buying and selling assets through a brokerage’s internet based proprietary trading platforms. The use of online trading increased dramatically in the mid- too late-’90s with the introduction of affordable high-speed computers and internet connections. Stocks, bonds, mutual funds, ETFs, options, futures, and currencies can all be traded online. Also known as e-trading or self directed investing.
Features of Online Share Trading
Research
The first and foremost decision for any trader lies in the research work. Research may be categorized in two parts, one lies for the pre-investment research that involves choosing an appropriate brokerage firm such as those at CMC Markets, and other lies in the trading techniques research basics. For any online trader it is important to get through through research so as to get a sheer brokerage firm. Also, before buying and selling of any share it is important to go for nice research work about the profile of the company’s shares and its potential growth.
Online Brokerage
The advent of technology has won people’s heart. Most of the businesses have shifted online and so has the stock market. Hence, online brokerage has also come into existence. For any trader who seeks to trade online has wide choice regarding share brokerage firm. Most of the companies are providing discounted brokerages with due effect of competition.
Convenient and Overwhelming
It is generally convenient and overwhelming as they carry certain features along with them. The feature of welcoming offers and comfort always come in sheer packages with online trading one can trade sitting at home or office according to convenience. Also, the increased competition has bent the market trends towards customer’s favor, providing luring offers to them.
Advantages of Online Share Trading
Convenient
First and foremost, anything that can be done online will make your life convenient. When it comes to online trading, you will only have to open a trading account using the Internet and you can then start trading. There is no need to visit the bank or call an agent for the same. As long as you have an internet connection and an online account, you are good to go. Online trading is super convenient and there is no hassle, as it saves your time and efforts.
It Is Cheaper
In online stock trading, the stock broker fee which you will have to pay is lower when compared to the commission charged by traditional method. If you trade in a sufficiently large volume of stocks, it is possible for you to be able to negotiate your broker’s fees.
You Can Monitor Your Investments Anytime
Online trading allows you to buy or sell shares according to your convenience. It offers advanced interfaces and the ability for investors to see how their money is performing throughout the day. You can use your phone or your computer to evaluate your profit or loss.
Disadvantages of Online Share Trading
Technical Problems
Online trading platform are only as good as the underlying servers and software. High volumes on volatile trading days can slow processing speeds and information flow. You could incur substantial losses if you couldn’t place the required buy and sell orders, especially in fast-moving markets. Software bugs can lead to delays in getting price quotes and information on order status. This also could result in trading losses, because you might enter orders based on incorrect price quotes or delayed order-execution reports. Investors depend on Internet and cellular service providers for researching information and placing trades. If these Internet access points malfunctioned, you would not be able to receive timely information or place critical trades.
Feedback Mechanism
Online trading means that you are your own investment manager, but this independence comes at a price. You do not have the benefit of a professional feedback loop, such as a reliable sounding board for your investment decisions. Online brokers typically do not provide buy-sell recommendations. You have to set aside time for research, such as reviewing financial statements on corporate investor relations websites and price charts on financial websites. You should consider mutual funds, which offer professional management and diversification at a reasonable cost, if you do not have the time for adequate due diligence
Considerations
You should have a backup Internet connection at your workplace or at a public library in case your service provider is experiencing problems. Do not call a discount broker during regular hours for administrative actions, such as transferring positions between accounts. Avoid placing market orders in fast-moving markets, because these orders could be filled at unfavourable prices. Review publicly available information on different brokers, including comments on service levels and features, before opening an online account.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
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