APPENDIX A INVESTORS ATTITUDE TOWARDS STOCK MARKET: A STUDY WITH REFERENCE TO MADURAI CITY QUESTIONNAIRE. a) Male b) Female

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1 APPENDIX A INVESTORS ATTITUDE TOWARDS STOCK MARKET: A STUDY WITH REFERENCE TO MADURAI CITY I. Personal Profile QUESTIONNAIRE 1. Name : 2. Gender a) Male b) Female 3. Age a) Below 2 years b) 26 3 years c) 36 4 years d) 46 years e) Above 6 years 4. Educational Qualification a) School level b) Graduate c) Post graduate d) Professional. Occupation a) Agriculture b) Business c) Government Employee d) Private Employee e) Professional 6. Marital status a) Married b) Unmarried 7. Type of the family a) Joint family b) Nuclear family 21

2 8. Monthly Income a) Up to Rs 20,000 b) Rs 20, 001 to Rs 30, 000 c) Rs 30, 001 to Rs 40, 000 d) Rs 40, 001to Rs 0, 000 e) Above Rs 0, Annual Savings in General a) Up to Rs 0, 000 b) Rs 0,001 to Rs 1, 00, 000 c) Rs 1, 00, 001 to Rs 2, 00, 000 d) Above Rs 2, 00, Please indicate the various types of investments other than stock market a) Recurring deposit b) Fixed deposit c) Chit funds d) Mutual funds e) Gold/Silver f) PPF II Information Related to Stock Market 2.1Type of Investor a) Hereditary investor b) New generation investor 2.2Nature of Investor a) Regular b) One time investor c) Occasional d) At the time of boom and depression in the market 2.3 Source of funds for investment a) Out of income b) Pledging jewels c) Disposal of securities d) Retirement benefit received e) Borrowings 22

3 2.4Number of years in stock trading a) Below one year b) Two to three years c) Four to five years d) Above six years 2. Category of stock trading in the stock market a) Aggressive trader b) Speculative trader c) Passive trader 2.6 Which way you to get share from a) Primary market b) Secondary market c) Both 2.7Sources of information about stock market a) Personal experience b) Brokers/Agents c) Friends d) Newspapers/Magazines e) Financial consultants f) Internet/TV 2.8 Before investing in the stock market do you seek information from? a) Friends b) Stock brokers c) Internet d) Newspapers/Magazines e) Stock market related TV channels 2.9 Reasons for participating in stock market [Rank them in the order of preference] 1. Return on investment [ ] 2. Good services by the broker [ ] 3. Low risk of fraud [ ] 4. Tax benefit [ ]. Capital growth [ ] 6. Safety and security [ ] 7. Liquidity [ ] 23

4 2.10 Annual Savings in Stock market a) Up to Rs 2, 000 b) Rs 2,001 to Rs 0, 000 c) Rs 0, 001 to Rs 7, 000 d) Above Rs 7, State the trading volume of shares per month? a) Up to Rs, 000 b) Rs, 001 to Rs 10,000 c) Rs 10, 001 to Rs 20, 000 d) Above Rs 20, How many companies your existing portfolio has? a) One to five companies b) Six to ten companies c) Eleven to twenty companies d) Above twenty one companies 2.13 Which mode of trading do you prefer for secondary market operations? a) Stock broker b) Online c) Through financial intermediaries 2.14 Are you a member of any Investor forum? a) Yes b) No If yes, specify the duration a) Less than 1 year b) 1-3 years c) More than 3 years 2.1 Have you attended in any investor s workshop programme? a) Yes b) No If yes, specify the details of the programme a) One day b) One week c) Fortnightly 24

5 2.1.2 Who had sponsored the programme? a) Brokers b) Companies c) Stock Exchange Board d) Financial Institutions e) TV channels 2.16 What is your risk bearing ability? a) Risk averter b) Risk neutral c) Risk taker 2.17 Are you comfortable t with T+2 trading system? a) Yes b) No 2.18 Rank your sectors wise stock preference 1. Information Technology Sector [ ] 2. Banking Sector [ ] 3. Fast Moving Consumer Goods Sector [ ] 4. Public Sector Enterprise [ ]. Real Estate [ ] 6. Service Sector [ ] 7. Energy Sector [ ] 8. Auto Mobile Sector [ ] 9. Pharmaceutical Sector [ ] 10. Infra structure & capital goods structure [ ] 2

6 III Level of Awareness about Stock Market FA-Fully Aware, A Aware, NO-No Opinion, NA-Not Aware, NAA-Not at All Aware 1. Risk S. No Statements FA A NO NA NAA 1 I am cautious about stock which show sudden changes in price or trading activity 2 I feel regret of a drop in the price of a stock, I have purchased 3 I have worry investing in stocks that have had a past negative performance in trading 4 I hopeful when undertaking investment in stocks that have exhibited a sure loss I am often not afraid to invest in stocks that have shown a past positive performance in trading 2. Rights of a Shareholder Right to receive the copies of Annual Report 1 and the Auditor s Report Right to receive Dividends in Time Once 2 approved in General Meeting Right to Inspect the minutes books of the 3 General body Meetings Right to receive the Corporate Benefit like 4 Right share and Bonus Share Right to conduct Extraordinary General Body Meeting 26

7 3. Derivative Market 1 Terms and Conditions of derivative market 2 Different categories of derivative market 3 Call and Put options 4 Benefits and Risk associated with derivatives Fines and Penalties imposed by the agents/brokers for violations of the market rules 4. Role of SEBI in the Stock Market 1 Investors Protection Fund setup by SEBI 2 Grievance cell setup by SEBI 3 Investors Awareness Program conducted by SEBI 4 Market manipulations are controlled by SEBI Right to Complain to SEBI for non-receipt of dividend, bonus shares, right issue and the like IV Factors Influencing Investment Decision SA- Strongly Agree, A- Agree, NO No Opinion, DA Dis Agree SDA- Strongly Dis Agree 1. General Factors S. No Statements SA A NO DA SDA 1 Indian stock markets are well regulated 2 It is important to look at debt and equity structure 3 Credit rating provides to identify good company 4 Brokers advise and recommendation Major institutions currently buying the stock of the company 6 Information from successful investors 7 Online trading facilities 27

8 2. Company Factors 1 Company image and goodwill 2 Competent and able management 3 Company has huge sales order 4 Future Corporate earnings is bright Collaboration with foreign companies 6 Company has high market share 7 Company s status in the industry 3. Political and Economic Factors 1 Political stability 2 Government policies towards business 3 Strength of Indian economy 4 Boom and recession period Favourable balance of trade and payment Strong and continuous demand of the company s 6 products and services 7 Rate of inflation 4. Financial Factors 1 Rate of dividend is high and stable 2 Periodic declaration of bonus shares 3 Financial Leverage is more favourable on equity share Company is financially sound to repay the borrowed 4 loans Good chance for capital appreciation 6 Liquidity in the stock market 7 Contents of financial statements 28

9 . Market Factors 1 Affordable share price 2 Past information of the company s stock 3 Book value and market value per share 4 Volume of share traded in the market High price share may be avoided for investment purpose due to risk 6 More transparent in the stock market 7 Expected stock split 6. Psychology Factors 1 Get rich quick attitude 2 Ability and willingness to assume risk 3 Past investment experience in stock market Over confidence and over optimism in the stock 4 market Quick decision making on information given by friends, brokers and TV channels 6 Impulsive buying of shares 7 In order to cover up the loss previously made IV Intention to Invest in the Stock Market S. No Statements SA A NO DA SDA 1 I intend to buy and sell the stocks 2 I except to trade stocks in the future 3 I want to intent in the stock as much as possible 29

10 V Level of Satisfaction of Investors towards Stock Market FS Fully Satisfied, S Satisfied, NI No Idea, NS Not Satisfied, FNS Fully Not Satisfied 1. Stock Brokers S. No Statements FS S NI NS FNS 1 Account maintenance 2 Credit period and Credit limit allowed 3 Recommendations for buying and selling shares 4 Portfolio performance information Brokerage Commission and fees 6 Redemption facilities 7 Accessibility 2. Depository System 1 Cost of transfer of shares 2 Securities are traded in electronic form Dividends, interest and other benefits are 3 received in time 4 Prompt payment in case of sale of shares Able to change portfolio frequently 6 Pledging and hypothecation of securities 7 Transparent of account system 260

11 3. SEBI Procedure and Regulation 1 Settlement cycle 2 Nation-wide trading facility 3 Equal access to all investors 4 Investor awareness and education measure Functioning of stock exchange 6 Speedy redressed of grievances 7 Prohibition of insider trading 4. Market Conditions 1 Capital appreciation 2 Dividends 3 Investment in new company 4 Market regulation Company management 6 Safety 7 Liquidity 261