A STUDY ON AWARENESS OF INVESTORS IN THE STOCK MARKET IN CHH. SAMBHAJINAGAR (AURANGABAD) CITY OF MAHARASHTRA

Abstract

India's population is 17.5 % of the world's, and the basic financial principles which are essential for making a good investment decision are unknown to more than 76 % of its adult population. Mutual funds and stocks offer higher returns, but they are prone to volatility which requires a certain level of financial knowledge in order to participate. Some people are investing without proper knowledge and end up losing money because they are buying stocks only on the basis of others advice. It requires more time to understand the movement in the market. Ample of the people don't even know how to analyses the fundamentals of the company, which are essential for investing. And also the concept of BVPS, ROE, ROCE, EBIT and PAT are entirely new to them. In the light of these issues, it is necessary to establish and monitor levels of awareness among Aurangabad residents about investments in stock markets with a view to obtaining an accurate understanding of their level of knowledge regarding stock market. Also to know the basis and criteria for investing in a particular stock, as well as knowledge of people's ability to make other investment decision. For this motive, 100 investors from Aurangabad were selected on the basis of a snowball sampling method and a well-structured questionnaire was sent to them. In order to assess the results of the study, a percentage analysis was used. The study disclosed that the most of the respondents invest based on their own knowledge, are aware of the bull & bear markets and other related terms and are interested to learn advanced techniques and explore more in trading activities. It is found that there is a strong understanding of the market in investors who have been investing from longer time period. To gain a better understanding of the stock market, investors are advised to attend seminars and webinars organized by SEBI and the National Stock Exchange. In the whole sense, it was found that investors in Aurangabad were well aware of the stock market.