INVESTOR’S PREFERENCE IN STOCK MARKET PARTICIPATION A STUDY OF NEPALESE

RETAIL INVESTOR’S.

Statement of Problem
The present study is carried out to answer the following research question.
 What are main objectives of buying shares of commercial banks? What are the
sources of financing?
 What are the major sources of information for investment in shares?
 In what pattern does a retail investor invest in stock market?
 What will be the yearly stock transaction of retail investor?
 Is retail investor really investing in stock market as investment opportunity?
 Is investing in stock market a gambling process?
 How aware retail investors are about stock market?
 What personality traits influence in participating in stock market?
 What are the reasons investors do not want to hold their investment for long
term?

Objectives of the study

The main objective of this study is to determine whether retail investors are
participating in stock market as an investment opportunity or as a Speculation
process.
 Questionnaire

1. Name: ………………………
2. Gender: Male Female
3. Age group: Below 20 20 – 29 30 – 39 above 40
4. Academic qualification:

Under SLC SLC Intermediate

Bachelor Master Above Master

5. Occupation
Business Professional Service
Pensioner Any other

6. Annual Income Level

Below 200000 200000 – 500000 Above 500000

7. Experience in stock Market

0-1 Yrs. 1-5 yrs. 5-10 yrs. Above 10 yrs.

8. Investment made in stock market

Less than 5 lakhs 5-10 lakhs More than 10 lakhs

9. Preference for buying share of common stock

Primary Secondary Both

10. Degree of transaction frequency

Weekly Monthly Quarterly

Semi-annually Annually
 11. Yearly stock transaction

Less than 1 lakh 1-5 lakh More than 5 lakh

12. Preferring source of financing (Likert scale Question)

a) Regular Saving
b) Parental Property
c) Personal Borrowing
d) Special Source of Financing
e) Other Business

13. Preferred period for investment

a) End of fiscal year
b) Publish of quarterly report
c) Publish of unaudited financial report
d) Festival period (Dashain/Tihar)
e) Randomly

14. Which of the following factor do you considered while investing?

Factors Strongly Disagree Neutral Agree Strongly
Disagree Agree
Level of risk
Market trend /
Information
Bank’s Image

Level of self-
knowledge about
share
Higher return than
average
Alternative of
Investment
 15. Which following objectives does you prefer while buying share?

Objectives Strongly Disagree Neutral Agree Strongly

Disagree Agree
Short term profit seeking
Cash dividend
Stock dividend
Long term investment
Capital preservation
Extra income
Tax saving
Meet future expenses
Safe investment
Others

16. Which of the following source of information do you prefer while investing
in stock?
Strongly Disagree Neutral Agree Strongly
Disagree Agree
Newspaper/Financial
magazines
NEPSE Trend
Internet/Websites
Family/Friends/Relatives
Broker/financial advisor
Others
 17. What are the reason for not holding investment for long?

Reasons Strongly Disagree Neutral Agree Strongly

Disagree Agree
You have no control
over long term
investment
It is difficult to recover
after a serious loss in
long term investment
Market trend in future
is unexpected
Short selling can gain
huge profit

For long term share

market is not suitable
source of investment
Investor lack of
patience, commitment
and keeping calm when
the market fluctuates
 18. Which following personality traits influence in participating in stock market?

Personality Traits Strongly Disagree Neutral Agree Strongly

Disagree Agree
I am patient when
the market
fluctuates.
I think I can make
profit by purchasing
shares before index
goes up and sell out
before index goes
down
I analyze the market
condition before
purchasing of share
I think I have enough
experiences to judge
the profitable share
I want quick return
on my investment
I invest in high risky
share to gain high
return
I prefer to invest in
the share of that
company which gave
me a profit in past.
My intuition will
influence me when I
make a decision to
purchase shares of a
specific company.
 19. Please mark as the appropriate response to indicate your views about the
statements given below regarding Stock Marker awareness.

Statement Strongly Disagree Neutral Agree Strongly

Disagree Agree
NEPSE provide accurate
market information as
required.
DEMAT A/C keep my
portfolio of share safe
The stock market helps to
predict stock earnings.
The stock market results
in an increase in the price
of stocks.
The stock market brings
people who want to buy
stocks together with those
who want to sell stocks.