To Assess Investors' Awareness of Various Stock Market Instruments and their Risk Preferences

Abstract

Investors are often drawn to the potential for quick, substantial profits in the stock market, yet success in this arena is far from guaranteed. In India, investors are increasingly exploring various avenues within the capital markets, with a notable interest in the stock market segment among the younger generation. Despite lacking sufficient knowledge about the stock market, many investors rely on brokers or peers for decision making guidance when entering this market. This study aims to assess investors' awareness of various stock market instruments and their risk preferences across different segments. Effective participation in the stock market requires patience, discipline, and a solid understanding of market dynamics. Prior to engaging in stock market activities, aspiring investors should familiarize themselves with basic market operations and acquire information about companies, securities, and pricing for informed decision-making.