Journal of Positive School Psychology http://journalppw.

com
2022, Vol. 6, No. 2, 4947 – 4953

A STUDY OF THE LEVEL OF STOCK MARKET

INVESTMENT AWARENESS AMONG YOUNG
ENTREPRENEURS, WITH A FOCUS ON THE MUMBAI
REGION

1Muppavaram Gowri Shankar, 2Kanan Bhatt

1
Assistant Professor & Ph.D. Guide in Management Studies, University of Mumbai, Lala Lajpatrai Institute of
Management, Mumbai, gmuppavaram1@gmail.com
2
Professor, Lala Lajpatrai College of Commerce and Economics, kananbhatt123@gmail.com

Abstract
The Stock market is a formal, organized set-up which provides a common platform to various buyers
and sellers to buy and sell shares and securities of numerous companies as listed on the stock exchange
from time to time. Young entrepreneurs are key participants and important stakeholders in the process
of stock market investment. The present study is a descriptive, cross-sectional research design which
utilises quota sampling method to collect the primary data from 200 young entrepreneurs residing in
Mumbai city using a well-framed questionnaire. The basic objective of this research is to study the stock
market investment-related awareness among the young entrepreneurs.This study also aims to highlight
and analyse four key components affecting stock market investment awareness of young entrepreneurs
and they are namely information sources, investment goals, technological innovations and professional
training. To achieve these objectives, four hypotheses were formulated. Statistical tools like the Simple
Percentage Method, the Spearman Rank Correlation, the Chi-Square test, and the Kolmogorov Smirnov
test were used to test these hypotheses and the following results are obtained. All the four key
components as highlighted by this research are found to have strong association with the stock market
investment awareness. It has been recommended that young enterpreneurs are required to possess an
active, enthusiastic and an optimistic approach while investing into the stock market.

Keywords: Young entrepreneurs, Stock market , Technological innovations, Professional training.

1. INTRODUCTION 2. LITERATURE REVIEW

Investing in the stock market is rightly called as Parag Parikh (2009) In his book described the
a financial adventure as it requires sufficient psychological dimensions of stock market
financial knowledge, investment skills, ability trading. Behavioural biases can have significant
and willingness to take up risks. Even if there are implications on investor’s decisions. The most
subjective differences in the stock market common behavioural biases of stock market
investing process, the unanimously agreed aim investors include herd behaviour, error of
is to earn maximum returns at minimum risk. judgement, loss aversion, instant gratification,
The need for multiple sources of income has heuristics and rationalization trap. The
turned the young population to look at stock successful investors are those who not only have
market as an avenue for earning supplementary the ability to understand their own emotional
income. weaknesses and psychological biases but also
possess the quality of perseverance and courage
as a risk absorber while performing their trading
activities.
Muppavaram Gowri Shankar 4948

Ms. Lubna Ansari and Ms. Sana Moid (2013) to conduct SWOT analysis of the business from
examined the stock market related investment time to time to evaluate the strengths,
attitude of blooming investors in Lucknow weaknesses, opportunities and threats of the
region, aging 25 to 35 years. It was found that business unit so as to ensure its profitability and
earning profits on investments and financial prosperity especially in the long run.
growth were the key motives behind the stock
trading activities. On testing of hypothesis using Hemant Beniwal and Madhupam Krishna
the chi-square method, it was concluded that (2018) in their book mentioned that optimistic
there was no significant relation between gender and joyful investors can take better investment
and investment decisions whereas high decisions than those who are pessimistic and
correlation was found between age, income and regretful in approach. Even if losses are more
investment decisions. vividly remembered than profits, one must not
ruminate and mingle around it too much. The
Abhijeet Birari and Umesh Patil (2014) rational investors should always be practical and
Examined the spending behaviour of college realistic in their approach while designing their
students belonging to Aurangabad city. The investment portfolios, overcoming their
comparative analysis of expenditure pattern was emotional biases and negative feelings. Well-
done between undergraduate, graduate and post- informed investors with a positive mind-set can
graduate students. Gender-wise analysis was take sound financial decisions.
also done. Some of the common spending
preferences amongst all students included Hanuman Prasad et.al. (2018) The basic aim of
shopping, petrol bills, fast food, mobile this research was to study the level of
expenses etc. While most of the college going understanding and knowledge of 268
girls opted to spend more on beauty care and households of Udaipur city with regards to
cosmetics, most of the college going boys monetary transactions using digital platforms. It
preferred to spend more on tobacco and alcohol. was observed that frequency of using online
The overall study results shown that handful of mode of payments was higher in employed
youth inculcated regular savings and investment people than the unemployed. Also, male
habits and majority of them needed financial members were more familiar with digital
education, awareness and motivation to imbibe platforms than female home-makers. The study
into them the financial self-discipline. revealed that higher the level of education,
higher the level of digital financial literacy. It
Fatima Khan et.al. (2015) Retail investors are was suggested to provide E-payments education
the key players in the stock market. Their to the women households and also to school-
investment decisions are influenced by many going children so as to support digitization of
factors such as demographic, cultural, regional, Indian economy.
social and so on. The main objective of this
research paper was to study the investment Sumit Saini (2019) With the intention of finding
habits of stock market investors of Khulna city out the degree of familiarity about the Electronic
in Bangladesh. Some important components payment system, data was collected from 134
which influenced the stock trading decisions of people belonging to karnala city. It was found
investors include companies’ past performance, that 89% of the respondents were familiar with
familiarity of the company, stock market index, the digital payment system and frequency of its
companies’ financial records, prices of practical usage was greater in number amongst
securities, the underlying trading risk, the the graduate and postgraduates than those of
expected returns on investment etc. undergaraduates. The level of awareness was
found to be directly proportionate with the
G.Yoganandan and T.Vignesh (2017) advocated utility of the virtual payment system.
some basic guidelines as required for becoming
a successful business entrepreneur. Every Ajeesh P P (2019) Young investors in Thrissur
entrepreneur must be good at planning and district were characterised by spend-thrift
forecasting to ensure long time survival and buying behaviour. They were found to be risk-
growth of his business in the modern averse and conservative in their attitude while
competitive world. He must also be adaptable investing their funds. Their expenditure habits
and creative in his approach to cater to the fast- were highly influenced by mass media, window
changing business environment. It is imperative shopping and brand-impressing. The
4949 Journal of Positive School Psychology

technological advancements triggered high 3. Technological innovations stimulate young

inclination of the youth towards online entrepreneurs to invest in the stock market.
shopping. Their Important saving goals were
composed of future security, availability of 4. Professional training is highly essential for
contingency funds and timely settlement of improving the investment skills and abilities of
debts. The study results concluded that there was young
a high positive correlation between the level of entrepreneurs in stock market investments.
satisfaction of saving and spending.
Ashwini Ajay and Shabu K R (2020) The main
objective of this paper was to analyse the 5. Study Limitations
investment practices and priorities adopted by
1. The study did not include all of young
salaried class young employees of Kerala
entrepreneurs’ stock market investment
region. The most opted investment vehicle
possibilities.
included bank deposits followed by gold and
post office schemes due to safety reasons. 2. The study’s findings were based on data
Wealth appreciation and settlement of long-term obtained from a single city and cannot be
debts were found to be the most common goals applied to other investment possibilities.
of investing and the popular channels of
gathering money-related information included 3. Young entrepreneurs’ views and ideas
family and friends followed by internet and about investing in the stock market have been
newspapers. It was concluded that majority of shaped by circumstances and may change over
young investors were unwilling to buy risky time.
investments. There is a need to enrich them with
the latest financial knowledge and also to
motivate them to buy some adventurous 6. METHODOLOGY OF THE STUDY
investments like stocks, bonds, mutual funds as
per their financial needs. 6.1. SOURCES FOR THE DATA
PRIMARY DATA

3. OBJECTIVES OF THE STUDY • A Formal questionnaire has been

distributed to gather information on stock
1. To study the level of stock market market investments.
investment awareness among young
entrepreneurs. • The questionnaire was constructed
using scaling approaches such as Nominal
2. To highlight the components that will Scale, Interval Scale and Likert-Rating scale on
determine the level of stock market investment a scale of 1-5.
awareness among young entrepreneurs.
Secondary Data
3. To analyse the components to ascertain
the level of stock market investment awareness • Textbooks, journals, online newspaper articles,
among young entrepreneurs. and websites were combed through for
information on
young entrepreneurs' stock market investments.
4. Hypothetical Statements(s)
6.2. RESEARCH DESIGN
1. The information sources available to
young entrepreneurs will have an influence on Descriptive Cross-sectional design:
their stock market investments. Entrepreneurs' opinions are mostly dependent
2. There is a significant association on their willingness to give information about
between the goal of investment and level of their stock market assets as part of a one-time
awareness about stock study. The study used a descriptive cross-
sectional research design to collect the one-time
market investments. responses.
 Muppavaram Gowri Shankar 4950

6.3. Sampling Design market will be influenced by the information

sources available to young entrepreneurs. The
Sample Size: In the city of Mumbai, 200 young value of rs between the investment aim and
entrepreneurs who invest in the stock market amount of stock market awareness was
have been approached to obtain information. discovered to be .759. It demonstrates that there
Sampling Method is a strong link between information sources and
stock market investments.
Quota Sampling : The information was collected
exclusively from 200 young entrepreneurs who Using Spearman Rank Correlation, the
invest in the stock market and are following hypothesis is examined.
knowledgeable about it, using the quota Hypothesis 2
sampling method.
Null Hypothesis (H2O): There is no significant
6.4. Statistical tools association between the goals of investment and
The data was analysed and interpreted using level of awareness about stock market
Excel and SPSS, utilising several statistical investments.
approaches such as the Simple Percentage Alternative Hypothesis (H2A): There is a
Method, Spearman Rank Correlation, Chi- significant association between the goals of
Square test, and Kolmogorov Smirnov test. investment and level of awareness about stock
market investments.

7. Results Table 2: Spearman Rank Correlation for

[Goals of Investment * Level of Awareness]
Hypothesis Testing
Description Goals of Level of N Sig.
Using Spearman Rank Correlation, the Investment Awareness Level
following hypothesis is investigated. Goal of 1.000 .787
Hypothesis 1 Investment
200 .001
Level of .787 1.000
Null Hypothesis (H1O): The information Awareness
sources available to young entrepreneurs will
not have an influence on their stock market
investments.
INFERENCE
Alternative Hypothesis (H1A): The information
The null hypothesis can be rejected when the
sources available to young entrepreneurs will
significance level is less than 5%. The level of
have an influence on their stock market
awareness about stock market investing and the
investments.
investment goal have a strong correlation. The
Table 1: Spearman Rank Correlation for value of rs between the investment aim and
[Information Sources * Stock market amount of stock market awareness was
Investment] discovered to be.787. It demonstrates that there
is a strong positive relationship between
Description Information Stock N Sig. investment aim and stock market investment
Sources market Level awareness.
Investments
Information 1.000 .759 The following hypothesis was tested using the
Sources 200 0.001 Chi-square test.
Stock .759 1.000
market Hypothesis 3
Investments
Null Hypothesis (H3O): Technological
innovations have not stimulated young
INFERENCE entrepreneurs to invest in the stock market.
The null hypothesis can be rejected when the
significance level is less than 5%. The stock
4951 Journal of Positive School Psychology

Alternative Hypothesis (H3A): Technological Table 4: Observed & Expected values for
innovations stimulated young entrepreneurs to Professional training in stock market
invest in the stock market. investments
Table 3: Descriptive analysis for Technological Category Observed Percent
innovations Extremely 18 9.0
Dimension Observed Expected Residual Unimportant
Strongly 10 40.0 -30 Unimportant 24 12.0
Disagree Neutral 38 19.0
Disagree 14 40.0 -26 Important 67 33.5
Neutral 19 40.0 -21 Extremely Important 53 26.5
Agree 54 40.0 14 Total 200 100
Strongly 103 40.0 63 Table 4(a): Kolmogorov-Smirnov Test for
Agree Professional training in stock market
Total 200 investments
Table 3 depicts the descriptive analysis for Description Professional
Technological innovations. training
Table 3(a): Chi-Square Analysis for N 200
Normal Parameters
Technological innovations
Mean 3.57
Description Technological Std. Deviation 1.250
innovations Most Extreme
Chi-Square 154.6 Absute 0.230
Extreme Differences
Df 4 Positive 0.126
Negative -0.236
Sig .001
Kolmogorov-Smirnov Z 3.338
Observation Significance level 0.00

Because the significance value is (p<05), the

null hypothesis can be rejected. To summarise, Observation
technological advancements encouraged young
With a significance level of less than 5%, the
entrepreneurs to invest in the stock market.
null hypothesis can be ruled out, demonstrating
Kolmogorov-Smirnov Test applied to examine that professional training is critical for
the hypothesis enhancing the investment skills and capacities of
young entrepreneurs in stock market
Hypothesis 4 investments.
Null Hypothesis (H4O): Professional training is
not highly essential for improving the
investment skills and abilities of young 8. DISCUSSION(S) FROM THE STUDY
entrepreneurs in stock market investments.
1. The stock market investments will be
Alternative Hypothesis (H4A): Professional influenced by the information sources available
training is highly essential for improving the to young entrepreneurs.
investment skills and abilities of young
According to a Spearman Rank Correlation of
entrepreneurs in stock market investments.
200 respondents, the value of rs (Pearson’s
correlation co-efficient) between the investment
aim and amount of stock market awareness was
discovered to be .759. It demonstrates that there
is a strong link between information sources and
stock market investments. It means greater the
number of information sources tapped, better
was the quality of investing decisions.
Muppavaram Gowri Shankar 4952

2. According to the findings of the Spearman reports, television, internet, social media,
Rank Correlation study, there is a substantial broking firms’ websites, latest updates
link between the investment aims and stock published by BSE and NSE from time to time.
market investment awareness. The value of rs All these channels of information not only keep
between the investment aims and amount of the investors updated but also help them in
stock market awareness was discovered to be setting investment goals with clarity and
.787. It demonstrates that there is a strong accuracy. According to the views and opinions
positive relationship between investment aims of the young entrepreneurs, their common
and stock market investment awareness. It investment goals are income growth in the short-
means that more and more efforts are made by run and appreciation of capital in the long run.
the respondents to grasp the stock investing Availability of various digital payment apps like
knowledge and information so as to achieve the G-pay, Razor pay, Paytm, and online banking
goals of investment efficiently and effectively. facilities such as RTGS, NEFT, Debit card,
Credit card, Visa card etc help these young
3. The Chi-Square test was used to conduct a entrepreneurs to perform trading transactions
hypothetical analysis, which revealed that easily and quickly, thereby attracting them to
technological innovations encouraged young invest more and more funds in the stock market.
entrepreneurs to invest in the stock market.The Professional training is yet another key
calculated value as per Chi-Square Analysis for component which not only provides them with
Technological innovations is 0.001 which is investment-related education but also helps to
less than the table value 0.05 and therefore the enhance their investing skills and abilities. This
null hypothesis No.3 was rejected and it was training is provided by SEBI, BSE, NSE,
found that technological advancements Financial institutions, big broking firms, private
encouraged the young entrepreneurs to invest in B-schools, as well as by other training agencies.
the stock market. It means that digital payment The views and opinions of these young
system and online trading performed via Demat entrepreneurs reflect that investing in stock
process has encouraged large number of young market is a systematic, step by step process
participants towards stock investing activities. which requires a self-learning experience,
4. The descriptive analysis of hypothesis No.4 interest and enthusiasm. Every young investor
revealed that out of 200 respondents, 103 requires the much-needed qualities of
respondents strongly agreed on the statement carefulness, endurance, perseverance, self-
that the professional training is very crucial in discipline and patience while trading stocks.
stimulating the young entrepreneurs to They must inculcate the habits of regular savings
participate actively in the stock market and self-controlled spendings so as to provide
investments.Thus,professional training plays an them with the regular flow of investable funds
important role in enhancing the investment to be channelised into various investment
skills and capacities of young entrepreneurs in oppotunities as selected by them. Also there is a
stock market investments, according to a study need to build up such a flexible, futuristic and a
using the Kolmogorov-Smirnov test. well-diversified individual investment portfolio
so as to achieve their investment goals
successfully and in time. This study also opens
the avenues for further research in the areas such
9. CONCLUSION
as Risk-Return attitudes of youth investors,
Four key components of stock market Retail investors’ behavioural anomalies in the
investment awareness were found, as stock trading, Role of securities market in
highlighted by this research. They are - nurturing micro-finance agencies, Retail
information sources available, investment goals, household’s approach in relation to Mutual
technological advancements and professional funds investments, Digitalization of household
training. These key determinants were found to payment system etc.
have a strong positive impact in enhancing the
level of awareness in young entrepreneurs
regarding stock market investments. Young
investors gather the said information from
various sources such as newspapers, magazines,
print journals, companies’ financial records and
4953 Journal of Positive School Psychology

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