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Fundamental Determinants of Equity Investments among Infrequent Small Scale Investors

Author Affiliations

  • 1Department of Management Studies, Government Engineering College Ajmer, INDIA

Res. J. Management Sci., Volume 2, Issue (4), Pages 1-6, April,6 (2013)

Abstract

Investment in equity needs a detailed study of various factors of a company before investing. The institutional investors are usually well versed with analysis of fundamental factors before investing in equities. Now, the small investors have also started considering different factors those influence the likely performance of the company due to changing scenario of stock broking business and mandatory provisions of regulatory bodies. This study is an attempt to identify the factors, which infrequent small investors consider substantially while investing in any equity. The factors, which were analyzed, are: financial performance and policy, quality of management, dissemination of information and governance and ethical practices. With the help of this study it was found that majority of infrequent small scale investors appraise fundamental factors of a company. However, their analysis is limited to financial performance and policy and information dissemination. The other variables like governance and ethical practice of the company are considered at lower degrees of consideration.

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