Ratio Analysis of The Selected Stock Broking Companies

Brokerage firms are the business entities that deal with stock trading. India, with an increasing capital market and a growing number of investors, has a number of brokerage firms. The study is an attempt to cover the financial performance of select stock broking firms in India for a period of ten years from 2005–2006 to 2014–2015. The study covers secondary data of 5 stock broking companies and activity and solvency ratios applied for analysis. The findings of solvency ratio analysis explores that all the companies have a significant difference within the study period. The activity ratio analysis explores that except few companies all the companies not have a significant difference within the study period. A stock brokerage is an investment services company that is primarily involved in the business of buying and selling stocks and other financial securities on behalf of its clients in return for a fees or commission. The industry operates under close government regulations that aim to protect the investing public. The SEBI has been set-up to ensure that the stock exchanges discharge their self-regulatory role properly. To prevent malpractices in trading and to protect the investors, the SEBI has assumed the monitoring function, requiring brokers to be registered and stock exchanges to report on their activities. The stock brokerage industry emphasizes client value because clients generally have a long-term relationship with the brokerage.