Concept of making investment has changed since the introduction of new technology. Billions of transactions are happening from one account to another within minutes. Introduction of online trading has revolutionized the capital market. Internet trading has made the process of buying and selling of shares much faster and easier than the traditional approach of physical broker. It provides integration of banks, stock exchange broker and depository participants. This eliminates the rigorous process of investing in stock exchange. Earlier when one wants to invest in stock market, he has to contact broker on phone or meet him personally to place order. Broker gives such importance and additional service only to high net worth customers. But the online trading has given an opportunity even to small investors to get best service at much lower price than physical broker over the phone. Online trading has given customer a real time access to account information, stock quotes, elaborated market research and interactive trading. The prerequisites of Internet trading are a computer, a modem and a telephone connection, registration with broker, a bank a/c and depository account. The National Stock exchange enables LAN investors in one part of the country to trade at the best quotes with an investor located in any other part of the country through the members of the stock exchange and subsequently clears and settle the trade in an efficient and cost effective manner. The primary objective of the Stock Market is to provide clear opportunity to the investors throughout the country to trade any security irrespective of the size of the order or the broker through whom the order is routed. This provides the facility to execute the buy order at the lowest price in the stock market located anywhere in the country without any extra cost to investors. The Study has been conducted in Srinagar city of J&K State in the year 2010.
