A STUDY ON THE AWARENESS OF DERIVATIVES AMONG RETAIL INVESTORS IN TRICHY

K Vignesh, Albin Lawrence
2016 International Journal of Innovative Research in Management Studies (IJIRMS)   unpublished
The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Derivatives are deriving their value from an underlying asset and act as risk management instruments. The underlying asset may be in the form of bullion,
more » ... e form of bullion, index, share, bonds, currency interest, etc. Banks, securities firms, companies and investors to hedge risks, to gain access to cheaper money and to make profit, use derivatives. Derivatives are likely to grow even faster in future. Primary data were collected from 147 respondents for the purpose of analyzing with the help of questionnaire. Statistical tools such as descriptive analysis and ANOVA are used for analyzing the data. From the analysis of data, the reliability indicator cronbach's alpha value is (0.852).
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