Sales Term paper

Sales Term paper

Executive Summary:


Stock Broking firms’ have been expanding at an alarming pace in a bid to garner market share in a buoyant country like India. This is increasingly relevant in the backdrop of an all time high appetite for investing by individuals, mutual funds, FII’s and the like on the Indian bourses. Broking firms have been devising new and innovative strategies to expand their reach. These strategies have to be in line with the objectives of the firm and have to generate revenues for the firm. This paper talks about the channel design and management issues for brokerage firms.








































Introduction:

Technological advancements and developments in the information, communications and networking have led to a total revamp of the processes in securities market operations all over the globe. Stock Exchanges all over the world have realized the wonders that technology can do and have since moved on to Electronic Trading of Securities. Exchanges that have adopted electronic trading have realized its benefits-reduced cost of operations, a wider reach, higher levels of transparency, efficiency, simplified procedures and ease of use for the investor/trader. Prior to the adoption of the electronic trading system, trading on stock exchanges in India used to take place through an open outcry system. This system did not allow immediate matching or recording of trades. This was time consuming and imposed limits on trading. The migration to online trading by the premier stock exchanges of India, NSE and BSE; has resulted in a manifold rise in the volume of trade. Sensing this opportunity, brokerage firms have been expanding their network at a frantic pace in a bid to garner market share. In addition, newer companies are entering into the securities broking business.

Stock Broking firms are all over the place in India today. The marketplace has moved far ahead from a situation wherein good...