HOW INDIVIDUAL INVESTORS SELECT STOCKS:

A CASE OF KARACHI STOCK EXCHANGE

Advisor:

Mr. Syed Babar Ali

Submitted By:

Faisal Shamim Ahmed

(12K-2720)

Date of Submission:

5th May, 2015

FAST School of Management

National University of Computer &Emerging Sciences

Karachi Campus

Research Question

The problem statements that are to be focused and find out in this research are:

What are the mostly preferred factors concerned by the individual investors while

selecting the stocks?

What are influencing factors that are being concerned to get profitable margin and growth

within the short term period by the individual investors?

Abstract

This research study will examine the individual investors views regarding making the decision

while selecting the stock from the equity market. This research will comparatively relate the

influencing factors (i.e. independent variable) technical and fundamental analysis, financial

statement information, valuation models, yield and profitability ratio analysis, and referral

considered by the individual investor’s while making decision for the stocks (dependent variable)

that is to be bought or sell from the stock market. And to determine the result and analysis of the

research the quantitative method (i.e. via questionnaire) 384 responses are being surveyed by the

individual investors and deductive approach is applied as conclusion of the report is drawn

stepwise. The result of the five independent and one dependent variables are drawn via the

Pearson’s Correlation and frequency analysis and with the help of SPSS test that is being

applied. The findings of the results identified the selection influencing factors that are mostly

concerned by the individual investors while selecting the stocks from the equity market.