Motivating Factors and Credible Source of Information for Individual Investors in the Primary Market.

Abstract

Purpose:
This paper aims to investigate the factors influencing retail investors' decisions in selecting stocks, focusing particularly on the significance of information in their decision-making process within the Primary Market.

Design/Methodology/Data Analysis:

Employing a descriptive and analytical approach, this study utilizes purposive sampling to collect primary data from 461 retail investors in Mumbai and Hyderabad. The research methodology ensures targeted participant selection to obtain pertinent insights for analysis.

Findings:
The study reveals that the anticipation of high returns prominently drives investment decisions in both cities, followed closely by the aspiration to amass wealth for the future. Additionally, it identifies business news channels as the most relied-upon and trustworthy source of information for retail investors, aiding them in accessing crucial details about new market offerings.

Originality/Value:
This paper contributes to the existing knowledge on retail investment behavior by offering a clear and analytical perspective. It provides valuable insights for financial advisors, policymakers, and retail investors, emphasizing the critical role of information in the investment decision-making process within the Primary Market.

Practical Implications:

The findings underscore the importance of accessible and reliable sources of information to guide retail investors effectively. Recognizing the significance of information can enhance the decision-making capabilities of investors and contribute to informed investments in the Primary Market.