Stock Market Awareness And Stock Market Participation By Retail Investors In Kampala, Uganda
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Date
2019-03
Authors
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Publisher
Kampala international international : College of Economics and Management
Abstract
The purpose of this thesis was to investigate the effect of financial literacy on stock market participation in Uganda. The research problem for this study was the scrutinization of the low level of stock market participation and its possible causes. The question to be answered was “Why is not the Uganda Stock market growing as fast as it should?” and what should be the role of the awareness of the Uganda Stock Market industry in developing the participation of the industry in Uganda. The study has emphasized on determining the effect of print media awareness, electronic media awareness and social media awareness on stock market participation as the objectives. The study was undertaken with selected respondents drawn from individual stock brokers. Data were collected by means questionnaires. The cross-sectional correlation research design was used in this study. The study has used a number of seventy one (71) respondents from stock brokers. This was done by setting a questionnaire with items that determine the media awareness techniques used by stock markets, and actions taken by them to increase the literacy on stock market participation by retail investors, and questionnaires for which respondents could judge the level of stock market participation. The study adopted description statistics, Pearson Linear Correlation Coefficient (PLCC) and multiple regression model in data analysis. Thus, the study established that there is a big gap between the financial literacy and stock market participation in Uganda, as expressed by the low level of public awareness in regard stock markets among Ugandan community, leading to the low level of participation. Therefore, the conclusion can be drawn that the financial literacy is a critical factor to be taken into consideration by the stock market industry in Uganda for its economic development. The study recommends that there is great need to put more efforts in public awareness of stock markets through financial literacy by all concerned individuals and institutions. The study further recommends the intensification of the literacy strategies programmes, accuracy and accountability in all activities involved in stock market participation by all Ugandan community members in their day to day concerns. Being part of the contribution to knowledge, findings and recommendations of this study are potential sources of information for planners, decision makers, researchers in their attempts to contribute to the development of the stock market participation industry in Uganda.
Description
A Research Thesis Submitted To The College Of Economics And Management In Partial Fulfillment Of The Requirements For The Award Of The Degree Of Masters In Business Administration At Kampala International University
Keywords
Stock Market, Retail Investors