Abstract:
Participation of individual investors in Dar es Salaam stock markets stands
at 1%, which is very low compared to Kenya, which is currently at 4%. Thus,
the study evaluated the level of awareness of individuals that explained their
low participation in the Dar es Salaam stock exchange. Primary data were
collected from 200 participants and 200 non-participants and analysed using
descriptive statistics and binary logistic regression. Findings revealed that
non-participant individuals had a low level of awareness regarding DSE and
its activities compared to individual participants. Regarding voting and
decision-making by shareholders, only 13% of participants were aware of
this right. Financial awareness was also found out to be low among
individuals. Binary logistic results indicated that awareness of DSE,
awareness creation seminars and access to media were likely to influence
individuals' participation decisions. Thus, the study concluded that the level
of awareness among individuals was deficient and affected their
participation in the stock market. Therefore, the intensification of public
awareness through seminars by DSE is essential. Also, DSE should increase
the use of mobile trading platform and internet technologies to disseminate
awareness information on investment opportunities for participation
decision.
