Financial literacy and trading behaviour of small investors in stock market


Lead Researcher(s):
Kazi Iqbal (BIDS),
Asad Islam  (Monash University)

Improving financial literacy of the small investors is central to the development of a viable financial sector. In this study, we train investors on capital market and examine how such training change the trading behavior of the investors. We collaborate with seven brokerage houses in Dhaka to train the small investors. The professional trainers provide training on the fundamentals of stock valuation. We primarily focus on ‘rule of thumb’ method considering a large number of small investors do not have sufficient accounting knowledge. We conduct the lab-in-the-field experiment to examine how these real small investors’ behaviour in stock trading are affected by their attitudes towards uncertainty, risk-taking behaviour and personality traits.

The research is supported by Faculty of Business Economics at Monash University.

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