Research Article | Open Access
Financial Literacy And Stock Market Participation: A Quantitative Study Among Working Adults In Kuala Lumpur
Alex Wong Kok Hong , Benjamin Chan Yin Fah , Vikneswaran A/L Manua
Pages: 6109-6123
Abstract
While investing in stocks could generate a higher return than certain financial assets, people are still unwilling to participate in the stock market. Some argue that low retail participation is caused by indirect stock investment
through Unit Trust fund, investment failure or lost trust in the market as a result of several corporate failures, but little or no information is yet available as to whether financial literacy plays an important role in affecting the participation intention. Thus, this study aims to examine the level of financial literacy and review its link to stock market participation intention, specifically among working adults in Kuala Lumpur. A total of 385 respondents were collected using convenience sampling. Results of this study shows that financial knowledge,financial skills, and financial awareness are important when an individual intended to participate in the stock market
Keywords
Financial Knowledge, Financial Skills, Financial Awareness, Stock market participation intention.