Fundamentals Knowledge of Investor and Its Influence on Investment in Capital Market- A Study from Dhaka Stock Exchange

Abstract

A comprehensive investment literacy questionnaire surveyed to the participants in the Dhaka Stock Exchange (DSE) to measure the basic financial literacy and its effects to the stock market participants. It has been found that the majority of the respondents shows basic financial literacy, but they don’t believe that they have sufficient basic knowledge of investing in DSE. So the conflict between knowledge and their confidence leads them to wrong prediction of investment and the dependency on rumors on their investment decision. Inadequate knowledge about capital market not only sad loss, but also turns to an unattractive place of investment. Basic financial literacy not necessary prerequisite for a good investment decision in the capital market but help to make a preliminary decision of investment as well as to avoid a major loss.

Keywords: Financial information, Knowledge, Literacy, Investor, Dhaka Stock Exchange