INVESTOR AWARENESS IN NEPALESE CAPITAL MARKET

Abstract

The capital market is a means through which scattered savings and investable resources are converted into actual investment and helps in the development of the financial system in developing countries like Nepal. The study aimed to assess the level of awareness among stock investors in the Nepalese capital market. A survey was conducted among 240 investors who frequently visited the sub-brokerage firm within Kathmandu, using the purposive sampling technique. Descriptive statistics were performed using IBM-SPSS 20.0. The Z-test was used to test the hypothesis; the regression model and Karl Pearson’s correlation coefficient was used to find the correlation between the variables. The level of investor awareness in the Nepalese capital market is moderate (i.e., 3.66). There was a positive correlation between investor awareness and factors affecting it. A statistically significant relationship was found between investor awareness, fundamental and technical analysis, education and training programs, social learning and motives, evaluation of investment alternatives, regulators’ rules and regulations, and information dissemination, respectively (Zcal>Zcritical and p<0.05). Trainings, workshops, and seminars should be conducted on the regular basis regarding technical aspects of investment, investor rights, the advantages of investing, new financial products, etc.