Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Editorials: 2021 Vol: 22 Issue: 3

A Brief Note on Stock Market Participation

Siddik Sharma, Maharshi Dayanand University

A exchange, equity market, or share market is that the aggregation of consumers and sellers of stocks (also referred to as shares), that represent possession claims on businesses; these might embody securities listed on a public securities market, also as stock that's solely listed in camera, like shares of personal firms that area unit sold to investors through equity crowd funding platforms. Investment within the exchange is most frequently done via stockbrokerages and electronic mercantilism platforms.

A stock market is Associate in Nursing exchange (or bourse). Wherever stockbrokers and traders should buy and sell shares (equity stock), bonds, and different securities. Several giant firms have their stocks listed on a securities market. This makes the stock a lot of liquid and therefore a lot of engaging to several investors. The exchange may additionally act as a warrantee of settlement. These and different stocks may additionally be listed "over the counter" (OTC), that is, through a dealer (Maarten et al., 2011). Some giant firms can have their stock listed on quite one exchange in numerous countries, thus on attract international investors. Behavioural finance knows investor’s psychological science associated with money choices and could be a combination of 2 disciplines, i.e., psychological science and social science. This mix clarifies why and the way individuals create irrational money choices once they save, invest, spent, and borrow. It's a mix of private and psychological science principles with ancient finance theory to analyse and emphasize the exchange performance. Activity finance theory depends on however the thinking method and psychological feature errors impact capitalist selection and costs of the securities market (Falahati & Paim 2011). Investors don't follow the rational models of investment that area unit assumed within the theory of economical markets and there exist vital variations within the behavior of investors.

"An exchange is crucial to the existence of laissez-faire economy and personal property. For it means there's a functioning market within the exchange of personal titles to the means that of production. There will be no real personal possession of capital while not a stock market: there will be no true socialism if such a market is allowed to exist."

Financial Self-Efficacy and Exchange Participation

As indicated by the social psychological feature theory of self-regulation, Associate in nursing individual’s higher self-efficacy level will increase their likelihood of participation in an exceedingly specific behaviour, largely positive financial behaviour, and makes them less inclined to feel cash connected pressure. Further, self-efficacy is that the base of the activity of management and deeply affects behaviour. Self-efficacy refers to Associate in nursing individual’s ability to manage, manage, and impact totally different components of his or her life. During this study, money self-efficacy is characterised as a person’s perceived ability to manage his/her finances. People with a lot of distinguished self-efficacy over a particular conduct can usually participate in this conduct, set up higher objectives, show a constructive valuation of the task at hand, and show less dangerous negative mental consequences (nervousness, stress, misery) associated with adversity (Gao et al., 2019). Self-efficacy should be assessed by the activity life domain that's beneath investigation.


Falahati, L., & Paim, L.H. (2011). Gender differences in financial well-being, financial socialization and financial knowledge among college students. Life Science Journal-Acta Zhengzhou University Overseas Edition, 8(3), 173-178.

Gao, M., Meng, J., & Zhao, L. (2019). Income and social communication: The demographics of stock market participation. The World Economy, 42(7), 2244-77.

Maarten V.R., Annamaria L., & Rob A. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472.

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