Do People With Higher Levels of Education Purchase More Stocks?

If treated properly, capital market can result in the increase of efficiency, investment and growth, being also able to enhance economic growth through reducing the keeping of cash assets and raising the rate of growth of physical assets, at least in the long term. Due to the importance of this area, it seems inevitably necessary to pay a considerable attention to and perform numerous studies in the field. To do so and with respect to the theoretical literature existing in the field of the factors effective on individuals' participation in capital market, the variable "investor's education level" was selected as one of the most important factors effective on individuals' participation in capital market. The results acquired from laboratory studies and also from investigating the research existing in the area under analysis was indicative of the importance of the variable "education level" and its effect on individuals' participation in capital market. Such a finding makes it inevitable to pay attention to the issue, asserting that the increase of individuals' knowledge and awareness especially about commercial and investment problems can lead to the enhancement of their participation in capital market, an as a result to the success of such a market, apart from providing the grounds for economic growth and development.

Capital Market, Formal Education of Investors, Informal Education of Investors.