Individuals’ awareness and participation on the Dar es salaam stock exchange: the case of Individuals of Dar es Salaam

This study conducts an assessment on the awareness and participation of the residents of Dar es Salaam in the Dar es Salaam Stock Exchange (DSE). Additionally, the study analyses the factors that cause minimal participation in the DSE more than a decade since its inception. The study suggests a theoretical framework to explain the process whereby awareness may be acquired. Producers and distributors of information have an incentive to inform those who once informed are more likely to invest in shares and have lower cost of spreading information. In addition, social learning represents a further channel through which potential investors can become aware. Field survey shows among other things, many of the local individuals can be described as low income investors. A significant percentage has no post primary education and their knowledge of the capital market is quite poor. The study recommends a strong campaign to educate the Tanzanian public about the activities of the DSE and to promote investment in general. There is need for the government to perform regular review of the legal and regulatory framework within which the investment laws operate in order to boost the confidence of investors.