Factors influencing trading volume of shares at dar es salaam stock exchange

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University of Dar es Salaam
This study investigated the factors influencing trading volume at the Dar es Salaam Stock Exchange (DSE). It aimed to assess the relationship between the level of awareness and knowledge about share trading and trading volume; to assess the relationship between the rate of share price change and trading volume, and finally to assess the relationship between transaction costs and trading volume.To achieve this end the study used both quantitative and qualitative data. The quantitative data collected from archival sources were used to argue about low level of trading volume at the DSE and the performance of the listed shares. Besides, the qualitative data were collected through questionnaire and analyzed using the Chi- square test to establish the factors influencing trading volume.The findings show that investors with low level of awareness trade less often than those who are aware. Non-performing stocks were observed to trade less frequently than performing ones. Also, investors from distance regions were less willing to trade than those coming from Dar es Salaam.Following these findings the study recommends capital market officials to provide sustainable education programmes to create awareness about share trading whereby investors will be educated on how to read and interpret published market indicators for making decisions. The Government should improve telecommunication infrastructure to reduce trading costs to investors from far regions in Tanzania.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG5847.T34K55)
Trading, Stock exchange, Shares
Kimario, J.L (2010) Factors influencing trading volume of shares at dar es salaam stock exchange, Master dissertation, University of Dar es Salaam. Dar es Salaam.