Factors leading to investors inactive trading of securities in the secondary market: a case study of Dar es Salaam stock exchange (DSE)

The general objectives of this study was to investigate the factors that are leading to investors trading at DSE .This study investigating the factors that are causing the public to shy away from secondary trading of securities ,the factors that hinder the awareness of DSE and the public’s perception. The information given out by the DSE and the public’s perception. The study found out that there are a number of factors causing the public to shy away from the secondary trading of shares, including little or lack of capital to invest, and the desire to again a profile due to share price appreciation. Factors identified to be hindering awareness of security trading with DSE including low level of education, lack of interest by the public, difficult in understanding the technical information given and the culture of unwillingness to charge. The study recommends that both CMSA and DSE should play an active role of awareness creation and capacity building through training and aggressive promotion activities to raise the public awareness of the DSE operations. The public and potential investors are also advised to take a step forward to understand how the market operates, what opportunities are available and also to mobilise investing in the trading of share.