Awareness and Participation of Locals in the Stock Exchange Market

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TUMAINI UNIVERSITY
IRINGA UNIVERSITY COLLEGE
FACULTY OF BUSSINESS AND ECONOMICS
BACHELOR OF BUSINESS ADMINISTRATION (BBA3)

RESEARCH REPORT

ON

AWARENESS AND PARTICIPATION OF LOCALS IN THE STOCK EXCHANGE MARKET
CASE STUDY: DAR ES SALAAM STOCK EXCHANGE

SUBMITTED BY:
MWANAARAB RAJAB

ACKNOWLEDGEMENT

My gratitude goes first and foremost to God who enabled me to complete this research as well as my studies. I would like to convey my gratitude to my parents, godmother and family who raised me and provided me the opportunity to focus on studies. Thirdly, my gratitude goes to Tumaini University College for nurturing my talents and teaching me so many new things. Thanks to all the lecturers and staff that facilitated my education directly and indirectly. I would be wrong if I did not convey my gratitude to my many friends who kept me going during all those hard study times and when school was tough to handle alone. Lastly but not least, I would like to thank all the people who accepted to answer my unending questions about this research and accepting top fill my questionnaires as well as giving me assistance. Many thanks goes to Mr. Enock Ugulumu, Ms. Kettie Chipeta, Ms. Irene Alenga, Mr. festo Maro, Mr. Ernest Chiwenda, ms. Rahma Sibuma, Mrs. Fatma Salum Makaranga, Mr. Karrym Mbowe, Ms. Awema Hassan, Mr. and Mrs. Steve Ngalo, and to many others whom I may not have mentioned.

ABSTRACT

This research focused on the level of awareness and the extent to which locals participate in the stock market. In talking of locals, we are referring to the average Tanzanian who is not extremely rich as the case is for the minority in Tanzania. This research aimed at identifying the sources of the problem of lack of participation of locals in the stock market and possible benefits that would have been accrued if the locals participated in the stock exchange market.

With this research, I aim to answer the following questions:

·Do the locals know of the stock market operations and their implications? ·Do the local people actively participate in buying and selling of stocks in the stock market? If not, why? ·Is participation in the stock market really beneficial?

The representative sample consisted of average citizens; These were government officials, private organisations’employees, university students, businesspeople and semi-employed individuals. Questionnaire approach was used and 97 out of 100 of these people returned the questionnaires.

According to the findings, a majority of the locals have heard of the stock exchange market and they have an idea of what it is about. However, the fundamental functions and operations of the stock market are still not clear to the locals, as even the location of the centre itself is not widely known. Although most people acknowledge that the stock exchange market is a source of income and it has income earning potential, because of the lack of information on the movements of the stock exchange market and operations, people are reluctant to participate. The lack of adequate information is the major source of the problem of low participation of locals.

It is recommended that, for the stock market to grow in Tanzania in terms of active participation, information dissemination is crucial, intensive marketing is an important factor, focus on the grass root individuals, expansion to other regions of Tanzania as well as awareness promotion in such regions is necessary.

TABLE OF CONTENT

ACKNOWLEDGEMENT2
ABSTRACT3
TABLE OF CONTENT4
LIST OF TABLES6
ABBREVIATIONS7
CHAPTER ONE8
1.0 INTRODUCTION8
1.1 Research Problem8
History of Dar es salaam Stock Exchange10
VISION OF DSE10
MISSION10
REGULATORY FRAMEWORK11
DSE MEMBERSHIP11
DSE ORGANIZATIONAL STRUCTURE11
DSE FUNCTIONS12
1.2 Research Questions13
1.3 Significance of the study13
1.4...
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