A Study on Assessing the Role of Financial Literacy in Stock Market Engagement

Abstract

This article offers the results of an extensive study that examines the many elements that impact individuals' engagement in the stock market. The research investigates the factors contributing to the consistently low rates of involvement in the global equities market, with a specific focus on emerging nations such as India. These factors include consumer financial literacy, risk aversion, financial wellness, regulatory perception, social impact, and investing difficulties. The research uses qualitative interviews and literature review to generate conceptual models that introduce new dimensions of regulatory perception and investment difficulties. These models are subsequently confirmed by quantitative research, drawing upon existing theories. The research provides significant contributions to policymakers, regulators, and investors by deepening comprehension of financial decision-making processes and cultivating a more knowledgeable investing environment. Key words: financial literacy, Risk avoidance, perception social influence Investment, hassles Emerging economies, Equity products Investment behaviour.