Impact of Financial Literacy on Investment Decision of Stock Market Investors: with Special Reference to Odisha

Abstract

In recent times, stock market investment plays a significant role in economic growth. The rise in the stock market prices enhances the economy of an individual as well as the government. Similarly, financial literacy also plays a vital role in the economic growth of the country. Moreover, financial literacy is essential for making an effective ID. Financial literacy has been identified as a significant tool for enhancing the financial inclusion and security of an individual. Financial literacy enhances the awareness level of an individual regarding the financial activities and schemes in order to enhance the economic status. Hence, the study examines the financial literacy stock market investors and its effect on making an effective ID. The study also evaluated the factors determining the ID of stock market investors in Odisha. The study collected data 100 stock market investors in Odisha, India. Later, the collected data has been evaluated with aid of chi-square and frequency analysis. The outcome of the current study proves that the financial literacy level of the stock market investors impacts the ID of investors. The outcome of the frequency analysis illustrates the FL level of stock market investors and also factors which determines the ID of investors in Odisha. As per outcome, the factor such past performance of corporate securities, individual market awareness and company’s stability determines the ID of stock market investors. Hence, the current study suggests that stock market investors especially in Odisha, have to attain significant knowledge regarding stock market before making investment in the stock market.