ABSTRACT

The commencement of the capital market has provided investment opportunities to retail
investors in Nepal. Without proper financial awareness and planning investment in stock market
seems to be speculation or some kind of gambling process. Individual psychology about quick
return from stock market increases the retail investors’ speculation rate. This research examines
the relationship between individual attributes and their perception towards stock market
participation. Various individual attributes like age, income level, education level, financial
literacy, access to credit and personality traits has impact on stock market participation. Different
attributes carrying individuals have different perception about investing in stock market. The
main research will be focused on either Nepalese retail investors are investing in stock market as
an investment opportunity or as a speculation process. This research is very useful to all the
parties like security business persons, market makers, brokers, companies and investors etc. who
are directly or indirectly involved in the stock market because it provides the perception of retail
investors about the stock market to make investment decisions. Issuer Company may also take
the advantage of the study by examining the retail investors’ psychology towards the investment
decision in different financial instruments.