This is the Puzzle,Why Many Families Don t Participate in Stock Exchange?

According to macroeconomic theories, capital accumulation is necessary (but not enough) for development of national economy, and stock exchange is the place which can pave the way for capital formation and with its ideal operation, bring about provision of financial resources needed for production units and supply the required facility for transferring people’s saving into investment opportunities. Different studies reveal that in spite of the importance of stock exchange, households are not so inclined to invest in stocks, so, this would be the question: why many families do not participate in stock exchange? The present study with regard to the importance of the issue has dealt with the effective factors on people’s participation in Tehran stock exchange before their entrance and acquire their first experience in buying. The result of the present study shows that people’s education and that of their spouses, financial variables and the expenses of participation in the stock exchange would be effective on people’s participation in Iran’s stock exchange.