FACTORS INFLUENCING INDIVIDUAL INVESTOR IN KARACHI STOCK EXCHANGE

Abstract

Purpose: Investor investment process is very important to study to find which factors influence them to invest in shares. This research paper aspire to identify factors influencing individual investor in Karachi stock exchange. Research methods/sampllng: The research method for this study is quantitative and the results has been found through SPSS software techniques of Correlation, T test and Frequency distribution. 200 questionnaires were distributed out of which 65 were received. Findings of the research: In this paper there are six factors that fulfill the purpose of the study those factors are demographic factor, self/fmn image, accounting information, neutral information, advocate recommendation and personal financial needs. These factors are further divided into 28 variables that are included in the questionnaire. The significant factors are self/firm image, accounting information, neutral information, advocate recommendations and personal financial needs. The demographic factor does not impact the investment decision in Karachi stock exchange. The six most influencing variables are expected earnings of firm, market worth of share, status of firm, economic condition, financial statement and affordable price share. The four least influencing variables are government holdings, to become rich, attractiveness of non-stock investment and family member’s opinion. Practical implications of the research: This study is beneficial for investors as well as to the analyst to predict the stock market performance. It highlights the factors that investor consider while investing. So when factors have been identified it help them to see how stock market will perform and about the company's stock position as well as particular industry stock performance.