Investor awareness, perceived risk attitudes, and stock market investor behaviour.
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The purpose of the study was to examine the level to which investor awareness, and perceived risk attitudes affected stock market investor behaviour on the Uganda Securities Exchange (USE). The study was initiated because although the Uganda Securities Exchange opened in 1997, only fourteen companies are currently listed with relatively a growing number of investors whose trading patterns are uncertain and not clear yet the securities market has potential to grow bigger than it currently is. A cross sectional quantitative research design as used. Using a proportional random sampling approach, a sample of 86 investors was selected from USE. The research instrument was a self administered questionnaire which sought responses on investor awareness, perceived risk attitudes and stock market investor behavior on the USE. Forty five (45) fully filled questionnaires were returned, giving a response rate 52.3%. Investor awarenesss was found to significantly predit 50.2 percent of the variance in stock market investor behaviour on the USE and percieved risk attitudes was found to significantly predict 9.1 percent of the variance in stock market investor behaviour. The results on the relationship indicated that the investor awareness and perceiced risk attitudes are negatively related to stock market investor behaviour. In light of the findings, various recommendations are suggested on how best investors can make use of available information to make objective investment decisions on the USE. This will help in encouraging potential investors in investing on the securities market.