PT  - JOURNAL ARTICLE
AU  - Smita Tripathi
TI  - Does Financial Literacy Affect Stock Market Participation? Evidence from India
AID  - 10.3905/jwm.2023.1.194
DP  - 2023 Jan 06
TA  - The Journal of Wealth Management
PG  - jwm.2023.1.194
4099  - https://pm-research.com/content/early/2023/01/06/jwm.2023.1.194.short
4100  - https://pm-research.com/content/early/2023/01/06/jwm.2023.1.194.full
AB  - This article investigates the impact of financial literacy on stock market participation in India. It uses a sample of 700 respondents from three Indian states. The probit regression model has been used to estimate the effect of financial literacy on stock market participation. We find that the most of respondents lack fundamental understanding of finances. Less literate people are less likely to buy equities. Financial literacy has a big impact on stock market participation in India. Additionally, demographic parameters including age, education, income, marital status, and gender are proven to have an impact on financial literacy and stock market involvement. This article adds to the body of recent literature by providing a microeconomic explanation for the stock market participation paradox.