the impact of public awareness on the growth of capital markets in uganda: a case study of uganda securities exchange limited

Description

The major objective of this study was to establish the relationship between the impact of public awareness on the growth of Capital Markets in Uganda. Other objectives of the study were to find out whether the general public is aware and participating in the Securities Market, to find out the benefits of listing and to establish on the relationship between public participation and growth of Securities Markets. The research was carried out in Uganda Securities Exchange Limited. The research used purposive and judgmental sampling procedure to targeted respondents that provided the most needed data. The sources of data were both primary and secondary sources. Primary data were collected by use of questionnaires while secondary data were collected from existing literature, Journals and USE quarterly and various annual reports. After collecting all the questionnaires from respondents, Statistical Package for Social Scientists (SPSS) was used to analyze the data collected and the findings were presented in form of tables showing frequencies and percentages. In line with the objectives of the study, the major findings on the impact of public awareness and the growth of Capital Market, it was found out that public awareness of the USE, listed stocks, price and returns on stocks has a significant positive relationship on the growth of Capital Markets has revealed by the Pearson correlation (r=0.732). The study recommends increasing public awareness. In particular, the USE should increase spread of information through public awareness campaigns, training programs, focused seminars and workshops. These national campaigns should communicate returns on stocks, stock prices, listed stocks and some forecasts on stocks likely to have higher returns in the short-term. The campaigns should communicate the process of buying and selling of securities. In addition, for a significant growth to be realized in the Capital Markets, massive public awareness should be carried out, increase its products, market them among other factors that contribute to the growth of the Capital Market in Uganda in order to attract investors and the much needed eligible companies from the private sector which has the financial ability. A current feasibility study from USE reveals that forty one companies across the country are eligible for listing into the stock market. Their entrance will increase on the number of listed companies thereby leading to the growth of Capital Market