Socioeconomic Characterization and Equity Market Knowledge of the Citizens of Barranquilla, Colombia

• Main Authors: Guillén León, Sergio Afcha
• Format: Article
• Language: English
• Published: Universidad de Antioquia 2016-07-01
• Series: Lecturas de Economía
• Subjects: stock exchange; equity market knowledge; financial literacy; logit model
• Online Access: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/article/view/323679

This paper empirically examines the level of knowledge and participation of the citizens of Barranquilla in regard to the equity market in Colombia. 800 individuals distributed in five locations within the city were surveyed for this study. The factors explaining the small investors’ knowledge of the market, as well as the variables that influence the probability of investing in the stock exchange, were estimated using a logit model. The results show that, compared to other variables, the income range determines the level of knowledge and investment in the stock market to a great extent. Finally, it is confirmed that the equity market has very specific characteristics such that its main participants are those investors with greater knowledge about the investments they make.