The decision to invest in securities: components of financial literacy

Abstract

Annotation. Recently, individuals have increasingly shown interest in investing in securities as an alternative to deposits and investments in real estate. Private investors have a desire not only to save their savings, but also to multiply them. The impetus for this desire was the crisis caused by the COVID-19 pandemic, as a result of which many companies were forced to either suspend their activities, or transfer their employees to remote operation, or reduce wages. Despite the increasing contribution of private investors to various financial instruments, the issue of protecting their interests is acute. However, the focus of protection begins with the concept of "financial literacy". It is financial literacy that is one of the components of the country's sustainable development chain. In this regard, the purpose of the article is to assess the impact of financial literacy of an unqualified investor on his decision to purchase securities. This issue is insufficiently studied in the scientific Kazakh literature. For a more complete disclosure of the subject of the study, factors such as awareness of the stock market and the level of education of the individual are included in the circle of determinants. The practical significance of the article lies in the scientific approach to the formation of the evidence base of the issue under consideration. Within the framework of the study, null and alternative hypotheses were put forward. Verification of the relationship between these determinants was carried out through multivariate regression analysis. One-factor analysis of variance was used to carry out the relevant calculations concerning the respondents' questions regarding the share of income allocated for the purchase of stock market products. Additionally, based on the results of the conducted sociological research, a one-factor regression analysis was applied. The diversity in methodological approaches allowed a more extensive approach to the evidence base of the hypotheses put forward. The result of the study showed the influence of factors such as awareness of the stock market, financial literacy and education indicator on the level of investment in securities. The practical significance of the results of the work makes it possible to correctly select and strengthen the emphasis in the next steps in the formation of a policy to protect the interests of private investors, often classified by the stock market as unqualified investors.