Micro – Economic Factors Influencing Quantity of Stock Demanded by Retail Investors in the Kenyan Stock Market: A Case of Nyeri District, Central Province: Kenya

Abstract

This research was set to establish whether time period of retail investors in the stock market, cost of the stocks, profits declared by listed companies, investor’s income, availability of stocks, investment returns and prior advice influence demand of stocks by retail investors in the stock market. It revealed that increase in investor’s income, investment returns, profits of listed companies, prior advice, time period, and availability of stocks have a positive relationship with the demand for stocks by retail investors, while cost of stocks has a negative relationship with the demand for stocks by retail investors in the stock exchange market. It recommends that there is need for further professional training on the stock exchange market as most investors rely on their friends advice before investing in the stock market. It also recommends that the government through the CMA and NSE ought to put up stringent measures to safeguard the public from scrupulous brokerage firms.