Unlocking the Potential of Individual Investors Participation: A Glimpse into Tanzania’s Dar es Salaam Stock Exchange (DSE)

This study investigates the determinants of individual investor participation in the stock market, utilizing data collected from the Dar es Salaam Stock Exchange (DSE). A cross-sectional research design was adopted, and a simple random sampling technique was employed to select a sample of 384 individual investors. Data collection was conducted through a structured questionnaire, designed to capture relevant demographic, behavioral, and financial information. The collected data were then analyzed using both descriptive statistics to summarize key variables and probit regression model, to examine the relationships between various factors and stock market participation.The findings revealed that age (p = 0.099) and being student (p = 0.053) also positively influence participation, being male investor (p = 0.029), especially when financially literate (p = 0.000), are significantly more likely to participate in the stock market. Degree holders (p = 0.002) and married individuals (p = 0.004) also exhibit higher participation, while diploma holders (p = 0.005) are less likely. Social interaction (p = 0.000), financial literacy (p = 0.000), being risk taker (p=0.002) and technology usage (p = 0.000) significantly enhance participation while liquidity constraints (p = 0.990) and transaction costs (p = 0.008) reduce participation in Dar es Salaam Stock Exchange Market. The findings suggest that policymakers should prioritize financial literacy programs, especially targeting male investors and degree holders, while expanding technology access to facilitate broader market participation. Efforts to reduce transaction costs and address liquidity constraints can further encourage individual investors. Enhancing social interaction platforms within investment communities will foster greater engagement, contributing to a more inclusive and vibrant stock market in Tanzania.