Stock Market Literacy: A Systematic Literature Review and Future Research Agenda

This study provides a systematic review of extant academic literature on financial literacy and stock market participation to enhance our understanding of stock market literacy, pinpoint the literature gaps, and suggest future research directions. Relevant literature was systematically retrieved from two leading academic databases, Scopus and Web of Science, to ensure the rigor and credibility of the review. Employing thematic analysis, we start by delineating the dimensions of stock market literacy and outlining the theories underpinning previous research. Subsequently, we identify the antecedents, consequences, and contingencies of stock market literacy. These analyses provide insights for discerning suggestions and avenues for future research in the nuanced realm of stock market literacy. We highlight stock market literacy as an inseparable part of financial literacy and individual participation in the stock market and identify dimensions of stock market literacy, including basic stock market concepts, advanced investment strategies, behavioral finance insight, risk management, and ethical considerations, and financial planning and long-term investment. Theoretical lenses offer insights into the psychological and behavioral aspects shaping stock market literacy. Moreover, this study explores antecedents, consequences, moderating, and mediating factors, emphasizing demographic characteristics, personality factors, technology access, investment intentions, decisions, and performance. Fundamentally, this study offers a comprehensive overview of existing research and charting potential avenues for future investigation.