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Commission-Free Stock Trading and Impact on Individual Stock Market Participation (SMP)

Otchere, Augustine Akomeah
http://rave.ohiolink.edu/etdc/view?acc_num=frank1701338424026143

Abstract Details

2023, Doctorate of Business Administration, Franklin University, Business Administration.
This research explores the impact of zero-commission stock trading on individual stock market participation across a spectrum of demographic and socioeconomic factors. The advent of online platforms offering commission-free trades has potentially democratized stock market access, which this study investigates against the backdrop of traditionally low individual engagement in stock investments. The research was a quantitative cross-sectional survey, collecting data from a diverse American demographic. A significant 41% response rate was achieved, resulting in the completion of 495 questionnaires. The analysis reveals that income is the dominant factor influencing stock market involvement, accounting for 21% of the variance in participation rates; higher earners are more likely to invest. The allure of zero-commission trading stands out as a strong predictor of SMP accounting for 15% variance in participation while widespread adoption of smartphones and trading apps accounting for (4%). Financial knowledge and awareness was equally a significant predictor, contributing to 6% variation in SMP. Additionally, gender and age accounted for 3% and 4% variance respectively. The research underscores critical areas for policy and educational interventions, such as increasing financial literacy to bridge the gender gap and extending market access to lower-income groups. By shedding light on these factors, the study provides a comprehensive understanding of the recent shifts in stock market participation dynamics, highlighting the transformative potential of zero-commission trading in an increasingly digital financial landscape.
Beverly Smith (Committee Chair)
Tim Wiseman (Committee Member)
Lewis Chongwony (Committee Member)
126 p.
Accounting; Economic Theory; Economics; Education Finance; Educational Tests and Measurements; Finance; Management; Public Policy
Stock market participation; zero-commissions stock trading; prospect theory; equity risk premium; commission-free stock trading

Recommended Citations

Citations

  • Otchere, A. A. (2023). Commission-Free Stock Trading and Impact on Individual Stock Market Participation (SMP) [Doctoral dissertation, Franklin University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=frank1701338424026143

    APA Style (7th edition)

  • Otchere, Augustine. Commission-Free Stock Trading and Impact on Individual Stock Market Participation (SMP). 2023. Franklin University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=frank1701338424026143.

    MLA Style (8th edition)

  • Otchere, Augustine. "Commission-Free Stock Trading and Impact on Individual Stock Market Participation (SMP)." Doctoral dissertation, Franklin University, 2023. http://rave.ohiolink.edu/etdc/view?acc_num=frank1701338424026143

    Chicago Manual of Style (17th edition)

frank1701338424026143
117
© 2023, some rights reserved.Creative Commons License Commission-Free Stock Trading and Impact on Individual Stock Market Participation (SMP) by Augustine Akomeah Otchere is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Based on a work at etd.ohiolink.edu.
This open access ETD is published by Franklin University and OhioLINK.