Indonesia Conference Directory

The purpose of this article is to examine the knowledge of the Indonesian people about the capital market and the activities which occur therein. The methodology used to analyze the level of knowledge of Indonesian people about capital market activities is the purposive and convenience non-probability sampling method. The authors design questions to measure basic knowledge related to stock market activities, as well as questions to measure financial knowledge related to capital market instruments. The purposive and convenience non-probability sampling method was used to select respondents in this study. Questionnaires were implemented from various segments of Indonesias educated and working population (teachers, lecturers, administrators, students, workers, traders and professionals in various economic sectors). The results showed that public awareness of the existence and effective function of the capital market in Indonesia was at a fairly low level. This is caused by the lack of public knowledge of all activities that exist in the capital market in general. Investors can become more active when they have adequate knowledge about various trading activities in the capital market. The findings in this study have the implication that understanding public knowledge is very important in the process of disseminating company information, corporate communication strategies, growing number of investors and issuers so that investment instruments in the capital market can be well received.