Measuring Investors’ Experience about Stock Market: Scale Development and Validation

Investment satisfaction is the measure of the quality of services provided to the investors. Studies conducted in the past revealed that the investment industry in India is growing but still struggling to win investors’ confidence. Since an investors’ experience is very important for him to invest in the stock market, an attempt has been made to develop and validate a scale for measuring the investment experience of individual investors in the Indian stock market. The data for the study were collected from primary sources using a pre-tested and well-structured questionnaire. Factor Analysis and Confirmatory Factor Analysis were used to analyze the collected data. The study’s findings revealed that the factors, namely ‘Intermediaries’, ‘Regulator (SEBI)’, ‘Issuing Company’, ‘Use of Technology’ and ‘Investment Instruments’, are important factors determining the overall experience of investors about the stock market.