Contribution of Investors in Stock Exchange Development in Tanzania: A Case of Dar es Salaam Stock Exchange
This study aimed to assess the contribution of investors to stock market development in Tanzania using DSE as a case study. Specifically, the study aimed to analyze the growth of the market value of equity share listed in Dar es Salaam Stock Exchange by the investors, to analyse the increase of market value of equity share traded in Dar es salaam stock Exchange, to identify and examine efforts being made by stock exchanges to attract participation in the market place and to analyze the extent to which DSE has been successful in achieving its objectives. The methodology used to conduct this study was case study research method and used both primary and secondary data. The study found that equity share was growing year after year at DSE as market value of shares listed have been growing at the annual average rate of 52.3% for the last eight years (2007-2014). Compared to the Nairobi and Uganda Stock exchanges, DSE was found to have the highest percentage change of market value of share listed followed by Uganda Stock Exchange (USE). In terms of market value to equity share traded, the value at DSE has been increasing at the annual average rate of 12.6% for the last eight years. Likewise, DSE was ahead of Nairobi Stock Exchange (NSE) and Uganda Stock Exchange (USE) in terms of percentage change of market value of equity share traded. The study noted that DSE was effective in attracting investors. According to the calculation made, it was interpreted that DSE has made big efforts in attracting investors. Lastly, it was recommended that DSE should make more efforts to attract more investors since it was found that stock exchange performance depended much on the value of equity share traded.
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