Poor Investor Education Affects Capital Market Growth

Investor interest in the capital market and investment instruments in general will grow if Ghanaians are properly educated on the operations and benefits of that segment of the financial market to their everyday life, the Director General (DG) of the Securities and Exchange Commission (SEC), Mr Adu Anane Antwi, has observed. Investor education, he said, was a necessary ingredient to the growth of the market hence the decision by SEC, which regulates capital market activities in the country to actively educate the populace on the industry. �Investor education is not a mandatory requirement of the SEC in Ghana,� Mr Antwi said, citing the mission statement of the commission. �But we undertake it under the overall goal of investor protection. The SEC believes that investor education is the right thing to do as it informed and educated investors as one of the key drivers to the growth of the securities,� the DG said at the launch of this year�s Capital Markets Week in Accra. The initiative is a week-long event by the SEC aimed at creating awareness of the operations of the capital market, a segment of the financial sector that involves the raising of long-dated funds through the sale of shares, bonds and other investment instruments. It is supported by the Ghana Stock Exchange (GSE), the Ghana Securities Industry Association (GSIA) and the Institute of Financial and Economic Journaliss (IEFJ). Programme line up This year�s event is on the theme: �The capital Market, Creating Wealth for All.� It will run from October 27 -31 within which various activities aimed at exposing the general public to the sector will be undertaken. Key among them is a quiz competition on capital markets by students from 22 public senior high schools in the Greater Accra Region. �The competition is the first of its kind in the country and is part of measures by SEC to educate children at the tender age on the operations and benefits of the industry,� Mr Antwi said. �It is expected to complement the �Child Finance Club,� an online platform that brings students in the upper schools together to discuss investment-related issues. It is aimed at catching investors while young, the DG of SEC explained. Mr Antwi said the event would also feature public fora in Accra, Cape Coast, Takoradi, Ho, Tamale and Wa as well as some selected universities nationwide.