Investors Behaviour and Development of the Stock Exchange Market in Some Selected Companies in Rwanda

ABSTRACT The study was carried out on investor’s behavior and development of stock exchange markets in Rwanda. This was based on view that investors were not showing a lot of interest to participate in stock exchange due to poor attitudes and perceptions about Rwanda stock exchange hence the need to find out the factors that influence investors behavior. The study used a descriptive design to describe investor’s behaviours, it focused on Rwanda stock exchange, the Ministry of trade and transport, and corporate companies that deal in stock exchange markets. Data was collected using structured questionnaires and interview schedules. Data collected was analyzed using SPSS and inferential Statistics. The study found out that the stock exchange markets were growing at an increasing rate. However, they still face a lot of challenges that negatively influence investor’s behavior like unstable stock prices on the market and the low level of investment in Rwanda’s economy. There was a significant relationship between investor’s behavior and stock markets development. The study concluded that there is need for government to invest in the stock markets as well as advertising through the local media and internet to attract international investors to participate in the stock markets. Government should take the centre role to control the stock prices and provide security to the investors so that they can be sure that their capital is safe from losses.