Volpe, Kotel & Chen, A Survey of Investment Literacy among Online Investors

Volpe, R. P., Kotel, J. E. & Chen, H. (2002). A survey of investment literacy among online investors.
Financial Counseling and Planning, 13(1), 1-13.

A Survey of Investment Literacy among Online Investors

Ronald P. Volpe1, Joseph E. Kotel2
and Haiyang Chen3

This study surveyed 530 online investors to examine their investment literacy and the relationship between the literacy and online investor characteristics. Online investors answered about 50% of questions correctly. Investors 50 years of age or older were more knowledgeable than those who are younger. Women had lower levels of investment knowledge than men. Investors with graduate degrees were more knowledgeable than those with some high school or college education. Those who traded online were more knowledgeable. The results of this survey indicate that online investors should improve their knowledge about basic investment concepts and tools.

Key words: Investment literacy, Investing, Internet

1. Ronald P. Volpe, Professor of Finance, The Williamson College of Business Administration, Youngstown State University, Youngstown, Ohio 44555.
Phone: 330-742-3084. Fax: 330-742-1459. E-mail: ronvolpe@attbi.com

2.  Joseph E. Kotel, Staff Accountant, Falcon Transport, Youngstown, Ohio 44501. E-mail: j_kotel@hotmail.com.

3.  Haiyang Chen, Professor of Finance, Director of E*TRADE Financial Learning Center, Christos M. Cotsakos College of Business, William Paterson University, Wayne, New Jersey 07470. E-mail: chenh@wpunj.edu

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