Abstract:
There were many changes made towards the education system since the founding of People’s Republic of China (PRC), which caused the same degree of the same subject from different years may result in containing different knowledge. This research is aimed at studying the effect of the education background to the investor’s participation in the stock market, separating the differences caused by diverse ages. We arranged our samples into three groups base on the changes throughout the years after the founding of PRC, and have found out that group 2 has the most sensitivity comparing to group 1 and 3. By dividing the cause of the effect of the education background to the investor’s participation in the stock market into finance cognition and the stability of income, we have reached a further conclusion. Also by comparing the financial cognition level of the ones from the same education level with different ages, we have discovered that to develop the participation of investors in the stock market, it is better to educate the highly educated seniors and the young and middle-aged separately rather than giving universal education.
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