Abstract:
Stock market takes a big part of a nation’s economy. Whereas, Indonesia market stays low for long time,especially for last year the stock market has declined to 12.13%. One of the reason is people are prefer saving money in the bank. Hence, this objective was to find the factors influencing stock investors’ investment behavior. Though the stock market exchange is in Jakarta and Surabaya, the research was conducted in Jakarta only due to time and monetary constraints. This research applied quantitative method with purposive sampling technique to spread questionnaires with 289 stock investors in Jakarta, Indonesia. The factor analysis was applied to find and group the factors and tested validity. Further Cronbach’s Alpha was applied to test the reliability of the survey instrument. Finally Multiple Regression was applied to test the significant of each independent variables (psychological factors, demographic factors, financial literacy, current state and risk tolerance) towards dependent variable (investment behavior). The result of the research is that psychological factors, economic condition and risk tolerance are the significant factors influence investors’ investment behavior and demographic factors and financial literacy are not influencing investors’ behavior. So investors need to think carefully when they doing investment in stock market. Besides, government also need to make effort to help investors when they trying to invest in stock market.
