Financial Literacy Empowerment in the Stock Market

This book provides an overview of current issues associated to financial literacy improvement. In selecting and structuring the material to include, the primary criterion has been applicability of topics and recommendations and accuracy of trends toward b

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Ali Saeedi and Meysam Hamedi

Financial Literacy

Ali Saeedi • Meysam Hamedi

Financial Literacy Empowerment in the Stock Market

Ali Saeedi North Branch (Management and Social Sciences Faculty) Islamic Azad University Tehran, Iran

Meysam Hamedi Securities and Exchange Organization of I.R. Iran Tehran, Iran

ISBN 978-3-319-77856-3    ISBN 978-3-319-77857-0 (eBook) https://doi.org/10.1007/978-3-319-77857-0 Library of Congress Control Number: 2018939800 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Modern building window © saulgranda/Getty Printed on acid-free paper This Palgrave Pivot imprint is published by the registered company Springer International Publishing AG part of Springer Nature. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

I ntroduction: Basics of Financial Literacy   1 What Is Financial Literacy?   3 Importance of Financial Literacy   7 Financial Literacy Around the World  11 Overview of Contents  14 Layout  14 References  17  Chapter 1 Financial Literacy and Financial Behavior  19 Introduction  19 What Is Financial Behavior?  21 Financial Behavior Biases  22 Financial Literacy, Financial Behavior, and Financial Well-Being  32 Practices Around the World  33 Summary  37 References  40  Chapter 2 Who Should Be Educated in Financial Literacy?  43 Introduction  43 Necessity of Variation  44 Which Target Audience?  45 Prioritization of Categories  47 Subcategories of Financial Education  48 Practices Around the World  52 v

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CONTENTS

Summary  54 Reference  55  Chapter 3 Which Delivery Method, Which Topic?  57 Introduction  57 Initial Aspects of Delivery Methods  58 Main Delivery: Methods for Financial Concepts  60 Topics in the Spotlight  68 Practices Around the World