Introduction: Achieving a high level of development is a desirable and essential goal for Iran. This important objective is not possible except through capital accumulation and the existence of a strong capital market. The stock exchange, as the most important segment of the capital market, alongside the money market, is a sub-branch of Iran's financial market and symbolizes the productive sector of the country's economy, which essentially aims to mobilize monetary resources for productive activities. Although this market has grown significantly over the past decade in terms of volume and value of transactions and the number of active companies, an examination of the data and information related to this market shows that it is not in its true position and, compared to the markets of other countries, does not play a significant role in the economic development of the country. Therefore, this research seeks to answer the question: What factors affect public participation in the stock market?
Method: This research was written using a qualitative methodology and the Interpretive Structural Modeling (ISM) technique. The study field (or target population) for this research consists of experts who are knowledgeable about Iran's social and and economic issues and are themselves active participants in the stock market. The sampling method was purposive (or purposeful) and employed the snowball technique. The sample population of this research comprised 21 experts. The data collection instruments included note-taking/documentation from relevant documents and literature, as well as interviews with the research sample.
Findings: The findings of this research indicate that macro and structural factors determine public participation in the stock market. According to the ISM model cultural capital, social capital, economic factors, macro-political factors, values, and social conformity were placed in the independent region (meaning they have high influence and low dependence). The component of reference groups was observed in the autonomous region. Dependent Region: Components of personality traits and trust are observed in the dependent region (meaning they have low influence and high dependence). Boundary/Other: Three components—economic culture, media, and attitude—are located at the border between the connected and independent regions. The variable of awareness is placed on the border between the connected and dependent regions.
Conclusion: The result is that by implementing more precise policymaking, changing current economic policies, activating the stock market based on the factors identified in this research, and ensuring non-interference by the government in this market, it is possible to elevate the status of the stock market within Iran's financial sector and move toward sustained economic development.