Cambodia Securities Exchange (CSX) has been slow progress in its first few years of
operations because there has been only one listed firm and public knowledge and trust about the
securities market remains low. There are only about 3,700 accounts at the exchange, and still
only 12 companies trading there. A third of the accounts are foreign. Currently, the Cambodia
Securities Exchange building remains quiet, with only about 2,000 shares traded. The idea of the
stock exchange is still new, which makes it difficult for Cambodian people to invest in it. Unlike
people in developing countries, Cambodians, with restricted knowledge, are reluctant to invest
their money in something they have never experienced before. And some people even compare
investing money in the stock exchange to playing a game. Cambodia needs at least another few
years to promote public awareness and trust about the market.

As Guiso and Jappelli (2004) stated that the decision to participate in the stock exchange also
requires the knowledge and awareness of the available financial instruments, an assessment of the
risk-return trade-off and an act of trust, and that the overall system is fairness of the system.
Many prospective investors shy away from the stock market because they have limited
knowledge of stocks, the working of the stock market, and asset pricing (Rooij, Lusardi and
Alessie, 2007). Awareness in this study means having prior knowledge of the stock, and is regarded as the knowledge about stock market activity that is improved through regular and
intensive stock market education.
Guiso and Jappelli (2005) had also provided evidence that lack of awareness affect stock
market participation. The determinants of awareness, and they reveal the probability that survey
respondents are aware of stocks, mutual funds and investment accounts is positively correlated
with education, household resources, long-term bank relations and proxies for social interaction,
and concluded that lack of financial awareness has important implications for understanding the
stockholding puzzle and for estimating stock market participation costs.