Investing in stock exchange requires the proper understanding of some key information about the stock exchange market and the way it operates. The key performance indicators including firms’ financial information are important pieces of information required to be availed to the would-be customers/investors. The main research objective was to identify the usefulness of the financial information by the prospective investors when they are making decisions to purchase securities from the companies listed in the stock exchange market in Tanzania. The case study design was employed in the study, which covered 50 respondents in Zanzibar. It applied the non-parametric methods in order to capture data from respondents in Zanzibar. The findings revealed that it is important to every, would be investor to be supplied with financial information before joining in the stock exchange market. Secondly, small investors do not take into account the use of financial information when deciding to invest. Thirdly, large investors are more sensitive to the use of financial information than medium and small investors are.
Stock exchange, capital markets, financial information, investors
