FINANCIAL LITERACY AND CAPITAL MARKETS: INTERRELATIONSHIPS AND DEVELOPMENT FACTORS

Annotation. Financial literacy plays a crucial role in the effective functioning and sustainable development of capital markets. A higher level of financial knowledge enables individuals and investors to make informed financial decisions, manage risks effectively, and participate more actively in investment activities. At the same time, developed capital markets create opportunities for wealth accumulation, business financing, and economic growth. This article examines the relationship between financial literacy and capital markets, highlighting the key factors that influence their development. The study analyzes the impact of financial education on investment behavior, market participation, and financial inclusion. The findings suggest that improving financial literacy contributes to increased investor confidence, greater market efficiency, and broader participation in capital market activities. The article also discusses policy measures and educational initiatives aimed at enhancing financial literacy and supporting capital market development.