Abstract
The Czech capital market has long been struggling with a tepid investor interest, which means an untapped potential of its capacity to support the growth of the Czech economy. One of the major reasons is the lack of retail customer's confidence in a safety of funds appreciation through the capital market.
This article seeks to identify legal and psychological factors which may significantly influence the retail customer's confidence. That said, this article analysis the relevant legislation and points to its inconsistencies and secondly, identifies, based on the findings of behavioural psychology and economy, the psychological phenomenon affecting the behaviour of stakeholders in financial markets.
In conclusion, the article presents suggestions for improving a link between the necessities of human judgment creation and established business models of the financial sector related thereto.