Stock FAQs

how many households in the us own stock

by Bessie Leffler Published 3 years ago Updated 2 years ago
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Full Answer

How many Americans own stock?

Those avenues result in indirect ownership. Only 15% of US families directly owned stock in 2019; most families who owned stock in 2019 did so indirectly. Fewer Americans purchase stock directly anymore, even as total stock ownership has risen. Between 1989 and 2019, the share of families with direct stock holdings actually fell from 17% to 15%.

How much of the stock market does the average family own?

Nearly half of families in the top 10% of the wealth distribution directly held stocks in 2019, and a total of 94% held stock either directly or indirectly. But for families in the bottom 25% of net worth, 4% directly held stocks, and a total of 21% percent held stocks in some way. The top 10% of income earners own 70% of the stock market.

Who owns the most stock?

The median white, non-Hispanic investor owns over three times as much stock as Black or Hispanic stockholders. Because income and net worth are highly correlated with race and ethnicity, there are gaps in the tendency to own stock between white, Black, and Hispanic families as well.

How many people invest in the stock market?

Participation in the stock market varies considerably across demographic groups. But even among those with annual family incomes of less than $35,000, about one-in-five have assets in the stock market. The shares increase as income rises, and among those with incomes above $100,000, 88% own stocks – either directly or indirectly.

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What percentage of the stock market is owned by the rich 2020?

Effect of stock market gainsHousehold Net WorthTop 1%TotalShare of Increase (Increase/Total Increase)27.1%100%(Intentionally left blank)Share of Net Worth Q4 201631.1%100%Share of Net Worth Q2 202030.5%100%5 more rows

Who owns stock in the US?

Stock ownership is strongly correlated with household income, formal education, age and race. In 2022, the percentages owning stock range from highs of 89% of adults in households earning $100,000 or more and 79% of those with postgraduate education to a low of 25% of those in households earning less than $40,000.

What percentage of millionaires invest in stocks?

30%80-85% of millionaires are first-generation rich, which is motivating for anyone wanting to reach this elite status. More than 30% of their wealth is invested in publicly traded stocks.

How much of the US stock market is owned by foreigners?

40 percentOur new analysis shows that foreign investors owned about 40 percent of US corporate equity in 2019, up substantially over the last few decades.

How much in stocks does the average person have?

The amount of assets families hold in stocks also varies considerably by income. Among those with incomes less than $35,000, the median amount held is less than $10,000. For those at the higher end of the income scale, the median amount is more than $130,000.

What percentage of US companies are publicly owned?

Publicly traded companies constitute less than 1 percent of all U.S. firms and about one-third of U.S. employment in the non-farm business sector.

What is considered wealthy in America?

The average net worth needed to be considered wealthy and to be financially comfortable both rose from last year's survey. In 2021, Americans said they needed $624,000 in net assets to live comfortably, while it would take $1.9 million to be rich.

What percent of the top 1 inherited their wealth?

21%. That's right. Millionaires and the general population receive inheritances at the exact same rate.

How much is the average stock portfolio worth?

Families in the top 10% of incomes held 70% of the value of all stocks in 2019, with a median portfolio of $432,000. The bottom 60% of earners held only 7% of stocks by value. The median middle-class household owned $15,000 worth of stock.

What country owns the most of America?

In terms of country of ownership, Japan holds the largest amount of U.S. portfolio assets, followed by China.

What foreign country owns the most property in the US?

Canada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. The Netherlands is the second largest foreign owner with 4.6 million acres.

Who owns the most stock in the world?

The natural stock pick held by the world's wealthiest person is Microsoft (NASDAQ:MSFT), the giant tech company Bill Gates co-founded with Paul Allen in 1975. Gates still owns almost 103 million shares of the company worth $15.4 billion.

How many households don't own stock in 2020?

For example, in 2020, 77% of households making less than $40,000 per year didn’t own stock. In contrast, only 15% of households earning $100,000+ per year weren’t invested in some form of stock: Yearly Household Income (USD) Yes, Owns Stock (2020) No, Does Not Own Stock (2020) $100,000+. 84%. 15%.

How many Americans own stock in 2020?

In 2020, approximately 55% of Americans owned some form of stock. That’s 5 percentage points lower than U.S. stock ownership in 2000. Stock ownership is strongly linked to household income. Last year, 84% of U.S. households earning $100,000+ owned stock, compared to just 22% of those making less than $40,000.

Who spends the most money in politics?

In politics, the candidate who spends the most money usually wins. Because of this, donations are an important part of political campaigns, and the people behind those donations wield an intangible level of power and influence.

How much has the global GDP grown in the last four decades?

As global GDP has grown over the last four decades, from $23.6 trillion in 1990 to $84.5 trillion in 2020, the proportional share of the world’s top companies by market capitalization has grown over five-fold. Though the world’s top 50 companies change year-to-year, there’s also a lot of overlap.

When did stock ownership become common?

Stock ownership was more common from 2001 to 2008 when an average 62% of U.S. adults said they owned stock -- but it fell after the 2007-2009 recession and has not fully rebounded. Stock ownership is strongly correlated with household income, formal education, age and race.

What is the stock market trend from 1998 to 2020?

Trend from 1998 to 2020 in percentage of U.S. adults who own stock, based on annual averages. The rate was 60% in 1998 and remained near this level through 2009, but has since trended lower. The figure has been steady at 55% from 2008 to 2020.

Over half of Americans own stock, but it's not distributed equally

56% of American adults, or about 145 million people, own stock. That percentage hasn't moved much over the past decade, despite tremendous gains in the market and the recent meme stock craze.

Key findings

About 145 million Americans -- 56% of American adults -- own stock. Stock ownership hasn't fully risen to levels seen prior to the 2008 recession.

Buy and hold

It's encouraging that 56% of American adults own stock and we hope to see future growth in stock ownership, particularly among Hispanic and Black households.

Sources

Department of Labor (2021). " Private Pension Plan Bulletin Historical Tables and Graphs 1975-2019 ."

Our Data Sources

A great source of this information is the Federal Reserve’s Survey of Consumer Finances (SCF). The most recent SCF dataset was released for 2019. We use this data when we looked at how millionaires made their money – it contains a lot of juicy information you can’t find (reliably) anywhere else.

Where Do People Put Their Money?

If so few people own stock, and those that do own stock mostly hold it in retirement accounts, where do people keep their money?

Conclusions

Building wealth is difficult but it’s made harder given the financial scenario many young people are in. The SCF also discusses other areas of American’s financial lives and one such area is debt and debt burden. Overall debt obligations decreased from 2013 to 2016 with one exception – education debt (yes, student loans). That remains high.

How Many Americans Own Stocks?

2020 was an exceptionally volatile year for the stock market. But how many Americans were directly impacted by last year’s market highs and lows?

High Income, High Stock Ownership

While more than half the U.S. population owns some form of stock, ownership is concentrated among higher-income groups.

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