The Typical Shareholder of US stockmarket (historical data)

Since the 1950s, there has been a gradual increase in the number of people buying shares.  This is a positive trend, because the more shoreholders there are, the more the wealth gets spread around.

Twenty years after the Great Depression, the vast majority of Americans were afraid of stocks and kept their money in the bank, where they thought it was safe.  You've heard the expression, "I'd rather be safe than sorry"? 

• In this case, the money was safe and the people were sorry, because they missed the fabulous bull market in stocks during the 1950s. 
• There were only 6.5 million shareholders in 1952, only 4.2% of the population, and 80% of those shares were in the hands of 1.6% of the population. 
• All the gains went to a small group of people who weren't afraid of stocks and understood the benefits far outweighed the risks.

1962
17 million Americans owned stocks. 10% of US population.
The more stock prices rose, the more people jumped on the bandwagon.


1970
By 1970, there were 30 million shareholders in America, 15% of the population.
The eager buyers had pushed prices to dangerously high levels.
Most stocks were fatally overpriced.
Market corrected. 
So many brutal sellers during the brutal stock-market correction of the early 1970s.
5 million former shareholders, 3% of the US population exited the market en masse.

1975
It took 5 years for enough people to come back to stocks so that once again, the US had 30 million shareholders.

mid 1980s
47 million shareholders in US
1 out of 5 Americans owned stocks
33% of these invested through mutual funds.
Market value of all stocks on NYSE > $1 trillion

1990
51.4 million shareholders
A larger number of people invested through mutual funds. 
The average investor was no longer interested in picking his or her own stocks. 
The job was turned over to the professional fund managers at the nearly 4000 funds in existence at the time.
3.7 million shareholders or 7% of total, under the age of 21.

1995
Market value of all the stocks of NYSE > $5 trillion mark (In 1980, these same stocks were worth $1.2 trillion)
The money invested away in stocks had made the investors at least $4 trillion richer in a decade and a half.
That is letting your money do the work!


The typical shareholder in 1900
45 year old man
Annual income:  $46,400
Owned:  $13,500 worth of stocks

44 year old woman
Annual income:  $39,000
Owned:  $7,200 worth of stocks