Americans have plenty of ways they can invest, from workplace retirement plans to opening individual accounts with top stock brokers. But how many people invest in the stock market?
About 158 million adults in the United States invest in stocks, according to a recent Gallup survey. However, certain demographic groups own much more than others.
Read on for the latest data on how many Americans own stock, as well as how stock ownership breaks down by wealth, generation, and race.
Demographics
Key findings
Key findings
- About 158 million Americans, or 61% of U.S. adults, own stock.
- The top 1% holds 54% of stocks, worth $19.16 trillion.
- The bottom 50% of U.S. adults holds only 0.6% of stocks, worth $21 billion.
- White Americans own 89% of stocks, worth $31.87 trillion.
- U.S. families held an average of $40,000 in stocks as of 2019. This is far below the peak of more than $50,000 in 2001.
How many Americans own stock?
According to Gallup, 158 million Americans, or 61% of U.S. adults, own stock. That is a 3% increase from 2021.
Stock ownership declined after the recession. From 2001 to 2008, an average of 62% of Americans owned stock. That fell to as low as 52% in 2013 and 2016. Stock ownership among Americans has ticked up in recent years and continues to do so despite market volatility.
| Year | Percentage of Americans who own stock |
|---|---|
| 2000 | 60% |
| 2001 | 62% |
| 2002 | 63% |
| 2003 | 61% |
| 2004 | 63% |
| 2005 | 61% |
| 2006 | 62% |
| 2007 | 62% |
| 2008 | 61% |
| 2009 | 59% |
| 2010 | 56% |
| 2011 | 57% |
| 2012 | 53% |
| 2013 | 52% |
| 2014 | 54% |
| 2015 | 55% |
| 2016 | 52% |
| 2017 | 54% |
| 2018 | 55% |
| 2019 | 55% |
| 2020 | 55% |
| 2021 | 56% |
| 2022 | 58% |
| 2023 | 61% |
Most Americans indirectly hold stocks through a mutual fund, index fund, or a retirement account such as a 401(k). A smaller percentage directly holds stocks, meaning they purchase individual shares.
According to the Federal Reserve, here's how many families held stock in 2019:
- 52.6% of U.S. families (about 65 million families) held stock.
- 15.2% of U.S. families (about 19 million families) directly held stock.
As with the Gallup data, ownership and direct ownership of stocks peaked before the 2008 recession and have yet to completely recover. The percentage of U.S. families that directly holds stock has fluctuated much less than the overall percentage of U.S. families that owns stock.
Overall stock ownership grew much more quickly than direct stock ownership from 1989 to 2001.
That is at least partially due to the wider availability of 401(k)s. In 1989, 17.3 million Americans participated in a 401(k) program. By 2000, that number had more than doubled, with 39.8 million Americans enrolled in a 401(k) program.
| Year | Percent of American families that hold stock | Percent of American families that directly hold stock |
|---|---|---|
| 1989 | 32% | 17% |
| 1992 | 37% | 17% |
| 1995 | 40% | 15% |
| 1998 | 49% | 19% |
| 2001 | 53% | 21% |
| 2004 | 50% | 21% |
| 2007 | 53% | 18% |
| 2010 | 50% | 15% |
| 2013 | 49% | 14% |
| 2016 | 52% | 14% |
| 2019 | 53% | 15% |
Stock ownership by level of wealth
Stock ownership by level of wealth
While more than half of U.S. adults own stock, most don't own much. The wealthiest 1% holds 53% of stocks, worth $19.16 trillion.
If you expand to the top 10%, that group holds 88.6% of stocks, which have a value of $28 trillion.
In comparison, the rest of the country has seen stock ownership dwindle. The bottom 50% of Americans in terms of net worth only owns 0.6% of stocks, which is worth $21 billion.
Trends in stock ownership reflect those in wealth inequality. Over the past two decades, the top 1% of Americans expanded their share of stocks owned, while all other economic segments saw their share of stocks owned decline.
Stock ownership by generation
Stock ownership by generation
Baby boomers have the largest share of stocks, and they're not letting go. They hold 56% of stocks, close to their highest total on record, which is valued at $20.07 trillion.
It's not surprising that baby boomers hold a large amount of stock. They've had plenty of time to build wealth via Wall Street and see their investments grow. Average net worth goes up as Americans age, which often means older Americans have more money to put into the stock market.
However, Gen Xers and millennials have increased their holdings as well. Gen Xers own 26.3% of stocks, worth $9.42 trillion. Millennials own 2.3% of stocks, worth $830 billion. The latter group presumably includes Gen Z investors since the Federal Reserve hasn't separated them out yet.
In our own research on what stocks Gen Zers and millennials buy, we found that 57% of investors in this age range invest in the stock market.
Stock ownership by race
Stock ownership by race
Stock ownership is dramatically split along racial lines, with white Americans owning 89% of stocks having a total value of $31.87 trillion.
The share of stocks owned by white Americans has gradually declined from 96.2% in 1989. But the breakdown of stock ownership by race is still far from reflecting the racial breakdown of the U.S. population.
Despite making up 13.8% of the U.S. population, Black Americans only own 1.1% of stocks, worth $300 billion. The percentage of Black Americans who own stocks has declined since 2012 while the value of stocks held by Black Americans has grown.
Hispanic Americans own a smaller share of stocks even though they make up 18.9% of the U.S. population. Hispanic Americans own 0.5% of stocks, worth $170 billion. The share of stocks owned by Hispanic Americans is lower now than it was in 1989.
Related stock topics
Average value of stocks held by American families
Average value of stocks held by American families
The median value of stocks held by American families in 2019 was $40,000. That's well above what it was in the early and mid-1990s but below the peak recorded in 2001.
The median value of stocks directly held by American families in 2019 was $25,000, a few thousand dollars below the median value recorded before the 2008 recession and the peak value recorded in 2013.
| Year | Median value of stocks held by American families | Median value of stocks held directly by American families |
|---|---|---|
| 1989 | $17,901 | $15,912 |
| 1992 | $19,665 | $14,302 |
| 1995 | $24,205 | $15,024 |
| 1998 | $39,320 | $28,310 |
| 2001 | $50,548 | $28,885 |
| 2004 | $44,568 | $20,335 |
| 2007 | $41,970 | $20,985 |
| 2010 | $34,169 | $23,565 |
| 2013 | $39,314 | $29,651 |
| 2016 | $42,543 | $26,589 |
| 2019 | $40,000 | $25,000 |
Buy and hold
The data on how many people invest in the stock market has some promising signs and also highlights serious issues.
It's encouraging that 58% of American adults own stock. Younger generations are also gradually investing more. Millennials have increased their stock ownership over the last decade. Gen Z investors are learning how to invest in stocks and entering the market, as well.
On the other hand, we can't ignore the fact that the wealthiest Americans own far more stock than 90% of the country. Stock ownership rates are also low among Hispanic and Black households.
While starting to invest may seem daunting, it's a step worth taking for the 42% of Americans that currently don't own stocks. The average stock market return is about 10% per year, so investing is a great way to save for retirement. And there are also investment services that outperform the market.
If you're new to investing, here are a few tips to help you get started:
- Build a diversified portfolio with at least 25 stocks. This greatly reduces risk, since you're not reliant on a handful of companies.
- If you want to keep it simple, consider investing in index funds or low-cost ETFs. These contain a large basket of stocks, so you get a diversified portfolio in one investment.
- Invest regularly, whether through an individual brokerage account or retirement accounts (or both!). Even if you're only investing a small amount per month, doing this consistently is key to building wealth.
Most importantly, invest for the long haul. The Motley Fool recommends holding for at least five years, even through market volatility.
Being a successful investor isn't as difficult as you might think. If you buy and hold good companies, it can generate huge financial rewards in the long run.
Sources
- Department of Labor (2022). "Private Pension Plan Bulletin Historical Tables and Graphs 1975-2019."
- Federal Reserve (2022). "DFA: Distributional Financial Accounts."
- Federal Reserve (2021). "Survey of Consumer Finances."
- Gallup (2023). "Stock Market."
- Gallup (2023). "What Percentage of Americans Own Stocks?"
- United States Census Bureau (2021). "QuickFacts."
- United States Census Bureau (2021). "U.S. Adult Population Grew Faster Than Nation’s Total Population From 2010 to 2020."
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