Who owns 90% of the stock market?
Ownership of the U.S. Stock Market
The ownership of the U.S. stock market is highly concentrated among the wealthiest individuals and institutional investors.
Breakdown of Stock Market Ownership
- Top 10% of Households: According to recent Federal Reserve data, the wealthiest 10% of U.S. households own approximately 89% of all U.S. stocks, either directly or indirectly (through retirement accounts, mutual funds, etc.).
- Top 1%: The top 1% alone holds over half of all equities owned by U.S. households.
- Institutions: A significant portion of stocks are held by institutional investors such as pension funds, mutual funds, endowments, and insurance companies, which often manage assets on behalf of individuals.
Key Points
- Stock market ownership is not evenly distributed; it is highly concentrated among wealthy individuals and institutional investors.
- Most Americans own little or no stock, and the bottom 50% of households own less than 1% of stocks.
In summary, about 90% of the stock market is owned by the richest 10% of U.S. households, either directly or through institutional investment vehicles.