What Explains Household Stock Holdings?

Working Papers from University of Toronto, Department of Economics

Abstract: This is an empirical study of the determinants of stock holdings using data from the U.S. Survey of Consumer Finances from 1992 to 2001. There is a great heterogeneity in the way households form their portfolios. Stock ownership is positively correlated with various measures of wealth, age, retirement savings, and having sought financial advice. It is negatively correlated with holdings of alternative risky investments, such as investments in private businesses, and with the willingness to undertake non-financial investments in the future. While we can predict reasonably well who holds stocks, we have less predictive power about the share of stocks owned by those who hold positive amounts.

Keywords: Portfolio choice; stock holdings; consumer finances. (search for similar items in EconPapers)
JEL-codes: G11 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2006-03-31
New Economics Papers: this item is included in nep-fin and nep-fmk
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

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Journal Article: What explains household stock holdings? (2006)
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