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 has held steady despite market volatility.
Most Americans indirectly hold stocks through a mutual fund, an 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 2022:
- 58% of U.S. families (about 72 million families) held stock.
- 21% of U.S. families (about 26 million families) directly held stock.
Direct stock ownership has reached pre-2008 levels, while total stock ownership, which includes mutual funds, has surpassed that level.
Both direct stock ownership and general ownership grew from 2019 to 2022 -- about 38% for the former and 10% for the latter -- a reflection of strong market performance from April 2020 to the end of 2022.
Looking further back, overall stock ownership grew faster 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.