58% of Americans Own Stocks, But the Median Bottom Half Holds Just $12,600

"The mean balance is the figure most people see in headlines, and it is almost always misleading for questions about distribution. If ten families each hold $5,000 in stock and an eleventh walks in with $5 million, the median holding is still $5,000 while the mean leaps past $450,000."

"Among families in the bottom half of the income distribution, only 34% owned any stock in 2022. Among families in the top income decile, the figure was 95%. The gap reflects the typical experience inside each band rather than a few outliers at the top."

"A $12,600 stock balance generates limited compounding power. Applied to a 7% real annual return, that holding adds roughly $880 of value in a strong year. A $608,000 balance at the same rate adds about $42,560."

The Federal Reserve's 2022 Survey of Consumer Finances indicates that 58% of American families own stock, a rise from 53% in 2019. However, the mean stock ownership figures can be misleading, as they do not accurately reflect wealth distribution. For families in the bottom half of the income distribution, only 34% owned stock, with a median holding of $12,600. In contrast, 95% of families in the top income decile owned stock, with a median holding of $608,000, highlighting a significant wealth gap.

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