"The primary reason people below the poverty line don't own stocks is that they barely have a dime of discretionary income, meaning they can't contribute to GDP."
"Institutions own about 70% of the total market capitalization of all stocks in the US. Individuals do own stocks, but they do little to control the market."
The article discusses the stark disparity in stock ownership among income levels in America. It highlights that only 0.6% of individuals in the bottom income bracket, living in poverty, invest in stocks due to limited discretionary income. With 84% of high-income households owning stocks, the contrast is significant. Moreover, 42% of Americans have no savings, emphasizing financial insecurity. The stock market primarily functions based on institutional investments, which constitute 70% of market capitalization and daily trading volume, rendering individual participation largely irrelevant to market dynamics.
Read at 24/7 Wall St.
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