The Decrease in Stock Ownership by Minority Households

Abstract

White households are more likely to hold stock investments than minority households. Stock ownership rates of minorities generally increased between 1992 and 2001, but between 2001 and 2004 the rate decreased signifi- cantly for each minority group studied but did not significantly change for White households. Multivariate analyses showed that the predicted rates for White households did not significantly change, but Black, Hispanic, and other (mostly Asian) households had significantly lower predicted rates of stock ownership in 2004 than in 2001, indicating that factors other than those in the model accounted for the decrease in minority rates.