The wealthiest 1% holds 49% of stocks, worth $19.73 trillion

The wealthiest 1% holds 49% of stocks, worth $19.73 trillion.

Most Americans hold stocks indirectly through mutual funds, index funds, or retirement accounts like a 401(k). A smaller portion directly holds stocks by purchasing individual shares.

According to the Federal Reserve, the following data shows how many U.S. 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 returned to pre-2008 levels, while total stock ownership, including mutual funds, has exceeded that level.

Both direct and general stock ownership increased by around 5% from 2019 to 2022, reflecting strong market performance from April 2020 to the end of 2022.

Looking back further, overall stock ownership grew more rapidly than direct stock ownership from 1989 to 2001.

This growth is at least partly due to the increased availability of 401(k) plans. 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.