For a long time only the wealthy were likely to own stocks. Middle-class and working-class Americans generally did not participate in the stock market. Recent estimates, however, have shown significant growth in stock ownership. In 1989, 31.6 percent of American families had either direct or indirect stock ownership. By 2001 that percentage had grown to more than half at 51.9 percent. Most families held stock in retirement accounts. Only 21.3 percent of families owned stock directly in 2001. The median value of the direct and indirect stockholdings among families holding stock was $34,300, up from $27,200 in 1998 and $10,800 in 1989. This means that half the families holding stock owned more than $34,300 worth, and half owned less than $34,300. For families holding stocks, the value of their stockholdings increased from 28 percent of all their financial assets in 1989 to about 54 percent in 1998. Financial assets include checking accounts, certificates of deposit, savings bonds, bonds, stocks, mutual funds, retirement accounts, cash value of life insurance, and the like.
