How much of the US stock market is owned by institutions?
What percentage of investors are institutional? Institutional investors account for about 80% of the volume of trades on the New York Stock Exchange.
The richest Americans own the vast majority of the US stock market, according to Fed data. The top 10% of Americans held 93% of all stocks, the highest level ever recorded. Meanwhile, the bottom 50% of Americans held just 1% of all stocks in the third quarter of 2023.
Based on this estimate, the richest 10 percent of U.S. households own roughly $42.7 trillion in stock market wealth, with the richest 1 percent owning $25 trillion. The bottom half of U.S. households own less than half a trillion dollars in stock market wealth.
A 2017 study in pionline.com found that institutional investors owned about 78% of the market value of the Russell 3000 index, and they owned 80% of the large-cap S&P 500 index. The estimated dollar values of those investments are around $21.7 trillion and $18 trillion, respectively.
Overall, institutional investors (which may offer both active and passive funds) own 80% of all stock in the S&P 500.
Baby boomers and Gen X are all over the stock market. Seriously, Americans over 55 account for 80% of U.S. stock ownership, according to Rosenberg Research.
What percentage of investors are institutional? Institutional investors account for about 80% of the volume of trades on the New York Stock Exchange.
Most nations have a stock market, and each is regulated by a local financial regulator or monetary authority, or institute. The SEC is the regulatory body charged with overseeing the U.S. stock market. Companies listed on the stock market exchanges are regulated, and their dealings are monitored by the SEC.
1) Securities Exchange Board of India (SEBI)
SEBI is the regulator of stock markets in India.
Stock Market Regulation in the US
The primary regulator is the Securities and Exchange Commission. The stock exchanges are run by their organizations, The Securities and Exchange Commission is in charge of them (SEC).
Do institutions control the stock market?
These financial institutions own shares on behalf of their clients and are generally believed to be a major force behind supply and demand in the market. Whether large degrees of institutional ownership in a stock are positive or negative remains a matter of debate.
Institutional investors (professional entities that invest massive sums) are the biggest players on Wall Street, with over 80% of the market cap of U.S. equities in their control. The trades of institutional investors affect the market prices of stocks due to the sheer number of shares they buy and sell at once.
BlackRock is publicly owned, with its shares held by various shareholders, including institutional investors like Vanguard Group and State Street Corporation and individual shareholders. The specifics of these shareholders can change over time.
Vanguard set out in 1975 under a radical ownership structure that remains unique in the asset management industry. Our company is owned by its member funds, which in turn are owned by fund shareholders. With no outside owners to satisfy, we focus squarely on meeting the investment needs of our clients.
All told, institutional investors—that is, primarily pension funds—control close to 40% of the common stock of the country's large (and many midsize) businesses. The largest and fastest growing funds, those of public employees, are no longer content to be passive investors.
Vanguard's bank holdings were valued at an estimated $127.98 billion and BlackRock's at $110.32 billion as of March 29, according to S&P Global Market Intelligence analysis. Vanguard and BlackRock hold stakes in 336 and 334 banks, respectively, out of 338 covered in the analysis.
We note that hedge funds don't have a meaningful investment in Phillips 66. The Vanguard Group, Inc. is currently the company's largest shareholder with 9.2% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.1% and 6.8%, of the shares outstanding, respectively.
| Symbol | Holdings | |
|---|---|---|
| American Express Company | AXP | 151,610,700 |
| Aon PLC | AON | 4,100,000 |
| Apple Inc | AAPL | 905,560,000 |
| Atlanta Braves Holdings Inc Series C | BATRK | 223,645 |
Nearly all stock market wealth in this country is now owned by the super rich. The wealthiest 10 percent hold about 93 percent of all household stock market wealth in this country, Axios reported recently — a record high.
| # | Name | 2022 |
|---|---|---|
| 1 | Vanguard Group | $5,024,824 |
| 2 | BlackRock | $4,834,449 |
| 3 | State Street Global | $2,414,580 |
| 4 | Fidelity Investments | $1,731,599 |
How is institutional ownership over 100%?
Short Interest – Both the lender and the borrower have claimed ownership of the securities on their filing. This is one of the main reasons for ownership over 100%. When shares are short-sold, the short seller borrows the shares and sells them on the market.
As of the end of 2021, BlackRock owned approximately 11% of the index, Vanguard owned approximately 10%, and State Street owned approximately 7%. So in total, the three companies own about 28% of the S&P 500.
It is also the namesake and formerly the company that created the Dow Jones Industrial Average, which is now owned by S&P Dow Jones Indices, a joint venture between McGraw Hill Financial, CME Group and News Corp, Dow Jones' parent company.
The index is maintained by S&P Dow Jones Indices, an entity majority-owned by S&P Global. Its components are selected by a committee. The ten components with the largest dividend yields are commonly referred to as the Dogs of the Dow.
How Was the US Stock Market Created? The New York Stock Exchange took centuries to become what it is today. In 1817, the Buttonwood traders observed and visited the Philadelphia Merchants Exchange to mimic their exchange model, creating the New York Stock and Exchange Board.
