The Roots of Broadened Stock Ownership

Joint Economic Committee Study
http://www.house.gov/jec/tax/stock/stock.htm
Author: Saxton, Jim
Source: United States Congress
Year: 2000
Number of pages: 17

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Abstract:

This analysis examines recent trends in stock ownership and explains the reasons for the dramatic increase in stock ownership among a broader and increasingly diverse number of Americans. The key reasons for this democratization of the stock market include:

- The popularization of the mutual fund.
- The general reduction in the multiple taxation of savings and investment that resulted from the genesis of the IRA and 401(k) plan.
- The emphasis of the Federal Reserve on price stability that has lowered interest rates, stabilized financial markets, and acted as a de facto tax cut.