Rise in share ownership hits wall
The rise and rise of share ownership has come to a dramatic halt, with the latest Australian Stock Exchange (ASX) showing its first decline in years.
The share ownership figures, showing a decline from 54 per cent in 1999 to 52 per cent at the end of 2000, are made even worse due to the fact that about 500,000 new investors entered the stock market with the float of the NRMA last year.
"Certainly it would have appeared to have plateaued or stabilised, but share ownership in Australia remains at a very high level (compared to other countries)," says ASX spokesman Gervase Greene.
When the ASX released a similar survey in 1999, 31.9 per cent of Australians owned shares. In 1998 28.5 per cent were share owners.
While the number of shareowners remained relatively stable, some demographics have shifted, most notably with women.
Women now make up 47 per cent of direct shareholders compared to 36 per cent last year. The incidence of direct ownership among men eased from 45 per cent to 41 per cent.
Also, investors aged under 35 years were more likely to have divested in the past 12 months than older investors.
The survey also found half of all investors remained "relatively passive".
"About half of all direct shareowners hold only one or two stocks in their portfolio, and about the same proportion had not traded in the previous 12 months," the ASX says.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
