FINRA Foundation finds continuing disparities in ownership of investment accounts
The FINRA Investor Education Foundation has found persistent disparities in taxable investment account ownership among various racial and ethnic groups.
In a study that examined investment account ownership over a six-year period, the Foundation found that “African American and Hispanic/Latino respondents were grossly underrepresented as taxable investors and overrepresented in households without an investment account”. After controlling for socio-demographic variables, however, the Foundation found that “the gap in the likelihood of owning a taxable investment account between white and African American and Hispanic/Latino adults has narrowed significantly, particularly in 2018.” . The Foundation reported that the “proportion of African Americans with taxable investment accounts increased from 22% to 26% from 2012 to 2018″. The Foundation pointed out that the proportion of African Americans with a taxable investment account increased by 18% over the six-year period of the study. When controlling for gender, no significant differences emerged between white men and women, but African American, Hispanic/Latina, and Asian women were less likely to have a taxable investment account than men from the same group.
The Foundation concluded that African American and Hispanic/Latino adults “continue to be underrepresented among investor households in America, despite modest gains among African Americans in recent years.”