Who Owns US Stock? Foreigners and Rich Americans. (2024)

FAQs

Who Owns US Stock? Foreigners and Rich Americans.? ›

Virtually all (94 percent) of the wealthiest 10 percent of households owned stocks, while only about a third (31 percent) of the bottom 50 percent owned stock, either directly or indirectly (e.g., through mutual funds).

There is no citizenship requirement for owning stocks of American companies. While U.S. investment securities are regulated by U.S. law, there are no specific provisions that forbid individuals who are not citizens of the U.S. from participating in the U.S. stock market.

Cede technically owns all of the publicly issued stock in the United States. Thus, investors do not themselves hold direct property rights in stock, but rather have contractual rights that are part of a chain of contractual rights involving Cede.

The top 10% of income earners own 70% of the stock market.

Families in the top 10% of income earners accounted for 70% of the dollar value of all stock holdings in 2019, with a median of $432,000 worth of stock per invested household. Meanwhile, the bottom 60% of income earners owned only 7% of all stock that year.

As of 2013, the top 1% of households owned 38% of the stock market wealth. As of 2013, the top 10% own 81% of the stock wealth, the next 10% (80th to 90th percentile) own 11% and the bottom 80% own 8%.

Our new analysis shows that foreign investors owned about 40 percent of US corporate equity in 2019, up substantially over the last few decades.

Foreigners own the most U.S. stock. Their portion of ownership has grown rapidly, climbing from about 5% in 1965 to 40% in 2019. Foreign ownership exists in two forms: portfolio holdings and foreign direct investment.

The Securities and Exchange Commission (SEC) is a U.S. government oversight agency responsible for regulating the securities markets and protecting investors.

1. Warren Buffett. As one of the world's wealthiest investors, Warren Buffett almost needs no introduction. He's CEO and chairman of Berkshire Hathaway, a $665 billion conglomerate that acts as the holding company for Buffett's investments, both its wholly-owned companies and its stocks.

The stock market is regulated by the U.S. Securities and Exchange Commission, and the SEC's mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation." Historically, stock trades likely took place in a physical marketplace.

Who are the richest people investing in stocks? ›

The richest 1% own almost half of the world's wealth, while the poorest half of the world own just 0.75% In fact, they have acquired nearly twice as much wealth in new money as the bottom 99% of the world's population.

Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.

As an estimate, Chinese securities account for less than 2% of the total portfolio of U.S. investors.

'Billionaire Stocks': Bill Gates, Berkshire Hathaway (BRK.B)

The natural stock pick held by the world's wealthiest person is Microsoft (NASDAQ:MSFT), the giant tech company Bill Gates co-founded with Paul Allen in 1975. Gates still owns almost 103 million shares of the company worth $15.4 billion.

Currently, Dow Jones is owned by Rupert Murdoch, owner of News Corp and several other major media companies.

Japan was the single largest overseas investor, constituting nearly 15 percent of total cumulative foreign direct investment holdings. Germany overtook Canada last year as the second-largest investor in the United States with 13 percent in FDIUS stock.

If the Federal Reserve's holdings are excluded, foreigners own nearly 60 percent of outstanding marketable treasuries. Foreigners own less-significant portions of other asset markets. Their holdings of equities, though large in dollar terms, are small relative to the size of the equity market.

Countries with largest stock markets globally 2023

In 2023, stock markets in the United States accounted for nearly 60 percent of world stocks. The next largest country by stock market share was Japan, followed by the United Kingdom.

In short, foreign investors do not have to pay capital gains taxes to the US government on sales of American stocks. Instead, they will have to pay capital gains taxes in their home country. Every country has its own capital gains laws, some of which are more favorable to investors than others.

Why do Americans put stock in foreign companies? ›

Buying foreign stocks allows investors to diversify their portfolio's risk, in addition to giving them exposure to the growth of other economies. Financial advisors recommend a 5% to 10% exposure to foreign stocks for conservative investors, and up to 25% for aggressive investors.

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.

The government does not invest in stocks. The government instead invests in bonds.

The federal government regulates much of the stock market's activity to protect investors and ensure the fair exchange of corporate ownership on the open markets.

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Vanguard isn't owned by shareholders. It's owned by the people who invest in our funds. Our owners have access to personalized financial advice, high-quality investments, retirement tools, and relevant market insights that help them build a future for those they love. That's the Value of Ownership.

Major players in the securities industry sometimes manipulate stock prices using fraudulent trading practices and the media rumor mill. For instance, a shady hedge fund manager might buy a stock for more than it is worth or contact a media outlet with a fake concern about a blue-chip company's new technology.

When a stock tumbles and an investor loses money, the money doesn't get redistributed to someone else. Essentially, it has disappeared into thin air, reflecting dwindling investor interest and a decline in investor perception of the stock.

Do Foreigners Pay Taxes on U.S. Investments? Foreigners who are not resident or nonresident aliens of the U.S. do not pay any taxes on their investments to the U.S. government.

Who controls the stock market? ›

The stock market is regulated by the U.S. Securities and Exchange Commission, and the SEC's mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation." Historically, stock trades likely took place in a physical marketplace.

Be 18 years or older. Have a valid Social Security Number (not a Taxpayer Identification Number) Have a legal U.S. residential address within the 50 states or Puerto Rico (exceptions may apply for active U.S. military personnel stationed abroad) Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa*

Not all countries impose a capital gains tax and most have different rates of taxation for individuals compared to corporations. Countries that do not impose a capital gains tax include Bahrain, Barbados, Belize, the Cayman Islands, the Isle of Man, Jamaica, New Zealand, Sri Lanka, Singapore, and others.

Foreign stock or securities, if you hold them outside of a financial account, must be reported on Form 8938, provided the value of your specified foreign financial assets is greater than the reporting threshold that applies to you.

The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements.

The roaring stock market and crypto gains created more than a million new millionaires in the U.S. last year, according to a new report. The number of Americans with $1 million or more in investible assets surged to a record 14.6 million in 2021, according to a report from wealth research firm the Spectrem Group.

Bank of America (BAC), 1.03 billion. Apple (AAPL), 915.6 million. Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million.

How To Invest In US Stocks As A Foreigner. Investors from around the world can buy and sell US stocks through brokerages that cater to foreign investors. Not every international brokerage is available in every country, so you will need to find one that specifically provides services in your country of origin.

Can I buy stocks without SSN? ›

The answer is YES! Through an Individual Taxpayer Identification Number or (ITIN), people who do not have social security numbers can open investment accounts. Brokerage companies such as Vanguard, Charles Schwab, and Fidelity allow individuals with ITINs to open investment accounts. Read below to learn more.

Can I access my account while I travel overseas? You can access your Robinhood account in almost all countries, with the exception of Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine.