Determinants of Family Bond and Stock Holdings
FINANCIAL COUNSELING AND PLANNING, Vol. 6, 1995
Posted: 7 Feb 1996
Determinants of owning individual bonds and stocks were studied, using the 1989 Survey of Consumer Finances. Tobit analyses showed bonds and stocks were more likely to be held by families with adequate financial resources to maintain daily lives and enough funds to meet short term financial needs. Households having a planning horizon of at least 10 years had higher amounts of bonds and stocks. Reporting a saving motive of "growth" was associated with higher stock holdings. Controlling for income and other variables, stock and bond holdings increased with education and were higher for whites than for nonwhites.
JEL Classification: G11
Suggested Citation: Suggested Citation