Changes in stockholding behavior: Evidence from household survey data

This paper investigates the factors that cause households to switch between stockholding and non-stockholding using a household-level data set covering a period of 12 years. We find that there is a surprising amount of turnover; a large number of households switch back and forth between stockholding and non-stockholding several times during the sample period. We show evidence that this is in part a reaction to changes in stock prices over the period.