What Is The Average Amount Of Shares Per Person?

There really exists no average for shares for a person.  Based on an estimate by the Wall Street Journal, the average investor owns approximately 3,000 to 5,000 shares.  This amount is not really provable as there is no where published who owns how much of what concerning stock shares.  The real determining factor in how many shares a person should own is based on the investor themselves.  Shares per person can mean for one investor 1,000 shares while to another shares owned can be several hundred thousand to even several millions.

Share Value

The real key in how many shares per person should or can be owned is defined by share value.  If someone owns stock shares valued at a few cents, they may own several hundred thousand shares.  Another investor, with a different share value, the amount of shares owned could just have a few hundred.  While owning several hundred thousand shares in a company compared to just a few hundred may sound exciting or powerful, the share value is what counts.  Once more these small per share stocks are typically not the most secure of investments.  In fact investors who invest in penny stocks can own literally millions of stock shares, while their accumulated value could be less than 10 shares in a company such as Google, whose shares trade for several hundred dollars each.

A Balanced Share Portfolio

Rather than place too much attention on how many shares per person or total stock shares owned, more focus should instead be focused on how one´s portfolio is balanced.  Owning just one or two stocks, no matter the amount of actual shares included in this investment, is never a good idea.  In a single trading day your entire investment portfolio could be wiped out.  Most investment advisors will suggest the following breakdown for a balanced and profitable share investment strategy:

25% invested in so-called blue chip stocks.  These are well known, well performing stable companies.

25% invested in mutual funds

25% invested in commodities such as currencies or precious metals

25% invested in other investments that need not be especially secure or stable, but good companies with ample possibilities for exciting returns.

Related posts:

1. What Is A Share?
2. What Is A Dividend?
3. What Is A Covered Call?
4. What Is A Hedge Fund?
5. What Is The Minimum Amount I Need To Invest?