· Up to 700% more securities accounts opened
· Ratio of shareholders among 18 to 24-year-olds climbed from 24% to 39%
· Online brokers in 2020 record highest growth in securities account customers ever
· Individual stocks that are in the focus of young investors experience price increases of up to 1,000 % in a few days
The year of crisis that has been 2020 has fundamentally changed the shareholder composition, as can be seen in a new infographic from Block-Builders. On the one hand, the number of new securities accounts opened reaches new highs, while on the other it is mainly young adults who are now discovering this form of investment for themselves and gaining influence as a result.
As the infographic shows, 34% of Germans now own shares. In 2017, this figure was still just 24%. The increase has been strongest among 18 to 24-year-olds, where the shareholder ratio climbed from 24% to 39% over the period.
Although the shareholder structure is becoming more heterogeneous, it is still predominantly men who continue to opt for shares as an investment. The median share owner is male, around 40 years old, has a university degree and earns around €4,000 euros after tax each month.
In Germany as well as in the United States of America, more and more young people are choosing to invest in shares. Neo brokers in particular are enjoying great popularity.
As can be seen from the infographic, the influence of small investors is growing. For example, the price of Codak shares rose by more than 1,000% within a few days because “Robinhood investors” rushed to the security en masse. The same thing happened with Hertz shares – even after the group had already filed for bankruptcy.
“The current run on securities shows some curious traits, as can be seen in the infographics. For example, the price of Codak shares rose by more than 1,000% within a few days because “Robinhood investors” rushed into the security en masse. Similar episodes also occurred in the case of car rental company Hertz – which had at the time already filed for bankruptcy – again showing the influence of groupthink on the part of small investors,” was said by block-builders.
“High volatility on the stock market has not scared the majority of investors. On the contrary,” remarks Block-Builders analyst Raphael Lulay. “In the crisis year, more people than ever opened a securities account. Young adults in particular are becoming increasingly interested in this form of investment.”