Share ownership up strongly in Canada, TSE Survey says

The Toronto Stock Exchange recently released its third major Canadian share ownership study of the decade. The publication, titled Canadian Shareowners: Their Profile and Attitudes, shows the dramatic growth of share ownership in Canada during the 1980s.

According to this study, 23% of the adult population own shares, an increase of 12% from 1983 when the TSE conducted its first share- ownership study.

The survey indicates that 30% of shareowners plan to increase their stock portfolios, but the TSE says there is still much work to be done to raise the level of awareness and confidence among shareowners and potential investors.

“The impact of education is much greater than we might first think it to be,” says Charles Caty, chairman of the exchange. “Our industry has a clear task before it: not only must we ensure a high level of ethical behavior, we must also make investors aware of the regulations that exist to protect their mistakes.”

Some of the highlights of the study show that:

More than four million Canadians, or 23% of the Canadian adult population, own shares in a publicly traded company or in a stock mutual fund.

Growth in the level of share ownership has been roughly the same across most regions of Canada, about 12% since 1983.

Nearly 80% of Canadian share owners report that less than 20% of their assets are invested in stocks. Most stock portfolios are valued at under $10,000.

Most owners of direct stock investments cite capital growth as a key criterion for investing, with dividends being a slightly less important factor.

The majority of share owners report plans to maintain or increase their stock portfolios over the next 12 months.