The Pandemic and Black Investors

June 18, 2021 10:52 PM | Lorette Farris (Administrator)

This article was originally posted by Morning Brew

Black Investors Trade Their Way Through the Pandemic

The barriers to access the stock market are coming down, and Black Americans are taking advantage.

by: Neal Freyman

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We all know the story: Without much else to do in 2020, bored Americans turned to stock trading to fill the time. They were so enthusiastic, or bored, or both, that last year individual traders accounted for a larger share of market activity than at any time during the past 10 years. 

Here’s the lesser-known story: That surge in individual trading was led by more Black investors getting into the stock market.

According to the Ariel-Schwab Black Investor Survey, 63% of Black Americans under the age of 40 are now participating in the stock market, the same share as white Americans. 

  • Noobie investors were responsible for closing what was once a wide gap. 29% of young Black Americans became first-time investors in 2020, compared to 16% of white Americans.

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