Institutional investors expanded their NYSE holdings from 34 to 43 percent in the 1970s.

Evidence

The new generation of investors often chose to entrust their money to the managers of the fast-growing, seductively advertised mutual funds, rather than themselves directly buying stocks and other securities. With other investment intermediaries such as bank trust departments, pension funds, and insurance companies also expanding, the proportion of stocks held by “institutional” investors grew, for example increasing between 1969 and 1978 from 34.2 percent of holdings of stocks traded on the New York Stock Exchange to 43.4 percent (Whitley 1986a, p. — Donald MacKenzie, An Engine, Not a Camera, 331

Categorization

• XREF: Connects to the broader financialization literature tracing how retail investors ceded market participation to intermediaries. — connects to: The US economy became increasingly financialized in the post-1970s period. — Greta R. Krippner, The Financialization of the American…, 5

Broader Connections

• The US economy became increasingly financialized in the post-1970s period. #exemplifies (0.75) — Greta R. Krippner, The Financialization of the American…, 5