Editing Stock market (section)

==== Indirect vs. Direct Investment ====
Indirect investment involves owning shares indirectly, such as via a mutual fund or an exchange traded fund. Direct investment involves direct ownership of shares.<ref>{{cite web | url=https://investorjunkie.com/investing/direct-vs-indirect-shares/ | title=What's the Difference Between Direct and Indirect Shares? | date=August 14, 2018 | publisher=InvestorJunkie | access-date=December 7, 2019 | archive-date=April 14, 2021 | archive-url=https://web.archive.org/web/20210414160248/https://investorjunkie.com/investing/direct-vs-indirect-shares/ | url-status=live }}</ref>

Direct ownership of stock by individuals rose slightly from 17.8% in 1992 to 17.9% in 2007, with the median value of these holdings rising from $14,778 to $17,000.<ref name=":1">{{Cite report |date=September 1995 |title=Statistical Abstract of the United States: 1995 |url=https://www.census.gov/library/publications/1995/compendia/statab/115ed.html |publisher=United States Census Bureau |page=513 |access-date=2015-12-17 |archive-date=April 16, 2021 |archive-url=https://web.archive.org/web/20210416133352/https://www.census.gov/library/publications/1995/compendia/statab/115ed.html |url-status=live }}</ref><ref name=":0">{{Cite report |date=August 2011 |title=Statistical Abstract of the United States: 2012 |url=https://www.census.gov/library/publications/2011/compendia/statab/131ed.html?cssp=SERP |publisher=United States Census Bureau |page=730 |access-date=2015-12-17 |archive-date=April 17, 2021 |archive-url=https://web.archive.org/web/20210417122126/https://www.census.gov/library/publications/2011/compendia/statab/131ed.html?cssp=SERP |url-status=live }}</ref> Indirect participation in the form of retirement accounts rose from 39.3% in 1992 to 52.6% in 2007, with the median value of these accounts more than doubling from $22,000 to $45,000 in that time.<ref name=":1" /><ref name=":0" /> Rydqvist, Spizman, and [[Ilya Strebulaev|Strebulaev]] attribute the differential growth in direct and indirect holdings to differences in the way each are taxed in the United States. Investments in pension funds and 401ks, the two most common vehicles of indirect participation, are taxed only when funds are withdrawn from the accounts. Conversely, the money used to directly purchase stock is subject to taxation as are any dividends or capital gains they generate for the holder. In this way, the current tax code incentivizes individuals to invest indirectly.<ref>{{Cite journal | title=Government Policy and Ownership of Financial Assets | date=2013-01-01 | first1 = Kristian | last1=Rydqvist | first2=Joshua | last2=Spizman | first3=Ilya A. | last3=Strebulaev | doi=10.2139/ssrn.1428442 | ssrn=1428442| s2cid=154598793 | url=http://www.nber.org/papers/w17522.pdf }}</ref>