Public Unaware of Share Ownership Benefits

Nearly two thirds (64 per cent) of the population have yet to be convinced that over the long term shares are a better of form of investment than savings accounts, according to MORI research published today.

The findings come as the London Stock Exchange launches the next phase of its campaign to raise awareness of the opportunities and benefits of stock market investment. The campaign shows that over the majority of ten-year periods since 1945, shares have outperformed most other forms of savings, including deposit accounts.

The London Stock Exchange launched its first Share Aware campaign last year and MORI results show that during that period, one in four adults (26 per cent) feel they have become more aware of the benefits of owning shares.

Ownership of shares is also no longer a male preserve. The research reveals that ownership is now split almost equally between male and female members of the family.

A second survey conducted by MORI on behalf of ProShare and the London Stock Exchange shows that existing investors are holding on to their shares and expect to continue buying in the next 12 months.

Over the last 12 months, 61 per cent of existing shareholders chose not to sell any part of their shareholding. The research also shows that more than half of the investors - 53 per cent - hold their shares for four years or more and the average period of holding is 6 to 7 years.

Meanwhile the appetite for share ownership continues to grow with over two-thirds of existing shareholders buying new shares on one occasion or more in the last 12 months - and during the next twelve months, 72 per cent expected to buy the same or more.

The poll also showed that the internet is potentially a major driver of share dealing in the UK. Almost half (42 per cent) said they would consider using the internet to buy and sell shares.

Technical details

All figures from MORI Financial Services. Based face-to-face interviews with 2,027 adults between 15-20 May 1999.