Economics
Smart Money Owns More Equities Says IQ Study of Who Buys Stocks
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The smarter you are, the more stock you probably own, according to researchers who say they found a direct link between IQ and equity market participation.
Intelligence, as measured by tests given to 158,044 Finnish soldiers over 19 years, outweighed income in determining whether someone owns shares and how many companies he invests in. Among draftees scoring highest on the exams, the rate of ownership later in life was 21 percentage points above those who tested lowest, researchers found. The study, published in last month’s Journal of Finance, ignored bonds and other investments.