Who financed the expansion of the equity market? Shareholder clienteles in Victorian Britain

Abstract

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Financial effects in historic consumption and investment functions

“…Since the British financial markets were earlier well-developed (cf. Acheson, Campbell, and Turner 2017;Rutterford et al 2011), does this also mean that for instance the recession of the early 1920 s was propagated to a larger extent through wealth effects channels in Britain? Such more specific investigations are outside the scope of the present paper, but we believe that our paper points in this direction for further interesting research on wealth effects.…”

“…We may on the other hand question how broadly shares are held and how the consumption functions of the share-holding groups differ from the average in the population. Acheson, Campbell, and Turner (2017) map the rather exclusive group who held shares in Victorian Britain. Poterba and Samwick (1995) show that stock ownership in the US from 1983 to 1992 was still very unequal, but decreasing.…”

Share trading activity and the rise of the rentier in the UK before 1920*

“…Scholarship to date has focussed on the performance, size, organisational structure, ownership structure and investor base in this market (Acheson et al, 2017;Foreman & Hannah, 2012;Grossman, 2002Grossman, , 2015Michie, 1999;Rutterford et al, 2011;. However, we know very little about how actively shares were traded on this market and the factors that affected the trading of shares.…”

“…One of the major changes in the British equity market during the 1882-1920 period was the move of rentiers into the market (Acheson et al, 2017;Jeffreys, 1946;Rutterford et al, 2011; see also Davis & Huttenback, 1988). In particular, the number of female investors grew substantially in this era (Acheson et al, 2017;Green & Owens, 2003;Newton & Cottrell, 2006;Rutterford et al, 2011;.…”

“…One of the major changes in the British equity market during the 1882-1920 period was the move of rentiers into the market (Acheson et al, 2017;Jeffreys, 1946;Rutterford et al, 2011; see also Davis & Huttenback, 1988). In particular, the number of female investors grew substantially in this era (Acheson et al, 2017;Green & Owens, 2003;Newton & Cottrell, 2006;Rutterford et al, 2011;. This influenced the types of securities companies offered shareholders, share denomination, and their dividend policy (Acheson, Turner, & Ye, 2012;Campbell & Turner, 2011;Jeffreys, 1946Jeffreys, , 1977Rutterford et al, 2011).…”