Written By: Cong Wang and Sherman D. Hanna

Data from the 1992’s 2004 Survey of Consumer Finances were used to examine the risk tolerance and stock ownership of three types of households: those that do not own a business, those that own and manage a business, and those that own but do not manage a business. Non-manager business owners were the most likely to be willing to take risks and to hold stocks. Manager-business owners were more willing to take risk than non-owners but were less likely to own stocks than otherwise similar non-owner households. Research on risk tolerance and stock ownership should consider business ownership to account for differences between the household types. Key Words: business management, business ownership, risk tolerance, stock ownership, Survey of Consumer Finances

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