Retail investors are a growing and influential part of the stock market, but how are these individual investors discovering new securities and how do they search for new stocks to purchase?
A national poll of more than 2,000 consumers, commissioned by shareholder loyalty leader TiiCKER and conducted online by The Harris Poll last year provides fascinating insights about how this massive group of 120 million U.S. consumers who are buying individual stocks discovers their next investment opportunities.
TiiCKER found that in the last year, nearly 9 in 10 of individual investors looked for or researched new companies to buy stock in. And a significant percentage of retail shareholders researched these investment opportunities monthly (21%) and even weekly (22%).
There are more than 8,000 securities listed on all U.S. stock exchanges, including exchange-traded funds (ETFs), which means retail investors have a lot of information to sift through. According to the TiiCKER Harris Poll, individual investors report most commonly using traditional (44%) or online (43%) brokerages to trade directly. Around one-quarter have an Employee Stock Ownership Plan (ESOP) and fewer than 1 in 5 participate in a Direct Stock Purchase Program (DSPP).
Many of these retail shareholders also find advice and information online, in traditional media and increasingly, from influencers on social media, via YouTube videos and Reddit threads. Financial and news reports from sources such as CNBC, Bloomberg, The Wall Street Journal, Financial Times and MarketWatch provide updates on market trends, earnings reports and industry developments. Individual investors also listen in on earnings calls and read reports and analyze quarterly and annual stock data through SEC filings or on company websites.
Many individual shareholders use stock screeners as well, which makes sorting through so many potential securities a lot easier. A stock screener is an investment tool that allows investors to filter and analyze stocks based on specific criteria such as price, market capitalization, earnings and debt levels. By applying various filters, investors can efficiently narrow down potential investment opportunities and identify stocks that align with their strategy. Essentially, it streamlines the process of comparing a large pool of companies based on chosen financial metrics.
A few stock screeners available to help with stock research include: FINVIZ, ZACKS, Trade Ideas, Stock Rover, TC2000 and TradingView, to name just a few. Several online brokerages offer stock screeners, including Fidelity and Schwab, which can help investors find stocks that match their investment goals.
Since many investors are buying from traditional or online brokerages, they also have the advantage of being able to connect their account to TiiCKER and take advantage of the valuable stock perks found there. TiiCKER is another great way of discovering new stocks and learning about shareholder rewards that they offer. For public companies, TiiCKER is a great way of getting your brand noticed by retail investors. TiiCKER’s experts can help public companies create a dynamic shareholder reward program or promote an existing program. Reach out to TiiCKER today to find out how.
Researching stocks before purchasing is crucial to making informed investment decisions and minimizing risk. Knowing what a company does, its revenue sources and its competitive position helps assess its long-term potential. Reviewing financial statements (income statement, balance sheet, cash flow) reveals profitability, debt levels and financial stability. Researching a stock’s historical performance, beta (volatility) and market conditions also helps gauge potential risks. And ensuring a stock fits your strategy (growth, value, dividend, or long-term holding) keeps your portfolio aligned with your financial goals.
