When discount brokerages first came into existance they were offering $100/trade as opposed to $500/trade. Now I can put in an order for $5. In the last 20-30 years, is where the market has really made some rapid changes. Prior to that, investing was something left for only the very wealth Americans and it was limited since there weren't so many companies offering tech innovations.
Here is a list of famous Black fortune 500 employees. Obviously, it's not expansive but there are folks like Vernon Jordan and Stanley O'Neal who work at these brokerages. And ML is a bulge bracket, there are quite a few MBE firms out there that do work on AfAm client or get work from non-black companies because of their MBE status.
But if a black household makes less money than a white household and spends more on short-term items like clothing, where would the money come from for investing?
-Rudey
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Originally posted by AKA_Monet
I think your question has many answers to it... You have got to remember history plays are HUGE role in the "economic development" of the African American community as a whole...
After MLK was assasinated, many affirmative action programs were dedicated to "incorporating African Americans" into the mainstream of society by instilling similar values of a "nuclear family unit"... Most folks did not take too kindly to this act, black or white...
But somehow by the time of Ronald Reagan, there were a "handful" of upper middle class African Americans that could "play the game" with the "hand that was dealt" and "make a profit" from it, legally...
So what you are talking about is ~20 years of "active investments" into the Stock Market by African Americans as a community as a whole...
Well, how many African American top Fortune 500 companies are brokerage firms?
With the exception of AMEX, there are only a handful of African American CEO or corporate execs sitting on boards and most of them male...
With more than 75% female headed households, how long do you think it will take folks of African descent to fathom catching up to other ethnic groups level of investing within their communities given there is a global economy?
The fact is the United States government did some unsavory things ~30 years ago that destroyed the economic base of the African American community that they have yet to own up to...
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