Concentration of lifetime aggregate wealth creation of common stocks in the United Kingdom stock market

Thumbnail Image

Files

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.

Authors

Date

2024

Department

Rahoituksen laitos

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

22+3

Series

Abstract

The thesis studies the concentration of lifetime aggregate wealth creation of common stocks in the United Kingdom (UK) stock market from December 1964 to September 2024. The lifetime aggregate wealth created by a common stock is the wealth created to the shareholders of the common stock in aggregate over the stock’s lifetime in excess of the wealth that would have been generated if the capital would have been invested into one-month UK Treasury bills over the same time-period. The lifetime aggregate shareholder wealth created by UK common stocks is highly concentrated to relatively few stocks. The wealth created by the common stock that created the most wealth represents 6.4% of all the net wealth created in the UK stock market over the almost 60-year historical investment horizon considered, while the wealth created by the top ten most wealth creating stocks represents 46.4% of all the net wealth created. The 3.7% top-performing UK common stocks created all the net wealth in the UK stock market. The wealth created by the remaining 96.3% of common stocks combined matched the wealth created by the UK one-month Treasury bills.

Description

Thesis advisor

Kokkonen, Joni

Keywords

concentration, lifetime, aggregate, wealth, creation, common, stock, UK

Other note

Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202501261743

Collections

[kand] Kauppakorkeakoulu / BIZ