This paper uses data from the British National Child Development Study to
investigate the relationship between social interaction and participation in
the stock market through holding stocks and/or shares at the individual
level. In accordance with the existing literature, the results reveal that a
positive relationship exists between social interaction and stock market
participation, when both are measured concurrently. Furthermore, this
relationship prevails across a range of measures of social interaction and
social capital. In addition, we make a potentially important contribution to
the existing literature by exploiting the panel nature of the data in order
to explore the robustness of the cross-sectional findings. We find that the
positive relationship between stock market participation and social
interaction prevails within a fixed effects logit framework, which controls
for time invariant unobserved effects