%0 Journal Article %J Journal of Finance %D 2004 %T Social Interaction and Stock Market Participation %A Hong, Harrison %A Kubik, Jeffrey D. %A Stein, Jeremy C. %K Health Conditions and Status %K Net Worth and Assets %X We propose that stock-market participation is influenced by social interaction. In our model, any given social investor finds the market more attractive when more of his peers participate. We test this theory using data from the Health and Retirement Study, and find that social households those who interact with their neighbors, or attend church are substantially more likely to invest in the market than non-social households, controlling for wealth, race, education, and risk tolerance. Moreover, consistent with a peer-effects story, the impact of sociability is stronger in states where stock-market participation rates are higher. %B Journal of Finance %I 59 %V 59 %P 137-163 %G eng %N 1 %4 Stock Market/Social Interaction %$ 6611 %R 10.3386/w8358