The report "Untapped Capital: Understanding the Retail Investor Pool" by The Economist Intelligence Unit examines the growing trend of retail investors in Europe. Since the 2008 financial crisis, European households have increased their ownership of listed companies from 13.3% in 2013 to 15.6% in 2020. Companies and investment banks have traditionally excluded retail investors from IPOs and follow-on share offerings due to regulatory and logistical issues. However, corporate governance best practice encourages companies to include all shareholders, including retail, in follow-on share offerings where possible. Regulators around the world are working to improve retail access to capital markets and to lighten the burden for smaller companies raising funds. With the growth of passive investment, retail investors are becoming an increasingly important player in the market.
