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Mellody Hobson

Blacks participating more in stock investing, study shows

Blacks participating more in stock investing, study shows

Long fearful of the stock market, black Americans generally have stayed clear of stocks and mutual funds for generations, and consequently many with solid incomes have lagged far behind whites in accumulating wealth.

But the trend is starting to turn, with 401(k) plans making blacks less reluctant than past generations about investing, a national study by Chicago-based Ariel Investments shows. And if the trend continues, black Americans will start to ease the massive wealth inequality that exists between black and white Americans, said Mellody Hobson, Ariel's president.

Currently, about 67 percent of African-Americans with incomes of at least $50,000 have money invested in...

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