Who owns commercial banks in the United States?

Commercial banks in the United States are primarily owned by private individuals who purchase common stock in these institutions. This ownership structure allows individuals to invest in the bank and benefit from its profits, as well as have a say in the bank’s operations through voting rights tied to their shares. When individuals buy common stock, they gain ownership stakes and can influence decisions at shareholder meetings.

The ownership of commercial banks is typically broader than just one entity; therefore, while corporations and institutional investors may also hold significant shares, the focus on private individuals reflects the foundational aspect of commercial banking, where anyone can invest in and own part of a bank. Additionally, the concept of ownership through common stock aligns with the common practices of corporate governance where shareholders have rights and responsibilities towards the management and direction of the bank.

Other options, such as federal government ownership, suggest a misunderstanding of the private banking system in the U.S., as commercial banks operate as private entities rather than government entities. While corporations might hold stocks, the notion of private individual ownership highlights the broader public involvement in the banking system. Regarding preferred stockholders, although they do hold a form of ownership in banks, their rights and privileges differ significantly from those of common stockholders, primarily concerning voting rights and dividends. This distinction