Everyday Investors To Hold The Power: 2025 Marks Turning Point For Public Markets

Retail Investors Set to Redefine Public Markets in 2025

The democratization of financial information through social media and online communities has empowered retail investors, who now account for about 20% of all U.S. equity trading volume. This trend has been building for years, with the events of 2024 bringing the power of retail investors into sharp focus.

A prime example of this is the successful defense of Disney’s CEO Bob Iger against an attempted coup by activist investor Nelson Peltz in April. Disney spent over $40 million marketing to its investor base, which paid off as 63% of shareholders participated and Iger took home 94% of the overall vote.

Reddit’s recent IPO, which allocated about 8% of its shares for superusers, is another significant development in the retail investing space. This move rewarded loyalty, empowered retail participants, and set a new standard for retail’s role in public offerings.

As we look ahead to 2025, it’s clear that retail investors will play an even more prominent role in shaping public markets. Companies that prioritize retail investors as strategic stakeholders will unlock significant value and stay ahead of the curve. In 2025, IPOs are likely to make a point to prioritize retail investors, with companies allocating more shares for retail participation and offering exclusive pricing and perks to their supporters.

Retail investors will also shape corporate governance, with proxy battles, shareholder proposals, and activist campaigns increasingly hinging on retail sentiment. Companies will need to communicate directly with retail shareholders, leveraging technology to provide real-time updates, voting tools, and educational resources.

New regulations are expected to boost retail momentum in 2025, with the Securities and Exchange Commission exploring rules to improve access and reduce disparities between retail and institutional investors. The expansion of the accredited investor definition, increase in Regulation A+ funding limits, lower corporate tax rates, and increased M&A and IPO activity will all contribute to a more inclusive and dynamic public market.

As consumer sentiment on the economy improves, we can expect a fresh wave of activity as retail investors participate in the stock market. Companies that embrace retail shareholders as strategic stakeholders will be at the forefront of this trend, unlocking significant value and staying ahead of the competition.

The rise of retail investing represents one of the most profound shifts in public markets in decades. In the tech industry, companies like Monogram Technologies are already harnessing the power of retail investing to fuel growth and engagement. By leveraging technology to provide exclusive pricing and perks to their supporters, these companies are transforming customers into loyal advocates and investors.

Companies that prioritize retail investors will unlock significant value and stay ahead of the competition in 2025. The future of public markets is being shaped by retail investors, who will continue to drive growth for forward-thinking companies.