X 1-392. General note.

These data present an integrated picture of financial claims outstanding in the U.S. economy. They summarize the types of claims, who owes them as liabilities, who holds them as assets, and, for some major groups in the economy, how lending and borrowing are related to income and expenditure flows. The data are based on a wide range of information from public and private statistical sources. Directly or indirectly they reflect banking statistics, Treasury accounts, Census data, tax return compilations, balance of payments statements, security market data, and balance sheet tabulations for several kinds of nonbank financial institutions. Data from these diverse sources have been adjusted in many ways to make them consistent with one another in coverage and in definition of types of claim. The process of adjusting them into consistency produces a total system of financial accounts for the economy that includes separate statements of financial position and of transactions for each major institutional group in the system. As a whole, this financial accounting structure constitutes the flow-of-funds system of accounts published by the Federal Reserve System.

Broadly grouped, this section has three parts: (1) a summary of total debt and the structure of assets that finances that debt; (2) statements for households, business, and State and local governments on their saving and investment and financial positions; and (3) summaries for major financial markets of lending and borrowing positions. Some of the tables include data on both amounts of claims outstanding at year-ends and net flows during years. For most financial claims, the net flows are the changes over years in outstandings and represent the excess of new claims created or acquired during the year over repayments or other disposition. There are exceptions, however, notably in equities in corporate and noncorporate business. Capital supplied to business through corporate stock issues or through proprietors' equity investment appears in the flows as external sources of funds to business and as uses of funds by investors; as equity positions such funds are not included in business liabilities in the tables on outstandings. Corporate equity assets are shown at market value based on prices on stock exchanges, while noncorporate equities are omitted for lack of information on values. Changes in market prices cause the aggregate market value of corporate equities to fluctuate far more from year to year than would be accounted for by net purchases, and the difference is capital gains and losses, mainly unrealized, that are not included in the tables on net flows. For equity markets, therefore, the tables on outstandings and on flows reflect separate aspects of developments.

Tables on flows for households, business, and governments are broader than the tables on outstandings in that they are full statements of saving and investment for the groups covered, including income, spending, and physical asset purchases as well as lending and borrowing. The data on saving and tangible investment for these groups are taken directly from national income accounts, which are summarized in chapter F. The relation between the amounts shown here and national income data are described in the November 1965 Federal Reserve Bulletin, pages 1534-1538. For each of these groups, saving and investment are defined to be equal although measured differently, with saving the excess of current receipts over current outlays and investment the sum of outlays for tangibles and financial assets less net borrowing. Because saving and investment

are calculated from separate bodies of data, there are inevitable discrepancies between the two that are also shown in the tables.

The tables of net flows for these three groups relate in outstandings to complete balance sheets that include physical assets and net worth as well as the financial assets and liabilities that are included in the tables on outstandings. Changes in net worth in such balance sheets would equal saving (as shown in the flow tables), plus capital gains, while changes in assets less liabilities would equal net investment flows plus the same capital gains.

Complete balance sheets consistent with saving and investment flows are being developed on an economy-wide basis but (as of July 1975) are not in a form that can be included here. These balance sheets require estimates of tangible asset holdings on a uniform valuation basis, with totals for all groups in the economy that are consistent with tangible asset totals of the kind shown in chapter F. Until these estimates are completed only partial balance sheets can be shown, covering financial assets, liabilities, and a net difference that is the financial net worth of each group. When tangible asset holdings can be added to these financial net worth figures, it will be possible to cumulate wealth estimates for individual groups into national wealth totals that are consistent with those shown in chapter F. Most of the financial claims included are both held and owed within the national economy and are canceled out in national wealth cumulations, but they are major elements in the distribution of wealth ownership. At the same time their net sum-the excess of U.S. claims on foreigners over foreign claims on the U.S.-represents the financial component of total national wealth.

The primary interest in these tables on financial claims, however, lies not in their relation to national wealth estimates but rather in the picture of financial structure that they give, the indications of debt burden, liquidity positions, structure of intermediation, and surplus-deficit positions that can be derived from them. While most of the debt is not part of national wealth, the structure of debtlong term or short term-and who owes it-government, business, or households have important bearings on private spending decisions. The forms of private financial assets-deposits, long-term securities, and so forth-have influences on credit availability as well as on spending. The tables on outstandings are intended to indicate these aspects of financial structure, while the tables on flows give the relation of financial market transactions to nonfinancial activity that generates both the saving from which credit is supplied and the spending for which credit is demanded.

As a group the tables are selective in several ways, since there is not space to include a total statement of all financial activity. Thus, the three summary tables (series X 1-113) encompass all sectors of the economy but are limited primarily to their credit market activities. The tables on individual sectors (series X 114–262) cover all transactions and financial positions of the groups that have been included but represent only the private nonfinancial economy. The principal omissions are banks and other financial institutions, the Federal Government, and foreign transactors. These are covered in somewhat different form in other sections of this volume. The tables on individual financial markets (series X 263-392) are also selective in that they cover all flows into and out of major markets covered but do not include all financial markets. In this area the most important omission is bank loans, which again is covered elsewhere.

Other omissions consist of security credit, commercial paper, and a variety of other credit forms that are relatively small.

X 1-113. General note.

These series are a summary of total credit in the economy and its sources. The forms of credit included are indicated in series X 1-23. Other kinds of financial obligation that are not directly part of credit markets are omitted. Most of these other obligations are represented

in series X 114-262.

X 1-23. Debt of nonfinancial borrowers, 1945-1970.

Source: Board of Governors of the Federal Reserve System, Flow of Funds Accounts: Financial Assets and Liabilities Outstanding, 1945–1971, and unpublished data.

This set of financial claims, owed by governments, households, nonfinancial business, and foreigners, is an approximation to a base amount of total credit that is used to finance nonfinancial activity in the economy, such as public deficits, business capital formation and inventories, home building, and consumer durables purchases. Government debt omits most public intermediation in financial markets, such as in federally sponsored credit agencies, and the private borrowing omits security credit, book trade accounts, direct foreign investment, other more informal types of financial relationship, and all liabilities of financial intermediaries. For private borrowers the flow of credit included is related closely in total to the volume of capital expenditures, with variations in the relationship and in forms of debt that reflect changing credit conditions.

U.S. Government debt shown is essentially the total for net public borrowing in unified budget presentations. It excludes intragovernment holdings that are part of the larger total of public debt subject to statutory limitation. The unified budget has been published by the Treasury only from the beginning of 1969, but the figures for earlier years have been adjusted to that basis for consistency over time. The figures include Treasury securities, issues by other budget agencies, loan participation certificates, mortgage debt, and Commodity Credit Corporation (CCC) certificates of interest.

State and local government debt is derived from the census of governments.

Corporate and foreign securities are based on Securities and Exchange Commission data on net change in outstandings; the totals for outstandings are Federal Reserve estimates. The figures exclude all issues by financial institutions, and exclude liability for corporate equities outstanding.

Mortgage totals are as published by the Federal Reserve except that they exclude loans in process of disbursement and Federal Government debt in mortgage form.

Bank loans are from banking statistics and are essentially total business loans, farm loans, and loans to individuals after removing credit in the form of open-market paper, CCC-guaranteed loans, consumer credit, and security credit. Loans to financial business are omitted. Consumer credit is as published by the Federal Reserve. Open-market paper consists of dealer-placed commercial paper issued by nonfinancial corporations and bankers' acceptances. Other loans consist mainly of business credit from finance companies and loans by the U.S. Government and federally sponsored credit agencies to business, households, and foreigners. They include foreign loans in aid programs and Export-Import Bank credit.

X 24-63. Funds raised in credit markets by nonfinancial sectors,

1946-1970.

Source: Board of Governors of the Federal Reserve System, Flow of Funds Accounts: Annual Flows, 1946-1971, and unpublished data.

See text for series X 1-23.

X 64-113. Sources of credit market funds, 1945-1970.

Source: See source for series X 1-23.

These series distribute, as assets in the economy, the credit totals that appear in series X 1-23 as liabilities, indicating at the same time the position of financial intermediaries and governmental credit agencies in the structure of supply. The series are divided into three sections-credit from public agencies and foreign investors, assets and liabilities of private intermediaries, and assets of private domestic nonfinancial groups. Public agency credit includes-in addition to direct lending by Federal Government agencies-Federal Reserve credit related to money supply and bank reserves, loans by federally sponsored credit agencies, and foreign holdings of credit market instruments. The sponsored credit agencies (series X 71) are a group of institutions that at some time before 1970 had been part of or partly owned by the Federal Government or other sponsored agencies: Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal intermediate credit banks, banks for cooperatives, and Federal land banks. The sponsored agency figures also include mortgage pools backing securities guaranteed by the Government National Mortgage Association. Lending by the sponsored agencies is financed mainly by issues of their own securities to private investors, and in series X 74 these agency issues are brought into total credit holdings of private domestic lenders, shown in series X 75, and private holdings of Government securities, in series X 76. Some of these agency issues finance loans to financial intermediaries (series X 68) that are not part of the debt of nonfinancial sectors (series X 64) and such loans (series X 81) are excluded from net private holdings (series X 75). Foreign holdings (series X 73) are mainly official, such as at central banks, in recent years.

Private domestic holdings of credit instruments are partly in the portfolios of intermediaries (series X 82), and the volume of intermediation is a strong influence on the forms of credit supply. Intermediaries held far more, proportionately, in direct loans to business and housing than nonfinancial investors, whose portfolios of direct credit instruments consist mainly of securities issued in public markets. Hence a period of large credit flows through intermediaries is typically also a period when loan volume is large compared with net new security issues. Intermediary credit supply is heavily dependent on domestic deposit flows to banks and savings institutions, although these institutions also borrow directly in credit markets or from foreign sources to some extent. The relative importance of sources of intermediary funds is indicated in series X 87-93.

Direct lending in credit markets from nonfinancial groups in the private economy (series X 94) exhausts the total of credit outstanding, where, at this level, the total includes borrowing by public credit agencies (series X 74) and private intermediaries (series X 88) as well as nonfinancial sectors (series X 64). For these nonfinancial investors, credit instruments are part of a portfolio that includes deposits at intermediaries that appear earlier as sources of intermediary lending (series X 87). As private assets the deposits are shown beyond credit instrument holdings, together with currency claims on the Federal Reserve. A total portfolio of securities and deposits (series X 105) for private domestic nonfinancial investors appears at the end of this set of assets.

Corporate equity markets (series X 109-113) are excluded entirely from the preceding series on credit market instruments. Holding of equities are stated at year-end market values, and movements in holdings reflect to a large extent capital gains and losses, whether realized or unrealized, that result from market price movements.

These series consolidate trusts and nonprofit organizations with households mainly because data for a separation of the three groups have been lacking until recent years. From available information, trusts and nonprofit groups appear to hold less than 10 percent of the assets shown in series X 114-147, and their debts are mainly in nonresidential mortgages (series X 140). Apart from these institutional investors, the financial positions shown by series X 114-147 are aggregates for individuals as personal investors and borrowers. These series omit assets and liabilities connected with noncorporate business, such as trade receivables, commercial and farm mortgages, and business loans from banks; noncorporate business finances are included in series X 192-228. In this respect, the household series shown here differ in coverage from those on individual savings (series F 566-594), which include noncorporate business.

The data for household saving and investment (series X 148-191) include as one item a net flow of equity funds from noncorporate proprietors as households into the business sector, but the assets and liabilities data (series X 114-147) exclude such equities because information is lacking on the value of physical assets of noncorporate business.

Apart from noncorporate equities, the assets and liabilities data give the financial asset and debt positions of households resulting from the investment flows shown by the saving and investment series.

X 114-147.

Financial assets and liabilities of households, personal trusts, and nonprofit organizations, 1945-1970.

Source: See source for series X 1-23.

The total shown here for deposits and credit market instruments (series X 115) represents the household component of financial assets (series X 105) in the preceding sources of credit table. Other financial assets consist mainly of corporate equities and claims on life insurance and pension funds.

The credit market instruments liability (series X 138), comprising mainly home mortgages and consumer credit, represents the household component of debt (series X 19) shown in the summary credit table. Other liabilities are related mainly to borrowing for purchasing or carrying securities.

X 148-191. Saving and investment of households, personal trusts, and nonprofit organizations, 1946-1970.

Source: See source for series X 24-63.

Lending less borrowing in series X 114-147 is a measure of the net credit flow from households to other sectors through credit markets. Households are characteristically large net lenders to business and governments, either directly or through intermediaries (series X 165). This net lending is combined with purchases of houses, consumer durables, and nonprofit plant and equipment to give a total investment flow (series X 159) that is, by definition, equal to household saving out of current income (series X 158). Saving and investment are measured from different data sources, however, and a statistical discrepancy exists between them that is shown in series X 191. Series X 148-158 show the relation between personal saving in the national income accounts and gross saving as defined in these tables. The principal adjustments serve to capitalize outlays on consumer durables and growth of claims on government life insurance and employee retirement funds.

X 192-228. General note.

These series cover both corporate and noncorporate business, including farming. Financial sources of funds include net new share issues by corporations as well as net increases in debt claims outstanding. As equities, the share issues are excluded from the liabilities items (series X 199-206).

X 192-206. Financial assets and liabilities of nonfinancial business, 1945-1970.

Source: See source for series X 1-23.

Business financial assets (series X 192-197) are mainly liquidity balances-deposits and credit market instruments—and trade credit. Series X 193-195 are the business element of sources of funds to credit markets in series X 105. Trade credit (series X 196) is almost entirely held by and owed by business and is excluded from the credit market totals in data for debt of nonfinancial borrowers (series X 1-23) and for sources of credit market funds (series X 64-113). The largest component of miscellaneous assets (series X 197) is the direct investment position of corporations in foreign subsidiaries and branches. Credit market debt (series X 199) is identical to series X 20. As mentioned above, most business trade debt is owed within the group to other firms. "Other" liabilities (series X 206) consist mainly of current accruals such as profit taxes accrued but not yet due.

X 207-228. Saving and investment of nonfinancial business, 19461970.

Source: See source for series X 24-63.

Total income before taxes (series X 207) is taken directly from the national income accounts (NIA) and consists of corporate profits and inventory valuation adjustment, proprietors' income from noncorporate business, and part of rental income of persons. Series X 207 excludes rental income that is imputed in national income accounts to owner-occupied houses. That income and all other flows associated with owner-occupied houses are included in the data for households (series X 114-191).

Business gross saving (series X 208) is mainly depreciation charges and other capital consumption allowances that are not cash outlays, but it also includes corporate retained profits after profit taxes and dividends. Noncorporate income is treated as though paid over entirely to proprietors in the household group, and no element of noncorporate retained income is included in the gross savings total. Capital expenditures (series X 211–215) are also from national income accounts (NIA) although not published in the NIA for exactly this group. Expenditures exclude purchases of houses by households, and plant and equipment outlays by nonprofit organizations and by financial business.

In almost all of the years since World War II business capital outlays have been somewhat larger than business gross saving (internal cash flow), and funds raised externally (series X 218) have been correspondingly higher than financial uses of funds (series X 217).

Series X 228 is a statistical discrepancy, the excess of gross saving over an independently measured gross investment total. An important source of this discrepancy is net land purchases, for which estimates are not yet available. These purchases are probably mainly from households and are offset by an equal and opposite element of the household discrepancy, series X 191 (see above).

Gross saving of State and local governments in series X 247 is the net surplus published in national income accounts less a retirement credit to households that removes employee retirement funds from this group. The retirement funds are viewed here as a form of financial institution parallel to private pension funds, and the data for State and local governments exclude their assets and activities. The basic source of information for these series is the annual surveys of governmental finances published by the Bureau of the Census. Census data are converted from a presumed mid-year fiscal basis to calendar-year estimates on the basis of quarterly data from other sources. Certain adjustments are included which integrate the financial data with national income definitions of the group and its nonfinancial transactions.

Credit market supply of funds by State and local governments included in series X 105 consists of data shown in series X 230-232. Credit market debt (series X 239) is identical with series X 18.

These financial market data series cut across a different dimension of the economy's financial structure from the preceding series. The former are statements for selected institutional groups of transactions and balance sheet positions that relate to the nonfinancial activities of these groups. The market data series, on the other hand, beginning with series X 263-275, for example, indicate for selected types of financial instruments the institutional groups that acquired the claims as assets and that issued them as liabilities. Certain items, however, from the preceding series are repeated here. Corporate bonds held by households, for example, shown in series X 128 as a form of household asset, is shown in series X 345 as one of a set of group holdings of corporate bonds that together account for all of the bonds outstanding. Except in corporate equities, the financial market series present only assets and liabilities outstanding, and net flows to or from the markets can be closely deduced from yearly changes in outstandings. Corporate equities are a special case where changes in market values cause movements in values of holdings that are very different from net transactions. Both value of holdings and net flows are shown for equities.

X 263-275. Money supply, 1945-1970.

Source: See source for series X 1-23.

Demand deposits and currency are the principal means of payment in the U.S., and the amounts held outside banks and the U.S. Government constitute the narrowly defined money supply. These data show the ownership distribution of the money supply and the banking system liability for money and Government cash balances. The figures conform to the definition of money stock as published weekly by the Federal Reserve System, but they are for a single day of the year, December 31, rather than period averages. Series X 265-267, holdings by households, business, and State and local governments are repeated here for series X 116, X 193, and X 230, respectively. Money stock is also held by nonbank financial institutions and by foreigners. These holdings are presented as they appear on the balance sheets of the holder groups. A further element of money supply, shown here as "mail float" (series X 270), is not in the balance sheets of any holders. This float is made up of checks that have been deducted from the books of the check writers but are not yet included in the books of receivers. This is a float in addition to cash items in process of collection and Federal Reserve float, both of which have been deducted already in calculating total money supply. In addition to the money supply, the series presented also include U.S. Government cash balances (series X 271), which are mainly Treasury deposits, and include, in addition, cash and currency held by other agencies.

Liability for cash balances lies partly with the Federal Reserve and certain Treasury accounts, grouped together as "monetary authorities" (series X 272) and partly with commercial banks. The monetary authorities component is mainly currency outside banks but also includes Treasury and foreign official deposits at Federal Reserve Banks and Treasury holdings of currency. The commercial bank liability consists of demand deposits held by nonbanks, after deducting cash items in process of collection and Federal Reserve float.

X 276-292. Time deposits and savings accounts, 1945-1970.
Source: See source for series X 1-23.

Commercial banking liability includes passbook savings deposits and several types of deposit with specific maturity dates. These are shown here as negotiable certificates of deposit (CD's) of $100,000 denomination or more and all others (series X 278 and X 279). The series cover ownership distributions on total time deposits, but not on negotiable CD's separately. Sources for time deposit ownership-mainly bank financial reports and corporate business statements—are inadequate for a separate allocation of CD holdings.

Deposits at nonbank savings institutions are held predominantly by households. In recent years these institutions have also started issuing certificates with stated maturities.

X 293-327. U.S. Government securities, 1945-1970.
Source: See source for series X 1-23.

The ownership estimates shown here cover all of the U.S. Government debt that appears in series X 2 except mortgages. In addition, they include the securities of federally sponsored credit agencies shown in series X 71. The sponsored-agency issues are financial intermediation that is excluded from the debt totals shown in series X 1-23, but they are part of the market for public and agency securities presented here. The sponsored credit agencies are listed in the text for series X 64-113. Almost all of the issues included here, other than sponsored agency securities, are part of public debt subject to statutory limitation, but the totals shown exclude securities held within the Government, such as by social security and civil service retirement funds, and are therefore substantially less than the total debt under ceiling, which includes these intragovernment holdings. Short-term Treasury issues (series X 296) include all marketable securities due within one year of the date shown plus a sliding proportion of those due within two years, as calculated by the Federal Reserve. "Other" Treasury issues (series X 297) are all longer-term marketable securities plus nonmarketable securities other than savings bonds. Budget agency issues and loan participation certificates (series X 299 and X 300) are borrowings by agencies other than the Treasury that became part of net borrowing from the public when the unified form of budget was introduced in 1969. Agency issues are mainly Tennessee Valley Authority and Export-Import Bank securities, and loan participations are obligations of Export-Import Bank, Government National Mortgage Association (GNMA), and a number of other agencies. They include Commodity Credit Corporation certificates up to 1970. For 1970 they also include insured notes sold by Farmers Home Administration, a form of claim that is not included in public borrowing in budget documents. Included in the totals for sponsored-agency debt outstanding are mortgagebacked securities guaranteed by GNMA.

All of the securities are shown at par values, both as liabilities and as assets. The estimates are based primarily on the Treasury Ownership Surveys that are published monthly in the Treasury Bulletin. Although definitions of the Government and forms of budget reporting changed substantially from 1945 to 1970 the figures shown here are all on a single definitional basis consistent with budget coverage in 1971. Sponsored-agency debt, for example, includes for all years debt of institutions that were in the group in 1971, even though some or all of the agencies were in the budget in earlier years.

While intragovernmental holdings of debt are excluded, asset holdings include Government investment in sponsored-agency issues, sponsored-agency investment in Government issues, and Federal Reserve holdings of both Treasury and agency securities (series X 302-304). Foreign holdings (series X 305) have in recent years been mainly in the hands of official institutions such as central banks. The remaining asset holdings (series X 306) comprise the public debt held by private domestic investors and approximate the amount that must compete against other forms of credit for funds in the domestic market. Roughly one-quarter of this total is household savings bonds, Series E and H, shown on the debt side in series X 295.

Savings bonds were the major form of household Government securities for most of the period covered. For other domestic groups, holdings were predominantly marketable Treasury issues, although agency securities increased rapidly toward the end of the period. Household, business, and State and local government holdings (series X 310-312) are duplicated here for series X 121, X 195, and X 233, and in total for series X 95.

X 328-378.

Bonds and mortgages, 1945-1970.

Source: See source for series X 1-23.

These data present ownership of the principal forms of private long-term credit instruments, including State and local government securities. Holdings for all groups except households are based on balance sheet tabulations by Government agencies, trade associations, or private research organizations. Household assets are in each case calculated residually by subtracting holdings reported for other groups from the totals outstanding. This procedure puts a questionable valuation on household security assets. While most of the liability totals are stated at par values, the institutional holdings subtracted are book values which represent a mixture of par, cost, and amortized cost values. The resulting distortions in household asset values are probably not large but should be borne in mind.

The totals for debt outstanding come from a variety of sources. For State and local government securities they are taken from the annual surveys of governmental finances published by the Bureau of the Census, with adjustments to shift fiscal-year totals to a December 31 basis. Borrowings by State and local governments from the Federal Government (series X 338) are removed from the total as a separate form of debt. Totals for corporate bonds outstanding are essentially cumulations of net new issues published by the Securities and Exchange Commission, starting from a base total of bonds outstanding in 1944. Foreign bonds held in the U.S. are from balance of payments statistics and are at market value. Mortgage totals are derived mainly from tabulated reports of institutional lenders, with an allowance included for lender groups not covered by the tabulations. The totals are assembled jointly by the Commerce Department, the Federal Home Loan Bank Board, and the Federal Reserve.

Mortgage debt shown for savings and loan associations consists of loans still in process of disbursement. Such loans are included in the associations' assets at their full committed amount. U.S. Govern

ment mortage debt is on residential properties acquired by the Defense Department and Coast Guard. These mortgages appear in the Treasury Ownership Survey in the Treasury Bulletin as “nonsurveyed Government agency securities." They are included in the U.S. Government debt total (series X 2) but not in total Government securities outstanding (series X 293).

Household mortgage debt is entirely on owner-occupied residences. Nonfarm business mortgages are mainly on multi-family rental residential structures and commercial properties. They include small amounts of single-family debt that represent construction loans to builders.

X 379-392. Summary of corporate equities market, 1945-1970.

Source: Board of Governors of the Federal Reserve System, Flow of Funds Accounts: Financial Assets and Liabilities Outstanding, 1945-1971; Flow of Funds Accounts: Annual Flows, 1946-1971; and unpublished data.

Holdings of corporate shares are shown here at current market values, based mainly on Securities and Exchange Commission (SEC) tabulations for shares listed on stock exchanges. Movements in these values have been much larger relative to net cash transactions than for debt securities shown in preceding series, and for this market the net transactions are shown separately here. Total market values are as calculated at the Federal Reserve for all shares except openend investment companies ("mutual funds"). The investment company total is for members of the Investment Company Institute (ICI). The totals include preferred as well as common shares. Purchases of domestic shares represent net new issues and are from the SEC and ICI. U.S. purchases of foreign shares in series X 392 represent net foreign issues, both new and existing, as shown in balance of payments publications.

For financial institutions most of the market values of holdings and net transactions are regularly reported either to trade associations or to the SEC. As in preceding series, household assets and net transactions are calculated residually. The figures indicate that in the later years shown, net purchases by life insurance companies and pension funds were larger than total new issues, while households received more from sales out of their equity portfolios than they paid for new share purchases. These net sales are shown here as negative net purchases and represent household funds transferred out of equities into other uses.