This paper examines the relationship between cognitive abilities and stockholding, using data from the Survey of Health, Ageing and Retirement in Europe (SHARE) for individuals aged 50+ in 11 European countries. The study focuses on three indicators of cognitive abilities: mathematical skills, verbal fluency, and recall skills. The findings indicate that the propensity to invest in stocks is strongly associated with cognitive abilities, both for direct stock market participation and through mutual funds and retirement accounts. The authors conclude that the association between cognitive abilities and stockholding is driven by information constraints rather than preferences or psychological traits. The paper also explores the impact of cognitive abilities on the decision to invest in less information-intensive assets like bonds, suggesting that the effect is weaker, supporting the information constraint hypothesis. The study contributes to the literature on financial market participation and provides insights into the factors influencing household portfolio choices.This paper examines the relationship between cognitive abilities and stockholding, using data from the Survey of Health, Ageing and Retirement in Europe (SHARE) for individuals aged 50+ in 11 European countries. The study focuses on three indicators of cognitive abilities: mathematical skills, verbal fluency, and recall skills. The findings indicate that the propensity to invest in stocks is strongly associated with cognitive abilities, both for direct stock market participation and through mutual funds and retirement accounts. The authors conclude that the association between cognitive abilities and stockholding is driven by information constraints rather than preferences or psychological traits. The paper also explores the impact of cognitive abilities on the decision to invest in less information-intensive assets like bonds, suggesting that the effect is weaker, supporting the information constraint hypothesis. The study contributes to the literature on financial market participation and provides insights into the factors influencing household portfolio choices.