Mom And Pop

Loading the player...

What does 'Mom And Pop ' mean

"Mom and pop" is the term used for businesses and companies that are independently owned and run. These types of businesses are much smaller and sometimes have difficulty competing with larger businesses' buying power.

"Mom and pop" can also refer to inexperienced investors who play the market casually and rely on brokers to manage their portfolios.


"Mom and pop" is usually the term given to stores or businesses that are much smaller and independent than larger corporations. Historically, this term used to refer to the local general store or drugstore, because it was often run by family members and passed down from one generation to the next. Now, a mom-and-pop shop could refer to a number of different businesses, such as a restaurant, a local bookstore or an auto repair garage. It could even refer to a small, family-owned insurance company.

Many mom-and-pop stores could not compete with larger size and convenience of bigger box stores during the 1980s and 1990s and had to shut down. Similarly, several mom-and-pop restaurants have a hard time competing with fast food joints and franchise restaurants that serve food faster and at lower prices.

Mom-and-Pop Shops Make a Comeback

Mom-and-pop businesses are in vogue again, especially with the help of the internet. Many consumers want to support local businesses and small businesses. Mom-and-pop business owners can operate their businesses primarily online without the overhead cost involved with operating from a brick-and-mortar storefront. Consumers' desire for something unique and of high quality has also driven mom-and-pop businesses back to success. Mom-and-pop shops also tend to have a more personal feel and a higher level of commitment to their customers that is hard for larger businesses to replicate, due to their nature and size.

Mom-and-Pop Investors

"Mom and pop" can also refer to a type of investor. Mom-and-pop investors are inexperienced and typically invest very little in shares. Despite not putting a lot of money up front, mom-and-pop investors still expect to receive a large return or to supplement their income with the profits from their efforts in the stock market.

Mom-and-pop investors typically buy and sell their stocks through a broker. While this approach can yield some profit, the actual mom-and-pop investors do not keep up to date with their market research and do not move quickly enough when the market changes. Usually, these mom-and-pop investors are the most effected when the market falls dramatically.

  1. Ma And Pa Shop

    A colloquial term for a small, independent, family-owned business. ...
  2. Business Broker

    A professional who specializes in the purchase and sale of companies. ...
  3. Prime Of Prime - PoP

    A brokerage that provides service to traders (especially Forex ...
  4. Brick And Mortar

    A traditional "street-side" business that deals with its customers ...
  5. Closed Corporation

    A business that is set up using a corporate business structure, ...
  6. Click And Mortar

    A type of business model that includes both online and offline ...
Related Articles
  1. Professionals

    What Does Mom and Pop Mean?

    A mom and pop shop is a small, independent, family-owned business.
  2. Investing

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
  3. Entrepreneurship & Small Business

    3 Ways You Can Support Small Business Growth

    Discover a number of different options available to support small business growth, including crowdfunding campaigns and shopping locally.
  4. Investing

    5 Warnings Signs of Risk for a Small Business

    Learn how to keep on the lookout for these five potential warning signs of risk that your small business is stalling out or failing.
  5. Markets

    Famous Chains That Began As Mom-And-Pop Stores

    Even the largest chains in the world started with a single location. Here are examples of famous brands that have humble beginnings as mom-and-pop stores.
  6. Entrepreneurship & Small Business

    Want to Open a Small Business? Beware of These

    While all small businesses face long odds, these four types are even less likely to succeed.
  7. Managing Wealth

    The 4 Most Common Reasons a Small Business Fails

    Discover the most common reasons small businesses fail, including capital formation, management concerns, planning issues and marketing missteps.
  8. Managing Wealth

    Six Steps To A Better Business Budget

    This easy but essential process helps owners ensure that their businesses can stay afloat.
  9. Entrepreneurship & Small Business

    Economics of Owning a Restaurant

    Discover the many different economic points to starting and operating a restaurant and how you can potentially lower your costs to improve profitability.
  10. Professionals

    5 Biggest Challenges Facing Your Small Business

    Thinking about starting your own business? Read this article to get a leg up on what you could face.
  1. How much working capital does a small business need?

    Learn about the three primary factors that determine how much working capital is needed by a small business, including business ... Read Answer >>
  2. What should be included in a restaurant business model?

    Learn what a business model is and its purpose, along with learning the specific elements that should be included in a business ... Read Answer >>
  3. Where do investors tend to put their money in a bear market?

  4. What do you need to know to create a business model?

    Learn what a business model is, its importance and the primary elements that are needed in order to create a successful business ... Read Answer >>
  5. What is the point of developing a business model?

    Learn some of the benefits of developing a business model and how business models are used. Consider an example of business ... Read Answer >>
  6. Do companies have to pay back their paid-up capital?

    Learn what business structures are available to entrepreneurs, and learn the process for making the most appropriate selection ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center