Just seven of around 70 new stock market listings have allowed private investors to buy shares on the same terms as institutional investors since September of last year, according to Seale.

Recent floats that have excluded private investors include Poundland and Foxtons, in additon to the sale of 7.8 per cent of the Government’s shares in Lloyds Banking Group. 

Seale said: “The Government’s decision to sell £4.2bn worth of shares in Lloyds Banking Group to institutional investors is the latest example of how private investors are missing out on the opportunity to invest for their financial future on the same terms as institutional investors.”

He continued: “Even though there was not a first day ‘bounce’ in the shares in this case, should a later sale of Lloyds’ shares by the Government to retail investors be at a higher price than yesterday’s, individual investors will be right to question why.”

According to Seale, the Government should be setting an example to other companies coming to the market by enabling retail investors to participate.

He concluded: “The general public is continuously encouraged to save more and take more responsibility for their finances. Investing in companies which are listing is one way in which people can choose to save for retirement, their first home, or their children’s university fees. Sadly, their way is often barred.”