The De-Equitization of America

It’s interesting to think of there being a shortage of stocks. And to take it a step further and ask the question “If everyone needs to own stocks for their retirement account, and there are less stocks to be owned, what should multiples for the fewer available stocks be?

Here’s the Wall Street Journal with some surprising data:

The U.S. is becoming “de-equitized,” putting some of the best investing prospects out of the reach of ordinary Americans. The stock market once offered a way for average investors to buy into the fastest-growing companies, helping spread the nation’s wealth. Since the financial crisis, the equity market has become bifurcated, with a private option available to select investors and a public one that is more of a last resort for companies.

The number of U.S.-listed companies has declined by more than 3,000 since peaking at 9,113 in 1997, according to the University of Chicago’s Center for Research in Security Prices. As of June, there were 5,734 such public companies, little more than in 1982, when the economy was less than half its current size. Meanwhile, the average public company’s valuation has ballooned.

With more money than ever available privately and looser regulations for raising it, will this trend reverse any time soon? Does this play into the “rich getting richer” conceit, considering that the masses aren’t able to do much in terms of investing in private equities?

Source:

America’s Roster of Public Companies Is Shrinking Before Our Eyes (Wall Street Journal) 

What's been said:

Discussions found on the web
  1. VJumpers.com commented on Sep 14

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  2. Immediate Edge Review commented on Sep 23

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  3. bitcoin loophole review commented on Sep 27

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  4. used motorcycles near me commented on Oct 16

    … [Trackback]

    […] There you will find 47264 additional Information on that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  5. Electricity Rates commented on Nov 15

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  6. Software Functional Testing commented on Dec 09

    … [Trackback]

    […] Here you will find 92766 more Information on that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  7. dumps with pin sites commented on Dec 23

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  8. Tart Cranberry Dipping Sauce commented on Jan 13

    … [Trackback]

    […] Here you will find 83512 more Info to that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  9. Prime-Line D 1685 manuals commented on Jan 20

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  10. Fujifilm Flashlights manuals commented on Jan 24

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]

  11. cc dumps commented on Feb 06

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2017/01/06/the-de-equitization-of-america/ […]