Finance and investment experts note a disturbing pattern in US equity markets: a sharp drop in the number of companies that trade on stock exchanges, along with fewer initial public offerings from new firms. Financial scholar René M. Stulz examines the curious dynamic of diminished company association with US public capital markets. getAbstract suggests this astute report to investors, executives and financial services professionals for its exploration of a stock market puzzle.
In this summary, you will learn
- Why the number of publicly traded companies in the United States has fallen since the 1970s,
- What financial conditions have accelerated this trend and
- How this dynamic affects the equity markets.
About the Author
René M. Stulz is a finance professor and director of economic research at the Ohio State University.