The SEC's data shows that the number of publicly listed companies has nearly halved since 2000. But the insight they add is that this is entirely due to fewer "small" companies (market cap of less than $250 million).
We’ve highlighted the downshift in the number of IPOs this century as companies wait longer to IPO, in part because they need to be mature enough to afford the increased cost of being public, with compliance costs adding to $9 billion per year for all listed companies, and weighing more heavily on smaller companies.
Not only does going public provide companies with capital, but it also "facilitates their overall ability to raise funds," with credit spreads falling nearly 25%, borrowing costs declining and the pool of lenders growing.
Companies that go public invest more than similar private companies, which is one way that public markets help grow the economy.
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By Phil Mackintosh, Nasdaq Chief Economist, and Michael Normyle, U.S. Economist and Senior Director at Nasdaq
In the past, we’ve highlighted the worrying trend of the declining number of listed companies. So, we thought it was
