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June 3, 2019

How to expand the universe of public stocks… and how not to | Financial News

This article originally appeared in Financial News on 3rd June 2019, written by David Wighton.

Two new stock exchanges in the US and UK promise a Big Bang that expands the public investment universe. One has serious drawbacks, however Investors in public securities have a problem. Their universe is shrinking. The number of companies quoted on stock exchanges around the world has fallen in all of the past four years. In the US, the figure has almost halved in the past two decades.
Many big investors worry that this is not healthy for market capitalism. But at least these institutions can buy private assets, such as unquoted companies, private equity and real estate, where the returns have been better than listed stocks and are expected to remain so.


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