Does money like silence?  Why the number of companies on Wall Street is declining

Money Likes Silence? Why Wall Street Firms Are Falling

American companies are increasingly raising capital in ways other than selling their shares on Wall Street.

In 1996, there were 8,000 companies listed on the New York Stock Exchange. Since then, the value of the American economy has grown by $20 trillion, and the country’s population has increased by 70 million. Meanwhile, there are only 4,000 companies on Wall Street today.

Between 1980 and 2000, an average of 310 new companies debuted on the stock exchange each year. Between 2001 and 2022, there were only 118.

At the same time, the popularity of the private equity model for financing businesses is constantly growing. This means that the investor contributes capital to the company for its shares, which are not available for purchase in public trading (as is the case with companies listed on the stock exchange). In 2000, only 4% of the capital of American companies was managed in the private equity model. In 2021, it was almost 20%. Companies with such investors do not have to publish such extensive and transparent reports on their financial results and operations as those that are listed on the stock exchange.