Whats the point of the equity market?
The number of companies listed on the world’s stockmarkets has collapsed in the last twenty years. Since 1996, the number of public companies in the USA has fallen from roughly 8,000 to 4,000, and in the UK from 5,000 to 2,500. Part of the explanation of this is that the number of new companies seeking a market listing in the US has come down from over 300 a year before 2000 to just over 100 since. South Africa presents a similar picture, with a halving in the number of listed companies.