Shrinkage

07 Dec 2013 06:11 #1 by LOL
Shrinkage was created by LOL
No its not what you think, has nothing to do with this cold weather. Haha :rofllol

The stock market (no. of shares and companies) is shrinking despite record index prices. LOL
Seems hard to believe, you would expect the opposite?

What does this all mean Blazer Bob? :)

"There are fewer publicly traded companies on American exchanges than at any time since at least 1990. A larger proportion of this narrower market falls into the “small-stock” category. And established companies have been aggressively pulling their shares off the market through buybacks."

"The Wilshire 5000 is the oldest index that seeks to replicate the entire U.S. market. It never had exactly 5,000 stocks (that was just a marketing-driven estimate) but it often came close. Today, it contains just over 3,600 names."

http://finance.yahoo.com/blogs/michael- ... 41756.html

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Republicans are red, democrats are blue, neither of them, gives a flip about you.

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07 Dec 2013 09:57 #2 by Pony Soldier
Replied by Pony Soldier on topic Shrinkage
Privately traded companies do not have to deal with do many regs. There are other avenues to raise capital available now that don't require going public. Also, I get the feeling that the larger corps are swallowing up vast amounts of competitive startups. Just a couple of guesses as to the why.

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07 Dec 2013 19:02 #3 by FredHayek
Replied by FredHayek on topic Shrinkage
Exactly. Private companies do not have to follow Sarbanes Oxley; financial regulations that are expensive to keep. My company spent over 100K just last year on compliance.

Thomas Sowell: There are no solutions, just trade-offs.

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08 Dec 2013 08:37 #4 by LOL
Replied by LOL on topic Shrinkage
Agree, private equity takeovers, mergers, buybacks, buyouts, expensive regs for going public. More shares to the 1%-ers less available to the public. Unintended consequences?

I think small companies (<$100M) are exempt from Sarbanes Oxley???

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