Valtrend - Butler Business Valuation

The Dwindling Number of Listed Companies

Excluding the recent downward momentum of the stock market, one of the reasons for the steady march upward in stock prices over the last few years may have been the relative “lack” of publicly-traded companies to invest in.  In 1996, there were approximately 7,400 listed companies.  Today, less than half.  Is it as simple as economics 101?  Less supply, same or increasing demand, which leads to increasing prices?  One thing is for sure, many of the companies who have exited the markets were lightly traded/non-analyst followed stocks.  Thus, overall, the market has become more efficient.

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