The trading venues in the western industrialized countries have lost business . On the Swiss Stock Exchange SIX today lists one third fewer securities than 15 years ago. Since 2003, Deutsche Börse has lost 45 percent of companies, London and Milan exchanges combined in the LSE Group 20 percent and the US stock exchanges NYSE and Nasdaq 18 percent.
The number of companies does not decrease. For the first time, the Federal Statistical Office calculated for the first time over 600,000 companies in Switzerland for the first time. But it is less public. The number of public companies has fallen from 392 to 264 since 2003. "It does not make us nervous," said Julian Chan, Swiss Stock Exchange spokesman SIX: "Even though fewer companies are listed, they also make much more Capital." is that the market value of domestic companies has increased by more than half.
Takeovers and Strict Rules
This trend can be observed on most western stock exchanges. Twenty years ago, investors in New York could participate in nearly 8,1
Twenty years ago, the five largest US companies – Microsoft, General Electric, Exxon, Merck and Pfizer – represented 10 percent of the total market value. Today's five largest companies – Apple, Amazon, Alphabet, Microsoft and Facebook – account for 17 percent. In Switzerland, the four largest companies are worth more than the remaining 207 in combination.
"The most common reasons for delisting were the takeover and extradition of foreign companies to a secondary listing in Switzerland," says Julian Chan from SIX. Thus, at the beginning of the year, the shares in the chemical company Syngenta disappeared from the stock market list after being taken over by the Chinese state company Chemchina. The same fate was previously affected by the airline company Gategroup, the fashion company Charles Vögele or the Kuoni Travel Group.
100 of 136 other posts abandoned
Foreign companies are increasingly relinquished from a second listing in Switzerland Last year, the US pharmaceutical company Pfizer was. Over the past 15 years, 100 of 136 secondary lists have been abandoned. The same trend can be observed on the other major stock exchanges.
Jay Clayton, chairman of the US Securities and Exchange Commission, blames out tight regulation for the decline in equity markets. This is controversial among the experts, as development began before the new laws became effective. Even in Switzerland, costs, stricter rules and disclosure requirements are cited as an additional argument for withdrawal from the stock market. For example, the rip-off initiative, which increased the effort for smaller companies.
The shift from the capital-intensive industry to services and technology companies reduces demand for capital. At the same time, supply has increased: today, much more capital is available from private investors and venture capitalists. Thanks to its billions, the social media company Facebook pushed a long period of interest. And the Uber car service or the rental market Airbnb can completely refrain from opening to the public.
Private individuals may take higher risks
Private companies have advantages: lower costs, less regulation, less disclosure requirements, no activist or "lawnmower" shareholders. Tesla founder Elon Musk mentioned, for example, such reasons as he considered last month to take California electric car company from the stock exchange. Private companies can also take more risks than public companies that are in the public eye.
However, small investors are excluded from promising companies. For consumers and the national economy, withdrawal from the stock market may have unpleasant consequences if the increasing concentration limits competition.
After 1602, the Dutch East Indian Company issued shares to finance its trading business, the public company conquered the capitalist world. Thanks to this, limited risk entrepreneurs can achieve capital, and everyone can participate in future profits. After 400 years, their triumph seems to have ended.
Created: 02.09.2018, 16:02