The Number of Companies Listed on U.S. Exchanges has Dropped Significantly
The number of companies listed on U.S. exchanges has dropped dramatically since 1996: from a high of 8,823 to the current number of 5,296 — a drop of 40 per cent.
With 40 per cent fewer public companies available on the markets, there is more room for equity markets to do well.
In addition, with fewer opportunities (companies) available for investors, there is a “scarcity value” that can be placed on good growth companies.