Financial Times Reports on U.S. Market Structure Failing to Support Small Cap Companies

Aline van Duyn of The Financial Times reports that the U.S. listed capital markets have been in systemic decline for many years, quoting the forthcoming Grant Thornton study which will be released November 9th:

The analysis finds that the number of US exchange-listed companies is down by more than 22 per cent since 1991 and down by 53 per cent when allowing for real, inflation-adjusted gross domestic product growth.

In Asia, growth in listed companies is increasing faster than the GDP growth rate, and the pace far exceeds that of the US.

“This [decline] is not a global phenomenon; the US is seriously lagging other industrialised nations in the formation of such listed companies,” the report says.

The analysis, which has been in the works for more than six months, argues that the structure of the US financial markets is no longer configured to support the capital raising activities of small start-ups.

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