Why We Shouldn’t Worry About the Declining Number of Public Companies
AUGUST 27, 2018
In a parallel development, the number of companies listed on U.S. The number of listed firms can decline because of three developments: 1) bankruptcy, failure, or closure of listed firms, 2) delisting of firms going private or acquired, and 3) decrease in number of initial public offerings (IPOs). Such acquisitions become more lucrative with rising first-mover advantages, pace of technological development, and network externality. westend61/Getty Images.