Comments on: Stock-listings charts of the day http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ElleNavorski http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-24355 Sat, 26 Feb 2011 15:42:34 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-24355 If it were 1990, Mr. Salmon would also conclude that the total number of stocks “is now on a long-term secular downtrend.” The years after 1990 would prove him wrong.

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By: guanix http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23742 Fri, 04 Feb 2011 18:44:27 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23742 Here are some more charts: http://pages.stern.nyu.edu/~gyang/charts  /

Of course numbers from corporate financial statements don’t really match the corresponding concepts from aggregate statistics (and I couldn’t find aggregate dividends+stock repurchase numbers). Also the periods don’t line up perfectly.

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By: loopguy http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23733 Fri, 04 Feb 2011 15:20:44 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23733 I suspect that there is an increasing amount of private equity / hedge fund activity taking possible listings off the IPO market–but this evidence doesn’t show it. What about listings on other exchanges outside of the U.S. Exchanges?

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By: FDum http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23728 Fri, 04 Feb 2011 13:06:28 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23728 “Stock market is increasingly failing to act as a proxy for the economy as a whole” – dont you need to know a) number of private companies b) historic correlation between public company performance and the economy overall c) current correlation between pubic company performance and economy d) what exactly the dependent variable is – growth, size, specific trends like unemployment etc.
Pretty generic statement, probably inaccurate…

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By: dsquared http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23725 Fri, 04 Feb 2011 10:51:23 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23725 It’s pretty clear that the total number of stocks peaked with the dot-com bubble, and is now on a long-term secular downtrend. As a result, the stock market is increasingly failing to act as a proxy for the economy as a whole.

I think this is pretty tonto from a statistical point of view. You could have a stock market with hundreds of tech startups which was totally irrelevant to the local economy (Israel?) or a stock market with only a few dozen companies that included all the major sectors (lots of recently-socialist emerging markets). Whether or not the stock market is a proxy for the economy, and how to interpret that proxy, is just an empirical question.

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By: DanHess http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23723 Fri, 04 Feb 2011 03:33:36 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23723 This globalized world where no markets are isolated and sheltered from competition is truly winner-take-all. If you are the fourth most successful competitor in many sectors, you might as well pack your bags and go home. Or better yet join with the winner.

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By: TFF http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23721 Fri, 04 Feb 2011 03:19:08 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23721 My perception is that we saw a tech innovation boom during the 90s, naturally followed by industry consolidation. But I could easily be off base…

A third vote for not obsessing over the daily rise and fall of the stock market.

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23719 Fri, 04 Feb 2011 02:29:15 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23719 Falling numbers of companies is more a sign of lower regulation allowing more mergers and acquisitions. However, I do agree whether stock markets are up or down is not important to the wider economy – it’s of much more interest to the non-owner executives and their enormous option payments.

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By: KidDynamite http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23717 Fri, 04 Feb 2011 01:20:24 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23717 @Guanix – I’m thinking of total market cap vs GDP as a starting point -although astute observers complain that such a chart has the OPPOSITE problem – the market cap is warped (increased) by new, large IPOs.

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By: guanix http://blogs.reuters.com/felix-salmon/2011/02/03/stock-listings-charts-of-the-day/comment-page-1/#comment-23715 Thu, 03 Feb 2011 23:35:32 +0000 http://blogs.reuters.com/felix-salmon/?p=7170#comment-23715 I’ll try to come up with some measure of the fraction of total economic activity accounted for by listed companies.

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