Discussion
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kdhaskjdhadjk: Probably from all the consolidation. In the USA there used to be hundreds of companies supplying various industries. Now there's generally 2-5, and they all have the same shareholders.BlackRockVanguardState StreetNorthern Trustetc"Vanguard and BlackRock are the top two owners of Time Warner, Comcast, Disney and News Corp, four of the six media companies that control more than 90% of the U.S. media landscape.BlackRock and Vanguard form a secret monopoly that own just about everything else you can think of too. In all, they have ownership in 1,600 American firms, which in 2015 had combined revenues of $9.1 trillion. When you add in the third-largest global owner, State Street, their combined ownership encompasses nearly 90% of all S&P 500 firms.Vanguard is the largest shareholder of BlackRock. Vanguard itself, on the other hand, has a unique structure that makes its ownership more difficult to discern, but many of the oldest, richest families in the world can be linked to Vanguard funds."
crsv: Does this calculation take into account garbage stocks and securities fraud? Perhaps some of the reduction was the result of regulation favorable to the consumer?
triceratops: Only the first two sentences in your post made any sense.
NoboruWataya: Sorry if I'm being very dumb, but is there an actual link to the article I can click here or is this just a tweet by a guy saying he wrote an article?Anyway the conventional finance answer to why there are fewer public companies around these days is just that private markets are so much bigger. PE and debt financing (both public and private) are probably responsible for a much bigger share of companies' financing than they used to be.
nivertech: The number of traditional public companies has been cut in half.The number of alternative public and semi-public companies went up exponentially (Reg CF/Reg A, crypto ICOs).After reaching some thresholds a Reg A company can become public and even trade on OTC markets.
HEmanZ: This is disinformation. Blackrock and Vanguard manage the accounts of people who own these. They themselves do not own the shares. It would be like you saying you don’t own your 401k, Fidelity does.There are still control concerns, if blackrock and vanguard started throwing around weight more they’d have a lot of power as investor aggregators. They do “control the vote”, in theory, on a lot of the economy through their aggregation. AFAIK they don’t use this much because it’s not practical for their funds. But framing them as real owners is the kind of boogeyman crap.
