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I agree without all the smugness. The stockmarket isn't shrinking (or consolidating) because there are less American companies; it's shrinking because it's easi
by mFixman 8y ago
I agree without all the smugness. The stockmarket isn't shrinking (or consolidating) because there are less American companies; it's shrinking because it's easier for companies to receive funding while staying private.
- nine_k 8y agoThe latter may also be for the better. Publicly traded companies are notorious for their being short-sighted and only caring for the next quarter results. Maximizing profit, or at least stock price, right now is the fiduciary duty of executives; long-term strategies are harder to implement. (Being VC-funded has its own skewed incentives, of course, like financially unsustainable growth.)
- georgeecollins 8y agoShortsightedness has nothing to do with regulation and everything to do with incentives (options) and liability. Strong regulations for disclosure with protection from liability seems like a good idea.
- nine_k 8y agoDisclosure is indeed good! Doing more for the stock to rise by the end of the current quarter, and less to make company successful in longer term, is not so good. But this is known to happen, is it not?