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From the article Texas is home to more Fortune 500 companies than any other state including New York and California.

by lowkey 2y ago

tivert 2y ago
> From the article Texas is home to more Fortune 500 companies than any other state including New York and California. But the question is: will they change their listing to this new stock market, or stay with the long-recognized ones?
- giantg2 2y ago
  They could potentially dual list.
  - rolandog 2y ago
    And at the very least, it'll serve as a good indicator of which companies don't view enshittification as a mistake/phase, but rather a goal/lifestyle.
    - giantg2 2y ago
      I don't think dual listing would really indicate that. A fully switch would be a better indicator.
- bluGill 2y ago
  Probably not - Fortune 500 is probably already on the NYSE and unlikely to move. Will smaller companies list in Texas though?
  - fdasfdasfdjf 2y ago
    The Fortune 500 could still issue new shares on the new Texas exchange.
    - chollida1 2y ago
      That's not how things work. Shares can be freely traded on any of these exchanges at any time. its where you list that we are discussing here. Listing on an exchange is all about what reporting requirements you are required to make inorder to be a publicly listed company and what share requirement you are required to maintain to list. ie - share price above a certain threshold, - report your financials quarterly, etc. - often a minimum trading volume - certain requirements about the viability of the company, ie not bankrupt, etc. Foreign companies will often dual list in the US to get access to US liquidity as well as list on their own home exchanges. But once you are listed in the US there is no benefit to list on multiple exchanges as all you do is make your reporting requirements go up. Your shares can be traded on any US exchange once you are listed on any of htem.
      - bluGill 2y ago
        What if a company wants a new class of stock - would they always list on the same exchange? I'm not sure what the rules are around this, but I know it is sometimes done.
    - quickthrowman 2y ago
      ‘The Fortune 500’ is not an index fund, it’s a list published by a magazine.
duxup 2y ago
Why would they change their listing?
- deleted 2y ago
  [deleted]
arcticbull 2y ago
Ah yes forum shopping.
bongobingo1 2y ago
"Home" is probably a stretch, don't they mostly just incorporate via a P.O. Box in Delaware? I guess there is Austin too.
- jeffbee 2y ago
  It's Panamanian-flagged ships, but corporations.
rco8786 2y ago
Wikipedia says TX has 49 and CA/NY each have 53. But regardless of which state has the most at any given moment, even if 100% of Texas F500 companies decided to abandon their existing exchange and investor base for a more relaxed regulatory environment, that's...49 companies.
- fdasfdasfdjf 2y ago
  [flagged]
  - deleted 2y ago
    [deleted]
- HWR_14 2y ago
  Sure, or it's 10% of F500 companies. Which would be about 800 if a similar percentage of listed companies were TX based and moved to the new exchange. And if Tesla is a trendsetter, TX might be seeing an influx of large companies. At least for legal incorporation.
- vitus 2y ago
  For what it's worth, Wikipedia cites the 2021 list. The 2023 list had Texas at 55: https://www.statesman.com/story/news/local/2023/06/05/texas-fortune-500-companies-list-2023-tesla-dell-oracle-austin/70290189007/ https://www.statesman.com/story/news/local/2023/06/05/texas-... edit: another commenter points out that California reclaimed the throne in the 2024 list, released just yesterday. As far as I can tell, there's some amount of movement to Texas for lower corporate taxes (especially companies led by executives like Musk or Ellison who prefer Texas's politics). I would be surprised if any major companies delist from NYSE / NASDAQ in order to go all-in on a new exchange, although I could see, say, Tesla considering it if it was a condition for an attractive ticker symbol like T (NYSE symbol for AT&T, which is also headquartered in Texas).
mbreese 2y ago
Texas has the headquarters of many companies, but how many are actually incorporated in Texas? What would the advantages be to a Texas exchange over NYSE or NASDAQ? I understand the desire for a different marketplace. But no matter where it is, they’ll still have to follow Federal securities laws, which will require some level of red tape. Many of those companies are national or multi-national companies. For example, Exxon has its headquarters outside of Houston, but is actually incorporated in New Jersey (According to Wikipedia). So, for them, what would the benefit be?
- kllrnohj 2y ago
  Don't they all incorporate in Delaware? Isn't that the thing to do because of the courts there?
  - deleted 2y ago
    [deleted]
  - mbreese 2y ago
    That was my assumption too, but it's not across the board. For example, AT&T, Inc (HQ in Dallas) is a Delaware Corp. But, I expect that any of these companies that have many years of history will have complex organizational structures. As such, I'm not sure what benefit a brand new exchange would have for them. If I were TXSE, what I'd be arguing is that the new market would have a benefit for new companies. Can you list faster with fewer requirements? Will there be capital available on the market? Can an IPO on their market be a replacement for later stage VC? These are the companies they'd want to recruit.
- AJ007 2y ago
  This is probably just a preemptive move in case of a New York state financial transaction tax and has less to do with any other political issues. This isn't "Texas" setting up their exchange, it's Blackrock and Citadel. The CME had this issue with Chicago/Illinois politicians demanding a financial transaction tax so they are did things to be set up to leave immediately if it passed.
daemin 2y ago
This doesn't really matter on which world-wide stock exchange companies end up listing. There are many companies which list on the NASDAQ rather than in their home exchanges, or on a more theme appropriate exchange rather than one closer to their actual area of operations (I'm thinking mineral exploration companies on the ASX).
georgeecollins 2y ago
It seems close behind California and New York, so maybe it has/ will become true: https://www.statista.com/statistics/303696/us-fortune-500-companies-by-state/ https://www.statista.com/statistics/303696/us-fortune-500-co... I think the economic growth of Texas is great for the US. States trying different models of regulation is a good way to test what works.
testfrequency 2y ago
They don’t. California has 57 New York and Texas are at 52 Source: https://www.gov.ca.gov/2024/06/04/icymi-california-is-now-home-to-the-most-fortune-500-companies-in-the-country/ https://www.gov.ca.gov/2024/06/04/icymi-california-is-now-ho...
- vitus 2y ago
  Notably, the 2024 list was released just yesterday, so I wouldn't fault anyone for not having seen that yet. Texas was in the lead for a couple of years, but honestly it's so close that I don't think it's interesting to assert that "X state has the most big companies according to some magazine's list!". CA, NY, and TX are all huge states with long-standing business investment. That's not changing any time soon.
  - testfrequency 2y ago
    I get it, but the fact is…California is currently #1. As an aside, I do find it still impressive given the number of high profile companies that relocated, and the fact that there’s a constant news doom agenda against California. All this to say, it’s a healthy reminder of just how much California matters to the US and global economy

From the article Texas is home to more Fortune 500 companies than any other state including New York and California.

by lowkey 2y ago

From the article Texas is home to more Fortune 500 companies than any other state including New York and California.

> From the article Texas is home to more Fortune 500 companies than any other state including New York and California. But the question is: will they change their listing to this new stock market, or stay with the long-recognized ones?

giantg2 2y ago
They could potentially dual list.
- rolandog 2y ago
  And at the very least, it'll serve as a good indicator of which companies don't view enshittification as a mistake/phase, but rather a goal/lifestyle.
  - giantg2 2y ago
    I don't think dual listing would really indicate that. A fully switch would be a better indicator.
bluGill 2y ago
Probably not - Fortune 500 is probably already on the NYSE and unlikely to move. Will smaller companies list in Texas though?
- fdasfdasfdjf 2y ago
  The Fortune 500 could still issue new shares on the new Texas exchange.
  - chollida1 2y ago
    That's not how things work. Shares can be freely traded on any of these exchanges at any time. its where you list that we are discussing here. Listing on an exchange is all about what reporting requirements you are required to make inorder to be a publicly listed company and what share requirement you are required to maintain to list. ie - share price above a certain threshold, - report your financials quarterly, etc. - often a minimum trading volume - certain requirements about the viability of the company, ie not bankrupt, etc. Foreign companies will often dual list in the US to get access to US liquidity as well as list on their own home exchanges. But once you are listed in the US there is no benefit to list on multiple exchanges as all you do is make your reporting requirements go up. Your shares can be traded on any US exchange once you are listed on any of htem.
    - bluGill 2y ago
      What if a company wants a new class of stock - would they always list on the same exchange? I'm not sure what the rules are around this, but I know it is sometimes done.
  - quickthrowman 2y ago
    ‘The Fortune 500’ is not an index fund, it’s a list published by a magazine.

duxup 2y ago

Why would they change their listing?

deleted 2y ago
[deleted]

arcticbull 2y ago

Ah yes forum shopping.

bongobingo1 2y ago

"Home" is probably a stretch, don't they mostly just incorporate via a P.O. Box in Delaware? I guess there is Austin too.

jeffbee 2y ago
It's Panamanian-flagged ships, but corporations.

rco8786 2y ago

Wikipedia says TX has 49 and CA/NY each have 53. But regardless of which state has the most at any given moment, even if 100% of Texas F500 companies decided to abandon their existing exchange and investor base for a more relaxed regulatory environment, that's...49 companies.

fdasfdasfdjf 2y ago
[flagged]
- deleted 2y ago
  [deleted]
HWR_14 2y ago
Sure, or it's 10% of F500 companies. Which would be about 800 if a similar percentage of listed companies were TX based and moved to the new exchange. And if Tesla is a trendsetter, TX might be seeing an influx of large companies. At least for legal incorporation.
vitus 2y ago
For what it's worth, Wikipedia cites the 2021 list. The 2023 list had Texas at 55: https://www.statesman.com/story/news/local/2023/06/05/texas-fortune-500-companies-list-2023-tesla-dell-oracle-austin/70290189007/ https://www.statesman.com/story/news/local/2023/06/05/texas-... edit: another commenter points out that California reclaimed the throne in the 2024 list, released just yesterday. As far as I can tell, there's some amount of movement to Texas for lower corporate taxes (especially companies led by executives like Musk or Ellison who prefer Texas's politics). I would be surprised if any major companies delist from NYSE / NASDAQ in order to go all-in on a new exchange, although I could see, say, Tesla considering it if it was a condition for an attractive ticker symbol like T (NYSE symbol for AT&T, which is also headquartered in Texas).

mbreese 2y ago

Texas has the headquarters of many companies, but how many are actually incorporated in Texas? What would the advantages be to a Texas exchange over NYSE or NASDAQ? I understand the desire for a different marketplace. But no matter where it is, they’ll still have to follow Federal securities laws, which will require some level of red tape. Many of those companies are national or multi-national companies. For example, Exxon has its headquarters outside of Houston, but is actually incorporated in New Jersey (According to Wikipedia). So, for them, what would the benefit be?

kllrnohj 2y ago
Don't they all incorporate in Delaware? Isn't that the thing to do because of the courts there?
- deleted 2y ago
  [deleted]
- mbreese 2y ago
  That was my assumption too, but it's not across the board. For example, AT&T, Inc (HQ in Dallas) is a Delaware Corp. But, I expect that any of these companies that have many years of history will have complex organizational structures. As such, I'm not sure what benefit a brand new exchange would have for them. If I were TXSE, what I'd be arguing is that the new market would have a benefit for new companies. Can you list faster with fewer requirements? Will there be capital available on the market? Can an IPO on their market be a replacement for later stage VC? These are the companies they'd want to recruit.
AJ007 2y ago
This is probably just a preemptive move in case of a New York state financial transaction tax and has less to do with any other political issues. This isn't "Texas" setting up their exchange, it's Blackrock and Citadel. The CME had this issue with Chicago/Illinois politicians demanding a financial transaction tax so they are did things to be set up to leave immediately if it passed.

daemin 2y ago

This doesn't really matter on which world-wide stock exchange companies end up listing. There are many companies which list on the NASDAQ rather than in their home exchanges, or on a more theme appropriate exchange rather than one closer to their actual area of operations (I'm thinking mineral exploration companies on the ASX).

georgeecollins 2y ago

It seems close behind California and New York, so maybe it has/ will become true: https://www.statista.com/statistics/303696/us-fortune-500-companies-by-state/ https://www.statista.com/statistics/303696/us-fortune-500-co... I think the economic growth of Texas is great for the US. States trying different models of regulation is a good way to test what works.

testfrequency 2y ago

They don’t. California has 57 New York and Texas are at 52 Source: https://www.gov.ca.gov/2024/06/04/icymi-california-is-now-home-to-the-most-fortune-500-companies-in-the-country/ https://www.gov.ca.gov/2024/06/04/icymi-california-is-now-ho...

vitus 2y ago
Notably, the 2024 list was released just yesterday, so I wouldn't fault anyone for not having seen that yet. Texas was in the lead for a couple of years, but honestly it's so close that I don't think it's interesting to assert that "X state has the most big companies according to some magazine's list!". CA, NY, and TX are all huge states with long-standing business investment. That's not changing any time soon.
- testfrequency 2y ago
  I get it, but the fact is…California is currently #1. As an aside, I do find it still impressive given the number of high profile companies that relocated, and the fact that there’s a constant news doom agenda against California. All this to say, it’s a healthy reminder of just how much California matters to the US and global economy