Continued weak IPO market brilliant no longer United States

Google (GOOGLE) and spectacular first IPO (IPO) was considered to be the United States IPO market back to the 1990s. However, although Google is a great success, the dark also ended in 2002 (the year Enron and WorldCom scandals to violent impact investor confidence), but the United States but only the IPO market a scenery of shell.

According to Thomson financial companies in the United States this year statistics Stock Exchange listed company for 53 home, far below the 1990s average 553 company IPO. Recession in the most serious is the technology industry, has been to 2000 the whole decade, an average of 140 technology company listing, this figure exceeds the sum of the last 5 years.

In the face of the downturn of the status quo, people often sighing: must have gone wrong somewhere. But to join the chorus of "lament", it is necessary to ascertain whether the reduction in the number of the IPO to become a problem, or experience a time of revelry after the IPO, the United States market only return reason only? the answer lies, benevolent see benevolence Moses.

Strong IPO market nature is the investment bankers, stockbrokers, research the company and the financial media of the Gospel, they can endlessly trafficking, analysis and discussion of the stock. The 1990s was undoubtedly the golden age of the person and a thing of the past.

But for investors and companies, the answer maybe is not so straightforward. From the average, the IPO is not the best investment object. University of Florida Professor Jay · Arthur d. little is of the view that apart from the first day of the performance does not look at the listing (usually only to trading before the IPO price of subscription for shares can earn money), 5 years later than the IPO, the unit features low average 4.1 percentage points. So when in IPO investors since then only tickets purchased lack profit space flat stock.

For equity investors in the stock price admission, especially when the media good reports aroused their fanaticism, IPO is a flying drop. The enterprises, the public listing pros and cons, but with such a choice is not always a bad thing. IPO to raise capital for enterprises, for merger and acquisition activities, and to provide early access to investors out of the exit of the shortcut. Most importantly, for a country, strong IPO market symbolizes the free flow of capital, which will stimulate innovation and economic vitality.

So to be fair, a healthy IPO market better than unhealthy. The problem is that most of the United States currently weak IPO by market factors, inhuman means. In Silicon Valley, for example, due to productivity improvement, of high-tech enterprises do not like the former need so many capital operation, led to the listing of the main driving force. Another reason is that, like the enterprise market. In the late 1990s, the listing criteria already so relaxed, to the extent that any one would like to have listed. This reduces the overall quality of enterprises IPO and subsequent dark ages you will risk investment fund drive into the next round of emerging enterprises.

United States IPO market third fatal disease is groups of buyers and private equity funds increased competition. Since the IPO values now more profit and non-enterprise story, so the price can't be rushed to the legendary to high point. The result is that groups of buyers can now open up close to the enterprises IPO pricing prices to direct more attractive. Clearstone Venture capital company of venture capitalists Venture Partners, Bill · Albert Sykes said that any one company even if outgoing little wind, and immediately received purchase offers.

Along with listing cost, risk and regulation increased — this is the IPO recession can control factors of one of these acquisitions to look more attractive. And later introduced to protect investors from scandal damage of initiatives, particularly the Sarbanes-Oxley Act dramatically increases United States listed enterprise financial reporting expenses and Manager, the directors of legal risks. When financial figures wrong (in fact they often mistakes), c-level executives are often regarded as sinners until they turned out to be innocent.

In such cases, the enterprise LSE is not difficult to understand. One recent survey showed that 90 per cent in the United Kingdom not listed enterprises United States that they so choose in part because of the Sarbanes-Oxley Act. United States Chamber of Commerce also warned that, if not its regulatory environment for innovation, the United States could lose in the global capital market leading position. The Sarbanes-Oxley Act in strict compliance with European and Asian stock and derivatives exchanges and the growing competitiveness of, the possibility of capital transfer from the United States permanently. 22, NYSE Group formally proposed to 102 million acquisition of pan-European stock exchange, the United States in the face of the first transatlantic merger prospects, raises questions about how to monitor them.

With the promotion of the Sarbanes-Oxley Act "introduced by public anger began to recede, and the United States in global capital markets could fall to the person concerned about the growing, after the United States legislators faces new challenges: how to restore the balance between regulation and freedom. 10 years ago, it is this balance that United States become the world's most powerful, most sophisticated capital supervision.