United States, Stock Market, IPO discussed on Morning Edition

Automatic TRANSCRIPT

Of a percent the veteran the individual stock picking days part of the charm was getting an early on a new company that you thought you had the insight to see the says more potential in the rest of the market that switching to it's not like the ipo rage of some years ago not releasing you know twenty years ago there were close to seventy five hundred publicly traded stocks today we're down to about thirty six hundred so half of all publicly traded companies in the united states have disappeared the rise of socalled private equity funds or buyout funds has withdrawn a whole lot of traditionally publicly listed companies from the stock market and without a steady supply of ipo's to replace those listings the choices that are available to investors have really shrunk now it's worth remembering that most i pio's do not perform very well so having that opportunity taken away from you might not be that great an opportunity cost but it's also true that i mean lubar is not the best example by media company like airbnb or there's any number of others we could them privately held let him by the socrates yep exactly so those gains as those companies grow and become more profitable aren't being shared yet with the general public now companies like td ameritrade and scott trade and they merged but they will say that somebody still likes to pick their individual stocks is not dead no it's not dead i think what many individual in vestager's are doing is they're putting the bulk of their assets in index fund sore exchangetraded funds and then the error taking a little bit of play money and they're putting at that into a handful of stocks may be apple a net flakes that's not.

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