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The Economist: we need more public companies

05/20/12

Permalink 03:53:43 pm, by editor of MarketObservation.com Email , 118 words   English (US)
Categories: Initial Public Offerings, Market Structure

The Economist: Rival versions of capitalism; The endangered public company; The rise and fall of a great invention, and why it matters, May 19, 2012

.."public companies have been central to innovation and job creation. One reason why entrepreneurs work so hard, and why venture capitalists place so many risky bets, is because they hope to make a fortune by going public. IPOs provide young firms with cash to hire new hands and disrupt established markets. The alternative is to sell themselves to established firms—hardly a recipe for creative destruction. Imagine if the fledgling Apple and Google had been bought by IBM."..

read in The Economist why we should worry about the low number of IPOs

Keywords: IPOs, Public Companies

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