Tuesday, May 29, 2007

Capital Formation

US regulations continue to push companies away from our public markets:
Fourteen of the world's 15 biggest IPOs this year were listed outside of the U.S. Non-U.S. issuers have been wary of listing in New York because of stricter financial-reporting requirements, imposed by the 2002 Sarbanes-Oxley Act, and the U.S. dollar's 30 percent drop in the past five years.

U.S. bankers aren't making it any easier. They have held the average fee steady at about 6.7 percent of the amount of the IPO since 2002, while European bankers charge about 3.2 percent, Bloomberg data show.

1 Comments:

Blogger David Wozney said...

Re: “... the U.S. dollar's 30 percent drop in the past five years.

A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.

6:12 PM  

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