Why We Shouldn’t Worry About the Declining Number of Public Companies

Elon Musk recently tweeted that he intends to take Tesla private, that is, to take Tesla off U.S. stock exchanges. In a parallel development, the number of companies listed on U.S. stock exchanges has declined by almost 50% from its peak in 1996, despite dramatic increase in aggregate market capitalization. Many conjectures have been offered to explain this controversial trend. We offer a new explanation: the rising role of digital firms in the U.S. economy.

Read the entire post at Harvard Business Review>>