Connect with us
The Wilshire 5000 Stock Index is supposed to be the ultimate measure of the U.S. stock market, but in reality there are now only 3,666 stocks in the index. Back in 1998, it contained 7,562 stocks.

archive

The Incredible Shrinking Stock Market

The Wilshire 5000 Stock Index is supposed to be the ultimate measure of the U.S. stock market, but in reality there are now only 3,666 stocks in the index. Back in 1998, it contained 7,562 stocks.

â??The number of publicly traded U.S. stocks available to investors is plumbing new lows, even as their prices brave new highs.â?ť — Barronâ??s (February 24, 2014)

The Wilshire 5000 Stock Index is supposed to be the ultimate measure of the U.S. stock market, but in reality there are now only 3,666 stocks in the index. Back in 1998, it contained 7,562 stocks. The employment participation rate isnâ??t the only number in decline.

There are a lot of reasons for this decline. The number was artificially high during the dot-com boom of the late 1990s. Since then, the dot-com boom collapsed and mergers/bankruptcies/delistings have exacted a toll. Foreign exchanges have drawn away a few U.S. listings. Companies are buying back their shares in record numbers.

Read more about why the number of public companies is shrinking at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Mark Skousen is a college professor, prolific author and world-renowned speaker. Heâ??s made his unique sense of market and investment trends known and respected in the financial world. With a Ph.D. in economics and a focus on the principles of free-market capitalism and â??Austrianâ?ť economics, Mark Skousen has often gone contrary to the crowd in his investment choices and economic predictions â?? and has often been proved right.

Advertisement
Advertisement

TRENDING NOW:

The Divided State of Britain.

CULTURE

Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals

Don’t Rush to War with Iran Over Some Tankers.

U.S. POLITICS

Democracy Dies with Chinese Propaganda.

CULTURE

A Muslim Brotherhood Terror Designation Could Backfire.

FOREIGN AFFAIRS

archive

The Incredible Shrinking Stock Market

“The number of publicly traded U.S. stocks available to investors is plumbing new lows, even as their prices brave new highs.” — Barron’s (February 24, 2014)

The Wilshire 5000 Stock Index is supposed to be the ultimate measure of the U.S. stock market, but in reality there are now only 3,666 stocks in the index. Back in 1998, it contained 7,562 stocks. The employment participation rate isn’t the only number in decline.

There are a lot of reasons for this decline. The number was artificially high during the dot-com boom of the late 1990s. Since then, the dot-com boom collapsed and mergers/bankruptcies/delistings have exacted a toll. Foreign exchanges have drawn away a few U.S. listings. Companies are buying back their shares in record numbers.

Read more about why the number of public companies is shrinking at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

TRENDING NOW:

The Divided State of Britain.

CULTURE

Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals

Don’t Rush to War with Iran Over Some Tankers.

U.S. POLITICS

Democracy Dies with Chinese Propaganda.

CULTURE

A Muslim Brotherhood Terror Designation Could Backfire.

FOREIGN AFFAIRS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter