A recent article in Investor’s Business Dailyreports that fewer stocks available in the market “still means huge opportunities for investors willing to do the work to find the best stocks to buy.”
The article explains that the dwindling number of shares is due to “onerous requirements to go public, plentiful money to keep private companies private, mergers and the rise of new digital business models with small needs for capital make going public less urgent than it was.” It adds, however, that lucrative opportunities exist if investors bypass low-quality small-caps and stick with stock market leaders, which are “growing larger at light-speed, making millionaires or billionaires out of investors who get in the stocks at the right time.” This is especially true in the tech sector, the article notes. Smaller publicly traded companies, it argues, “often just fall through the cracks,” with many lacking research support.
“Some analysts hope emerging factors could lift the number of publicly traded companies,” the article reports, citing a surge in individual stock purchasing by investors—with much of that volume from younger investors. It cites comments from U.S. Global CIO Frank Holmes: “Millennials are coming to the Internet for (stock) information.”