NYSE President Farley on Trump, Public Companies, IPOs

The transcript discusses the challenges and opportunities for public companies in the US, highlighting the decline in their numbers due to regulatory burdens and the rise of private financing. It explores the benefits of going public, the state of the IPO market, and strategies for successful IPOs. The health of the US equity market is assessed, noting a robust pipeline despite past declines. The future of market structure is considered, emphasizing transparency and potential regulatory changes to improve capital markets.

What is one reason for the decline in the number of public companies in the US?

• Higher fixed costs due to regulations

• Increased competition from foreign markets

• Decrease in market capitalization

• Lack of interest from investors

Why do some large private companies like Uber and Airbnb choose to stay private?

• They are not profitable

• They have a mature financing market

• They want to avoid public scrutiny

• They have limited access to capital

What is a key factor for companies when choosing a stock exchange for their IPO?

• The location of the exchange

• The number of companies listed on the exchange

• The size of the exchange

• The execution on the first day of trading

What is the primary focus for improving the secondary market in the US?

• Reducing the number of stock exchanges

• Raising access fees

• Enhancing transparency

• Increasing the number of order types

What is one criticism of the secondary market structure?

• It is too simple

• It has too few participants

• It does not facilitate a true transfer of risk

• It is too transparent

What is the maker-taker model associated with?

• Corporate tax rates

• Private company financing

• Secondary market trading

• Primary market IPOs

What is one proposed solution to improve the equity capital markets?

• Reduce the number of IPOs

• Increase the number of public companies

• Respect the public quote

• Raise interest rates