Deep Thoughts (Saturday Morning Insight Edition) Are Public Companies History?

From Knowledge@Wharton: “On its face, the number is stark: From the end of 1997 through this August, the number of companies listed on stock exchanges in the United States plunged by 44%. Some observers say this trend heralds the "twilight" of the public corporation, as companies try to avoid the expense and hassle of answering to shareholders and instead look elsewhere for capital -- to sources like the private equity industry.

“But other experts say "no," insisting that the drop in listed firms is offset by other factors or due to temporary conditions. And they argue that going public is still the best way for many firms to raise capital -- and will continue to be. "The idea that public companies will die, that's actually somewhat old news," says Wharton finance professor Alex Edmans. "The demise of public companies has been predicted many times in the past.... But it hasn't transpired. There are many benefits to the public corporation."

“So who is right? Are public companies fading or not? Or is it too soon to tell? Find out at http://knowledge.wharton.upenn.edu/article.cfm?articleid=3089