Choking the Recovery: Why New Growth Companies Aren’t Going Public and Unrecognized Risks of Future Market Disruptions

By Robert E. Litan on March 17, 2011

In a critical article addressing the economic recovery from the financial crisis of 2007-2009, Robert E. Litan, Directors at Global Economics Group and Harold Bradley address concern that Exchange Traded Funds are stifling the growth of new companies and hindering attempts at going public. In Choking the Recovery: Why New Growth Companies Aren’t Going Public and Unrecognized Risks of Future Market Disruptions, (Ewing Marion Kauffman Foundation, 2010), the authors find that ETFs are effectively setting the prices of stocks of smaller capitalization companies and creating a major hindrance to a potential IPO. They present a variety of recommendations particularly for Congress and the SEC, underlining that new listings, not new complex financial packages, should be the focus of the SEC as the watchdog of our capital markets. Choking the Recovery: Why New Growth Companies Aren’t Going Public and Unrecognized Risks of Future Market …

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Robert E. Litan