Edward Conard

Top Ten New York Times Bestselling Author

  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
Upside of Inequality Unintended Consequences Oxford
BUY THE BOOKS
  • Macro Roundup
  • Highlights
  • Blog
  • OpEds
  • Reviews
  • About
    • About the Author
    • About the Books
    • Read Excerpts
    • Read the Reviews
    • Debates
    • Media and TV
  • Topics
    • All Media Appearances
    • Productivity
    • Monetary Policy
    • Banking
    • Politics
    • Upside endnotes
    • Stuff Ed’s Assistant Thought He Might Like
  • Contact
  • twitter
  • facebook
  • youtube
  • linkedin
  • Advanced SearchChoose Categories To Search Within
    • Close Advanced Search
Edward Conard

Advanced Search

Robust Private Placement Market Defeats Argument that Stock Buybacks Don’t Fund Investment

The WSJ provides evidence that private placements are large enough to support Justin Wolfers (on the left) and John Cochrane’s (on the right) argument that stock buybacks are not an indication that low corporate taxes are not motivating increased investment. Stock buybacks fund private placements.

“An analysis by The Wall Street Journal found [private capital markets] have more than doubled in size over the past decade, surpassing the growth of public stocks and bonds available to all investors. … At least $2.4 trillion was raised privately in the U.S. last year. That widened a gap that emerged in 2011 with the public markets, which raised $2.1 trillion, according to the Journal’s analysis of tens of thousands of securities filings and data provider Dealogic.

‘[Private placements are] fueling entrepreneurship,’ because ‘companies have lots of options to access capital,’ said Jacqueline Kelley, head of the Americas IPO Markets practice at accounting firm Ernst & Young LLC. …  The number of U.S. unicorns tripled over four years, to 105 in February from 31 in 2014, according to a Journal tracker. … The fast-growing market has made it easier for smaller and medium-size companies to get loans.”

Robust Private Placement Market Defeats Argument that Stock Buybacks Don’t Fund Investment

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to print (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

© Copyright 2023 Coherent Research Institute · All Rights Reserved

 

Loading Comments...