We'll point each factors that's making US capital markets being
less attractive an option to the foreign investors and issuers as
below:
- American's who although own 401(K) Retirement account might
have not held stock as in their investment which shows the gap in
between stock value and stock reach. This shows the trust over
pension funds rather than funds investing in the stocks.
- Largest companies choosing IPO's to be issued in different
locations geographically could be a resultant as to lose the
attractiveness of the US Markets.
- US is going through a continuous deficit in maintaining it's
Current Account where this is majorly affecting the foreign
investors invest their money into the US markets.
- Other markets in the global economy have created more
competition relatively with the US market.
- NYSE's listing costs are significantly higher than it's
competitors making other companies think about raising an IPO or
raising share capital via secondary market.
- Cost of compliance like SOX has been increased which again is
expensive when dealing for the foreign investors.