Private Equity

Private Equity has had and continues to have a tremendous affect on the stock market.

“The publicly traded company is disappearing. In 1996, about 8,000 firms were listed in the U.S. stock market. Since then, the national economy has grown by nearly $20 trillion. The population has increased by 70 million people. And yet, today, the number of American public companies stands at fewer than 4,000. How can that be?”

Prior to 1996…

“Private companies were limited to 100 investors, putting a hard limit on how quickly they could grow.”

“the National Securities Markets Improvement Act of 1996, which allowed private funds to raise an unlimited amount of money from an unlimited number of institutional investors.”

“One answer is that the private-equity industry is devouring them. When a private-equity fund buys a publicly traded company, it takes the company private—hence the name.”

https://www.theatlantic.com/ideas/archive/2023/10/private-equity-publicly-traded-companies/675788/

To successfully operate in the market it is imperative to educate oneself about Private Equity and the variety of ways it influences the actions of the market. P.E. operates on very recognizable methods, it is amenable to pattern recognition for the educated investor.