Alternative Investing Essentials Part I

A. Understanding Capital Markets

US Equity Market 39.7%, China 11.3%, EU 10.9%

Number of US Publicly Listed Companies is declining:

1. Merger of 2 public companies
2. Market Cap of US public market all time high in 2021 (as of 2022)

What does it mean to be public?

1. Significant legal, regulatory, and accounting requirements
2. Volatility of stock price and scrutiny of quarterly earnings
3. Highly VIsible business plans and results

What does it mean to be private?

1. Lower legal, regulatory, and accounting requirements
2. Ability to manage company wihout external oversight and short-term focus
3. Illiquid holdings encourage long-term ownership

2,600 public companies

17,500 private companies