PwC just released a report on securities class action lawsuits. The report, entitled “Small Companies, Big Targets: 2015 Securities Litigation Study,” can be found here. Some of the statistics about the relatively small size of IPO’s are very interesting:94% of all IPO’s in 2015 were valued at less than $500 million;50% of all IPO’s in 2015 were valued at less than $100 million; and25% of all IPO’s in 2015 were valued at less than $50 million.
By comparison, the smallest company on the S&P 500 has a market value of about $7.5 billion. According to the World Bank, at the end of 2015 there were approximately 4,400 companies that trade on exchanges in the U.S. (the U.S. is not the country with the most, India has more), and another approximately 15,000 that trade over the counter. What is my point with these statistics? That there are a lot of public companies, and most of them are small.