Popularity Contest

Nasdaq is the US's most popular exchange for IPOs of 2019

Image source: sagir - Shutterstock, Mean Girls @MeanGirls - Giphy

What's going on?

The New York Stock Exchange (NYSE) is, like, so jealous of the Nasdaq stock exchange, after data published this week suggested its rival would close out the year as the most popular venue for US initial public offerings (IPOs).

What does this mean?

Stock exchanges make money every time investors use them to buy and sell companies’ shares, as well as from the annual fees those companies pay to make their shares available in the first place. So in hopes of boosting its income, Nasdaq is totes looking to become the exchange every exchange wants to be and every company wants to be with.

This year, the tech-focused exchange invited Lyft – along with several biotech firms – to its lunch table, helping it top the US charts for the first time since 2012. NYSE, meanwhile, became home to Lyft’s frenemy Uber, while trying to impress smaller firms by cutting its listing fees. Soz, but have you even heard of the Hong Kong Stock Exchange? Alibaba’s recent share sale will probably make it the most popular exchange in the world this year. Duh.

Why should I care?

For markets: Get in loser. We’re going shopping.
This week, NYSE filed papers that’d allow companies to raise money as part of a “direct listing”. In an IPO, the company sells new shares and receives money from that sale, but in a direct listing – popularized by Spotify and Slack – companies simply list existing shares without selling new ones. If approved, the filing would likely make NYSE look so fetch to companies like Airbnb (reportedly planning to list next year), and could help the exchange reclaim its alpha spot Stateside.

The bigger picture: They don’t even go here!
On Thursday, Japan’s financial regulator floated the idea of a “premium” section of the Tokyo Stock Exchange, comprising the country’s largest, most liquid and, obvs, hottest stocks. The aim is that it’ll tempt more foreign investors to the region – which may, in turn, give the exchange’s revenue a boost (tweet this).

Originally posted as part of the Finimize daily email.

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