Data from Financial Education Services shows that between 2015 and November 2020, the number of companies trading on the London Stock Exchange (LON:LSE) fell 396 (16.63%) It shows that it has done it.
In 2015, the number of companies listed on LSE was 2380, but by last month, this number had fallen to 1984. During the period, the most monthly transactions took place in March 2020, with an average of 2.60,180 people recorded in August 2020.
According to Buy Stock, the reason for the change in the number of companies traded in world-famous exchanges (probably inevitably) Brexit’s uncertainty, with at least many companies making additional lists in alternative exchanges. I’ve got it.
Furthermore, the company has determined that the listings are more difficult for small and intermediate companies to justify LSE entries, and will require a higher fee for listings, representing regulatory burdens, and the private market He said it represents a relatively higher cost than the other.
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However, the key driver behind this data is the particularly detrimental effect that the covid-brexit combination had on UK securities in 2020. LSE hosted some of the worst pandemic sectors, including air travel, energy and financial services.
Regarding the decline in the number of companies listed on LSE, Justinas Baltrusaitis of Buy Shares Editor said: Companies are becoming private at high rates due to lower stock prices, lower interest rates and large appeal of private equity. The attractive rating has allowed private equity funds to acquire companies with strong foundations at prices below recent norms. ”
“However, the decline in the number of LSE companies could potentially increase in the future given the calls for government support. The government is being asked to intervene, particularly with Brexit. With the support of LSE, we can attract global businesses to list in London, knowing that we have access to the deepest capital pool against fair and consistent regulations.”
Additionally, LSEs continue to benefit from major locations, history, and social infrastructure that other indices find difficult to replicate.
