Why Over 3,000 US Companies Have Chosen the Frankfurt Stock Exchange to Go Public
The Frankfurt Stock Exchange, one of the world’s largest trading centers for securities, has over 3,000 United States companies listed. North American and other foreign companies are choosing Europe, over the United States, to go public because of the punishing Sarbanes Oxley Act introduced in the United States in 2002.
Two studies– one done by a group of executives and academics, and another that was conducted by McKinsey and Co. for New York Mayor Michael Bloomberg and New York Senator Charles Schumer– have both reached the same conclusion. The conclusion being that excessive regulation is making the United States an uninviting place to sell new stocks, and singles out the Sarbanes Oxley Act, as the main reason. The act is the anti-fraud law that was passed after the debacle at Enron Corp. Both studies point to figures that show initial public offerings are migrating to Europe and Hong Kong.
The Frankfurt Stock Exchange is owned and operated by Deutsche B
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