Is There an Optimal Number of Public Companies? (Part 1)
The article examines whether there is an optimal number of public companies in the United States, questioning the SEC chair’s push to “make IPOs great again.” It highlights the shift toward dual‑class structures, where 78% of market cap in controlled firms resides with a minority of equity, and notes that today’s IPOs often preserve founder control. The piece also explores the trade‑offs of more listings, including increased retail exposure to risky, early‑stage firms and heightened earnings‑management incentives from benchmark pressure. Ultimately, it argues that policy should balance wealth‑creation benefits against control dilution and market distortions.
Part 2: AI Data Center Construction, CIP, All the Cash Flows and Concentration
AI‑driven data center projects are reshaping tech capital spending, pushing construction‑in‑progress (CIP) balances and accounts payable to unprecedented levels. Companies adopt varied structures—joint ventures, SPVs, sale‑leasebacks—that affect how liabilities appear on balance sheets. The surge in days‑payable‑outstanding signals supplier financing...