Author Description

In the first part of the paper, we show that primary issues are proportionally fewer in Canada than in the United States and that the capital raised is appreciably less after standardization by GDP. [...] The gap between primary issues in Canada and those in the US is even more pronounced in the field of technology. [...] Finally, in Part 4, we get into the implications of our observations in terms of government action and market regulation, as the study reveals major dysfunctions in the primary issues market for small businesses, especially in the technology sector. [...] For purposes of this study, the amounts included in gross proceeds from share offerings represent the total raised through the offerings, regardless of the country of residence of the buyer. [...] The significant increase in the proportion of IPOs by money-losing companies was another striking feature of the 1990s, rising from 19% in the 1980s to 79% in 1999-2000.