US market shrinks for the first time since 2009

The number of stocks on the US stock market has reached its lowest level since 2009 as companies cut back on share sales and buy back equity at the fastest pace in four years

As a result, Standard & Poor's 500 Index divisor, a measure of outstanding shares, fell by 0.6% last quarter, its first drop since March 2009, Bloomberg reports. Data from stock market research firm Birinyi Associates revealed Amgen, Hewlett-Packard and 1,971 other US companies repurchased $397bn of stock last year, while they issued $169bn of new equity. The shrinking number of stocks has pushed valuations so low that executives would prefer to buy back shares rather than spend the cash to expand, according to analysts. There are now concerns the dwindling growth prospects for US com...