Q: Should the UK regulator relax listing rules to attract
sovereign controlled companies?
Tim Worstall, senior fellow at the Adam Smith
The Financial Conduct Authority (FCA) is proposing new
listing rules for sovereign controlled companies. Nobody quite
knows who exactly wants such a new category or not. Given that
we're talking about the stock market here, this does seem like
a good idea because the markets themselves are how we find out
whether anyone wants something. It's the basic underlying
reason for using markets at all in fact.
Our basic economic problem is the allocation of scarce
resources to meet unlimited human desires and wants. The next
step is that those desires and wants are unknown. Sure, we know
that people like clothes, shelter, food and all that, but there
is no method at all of working out exactly what it is that
people want. We can plan...