Executive Summary

SIFMA Research Quarterly – 1Q22

Primary Market: US Equity Capital Formation
Secondary Markets: US Cash Equities, ETFs, and Multi-Listed Options
April 2022

The SIFMA Research Quarterlies contain data and statistics on U.S. markets. The equity and related report –
cash equites, ETFs, listed options and capital formation – includes information on: volumes, volatility, total
equity issuance, IPOs, market shares, exchange landscapes, etc.

All reports, including the two fixed income quarterlies (issuance and trading; outstanding), and corresponding
databases can be found at: www.sifma.org/research

US Equity and Related Markets Page | 1

 Executive Summary

Contents
Executive Summary ................................................................................................................................................................................... 4
Quarterly Highlights .................................................................................................................................................................................... 5
Chart Book: US Equity Capital Formation .................................................................................................................................................. 6
IPO Issuance and Other Statistics.............................................................................................................................................................. 6
Chart Book: US Cash Equities ................................................................................................................................................................. 11
Volumes and Other Statistics ................................................................................................................................................................... 11
Exchange and Parent Group Market Share.............................................................................................................................................. 18
Chart Book: US Multi-Listed Options ........................................................................................................................................................ 19
Volumes and Other Statistics ................................................................................................................................................................... 19
Exchange and Parent Group Market Share.............................................................................................................................................. 21
Chart Book: US Exchange-Traded Funds ................................................................................................................................................ 22
Volumes and Other Statistics ................................................................................................................................................................... 22
Exchange and Provider Market Share ...................................................................................................................................................... 24
Appendix: Exchange Landscape .............................................................................................................................................................. 25
Cash Equities ........................................................................................................................................................................................... 25
Multi-Listed Options .................................................................................................................................................................................. 26
Appendix: Terms to Know ........................................................................................................................................................................ 27
Authors ..................................................................................................................................................................................................... 30

US Equity and Related Markets Page | 2

 Executive Summary

Associated Reports

Please also see SIFMA Research Quarterly Reports: US Fixed Income – Issuance & Trading, US Fixed Income – Outstanding
and US Financial Institutions – Financial & Regulatory Data, which can be found at: https://www.sifma.org/ research

SIFMA Insights Primers: The SIFMA Insights primer series is a reference tool that goes beyond a typical 101 series. By
illustrating important technical and regulatory nuances, SIFMA Insights primers provide a fundamental understanding of the
marketplace and set the scene to address complex issues arising in today’s markets. The SIFMA Insights market structure
primer series includes: Global Capital Markets & Financial Institutions; Primary, Secondary & Post-Trade Markets; Electronic
Trading; U.S. Fixed Income; SOFR, the Transition from LIBOR; U.S. Equity; U.S. Multi-Listed Options; U.S. ETFs; U.S. Capital
Formation and Listings Exchanges; and Evolution of the Fintech Narrative. The primers and other Insights reports can be found
at: https://www.sifma.org/primers

SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On
behalf of our industry's one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors,
equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets,
informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional
development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).
For more information, visit http://www.sifma.org.

This report is subject to the Terms of Use applicable to SIFMA’s website, available at http://www.sifma.org/legal. Copyright © 2022

US Equity and Related Markets Page | 3

 Executive Summary

Executive Summary
The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most
efficient, representing 41.6% of the $117 trillion global equity market cap, or $49 trillion. This is 3.8x the next largest
market, China. U.S. market share has averaged 37.4% over the last 10 years, troughing at 32.9% in 2012 and
peaking at 42.0% in 2021.

US Market Share - Current

Global Equity Market Cap

Other DM
9.6%
Singapore
Other EM
0.6%
9.6%
Australia
1.7% US
Canada 41.6%
2.9%
UK
3.1%
Hong
Kong
4.3% Japan EU27
5.1% 10.6% China
10.9%

Source: World Federation of Exchanges, SIFMA estimates

Note: EM = emerging markets, DM = developed markets; data is preliminary

US Market Share – Historical Trends

US Share of Global Equity Markets ($T)

World US
140
124
117
120 107

100 88 90

73 77
80 70 72
67
57
60 52 49
42
32 30 34
40 27
24 26 25
19
20

0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD
Source: World Federation of Exchanges, SIFMA estimates
Note: YTD data is preliminary

US Equity and Related Markets Page | 4

 Executive Summary

Quarterly Highlights
In this report, we recap statistics for U.S. primary and secondary markets, including cash equities, multi-listed
options, ETFs, and capital formation (IPOs, total issuance). The report also includes various market metrics, such as
volatility, index prices, etc.

The S&P 500 index averaged 4,463.86 for the quarter and 4,391.27 for March, 1Q22 +15.5% Y/Y (peak 4,796.56,
trough 4,170.70). The DJIA averaged 34,679.48 and 34,029.74, 1Q22 +9.9% Y/Y (peak 36,799.65, trough
32,632.64). The Nasdaq averaged 14,000.62 and 13,623.26, 1Q22 +4.9% Y/Y (peak 15,832.80, trough 12,581.22).
And the Russell 2000 averaged 2,055.89 and 2,036.85, 1Q22 -6.5% Y/Y (peak 2,272.56, trough 1,931.29). The VIX
averaged 25.37 for the quarter and 26.97 for March, 1Q22 -27.2% Y/Y (peak 36.45, trough 16.60).

ADVs were up Y/Y for ETFs and options but down for equity. Equity ADV was 12.9B shares for the quarter, -12.1%
Y/Y (peak 19.2B, trough 10.1B). ETF ADV was 2.9B shares for the quarter, +47.9% Y/Y (peak 5.3B, trough 2.0B).
Options ADV was 42.5M contracts for the quarter, +1.2% Y/Y (peak 63.0M, trough 33.8M).

For capital formation, total equity issuance was $28.9B for the quarter (-79.7% Y/Y) and the total IPO issuance was
$2.3 (-94.5% Y/Y). The number of IPOs was down 75.8% Y/Y. Private equity deal value increased 1.3% Y/Y.

Quarterly & YTD Highlights

1Q22 4Q21 1Q21 Y/Y Q/Q 2022 YTD 2021 YTD Y/Y
Primary Markets
Total Equity Issuance ($B) 28.9 90.1 142.3 -79.7% -67.9% 28.9 142.3 -79.7%
Total IPO Value ($B) 2.3 35.8 43.0 -94.5% -93.4% 2.3 43.0 -94.5%
# IPOs 24 84 99 -75.8% -71.4% 24 99 -75.8%
Small Cap as % Total IPOs 96% 80% 64% 32.2% 16.1% 96% 64% 32.2%
# Listed Companies 4,854 4,805 4,343 11.8% 1.0% 4,734 4,771 -0.8%
Private Equity Deal Value ($B) 222.2 328.7 219.3 1.3% -32.4% 222.2 219.3 1.3%
Secondary Markets
Equity ADV (B) 12.9 10.8 14.7 -12.1% 19.5% 12.9 14.7 -12.1%
ETF ADV (B) 2.9 1.8 1.9 47.9% 56.9% 2.9 1.9 47.9%
ETFs as % Equitiy ADV 22.2% 16.9% 13.2% 9.0% 5.3% 22.2% 13.2% 9.0%
Options ADV (M) 42.5 40.8 42.0 1.2% 4.1% 10.4 10.1 3.2%
Market Performance (Price)
S&P 500 4,463.86 4,602.11 3,865.71 15.5% -3.0% 4,463.86 3,865.71 15.5%
DJIA 34,679.48 35,517.11 31,550.58 9.9% -2.4% 34,679.48 31,550.58 9.9%
Nasdaq 14,000.62 15,390.79 13,351.46 4.9% -9.0% 14,000.62 13,351.46 4.9%
Russell 2000 2,055.89 2,276.63 2,198.73 -6.5% -9.7% 2,055.89 2,198.73 -6.5%
VIX 25.37 19.28 23.20 9.4% 31.6% 25.37 23.20 9.4%
Source: Bloomberg, Cboe Global Markets, Dealogic, Options Clearing Corporation, World Federation of Exchanges, SIFMA estimates
Note: IPO data Includes rank eligible deals; excludes BDCs, SPACs, ETFs, CLEFs & rights offers; 1Q22 number of listed companies is preliminary;
1Q22 and 4Q21 private equity deal value data are preliminary

US Equity and Related Markets Page | 5

 Chart Book: US Equity Capital Formation

Chart Book: US Equity Capital Formation

Companies need capital for various business purposes: invest in growth, fund mergers and acquisitions, etc. Firms
have several ways to generate this capital, including initial public offerings (IPOs).

IPO Issuance and Other Statistics

Total Equity Issuance
Volume ($B) # Deals (RHS) 1,391
600 1,400
550 1,157
500 1,100 1,076 1,200
977 966 972 436
450
901 916 886 390 1,000
400 816 824
778 770 781 794
350 697 733 730 800
306 663 304
642 285
300 256 265 265
249
250 224 227 219 220 222 228 600
194 203
186 186 185
200
146 400
150 127
126
100 343
200
50 29
0 0
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD

Total Equity Issuance by Type ($B) Total Equity Issuance by Type (# Deals)
IPOs Secondary Offerings Preferred Stock IPOs Secondary Offerings Preferred Stock
500 1,600
436 1,391
450 1,400
390 101
400 58 1,157
47 1,200
350 972 85
1,000 916 886
300 90
225 46
250 220 222 228 800 82 897

26 17 34 258
200 600 863
728 685
150 653
155 155 145 400
100 9
154 29 200 126
50 4 393
85 209
39 50 49 154 185 151 93
0 22 0
FY17 FY18 FY19 FY20 FY21 YTD 2 FY17 FY18 FY19 FY20 FY21 YTD 24

Total Domestic Listed Companies

# of Companies Trendline
7,000

6,500 6,274

6,000
5,620
5,500 5,162

5,000 4,793 4,723 4,805 4,854

4,650 4,641 4,614
4,401 4,369 4,381 4,331 4,336 4,397
4,500 4,275 4,190 4,171 4,102 4,180 4,103
3,909
4,000

3,500
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD
Source: Dealogic, World Federation of Exchanges, SIFMA estimates
Note: Includes rank eligible deals; excludes BDCs, SPACs, ETFs, CLEFs & rights offers. YTD number of listed companies is preliminary

US Equity and Related Markets Page | 6

 Chart Book: US Equity Capital Formation

Total IPO Deals

438 Volume ($B) # Deals (RHS)
200 450
393
175 400
154
350
150
275 300
125 241
106
209 215 215 209 250
100 206 94
185 85
158 200
153 154 151
75 131 60
124 150
50 52 50 49
46
94 46 43 46 98
50 86 82 41 40 39
63 32 100
27 27 27
18 21 24
25 50
2
0 33 0
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD

IPOs by Deal Size (# Deals) IPOs by Company Size

>=$50M <$50M Large Cap Mid Cap Small Cap (RHS)
450 60% 100%
393
400 84% 96%
81% 78%
50%
350 87 73% 80%
66%
300 40%
60%
250 209 29%
185 30%
200 37
154 151 21% 40%
29 19%
150 22 306 20% 17%
25 15%
100 20%
156 172 10%
132 126 6% 6% 4%
50 24 3% 3%
1%
17
0 0% 0%
7
FY17 FY18 FY19 FY20 FY21 YTD FY17 FY18 FY19 FY20 FY21 YTD

IPOs by Domicile ($B) IPOs by Industry

US Firms Non-US Firms # Deals (RHS)
180 450 Finance 46.9%
393
160 400
Healthcare 38.4%
140 350
39
120 300 Computers & Electronics 13.0%

100 209 250

185 Telecommunications 0.8%
80 19 200
154 151
60 114 150 Construction/Building 0.6%
40 16 8 100
9 67
Retail 0.3%
20 41 24 50
30 33 0.2
0 0 Real Estate/Property 0.04%
FY17 FY18 FY19 FY20 FY21 YTD 2

Source: Dealogic
Note: IPOs include rank eligible deals; excludes BDCs, SPACs, ETFs, CLEFs and rights offers. Large cap = market cap $10B+; mid cap = market cap
$2B-$10B; small cap = market cap <$2B (mega cap >$200B, micro cap <$300M, nano cap <$50M)

US Equity and Related Markets Page | 7

 Chart Book: US Equity Capital Formation

IPOs vs Stock Market Performance

55 500%
IPOs ($B) Nasdaq (RHS) S&P 500 (RHS)
50 450%
45 43 44
41 400%
40 36 350%
35 31 30
30 300%
30 27
25 250%
25 23 23
18 200%
20 17
15 15 15
14 12 150%
15 12 12 11 12 12
10
8 9 9 7 7 8 7 100%
10 6 6 6 6 7 6
5 5
5 2 50%
1
0 0%
-5 -50%
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
Equity Market Capitalization ($T)
Market Capitalization Trendline
60
52.2
48.5
50
41.6
40
34.1
32.1
30.4
30 26.3 27.4
24.0 25.1
19.6 19.9 18.7
20 16.3 17.0 17.3
15.1 14.3 15.1 15.6
14.0
11.1 11.6
10

0
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD

Source: Bloomberg, Dealogic, World Federation of Exchanges, SIFMA estimates

Note: Stock market performance shows cumulative change since 1Q12; YTD equity market capitalization is preliminary

US Equity and Related Markets Page | 8

 Chart Book: US Equity Capital Formation

SPAC Deals
Volume ($B) # Deals (RHS)
200 613 650
600
175 162.6 550
150 500
450
125 400
248
350
100
83.3 300
75 250
200
50 150
66 34 46 59 54
28 37 17 10 12 20 13 100
25 1 12 12.1 1 7 16 9 10.0 10.8 13.6 9.9
0.02 0.5 2.1 3.4 3.8 0.04 0.5 1.1 0.5 1.4 1.7 3.9 3.5 50
0 0
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD

SPAC vs. IPO Deals ($B)

IPOs SPACs
40
36 36
35

30
26 25
25

20 18 18 18
17
15 15
14 1313
15 12 11 13 12 13 12
11 11
1010 9 10
10 8 7
6 6 7 7
5 5 5 5
3 2 3 3 4 3
5 3 2 1 2 2 3 2
1 1 1 1
0.3 0.1
0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21

Source: Dealogic
Note: SPAC = special purpose acquisition company; a company with no commercial operations (shell company) established solely to raise capital
through an IPO for the purpose of acquiring unspecified existing companies; commonly referred to as blank check companies. IPOs include rank eligible
deals; excludes BDCs, SPACs, ETFs, CLEFs and rights offers

US Equity and Related Markets Page | 9

 Chart Book: US Equity Capital Formation

Private Equity Deals Private Equity Deals by Size (# Deals)

Deal Value ($B) # of Deals (RHS) Under $100M $100M-$1B Over $1B
1,400 8,372 9,000 9,000
124
8,000 8,000
1,200
7,000 7,000 2,727
1,000 5,741 5,806 5,766
6,000 6,000
4,943 87 79 67
800 5,000 5,000 1,522
82 1,664 1,709
4,000 4,000 1,411
600 1,152
3,000 3,000
400 5,521
725 749 683
648 1,416 2,000 2,000 3,990 4,018 4,177
3,450 17
200 479
1,000 1,000
222
920
0 0 0
FY17 FY18 FY19 FY20 FY21 YTD FY17 FY18 FY19 FY20 FY21 YTD

M&A Deals M&A Deals by Industry

Deal Value ($B) # of Deals (RHS) Computers & Electronics 39.2%
3,000 12,000 Healthcare 8.7%
10,552 9,780
Finance 8.4%
10,053
Utility & Energy 8.0%
2,500 10,000
8,528 8,550 Real Estate/Property 7.5%
Oil & Gas 5.0%
2,000 8,000
Leisure & Recreation 3.3%
Food & Beverage 2.2%
1,500 6,000 Chemicals 2.2%
2,640
Transportation 1.9%
1,000 1,915 4,000 Insurance 1.8%
1,625 1,763
1,502 2,128 Professional Services 1.7%
500 2,000 Telecommunications 1.7%
447 Construction/Building 1.6%
0 0 Consumer Products 1.4%
FY17 FY18 FY19 FY20 FY21 YTD Other 5.5%

Source: Dealogic, PitchBook

Note: Private equity data for 2021 and YTD is preliminary

US Equity and Related Markets Page | 10

 Chart Book: US Cash Equities

Chart Book: US Cash Equities

On average, around 13.9 billion shares are traded on U.S. equity markets every day, making them among the
deepest, most liquid and most efficient in the world. Investors enjoy narrow spreads, low transaction costs and fast
execution speeds, with plenty of opportunity for price improvement, especially for retail investors.

Volumes and Other Statistics

Monthly Equity ADV

ADV (B shares) Trendline
18
15.6 15.6 15.3
16
13.9
14 13.3 13.4
12.3 12.4 12.2
11.3 11.3 11.0
12 10.5 10.6 11.1 10.6 10.4 11.1 10.8
10.0 9.9 9.7
10 9.3 9.2 9.1 9.0
7.6
8
6
4
2
0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21
Quarterly Equity ADV
ADV (B shares) Trendline
16 14.7
14 12.9
12.4
12 11.0 10.8
10.5 10.6
9.9 9.8
10
8.5
7.6 7.5
8 6.8 6.9 6.9 6.9 6.9 6.8
6.1 6.4 6.3
6

0
1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

Source: Cboe Global Markets, SIFMA estimates

US Equity and Related Markets Page | 11

 Chart Book: US Cash Equities

Quarterly Equity ADV by Tape (B shares)

Tape A Tape B Tape C
16 14.7

14 12.9
12.4
12 11.0 10.6 10.8
10.5 6.8
9.9 9.8
10 4.3 5.2
8.5 3.3
7.6 7.5
8 6.8 6.9 6.9 6.9 6.9 6.8 4.0 4.4 4.6 4.9
6.1 6.4 6.3 2.5 4.3
2.3 2.5 2.3 2.4
6 2.3 2.7
1.9 2.0 2.1 2.2 2.0 2.1
1.8 1.9 2.1 1.9 1.7 1.6 1.6 1.8
1.5 1.4 1.6
4 1.4 1.3 1.1 1.2 1.3 1.4 1.2
1.0 1.1
5.2 5.7 5.4 5.0
2 3.8 4.1 3.8 4.2 4.5 4.3 3.9 4.1
3.6 3.6 3.2 3.3 3.5 3.1 3.5 3.5 3.5
0
1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22
Annual Equity ADV
ADV (B shares) Trendline
14 12.9

12 11.4
10.9
9.8
10 8.8 8.5
7.8
8 7.3 7.3 7.0
6.9 6.5
6.4 6.2 6.4
6

0
FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

YTD
Source: Cboe Global Markets, SIFMA estimates
Note: Tape A – NYSE-listed; Tape B – all else (mostly NYSE Arca and American, also a main tape for ETF trading); Tape C – Nasdaq-listed

US Equity and Related Markets Page | 12

 Chart Book: US Cash Equities

Monthly Equity ADV vs. Volatility

ADV (B shares) VIX (Price, RHS)
18 70
15.6 15.6
16 57.7
13.9 60
14 13.4
12.3 11.3 12.4 12.2
41.5 11.1 50
12 10.5 11.0 10.8
10.0 9.9 10.4
9.3 9.2 9.7
10 9.1 9.0 40
31.1 29.4
7.6
8 25.8 27.0 30
22.9 22.4 23.1 23.2
6 30.9 19.8 19.8 17.9 18.5 21.4
26.8 27.7 17.4 17.6
25.0 24.9 20
4 21.8
19.6
17.0 17.5 10
2 13.9

0 0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21
Monthly Volatility
VIX (Price) Trendline
65
60 57.7
55
50
45 41.5
40
35 30.9 31.1
27.7 29.4
30 26.8 25.0 24.9 23.1 25.8 27.0
25 19.6
22.9 22.4 21.8
19.8 19.8 21.4 23.2
20 17.4 17.0 17.6 17.5 17.9 18.5
13.9
15
10
5
0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21

Source: Bloomberg, Cboe Global Markets, SIFMA estimates

US Equity and Related Markets Page | 13

 Chart Book: US Cash Equities

Quarterly Volatility
VIX (Price) Trendline 34.5
35
31.2
30
25.8 25.6 25.4
25 23.2
21.1
19.3
20 17.4 18.0 18.3
16.5 16.0
15.3 15.2
14.0
15 12.9
11.7 11.4 10.9 10.3
10

0
1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22
Annual Volatility
VIX (Price) Trendline
40

35 32.7
31.5
29.3
30 27.3
25.7 25.3
23.3 24.2
25 22.0 22.5
19.7
20 17.5 17.8
16.7 15.8 16.6
15.5 15.4
14.2 14.2
15 12.8 12.8
11.1
10

0
FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

YTD
Source: Bloomberg, Cboe Global Markets, SIFMA estimates

US Equity and Related Markets Page | 14

 Chart Book: US Cash Equities

Monthly Index Performance: S&P 500 Quarterly Index Performance: S&P 500
Price Trendline Price Trendline
5,000 4,675 5,000
4,602
4,500 4,500
4,141
4,464
4,391 4,000
4,000
3,500
3,366
3,500 3,177 2,850
3,000
2,902
3,000 2,790 2,932
2,500

2,500 2,000 1,675

2,654 2,567 2,652
1,500 1,951
2,000 2,359
1,000
1,500
500
Jan-17

Jun-17

Jan-19

Jun-19

Mar-20

Mar-22
Nov-17

Aug-18

Aug-20

Dec-20
Apr-18

Oct-19

May-21

Oct-21

1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q15
3Q15
1Q16
3Q16
1Q17
3Q17
1Q18
3Q18
1Q19
3Q19
1Q20
3Q20
1Q21
3Q21
1Q22
Monthly Index Performance: DJIA Quarterly Index Performance: DJIA
Price Trendline Price Trendline
40,000 40,500
35,641 35,517
35,000 35,500

34,030 30,500 34,679

28,880 27,537
30,000
25,804 26,233 30,821 25,127
25,500
25,000
24,571
19,908 23,806 20,500 18,004
20,000 22,637 15,736 21,891
22,173
15,500
16,663
15,000
10,500 13,140
10,000
5,500
Jan-17

Jun-17

Jan-19

Jun-19

Mar-20

Mar-22
Nov-17

Aug-18

Aug-20

Dec-20
Apr-18

Oct-19

May-21

Oct-21

1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q15
3Q15
1Q16
3Q16
1Q17
3Q17
1Q18
3Q18
1Q19
3Q19
1Q20
3Q20
1Q21
3Q21
1Q22
Source: Bloomberg

US Equity and Related Markets Page | 15

 Chart Book: US Cash Equities

Monthly Index Performance: Nasdaq Quarterly Index Performance: Nasdaq

Price Trendline Price Trendline
15,474 15,391
16,000 16,500
13,737 14,500
14,000
14,001
13,623 12,500
12,000 11,212
10,500
10,000 9,419
8,500
7,983 8,206 9,091
8,000 7,279 6,500 5,030 7,215
6,295 6,343
7,772 4,500 3,641
6,000 6,814 2,907
4,196 4,614
5,865 2,500
4,000
500
Jan-17

Jun-17

Jan-19

Jun-19

Mar-20

Mar-22
Nov-17

Aug-18

Aug-20

Dec-20
Apr-18

Oct-19

May-21

Oct-21

1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q15
3Q15
1Q16
3Q16
1Q17
3Q17
1Q18
3Q18
1Q19
3Q19
1Q20
3Q20
1Q21
3Q21
1Q22
Monthly Index Performance: Russell 2000 Quarterly Index Performance: Russell 2000
Price Trendline Price Trendline
2,500 2,362 2,500
2,237 2,277
2,250 2,300
2,100
2,000
1,712 1,667 2,037 1,900 2,056
1,698
1,750 1,589
1,504 1,700
1,500 1,500
1,547 1,518 1,256
1,250 1,388 1,393 1,300 1,162 1,416
1,203 1,320
1,000 1,100
900 1,041
750
700 821
500
500
Jan-17

Jun-17

Jan-19

Jun-19

Mar-20

Mar-22
Nov-17

Aug-18

Aug-20

Dec-20
Apr-18

Oct-19

May-21

Oct-21

1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q15
3Q15
1Q16
3Q16
1Q17
3Q17
1Q18
3Q18
1Q19
3Q19
1Q20
3Q20
1Q21
3Q21
1Q22
Source: Bloomberg

US Equity and Related Markets Page | 16

 Chart Book: US Cash Equities

S&P 500 Average P/E Ratio S&P 500 Average P/E Ratio by Sector
35
31.4 Real Estate 49.1
29.4 Consumer Discretionary
30 34.6
25.5 25.3 Information Technology 30.1
25 22.9
21.2 21.2 21.7 Industrials 28.0
20.3 19.5 20.1
20 18.1 Aggregate 22.9
Consumer Staples 22.4
15
Utilities 21.3
10 Communication Services 20.5
Health Care 19.8
5
Materials 17.4
0 Energy 16.6
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
Financials 13.5

S&P 500 Sector Breakdown Total Equity Market Short Interest (B shares)
24
Information Technology 28.0% 22.8
23 22.5
Health Care 13.6%
22 21.4
21.2 21.1 21.2
Consumer Discretionary 12.0%
21 20.5 20.7 20.7 20.7
20.3 20.3 20.4
Financials 11.1%
20 19.7
19.4
Communication Services 9.4%
19
Industrials 7.9%
18
Consumer Staples 6.1%
Energy 3.9% 17

Utilities 2.7% 16

Real Estate 2.7% 15

1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
Materials 2.6%

Source: Bloomberg, S&P Dow Jones Indices

Note: P/E and sector data as of March 2022

US Equity and Related Markets Page | 17

 Chart Book: US Cash Equities

Exchange and Parent Group Market Share

5 ICE: New York Stock Exchange,

NYSE Arca, NYSE American,
32 16 NYSE Chicago, NYSE National
Alternative Exchanges
Trading 4 Cboe: Cboe BYX, Cboe BZX,
Systems Cboe EDGA, Cboe EDGX
3 Nasdaq: Nasdaq BX, Nasdaq
PHLX, Nasdaq Stock Market
Multiple IEX; MEMX; LTSE; MIAX PEARL
OTC Venues

Quarterly Exchange Market Share

Nasdaq 16.4%

NYSE 9.7%

NYSE Arca 8.4%

Cboe EDGX 5.7%

Cboe BZX 5.6%

MEMX 4.1%
Quarterly Parent Company Market Share
IEX 2.6%

Cboe BYX 1.4%

Cboe EDGA 1.6% ICE

19.9%
NYSE National 0.9%
Off
Nasdaq PHLX 0.9% Exchange
40.3%
Nasdaq BX 0.5% Nasdaq
17.8%
NYSE American 0.5%

MIAX PEARL 0.9%

Cboe
NYSE Chicago 0.3% 14.3%
Other
LTSE 0.0009% 7.7%

Source: Cboe Global Markets, FINRA, SIFMA estimates

Note: ATS count as of 4Q21. Intercontinental Exchange (ICE) owns the NYSE exchanges; IEX = Investors Exchange; MEMX = Members Exchange;
LTSE = Long-Term Stock Exchange. Another exchange was approved earlier this year. Market shares as of March 2022

US Equity and Related Markets Page | 18

 Chart Book: US Multi-Listed Options

Chart Book: US Multi-Listed Options

Options, or a contract to buy or sell an underlying security (stocks, ETFs) at a specified price on or before a given
date, are frequently used as risk management tools by investors to hedge positions and limit portfolio losses. They
also provide flexibility, enabling an investor to tailor their portfolio to investment objectives and market environment.

Volumes and Other Statistics

Monthly Listed Options ADV

ADV (M contracts) Trendline
50
44.1 43.3 45.0 44.6
45 42.2
40.8
39.1 39.4 38.6 39.1 38.4
40 37.6 36.4
35.9
33.7 34.3 33.9
35 31.3 31.8
29.4 30.1
30 27.8 29.1 28.8
26.1 27.1
24.5
25
20
15
10
5
0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21
Quarterly Listed Options ADV
ADV (M contracts) Trendline
45 42.0 42.5
40.8
40 36.4 37.5

35 32.2
29.5
30 28.0 28.2

25 22.4 22.5
18.8 19.2 19.3 19.8 19.5
20 17.3 18.3
16.6 16.7 16.2
15
10
5
0
1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

Source: Bloomberg, The Options Clearing Corporation (OCC), SIFMA estimates

US Equity and Related Markets Page | 19

 Chart Book: US Multi-Listed Options

Annual Listed Options ADV

Volume (M) Trendline
45 42.5
39.2
40
35
29.5
30
25
20.5 19.4
20 18.1 16.9
15.5 16.0 16.3 16.4 16.1 16.7
14.2 14.3
15 11.4
10
5
0
FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

YTD
Monthly Listed Options ADV vs. Volatility
ADV (M contracts) VIX (Price, RHS)
50 70
44.1 45.0 44.6
45 42.2 40.8
57.7 39.4 38.6 60
39.1 38.4
40 36.4
31.8 34.3 33.9
35 41.5 31.3 50
30.1 29.1 28.8
30 27.1
24.5 40
25 31.1 29.4
25.8 27.0 30
20
30.9
22.9 22.4 23.1
19.8 19.8 21.4 23.2
15 26.8 27.7 17.4 17.6
25.0 24.9 20
21.8
10 19.6 18.5
17.0 17.5 10
5 13.9
0 0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21

Options Asset Class Breakout Equity Options as % of Total Volume

97%
Index
5.7% 94.9%
95% 94.3%
93.8%

93% 92.0%

91% 90.1% 90.2%

89.3%
89%

87% 88.1%
Equity
94.3%
85%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD

Source: Bloomberg, The Options Clearing Corporation (OCC), SIFMA estimates

US Equity and Related Markets Page | 20

 Chart Book: US Multi-Listed Options

Exchange and Parent Group Market Share

Quarterly Exchange Market Share

Cboe 15.0%

NYSE ARCA 12.7%

Nasdaq PHLX 10.8%

Cboe BZX 8.0%

Nasdaq 7.9%

NYSE American 6.6% Quarterly Parent Company Market Share

BOX 5.7%

Nasdaq ISE 5.6% BOX

5.7%
MIAX 5.4%

Cboe EDGX 4.8% MIAX

13.2% NDAQ
MIAX PEARL 4.2% 30.2%

Cboe C2 3.7%

MIAX Emerald 3.6% NYSE

19.4%
Nasdaq GEMX 2.3%

Nasdaq BX 2.0% CBOE

31.5%
Nasdaq MRX 1.7%

Source: The Options Clearing Corporation (OCC), SIFMA estimates

Note: Intercontinental Exchange (ICE) owns the NYSE exchanges. Excludes the futures and stock loan data OCC collects. As of March 2022

US Equity and Related Markets Page | 21

 Chart Book: US Exchange-Traded Funds

Chart Book: US Exchange-Traded Funds

Exchange-traded funds (ETFs), or pooled investment vehicles holding an underlying basket of securities (equities,
bonds, commodities, currencies), provide investors a multitude of choices to meet different investment objectives.

Volumes and Other Statistics

Monthly ETF ADV
ADV (B shares) Trendline
4.5
4.2
4.0
3.5
2.9 2.8
3.0 2.7 2.8

2.5 2.1 2.1 2.1

2.0 1.9 1.8 1.9 1.8
2.0 1.7 1.7 1.7 1.7 1.6 1.7
1.5 1.4 1.5 1.5 1.5
1.5 1.3 1.3 1.3

1.0
0.5
0.0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21
Quarterly ETF ADV
ADV (B shares) Trendline
3.5

3.0 2.9
2.6
2.5 2.3
2.0 1.9
2.0 1.8
1.5 1.6
1.5 1.5 1.5 1.5
1.3 1.4 1.4
1.5 1.2 1.3 1.3
1.1 1.2
1.1
1.0

0.5

0.0
1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

Annual ETF ADV 1Q22

ADV (B shares) Trendline

3.5

3.0 2.9

2.5
2.0
2.0
1.7
1.4 1.5
1.5 1.4
1.2
1.0

0.5

0.0
FY16

FY17

FY18

FY19

FY20

FY21

YTD

Source: Cboe Global Markets, SIFMA estimates

US Equity and Related Markets Page | 22
 Chart Book: US Exchange-Traded Funds

Monthly ETF ADV vs. Volatility

ADV (B shares) VIX (Price, RHS)
4.5 90
4.2
4.0 80
3.5 70
57.7 2.9 2.8
3.0 2.7 2.8 60
2.5 41.5 2.1 2.1 2.1 50
2.0 1.9 1.5
1.8 1.9 1.8
2.0 31.1 1.7 1.7 1.7 1.7 1.6 1.7 40
1.5 1.4 29.4 1.3 1.5 1.5 27.0
1.5 22.9 22.4 23.1 1.3 1.3 23.2 25.8 30
17.4 19.8 17.6 19.8 18.5
30.9
1.0 26.8 27.7 20
25.0 24.9
19.6 21.8 21.4
0.5 17.0 17.5 17.9 10
13.9
0.0 0
Jan-20

Jun-20

Jul-20

Jan-21

Jun-21

Jul-21

Jan-22
Feb-20

Mar-20

Feb-21

Mar-21

Feb-22

Mar-22
Aug-20

Sep-20

Nov-20

Dec-20

Aug-21

Sep-21

Nov-21

Dec-21
Apr-20

May-20

Oct-20

Apr-21

May-21

Oct-21
ETFs as a Percent of Total Equity ADV
Single Stock ETF
100%

13.2%

14.3%
14.4%

15.4%
16.4%
16.8%

16.9%
17.5%
18.0%

18.2%

18.3%
18.5%

18.6%
19.6%

19.6%
20.0%
20.3%

20.4%

22.2%
23.5%

23.6%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22
Source: Bloomberg, Cboe Global Markets, SIFMA estimates

US Equity and Related Markets Page | 23

 Chart Book: US Exchange-Traded Funds

Exchange and Provider Market Share

Exchange Market Share

Quarterly ETF Market Share by Exchange

Off Exchange 35.6%

NYSE 21.4%

Cboe 17.4%

NASDAQ 17.2%

MEMX 5.2%

MIAX 1.8%

IEX 1.4%

LTSE 0.0008%

Provider Market Share

Quarterly ETF Market Share by Provider

Blackrock 33.7%

Vanguard 29.1%

State Street
15.4%
Global Advisors

Invesco 5.6%

Charles Schwab 3.8%

Other 12.4%

Source: Cboe Global Markets, etf.com, SIFMA estimates

Note: Intercontinental Exchange (ICE) owns the NYSE exchanges. As of March 2022

US Equity and Related Markets Page | 24

 Appendix: Exchange Landscape

Appendix: Exchange Landscape

Cash Equities

Intercontinental Cboe Global Investors

Nasdaq Exchange
Exchange Markets
(NDAQ) (IEX)
(ICE) (CBOE)

Members
New York Stock Nasdaq Stock Exchange
Cboe BZX
Exchange Market
(MEMX)

Long-Term
NYSE Arca Nasdaq BX Cboe EDGX Stock Exchange
(LTSE)

NYSE National Nasdaq PHLX Cboe BYX MIAX

PEARL

NYSE Chicago Cboe EDGA

NYSE American

Note: Another exchange was approved earlier this year, not yet in operation

US Equity and Related Markets Page | 25

 Appendix: Exchange Landscape

Multi-Listed Options

Cboe Intercontinental Miami Int'l BOX

Nasdaq
Global Markets Exchange Securities Ex Options
(NDAQ) Exchange
(CBOE) (ICE) (MIAX)

Cboe Nasdaq PHLX NYSE ARCA MIAX

Cboe BZX Nasdaq NYSE American MIAX PEARL

Cboe C2 Nasdaq ISE MIAX Emerald

Cboe EDGX Nasdaq GEMX

Nasdaq MRX

Nasdaq BX

US Equity and Related Markets Page | 26

 Appendix: Terms to Know

Appendix: Terms to Know

ADV Average Daily Trading Volume Y/Y Year-over-Year

Algo Algorithm (algorithmic trading) Q/Q Quarter-over-Quarter
AP Authorized Participant YTD Year-to-Date
AT Automated Trading BPS Basis Points
ATS Alternative Trading System PPS Percentage Points
AUM Assets Under Management CAGR Compound Annual Growth Rate
Best Ex Best Execution
CEF Closed-End Fund CFTC Commodity Futures Trading Commission
CLOB Central Limit Order Book FINRA Financial Industry Regulatory Authority
D2C Dealer-to-Client SEC Securities and Exchange Commission
D2D Dealer-to-Dealer SRO Self-Regulatory Organization
Dark Pool Private trading venues NMS National Market System
ECN Electronic Communication Network Reg NMS Regulation National Market System
EMS Equity Market Structure SIP Security Information Processor
ETF Exchange-Traded Fund
ETP Exchange-Traded Product
HFT High-Frequency Trading
IDB Inter-Dealer Broker
IIV Intraday Indicative Value
IOI Indication of Interest
IPO Initial Public Offering
MF Mutual Fund
MM Market Maker
NAV Net Asset Value
OEF Open-End Fund
OTC Over-the-Counter
PCF Portfolio Composition File
PFOF Payment For Order Flow
SI Systematic Internaliser
Tick Size Minimum price movement
UIT Unit Investment Trust

US Equity and Related Markets Page | 27

 Appendix: Terms to Know

Bid An offer made to buy a security

Ask, Offer The price a seller is willing to accept for a security
Spread The difference between the bid and ask price prices for a security, an indicator of supply (ask) and demand (bid)
NBBO National Best Bid and Offer
Locked Market A market is locked if the bid price equals the ask price
Crossed Market A bid is entered higher than the offer or an offer is entered lower than the bid
Opening Cross To determine the opening price of a stock, accumulating all buy and sell interest a few minutes before the market open
Closing Cross To determine the closing price of a stock, accumulating all buy and sell interest a few minutes before the market close

Order Types
AON All or none; an order to buy or sell a stock that must be executed in its entirety, or not executed at all
Block Trades with at least 10,000 shares in the order
Day Order is good only for that trading day, else cancelled
FOK Fill or kill; must be filled immediately and in its entirety or not at all
Limit An order to buy or sell a security at a specific price or better
Market An order to buy or sell a security immediately; guarantees execution but not the execution price
Stop (or stop-loss) An order to buy or sell a stock once the price of the stock reaches the specified price, known as the stop price

Call The right to buy the underlying security, on or before expiration

Put The right to sell the underlying security, on or before expiration
Holder The buyer of the contract
Writer The seller of the contract
American Option may be exercised on any trading day on or before expiration
European Option may only be exercised on expiration
Exercise To put into effect the right specified in a contract
Underlying The instrument on which the options contract is based; the asset/security being bought or sold upon exercise notification
Expiration The set date at which the options contract ends, or ceases to exist, or the last day it can be traded
Stock Price The price at which the underlying stock is trading, fluctuates continuously
Strike Price The set price at which the options contract is exercised, or acted upon
Premium The price the option contract trades at, or the purchase price, which fluctuates constantly
Time Decay The time value portion of an option’s premium decreases as time passes; the longer the option’s life, the greater the probability
the option will move in the money
Intrinsic Value The in-the-money portion of an option's premium
Time Value (Extrinsic value) The option premium (price) of the option minus intrinsic value; assigned by external factors (passage of time,
volatility, interest rates, dividends, etc.)
In-the-Money For a call option, when the stock price is greater than the strike price; reversed for put options
At-the Money Stock price is identical to the strike price; the option has no intrinsic value
Out-of-the-Money For a call option, when the stock price is less than the strike price; reversed for put options

Investors
Institutional Organization, fewer protective regulations as assumed to be more knowledgeable and better able to protect themselves*
Retail Individual, a non-professional investor; either advised or self directed
*Types of institutional investors: asset managers, endowment funds, mutual funds, hedge funds, pension funds, etc.

US Equity and Related Markets Page | 28

 Appendix: Terms to Know

IPO Initial Public Offering; private company raises capital buy offering its common stock to the public for the first time in the primary markets
SPAC Special Purpose Acquisition Company; blank check shell corporation designed to take companies public without going through the traditional IPO
process
Bought Deal underwriter purchases a company's entire IPO issue and resells it to the investing public; underwriter bears the entire risk of selling the stock
issue
Best Effort Deal Underwriter does not necessarily purchase IPO shares and only guarantees the issuer it will make a best effort attempt to sell the shares to
investors at the best price possible; issuer can be stuck with unsold shares
Secondary (Follow-on) Issuance of shares to investors by a public company already listed on an exchange
Direct Listing (Direct placement, direct public offering) Existing private company shareholders sell their shares directly to the public without underwriters. Often
used by startups or smaller companies as a lower cost alternative to a traditional IPO. Risks include, among others, no support/guarantee for the
share sale and no stock price stabilization after the share listing.

Underwriting Guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee in a financial
transaction or deal
Underwriter Investment bank administering the public issuance of securities; determines the initial offering price of the security, buys them from the issuer and
sells them to investors.
Bookrunner The main underwriter or lead manager in the deal, responsible for tracking interest in purchasing the IPO in order to help determine demand and
price (can have a joint bookrunner)
Lead Left Bookrunner Investment bank chosen by the issuer to lead the deal (identified on the offering document cover as the upper left hand bank listed)
Syndicate Investment banks underwriting and selling all or part of an IPO
Arranger The lead bank in the syndicate for a debt issuance deal

Pitch Sales presentation by an investment bank to the issuer, marketing the firm’s services and products to win the mandate
Mandate The issuing company selects the investment banks to underwrite its offering
Engagement Letter Agreement between the issuer and underwriters clarifying: terms, fees, responsibilities, expense reimbursement, confidentiality, indemnity, etc.

Letter of Intent Investment banks’ commitment to the issuer to underwrite the IPO
Underwriting Agreement Issued after the securities are priced, underwriters become contractually bound to purchase the issue from the issuer at a specific price
Registration Statement Split into the prospectus and private filings, or information for the SEC to review but not distributed to the public, it provides investors adequate
information to perform their own due diligence prior to investing
The Prospectus Public document issued to all investors listing: financial statements, management backgrounds, insider holdings, ongoing legal issues, IPO
information and the ticker to be used once listed
Red Herring Document An initial prospectus with company details, but not inclusive of the effective date of offering price

Roadshow Investment bankers take issuing companies to meet institutional investors to interest them in buying the security they are bringing to market.
Non-Deal Roadshow Research analysts and sales personnel take public companies to meet institutional investors to interest them in buying a stock or update existing
investors on the status of the business and current trends.
Pricing Underwriters and the issuer will determine the offer price, the price the shares will be sold to the public and the number of shares to be sold,
based on demand gauged during the road show and market factors
Stabilization Occurs for a short period of time after the IPO if order imbalances exist, i.e. the buy and sell orders do not match; underwriters will purchase
shares at the offering price or below to move the stock price and rectify the imbalance
Quiet Period (Cooling off period) The SEC mandates a quiet period on research recommendations, lasting 10 days (formerly 25 days) after the IPO

Reg S-K Regulation which prescribes reporting requirements for SEC filings for public companies
Reg S-X Regulation which lays out the specific form and content of financial reports, specifically the financial statements of public companies
Form S-1 Registration statement for U.S. companies (described above)
Form F-1 Registration statement for foreign issuers of certain securities, for which no other specialized form exists or is authorized
Form 10-Q Quarterly report on the financial condition and state of the business (discussion of risks, legal proceedings, etc.), mandated by the SEC
Form 10-K More detailed annual version of the 10Q, mandated by the SEC
Form 8-K Current report to announce major events shareholders should know about (changes to business & operations, financial statements, etc.)
Greenshoe Allows underwriters to sell more shares than originally planned by the company and then buy them back at the original IPO price if the demand
for the deal is higher than expected, i.e. an over-allotment option
Tombstone An announcement that securities are available for sale. (Also a plaque awarded to celebrate the completion of a transaction or deal)
EGC Emerging Growth Company

US Equity and Related Markets Page | 29

 Authors

Authors
SIFMA Research
Katie Kolchin, CFA, Director of Research
Justyna Podziemska
research@sifma.org

US Equity and Related Markets Page | 30