Net new equity is a figure derived by deducting stock repurchases and retirements from the amount of equity funds derived from new issues of stock. The resulting net amount can be either a positive or negative number. After reviewing the New Equity Financing and Why Don't U.S. Corporations Issue More Equity? section in Chapter 4 of the Higgins text, address the following:

Looking at Figure 4.5, describe the trend in net equity financing in the U.S. during the past 30 years. What does this say about the use of equity financing in U.S corporations?

Looking at Figure 4.6, describe the trend in gross public equity issues and IPOs in the U.S. during the past 25 years. How do you explain this trend, given what was observed in Figure 4.5? Explain.

In your own words, why do U.S. corporations not issue more equity?