...require large amounts of capital to operate and, as it happens, leverage as well. To that extent, going public gives them access to the large pools of capital that are basic to their proprietary trading businesses. A professional firm is different; it is selling its expertise, not leveraging the management of capital. In Business Associations, I used to discuss why public corporations came about, in the
search for larger pools of capital for … capital investment. Whereas professional partnerships have relatively low capital requirements, and lawyers quite possibly (at least...