Will the Long-Term Stock Exchange Make a Difference?
corpgov.law.harvard.edu
Will the Long-Term Stock Exchange Make a Difference?
1–10 of 54 posts
Re: Will the Long-Term Stock Exchange Make a Difference?
#2I don't see the right incentives for companies here.
The only incentive could be that more investors (and therefore) more money exist on this exchange. That will take time.
Re: Will the Long-Term Stock Exchange Make a Difference?
#3I don't see the right incentives for companies here. The only incentive could be that more investors (and therefore) more money exist on this exchange. That will take time.
Founders will push to list on this exchange because tenure voting systems will advantage them more than anybody else.
Re: Will the Long-Term Stock Exchange Make a Difference?
#4Since the LTSE didn't appear to put any of the 'innovative' ideas into their SEC application[1], it shouldn't make any difference for now.
[1] https://cooleypubco.com/2019/08/01/ltse-proposes-listing-sta...
Re: Will the Long-Term Stock Exchange Make a Difference?
#5I don't see the right incentives for companies here. The only incentive could be that more investors (and therefore) more money exist on this exchange. That will take time.
Founders will push to list on this exchange because tenure voting systems will advantage them more than anybody else.
But they didn't propose tenure voting.
"With respect to CII’s concerns about tenure voting rights, the SEC noted that the LTSE had not yet proposed those rights and that, as a registered exchange, it would be required to file with the SEC any changes to its rules as a proposed rule change, allowing for public notice and comment."
Re: Will the Long-Term Stock Exchange Make a Difference?
#6I don't see the right incentives for companies here. The only incentive could be that more investors (and therefore) more money exist on this exchange. That will take time.
Founders will push to list on this exchange because tenure voting systems will advantage them more than anybody else.
I'm sure Adam Neumann and his cronies on the WeWork board would have loved to be able to list on the LTSE. Would make it much harder for non-colluding market participants to call them out on their self dealing!
Re: Will the Long-Term Stock Exchange Make a Difference?
#7The disdain that (mostly) tech company CEOs have for the people to whom they sold ownership to is utterly baffling.
>LTSE’s founder said that he discovered in his conversations with entrepreneurs that many were reluctant to go public.
Then don't. You need money? Well then, I guess the people who have it get to make some decisions and hold you accountable.
The idea that you can't build a long-term company on the public markets is hogwash.
Re: Will the Long-Term Stock Exchange Make a Difference?
#8Earlier quoted context omitted.
Founders will push to list on this exchange because tenure voting systems will advantage them more than anybody else.
But they didn't propose tenure voting. "With respect to CII’s concerns about tenure voting rights, the SEC noted that the LTSE had not yet proposed those rights and that, as a registered exchange, it would be required to file with the SEC any changes to its rules as a proposed rule change, allowing for public notice and comment."
The organizers are talking about tenure voting, "not proposing" means they have not formally filed with the SEC for permission.
Re: Will the Long-Term Stock Exchange Make a Difference?
#9The prevailing narrative on this topic is "greedy investors only care about short-term profits". The spin is that visionary CEOs try to build long-term growth and innovation, but they're continuously stymied by Wall Street vultures.
However the empirical evidence tells a very different story. Corporate managers have a demonstrated tendency towards wasteful ego-stroking empire building when not properly monitored. This is a classic principal-agent problem, where incentives drift away from shareholder interests.
Regular quarterly targets are an important part of management discipline. The longer CEOs have before being expected to deliver results, the longer they have to empire-build without being held accountable. Similarly investors bias towards bottom-line profits and cash flow. Those metrics are much harder to fake or spin, compared to intangible stories about brand value, market dominance or skunkworks projects.
When management does demonstrate credibility, Wall Street's usually more than happy to let them focus on long-term initiatives. Just look at Amazon, which is a darling of the investment community, trusted to steer nearly a trillion dollars in shareholder capital. Bezos has continuously poured huge resources into long-term speculative initiatives at the expense of quarterly earnings. And he's loved by shareholders for it, because he has a history of competence and putting company interests above personal ones.
[1] https://pdfs.semanticscholar.org/c1cb/684257b67940b9cf0d5aaa...
Re: Will the Long-Term Stock Exchange Make a Difference?
#10Earlier quoted context omitted.
But they didn't propose tenure voting. "With respect to CII’s concerns about tenure voting rights, the SEC noted that the LTSE had not yet proposed those rights and that, as a registered exchange, it would be required to file with the SEC any changes to its rules as a proposed rule change, allowing for public notice and comment."
The organizers are talking about tenure voting, "not proposing" means they have not formally filed with the SEC for permission.
i.e. there is no exchange that offers tenure voting, and it's not clear that there ever will be one.