Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

The Long-Term Stock Exchange Opens for Business

blog.ltse.com

Post reply on HN
Print view View original

211–220 of 561 posts

Re: The Long-Term Stock Exchange Opens for Business

#211

Post by JackFr »

nicoburns wrote: post #116
JackFr wrote: post #86

Earlier quoted context omitted.

If you need money over the long term and you don't want to relinquish control, we have a thing called the bond market. Borrow for 5, 10, 30, heck, even 99 years and your interest is tax deductible! (Borrowing longer than 99 years the IRS may want to talk to you. Your bonds start to look like preferred stock.) Wait -- the bond market won't lend to you cause they don't trust your ability to generate that return for the…

The public markets aren't just designed to maximise shareholders value. Maximising shareholder value is supposed to be a means to maximising societal value. If the shareholder model isn't doing that then it isn't fit for purpose.

The perpetual, limited liability enterprise as legal person, owned via tradeable claims on equity, managed by professionals distinct from the owners, what we call modern financial capitalism, has been a boon to the world. Obviously it’s not the only way one could organize productive endeavors. But it’s pretty well understood that it produces greater long term economic growth than any other competing system. It has known shortcomings, but maximizing shareholder value is a really good solution for the agency problem introduced by the creation of a non-owner managerial class.

Re: The Long-Term Stock Exchange Opens for Business

#212

Post by adventured »

safog wrote: post #169
eries wrote: post #102

Earlier quoted context omitted.

We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I know that doesn’t sound super sexy but we believe this is a high-leverage point for reforms We will have more to say on reforms that relate to reading in the future, but we don’t limit the ability of “tourists” to trade in and out of stocks as normal.

What does that mean concretely? Will earnings reports still be quarterly? I guess I'm trying to figure out why the exchange has to do anything here. There's plenty of investors and companies that think long term with BRK and its investors being the most prominent. Digging a bit more, on the investor side, there are value investors who look for solid, if unspectacular businesses at a price point and buy and hold over…

> What does that mean concretely?

I noticed there doesn't appear to be tangible answers to this anywhere (including in the reply you got to your comment). Curious to pitch a supposed long-term stock exchange without anything meaningful to lure listings to it other than vapor statements.

I'd bet it's because they can't set any strict upfront requirements. They won't be able to get the listings they need if they do it, the interest won't be there. So most of what they're going to try to do is espouse the mission goals, hoping over time they can gradually implement those controls.

Re: The Long-Term Stock Exchange Opens for Business

#213

Post by 762236 »

charlesu wrote: post #205
hansdieter1337 wrote: post #198

“LTSE has joined with several organizations to build and launch a year-long experiment to support the economic mobility of Black entrepreneurs impacted by COVID-19.” (ltse.com) Congratulations, you think you do the right thing and became racist.

How is that racist?

I suspect he means discriminatory. It clearly can't be racist.

Re: The Long-Term Stock Exchange Opens for Business

#214

Post by Kuinox »

charlesu wrote: post #205
hansdieter1337 wrote: post #198

“LTSE has joined with several organizations to build and launch a year-long experiment to support the economic mobility of Black entrepreneurs impacted by COVID-19.” (ltse.com) Congratulations, you think you do the right thing and became racist.

How is that racist?

It's so much racist that this kind of things is illegal here in France

Re: The Long-Term Stock Exchange Opens for Business

#215

Post by GordonS »

eries wrote: post #172
maerF0x0 wrote: post #165

Earlier quoted context omitted.

>We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I've heard many a company say one thing and act another. How will this be different? Will delisting be the repercussion of short termism?

Yes, all of our standards are enforceable, that’s part of the responsibility of being an SRO. When a company makes promises as part of listing on LTSE, the public can believe them

Nothing here seems very "concrete" TBH, it all seems quite "hand wavy" and vague.

Can you provide any specific examples of standards that could be enforced, and how?

Re: The Long-Term Stock Exchange Opens for Business

#217

Post by tempsy »

eries wrote: post #185
tempsy wrote: post #181

what incentives do companies have to be "long term focused" in a market environment that has become highly frothy and speculative due to central bankers? when investors will buy anything that whiffs of growth and executives can raise debt for cheap and raise secondaries easily no one on either side is exactly clamoring for a "long term" focused exchange right now.

No one? At least a few people are clamoring for it, surely? There are some investors and companies that tune out the noise and try to make lasting change, making a dent in the universe, that kind of thing. I think they could use financial infrastructure to support their ambitions. Seems pretty simple to me

clearly you’re biased, but hard to imagine the actions of the Federal Reserve that has pumped liquidity into the economy and cut rates to 0 that many predict will last for 5+ years make an exchange that is focused on “long term” less interesting to both executives and investors.

we live in a market when there’s a dozen SPACs listed every week and a company like Nikola that doesn’t even have a functioning product has a valuation of $20B. liquidity and support from central bankers have naturally made investors more patient and willing to ignore short term road bumps.

Re: The Long-Term Stock Exchange Opens for Business

#218

Post by Loughla »

eries wrote: post #173
safog wrote: post #169

Earlier quoted context omitted.

What does that mean concretely? Will earnings reports still be quarterly? I guess I'm trying to figure out why the exchange has to do anything here. There's plenty of investors and companies that think long term with BRK and its investors being the most prominent. Digging a bit more, on the investor side, there are value investors who look for solid, if unspectacular businesses at a price point and buy and hold over…

I’m not quite sure how to answer your question. Clearly there are long-term investors and companies in today’s markets. I think there would be more of them if they had a platform conducive to their philosophy.

>Clearly there are long-term investors and companies in today’s markets.

That's not really an answer to the question - so how do you define long-term, and how do you take reports? Are they still quarterly reports? Or are the reports longer-term? How do companies prove they're long-term to interact with your platform?

You haven't really talked about the concrete definitions or parameters around 'long-term' in this thread. Please do, it would be nice.

Re: The Long-Term Stock Exchange Opens for Business

#220

Post by alasdair_ »

eries wrote: post #172
maerF0x0 wrote: post #165

Earlier quoted context omitted.

>We require companies that list with us to adopt corporate governance that aligns their behavior and incentives to the long term. I've heard many a company say one thing and act another. How will this be different? Will delisting be the repercussion of short termism?

Yes, all of our standards are enforceable, that’s part of the responsibility of being an SRO. When a company makes promises as part of listing on LTSE, the public can believe them

Let’s say the largest flagship company on LTSE decides to move to short-term governance strategies.

How can investors be sure this company really would be delisted, even if it’s the company that makes LTSE the most money?

Post reply on HN