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The Long-Term Stock Exchange Opens for Business

blog.ltse.com

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Re: The Long-Term Stock Exchange Opens for Business

#271

Post by dfabulich »

eries wrote: post #264
dfabulich wrote: post #254

How would I buy a share of a company on LTSE today? Does any major online brokerage work with LTSE?

Yes, the major broker-dealers and market makers are members of the exchange. You can route orders to LTSE via your existing broker, just call them up and ask them to do so. I believe Interactive Brokers, in particular, extends this privilege to all of their retail customers. But I don't have first-hand knowledge of this, just what I've heard.

Do I have to "call up" a broker to do this trade? I've only ever used online brokerages. Am I just supposed to call Etrade's 1-800 number or something?

EDIT: Wait a minute. No individual stocks are listed yet on LTSE https://news.ycombinator.com/item?id=24421925 so what am I supposed to ask them to do?

When I want to buy a share, the first thing the brokerage asks me is the stock's symbol. Without any listings, what am I supposed to tell them?

Re: The Long-Term Stock Exchange Opens for Business

#272

Post by eries »

mmhsieh wrote: post #269

how do you handle M&As when companies are absorbed by other companies that don't live by the charter? grace period, or are they just dropped?

Same as any other exchange. The new entity will either have to meet the listing standards or be de-listed.

Re: The Long-Term Stock Exchange Opens for Business

#273

Post by eries »

silentsea90 wrote: post #258
eries wrote: post #130

Earlier quoted context omitted.

None are listed yet. Give us a little time, it’s only Day One

Echoing what somebody else said, "open for business" feels a bit disingenuous from a retail investor perspective as there is no place to trade stocks, no sign up, no stocks listed etc. A more restricted announcement (read directly to companies) would probably have been a better idea to gain that critical mass. For reference, whenever Uber/Lyft "open for business" in a new city, they don't just flip the switch to enab…

I don't understand this criticism. We are actively trading stocks today: https://markets.cboe.com/us/equities/market_share/

You can call your broker right now and ask them to direct your orders to a specific exchange, including "L" on the SIP.

Re: The Long-Term Stock Exchange Opens for Business

#275

Post by eries »

dfabulich wrote: post #271
eries wrote: post #264

Earlier quoted context omitted.

Yes, the major broker-dealers and market makers are members of the exchange. You can route orders to LTSE via your existing broker, just call them up and ask them to do so. I believe Interactive Brokers, in particular, extends this privilege to all of their retail customers. But I don't have first-hand knowledge of this, just what I've heard.

Do I have to "call up" a broker to do this trade? I've only ever used online brokerages. Am I just supposed to call Etrade's 1-800 number or something? EDIT: Wait a minute. No individual stocks are listed yet on LTSE https://news.ycombinator.com/item?id=24421925 so what am I supposed to ask them to do? When I want to buy a share, the first thing the brokerage asks me is the stock's symbol. Without any listings, what…

Every broker has its own internal rules about where to direct its order flow. Some "internalize" the trade and don't send it anywhere. Others get paid to direct the order to a specific market maker, exchange, or dark pool (called PFOF).

Others allow their clients to direct orders using a specific trading strategy. If you have a family office it's very likely this is part of the strategy.

However, ordinary retail investors are sometimes locked out of this system. I don't know Etrade's policy in particular, so I can't say for sure what you would have to do.

Re: The Long-Term Stock Exchange Opens for Business

#276

Post by eries »

Loughla wrote: post #218
eries wrote: post #173

Earlier quoted context omitted.

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 thr…

Quarterly reporting is an SEC requirement, so we don't affect that. We do require certain additional reports be filed on an annual basis.

Companies prove their long term by adopting policies responsible to our long-term principles. The way this works is spelled out in a lot of detail both on our website and in our regulatory filings. Here's more of a layman's overview: https://longtermstockexchange.com/static/principals_for_lt_s...

Re: The Long-Term Stock Exchange Opens for Business

#277

Post by daniel-levin »

Hi Eric, presumably the companies will trade on a limit order book, like other exchanges. This mechanism of price formation allows rapid price movements up or down. What’s to stop the speculators or retail investor hordes from piling into a stock and driving its price up or down? Are there holding period rules?

Re: The Long-Term Stock Exchange Opens for Business

#278

Post by eries »

adventured wrote: post #212
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…

> 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,…

I see this criticism a lot in the various threads, but I don't really understand it. As a stock exchange, we are strictly regulated. We aren't allowed to make vague claims that are not backed up by regulatory filings, all of which are publicly available both on our website and at the SEC. For example (from least to most detailed):

https://longtermstockexchange.com/listings https://www.sec.gov/rules/sro/ltse.htm https://longtermstockexchange.com/static/principals_for_lt_s... https://www.sec.gov/rules/sro/ltse/2019/34-86327.pdf https://www.sec.gov/rules/other/2018/long-term-stock-exchang...

Re: The Long-Term Stock Exchange Opens for Business

#279

Post by eries »

kkotak wrote: post #234
adventured wrote: post #212

Earlier quoted context omitted.

> 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,…

Agreed. Just like everything else, the ideas hold more power based on who they are coming from. Eric is a stellar individual with a trail of success behind him - and I'm not taking anything away from him with this comment, but if I were to go to a set of worthy investors and corporations pitching this idea - I'd be laughed out of the room as naive.

I don't know if this is as true as you think. First of all, I've been laughed out of a lot of rooms for pitching this idea. Hundreds, by now.

Further, although many VC's are indeed herd animals as you seem to suggest, there are a few bold ones who genuinely hunt for new and radical ideas and would be willing to back a first-time founder - if you're willing to do the work.

Re: The Long-Term Stock Exchange Opens for Business

#280

Post by mjul »

alasdair_ wrote: post #224
vmception wrote: post #167

Earlier quoted context omitted.

Disclaimer: I can take any side of the regulatory pendulum with a straight face, and that also means pointing out accurate statements with no real opinion on either. Buybacks were illegal because it falsely showed demand in the market. False demand is a key point in modern market manipulation and fraud cases. Given that reality dissolved 30 years ago, of course we are all familiar with the arguments "It’s anti-diluti…

My understanding is that stock buybacks are generally better than issuing a dividend for the simple reason that with a buyback, an owner can choose to sell (and incur a taxable event) or not sell, while with a dividend the taxable event is forced upon them.

There is also the tax perspective: in many jurisdictions dividends and capital gains are taxed differently, often with a higher tax on dividends. In that case buybacks are better for investors.
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