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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

#351

Post by TeMPOraL »

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.

As the age-old principle goes: could you please name three?

Examples would help us understand the idea more thoroughly.

Re: The Long-Term Stock Exchange Opens for Business

#352

Post by teruakohatu »

eries wrote: post #343
ryan_j_naughton wrote: post #302

Earlier quoted context omitted.

I concur! Market design is so important. Eric, I worked at the world's first carbon market over a decade ago (Chicago Climate Exchange) and a group of us are at the early stages of designing some new exchanges focused on fixing market failures across several sectors. I've been following your work for a long time, and I am excited to see LTSE finally launch. I am concerned about the ability for people to create second…

If the reforms are embodied in the company's charter, they will follow the shares wherever they are traded

Can you explain what this means?

Re: The Long-Term Stock Exchange Opens for Business

#353

Post by bob33212 »

eries wrote: post #324
bob33212 wrote: post #298

Earlier quoted context omitted.

In the SEC filing they say that companies will be required to issue long term policy documents and that their progress should be measured in Years or Decades and with long term compensation plans. The compensation piece seems like the most concrete requirement given that most companies will say they have long term plans. But those companies also reward executives based on stock price and earnings in a quarterly/yearl…

We don't allow companies to list if all they have are vague plans. Each policy requires companies to make structural, externally-verifiable commitments.

Sounds Great! Thanks for Lean Startup it helped save me from spending years developing a product without a market.

Re: The Long-Term Stock Exchange Opens for Business

#355

Post by Loughla »

e_d_e_v wrote: post #350
Loughla wrote: post #295

Earlier quoted context omitted.

Thank you. Have you discussed possible perverse outcomes to (D) and (E)? If so, what negative outcomes have you been able to foresee?

It seems that perhaps you have some idea of what these perverse outcomes look like. D) seems to be "a company reinvests in its employees (training, etc) and E) is someethign like "a Company rewards employees and stakeholders for long-term company success." What does the perverse scenario look like for you?

I legitimately don't have any in mind. I just have zero faith in humanity, and assume loopholes will be exploited to follow the letter of the law, but not the intent. I was wondering if they've thought about that and what his thoughts were about it.

Edit; The only one I can think of, when it comes to rewarding employees is what if a company uses contractors (or gig workers if you use those words), and therefore not defined as employees?

Re: The Long-Term Stock Exchange Opens for Business

#356

Post by ismail »

eries wrote: post #273
silentsea90 wrote: post #258

Earlier quoted context omitted.

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.

Eric, you are a smart guy. I think you should pay attention to the signal.

Multiple people have mentioned a similar thing. I have had a similar experience.

While it may be technically accurate that the “LTSE is open for business”

My expectation and others also seem to have had a similar expectation after reading the announcement was:

We can now purchase shares in companies that are listed on the LTSE. Having tried to get more info on companies listed on the LTSE, we are finding none.

“Open for business” is never defined.

It says

“Today, after months of booting up, I am thrilled to report that the Long-Term Stock Exchange has opened for business with a mission to support companies and investors who share a long-term vision.”

There are a few potential options:

1. oversight , without the realisation that people will assume the LTSE has shares listed on it which can be traded

2. Deliberately designed to lead people to think the LTSE has shares listed on it in order to test. Lean startup and all that.

On a other note long range planning and thinking is difficult, due to discounting and uncertainty. A massive impact can be had if more people could think Though multiple causal generations down.

Re: The Long-Term Stock Exchange Opens for Business

#357

Post by dang »

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?

Please don't break the site guidelines by replying to comments like that one.

https://news.ycombinator.com/newsguidelines.html

Re: The Long-Term Stock Exchange Opens for Business

#358

Post by TheMagicHorsey »

If you have a long term view on business, you can actually just use the existing stock exchanges. The stock exchanges aren't the reason for short term thinking ... the incentives of executives and investors are the reason for that.

There's plenty of companies that take the long view and whose investors have been rewarded for it ... Amazon, Netflix, Tesla, etc. ... its not like the existing stock exchanges and investors have stopped them from running a loss and investing in the long term.

I feel this is a solution that isn't aimed at the right part of the "stack". Reform is needed in the way the professional management of large public funds and pension funds are evaluated and compensated ... but you won't solve that with a new stock exchange.

Re: The Long-Term Stock Exchange Opens for Business

#359

Post by eries »

cwkoss wrote: post #354

Having a hard time groking what exactly LTSE does differently. What are the specific features/differences between LTSE and other markets? Will companies listed on LTSE be listed exclusively there, or also on other markets?

I've posted links elsewhere in this thread to the exact points of differentiation. You can even read the legal filings, if you are so inclined.

We support (and encourage) dual-listing, so that a company can still benefit from our protections while accessing liquidity at the open/close from a legacy exchange.

Re: The Long-Term Stock Exchange Opens for Business

#360

Post by eries »

teruakohatu wrote: post #352
eries wrote: post #343

Earlier quoted context omitted.

If the reforms are embodied in the company's charter, they will follow the shares wherever they are traded

Can you explain what this means?

I'll try: The charter governs the relationship of the company to its investor. A share of stock is a contract between those parties. The charter controls what the stock "means" no matter where it trades.
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