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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

#401

Post by sbilstein »

yayr wrote: post #51

I wonder what the actual business model for the company is and how the incentives from this will affect the LTSE vision behind "long-term investing". As far as I have seen on the website the company runs various freemium SaaS products like captable.io, startuprunway.io and hiringplan.io. They obviously want or need to monetize on that. edit links: - https://captable.io - https://startuprunway.io - https://hiringplan.…

I spoke to a recruiter for LTSE a year ago and they were hiring lots of engineers to compete with Carta.

I was a bit disappointed with the pitch; sure Carta is useful but I had hoped LTSE was a place to do some really revolutionary stuff. It seems like that aspect of the company is a ways off and from my limited understanding, it doesn’t seem like today’s announcement makes it tangibly different than NYSE.

I’m neither a banker nor a major investor so I’m really curious to understand how they see this as a paradigm shift. For now it looks like a stock exchange started by someone I really admire but not much else.

Re: The Long-Term Stock Exchange Opens for Business

#402

Post by sbilstein »

eries wrote: post #102
fastball wrote: post #97

I have a question: what exactly is different? Wasn't clear in the blog post. Do you prevent day-trading or something similar?

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.

Why is a new exchange the right model for this rather than lobbying for different SEC requirements?

Re: The Long-Term Stock Exchange Opens for Business

#403

Post by Bedon292 »

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

What happens to the shares of a company that someone buys on this exchange if it is delisted? Do they have to then somehow sell them on another exchange? Wouldn't delisting harm the value of those shares, if they can be sold elsewhere? Wouldn't that cause serious financial harm to holders of those shares, who bought things on the LTSE expecting long term viability?

Re: The Long-Term Stock Exchange Opens for Business

#404

Post by nthnclrk »

leptoniscool wrote: post #391

It can be argued that long-term thinking is already part of the current market structure, for example take Amazon or Tesla which trades at extraordinary PE ratios. In essence investors are betting in the far future these companies will make money. How does the long term stock exchange differ?

I’m clearly not Eric, but you’ve only addressed the investor side here.

Looks to me LTSE is trying to create a forcing function, primarily through governance, for companies to think and act long-term.

Re: The Long-Term Stock Exchange Opens for Business

#405

Post by Bedon292 »

eries wrote: post #337
hitpointdrew wrote: post #334

Seems really cool, but after being on your site for 10 min I have yet to find the "meat". Other than a vague reference to "through member broker-dealers". For me the info I am interested in, and would want to see featured most prominently, is 1) A list of companies on the exchange and their last closing price. 2) An option (even if through a third party) to purchase shares of companies listed on LTSE. This informatio…

Today's announcement doesn't pertain to listings, so 1) is a ways off still You can do 2) through your existing broker, so long as they are a member of the LTSE, which they likely already are. You can check their membership status here: https://brokercheck.finra.org/

I honestly cannot figure out how to use this site to see if my broker, or any broker for that matter, is a member of LTSE. Would you be able to provide an example?

Re: The Long-Term Stock Exchange Opens for Business

#406

Post by rayshan »

sbilstein wrote: post #401
yayr wrote: post #51

I wonder what the actual business model for the company is and how the incentives from this will affect the LTSE vision behind "long-term investing". As far as I have seen on the website the company runs various freemium SaaS products like captable.io, startuprunway.io and hiringplan.io. They obviously want or need to monetize on that. edit links: - https://captable.io - https://startuprunway.io - https://hiringplan.…

I spoke to a recruiter for LTSE a year ago and they were hiring lots of engineers to compete with Carta. I was a bit disappointed with the pitch; sure Carta is useful but I had hoped LTSE was a place to do some really revolutionary stuff. It seems like that aspect of the company is a ways off and from my limited understanding, it doesn’t seem like today’s announcement makes it tangibly different than NYSE. I’m neithe…

Companies built to last are built that way from the start. The culture and contracts baked into the companies follow them for life. That's why we build software for ourselves and our fellow founders. I wrote more about this here: https://shan.io/writing/ltse-launch-americas-newest-stock-ex...

Re: The Long-Term Stock Exchange Opens for Business

#407

Post by jovial_cavalier »

eries wrote: post #262
jovial_cavalier wrote: post #247

Are there any incentive systems in place to ensure that companies being traded on your exchange don't take part in these destructive practices, or is it simply that they agreed to your policies? If it's the latter, I don't see why a company would opt to be traded on your exchange if they get literally nothing in return other than good boy points. I also don't understand why this is a problem you are tackling at the e…

Yes, there are incentives. But I object to your characterization of doing the right thing as "good boy points." Acting ethically and treating people right is its own reward _and also_ has been repeatedly shown to lead to outperformance. Our exchange works differently than the legacy players, so I don't really understand your last point.

>Acting ethically and treating people right is its own reward _and also_ has been repeatedly shown to lead to outperformance.

If that's the case, then what does your exchange add? I think we are in agreement about these principles, but I don't understand how your exchange is encouraging them.

Better than just encouraging people to agree to these practices is if you could set up a competitive landscape where they are more directly rewarded than in the current paradigm. That is primarily how I see an alternative exchange contributing to this cause.

>Our exchange works differently than the legacy players, so I don't really understand your last point.

This is the central contention. I don't understand how you are different from legacy players. What is the actual concrete difference in how you operate as an exchange that differs from your competitors? Furthermore, how do you expect that to lead to less short-term rent seeking?

Re: The Long-Term Stock Exchange Opens for Business

#408

Post by vermilingua »

eries wrote: post #282
JumpCrisscross wrote: post #226

Earlier quoted context omitted.

> I don’t think multiples are the issue If multiples aren't higher, why would a company list on your exchange versus on the public market?

Companies care about many things other than mere multiples. And there are many factors that influence multiples. So I think it's accurate to say that companies consider many factors when deciding where and how to list.

Right, then, what are some of the factors that would make it preferable to list on the LTSE?

Re: The Long-Term Stock Exchange Opens for Business

#409

Post by rayshan »

leptoniscool wrote: post #391

It can be argued that long-term thinking is already part of the current market structure, for example take Amazon or Tesla which trades at extraordinary PE ratios. In essence investors are betting in the far future these companies will make money. How does the long term stock exchange differ?

How would companies live up to the long-term expectations? Who's holding them accountable? What's the investor's discovery mechanism for more long-term oriented companies? These are some of the things we think about.
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