The Long-Term Stock Exchange Opens for Business

Post by centimeter » Thu, Sep 10, 2020, 9:08 PM UTC

munificent wrote: post #260

centimeter wrote: post #238

Earlier quoted context omitted.

> I hope others see that our markets are designed. They are human artifacts. They are not natural laws to be accepted as-is. “Markets” are not the same thing as “the market”. Markets are human artifacts; the market is an emergent behavior. It’s governed by laws beyond our control as surely as the behavior of materials are governed by thermodynamics. If the behavior of your markets fails to match the reality of the ma…

> Markets are human artifacts; the market is an emergent behavior. If "the market" is a 2d array of 1 and 0 that emerges from a cellular automata, then "markets" are the rules for that automata. The human artifact defines the rules and incentives that cause the emergent behavior seen by aggregating all market participants. There is no Platonic ideal "markets" independent of the human structures where they operate any…

Post by valuearb » Thu, Sep 10, 2020, 9:35 PM UTC

read_if_gay_ wrote: post #502

valuearb wrote: post #472

Earlier quoted context omitted.

This seems problematic. The longer you hold your stock the more voting rights and hence value it accrues. But if you sell the shares all the accrued value is lost. So it surely leads to proxy voting, where former owners still are registered as owners of their former shares, but vote them for whoever they secretly sold the shares to.

I might be naive, but are you not going to get caught doing this? Because if you're secretly selling enough shares that your voting rights will have an actual impact, it seems like that'll be a fair amount of money you'd also need to transfer secretly, which is not that easy.

Post by swyx » Thu, Sep 10, 2020, 10:09 PM UTC

bricemo wrote: post #452

Let me try to summarize everyone’s same question: - The idea of a stock exchange that allows companies and investors to focus on 5, 10, 25 year horizons sounds great! - However companies on normal stock exchanges now already try to do this, but it’s hard because of quarterly earnings, pressure for quarterly growth, etc - How is LTSE different? Seems like: Companies and investors “promise” to have a longer term focus…

Post by [deleted] » Fri, Sep 11, 2020, 12:00 AM UTC

lappa wrote: post #465

om2 wrote: post #449

The blog post doesn’t explain what, if anything, is different about how the market works. From the name, I expected that it would require holding an investment for a minimum period. But I see no evidence of that elsewhere on the site. I do see listing requirements that supposedly require companies to have a long term focus. But then elsewhere I see that all securities in the S&P 500 and the RUSSEL 2000 index will be…

IMO, the main difference between LTSE and a traditional stock exchange is the way votes are allocated to shareholders. Traditionally voting power is proportional to shares owned. However, on LTSE the amount of time a stock has been held is also considered. There is no minimum holding period, but there is an incentive to hold. A bit of a tangent: Since there is a premium in voting rights (GOOG vs GOOGL), I'm curious t…

Post by Ntrails » Fri, Sep 11, 2020, 12:10 AM UTC

lostsoul8282 wrote: post #515

cmroanirgo wrote: post #478

Earlier quoted context omitted.

I used to be part of the system that built machines that auto traded on arbitrage opportunities due to millsec/nanosec differences in reported prices in different exchanges. Although probably not popular I would suggest that long term stocks needs to incorporate features that actively block certain trading patterns: limit price changes, limit buy/ sell frequency, & disallow shorting. I have been heavily involved in t…

I agree. I ran a DMA/Equity algo and internal prop desk's tech at 2 major banks and you are 100% right. Any delay (artificial or real) would be what we would target for artibitrage.