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U.S. regulators approve the Long-Term Stock Exchange

reuters.com

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Re: U.S. regulators approve the Long-Term Stock Exchange

#171

Post by divbzero »

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

Thank you for driving innovation in equity markets! We need more focus on long-term capital allocation, and less on the casino aspect of stock prices.

Have you considered incorporating some form of low-frequency trading? With an auction for shares held once a day, once a month, or even once a year?

(I have heard Warren Buffett say that, if it were possible, he would prefer if investors could buy or sell Berkshire Hathaway shares only once annually at a price close to intrinsic value. The low frequency would encourage investors to focus on understanding businesses instead of short-term price movements.)

Re: U.S. regulators approve the Long-Term Stock Exchange

#172

Post by eries »

divbzero wrote: post #171
eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

Thank you for driving innovation in equity markets! We need more focus on long-term capital allocation, and less on the casino aspect of stock prices. Have you considered incorporating some form of low-frequency trading? With an auction for shares held once a day, once a month, or even once a year? (I have heard Warren Buffett say that, if it were possible, he would prefer if investors could buy or sell Berkshire Hat…

Yes

Re: U.S. regulators approve the Long-Term Stock Exchange

#173

Post by thatthatis »

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

Will LTSE support reg A+ early IPOs?

Re: U.S. regulators approve the Long-Term Stock Exchange

#174

Post by grey-area »

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

Great idea, congrats on the approval. I have a few questions after reading the article.

Broadly, what did you have to change to get SEC approval?

Have you considered supporting some sort of crowdfunding private model as well - like angel investing for the masses, before a company goes public?

Will you be available in all the big trading brokers for retail investors? I use freetrade (uk broker) and would love to see your stocks there.

Have you considered listings being asked to reward investors with long term dividends or bonds? I know this is usually up to the company, but the exchange could perhaps encourage it. Tech stocks often focus on growth but it’d be nice if there were more emphasis on sustainable long term growth. For most investors voting rights are pretty academic and a very blunt instrument.

Re: U.S. regulators approve the Long-Term Stock Exchange

#175

Post by elamje »

CPLX wrote: post #120
elamje wrote: post #42

Earlier quoted context omitted.

> Of course, I do think it can serve a useful purpose, but there is reason early-stage, private investment is restricted to qualified investors. The expected value of early stage investing is certainly higher than lotteries in the US. Every poor Joe can spend thousands on lottery tickets that expire worthless, but cannot invest thousands in real companies that Joe believes will do very well in the future. Shouldn't J…

> The expected value of early stage investing is certainly higher than lotteries in the US. That’s arguable. State lotteries are highly regulated and transparent and typically return 50% of their capital to participants.

That’s fair. For the overall game you can expect to lose 50% though, with a handful of outsized windfalls going to 1/1000000 people.

In principle it’s more about why a poor person can access lotteries but not private investments, not the exact math on E[X]

Re: U.S. regulators approve the Long-Term Stock Exchange

#176

Post by integrate-this »

sayrer wrote: post #110
integrate-this wrote: post #109

I remember when a bunch of nobel prize winning economists founded "Long-term Capital Management" on the theory that, because they only traded relative value arbitrage, they couldn't lose money. Then they levered the strategy without realizing that these value arbitrages could shift against them and result in additional margin requirements. Those were the smartest people in finance at that time, and they nearly took d…

so, your argument is that using the phrase "long-term" is forever poisoned? doesn't seem super strong.

The equivalent would be an architect naming their new building project 'the world trade center'. A lot of people just aren't going to touch it because of the image it evokes. LTCM nearly broke the world's financial system and I don't think that's an exaggeration. Naming a firm LTSE is a good way to make sure a lot of people won't want to work with you.

Re: U.S. regulators approve the Long-Term Stock Exchange

#177

Post by rajacombinator »

fallingfrog wrote: post #55

Why don’t we just levy a 5% tax on every stock trade? That would provide a lot of funding and also get rid of front running, flash crashes, and a lot of kinds of market manipulation in a hurry. It would also make sure that any stock trade was with the intent of making longer term investments.

Actually that accomplishes the opposite of what you’re saying and results in a more scammy market. Read about CFDs in UK.

Re: U.S. regulators approve the Long-Term Stock Exchange

#179

Post by eries »

dickeysingh wrote: post #178

Eric, Could companies listed on NYSE and Nasdaq eventually move over (not dual list) to LTSE? If so, what does such road look like?

Yes, they will be able to do so (this is called a transfer in Exchange parlance). We support this in addition to dual listing.
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