Great initiative! how do you plan to attract buyers and sellers to create a meaningful and transparent exchange.
The Long-Term Stock Exchange Opens for Business
261–270 of 561 posts
Re: The Long-Term Stock Exchange Opens for Business
#262Are 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.
Re: The Long-Term Stock Exchange Opens for Business
#263Great Initiative ! How do you plan to attract buyers and sellers for transparent exchange?
Re: The Long-Term Stock Exchange Opens for Business
#264How 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.
Re: The Long-Term Stock Exchange Opens for Business
#265Earlier quoted context omitted.
In Europe, companies like LVMH and L'Oreal has bonus dividends or extra voting rights for long-term institutional shareholders already. Essentially, if you hold onto shares for over 1 year, 2 years, etc., you can offer shareholders additional incentives.
Do you have a source for this? I don't see how that could be possible, unless they created a new share class for these long term investors. The price of the share has to be adjusted at the dividend ex date to reflect the drop of value induced by the dividend payout. If not every holder of the share class benefited from it, then this is obviously unfair. Now if you are talking about different share classes, then they…
Specifics about L'Oreal.
https://www.loreal-finance.com/eng/registered-shares-loyalty...
General discussion of the concept in France. http://jpkoning.blogspot.com/2016/09/the-french-shareholder-...
> Despite ensuing controversy in the French legislature over the fairness of elevating one class of shareholder above the rest, the ability to provide prime de fidélité was enshrined in French law in 1994, with several limits.
Re: The Long-Term Stock Exchange Opens for Business
#266> The objective was to create a public market designed for trading the stocks of companies organized to sustain long-term thinking.
I'm sorry, but this doesn't seem to be clear at all to me.
Take the subset of investors that don't trade daily, or monthly, or, even yearly. There you have your long-term thinkers. And it's a large subset, make no mistake.
Also, LTSE? That's suspiciously close to LSE. I'm not being a detractor here, just asking the obvious.
Re: The Long-Term Stock Exchange Opens for Business
#267Re: The Long-Term Stock Exchange Opens for Business
#268Earlier quoted context omitted.
No, that’s currently not legal in the US We focus instead on finding ways to differentiate the experiences of the “tourist” speculators from the “citizen” long-term investors
>We focus instead on finding ways to differentiate the experiences of the “tourist” speculators from the “citizen” long-term investors Can you expand on this?
Sure. I don't have an objection to short-term investors, even the long-term investors like having them around to provide liquidity. But I don't think an investor who has an average equity holding period of 10 minutes should be involved in corporate governance.
Re: The Long-Term Stock Exchange Opens for Business
#269how 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?
Re: The Long-Term Stock Exchange Opens for Business
#270This feels... not open. Click around the site, can't find anything useful just manifestos and principles. I really hate when startups do this. You're not "open for business" you're open to being in business. If you tell me you've started an exchange, you're open when there's listings and people can trade.