My understanding is that the market cap of a company listed at LTSE will be far less than of the same company listed at NYSE or NASDAQ since there will not be a as much interest by both many institutional and retail investors. Is my understanding correct?
The Long-Term Stock Exchange Opens for Business
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Re: The Long-Term Stock Exchange Opens for Business
#362Earlier quoted context omitted.
correct to find out if your preferred broker or market maker is a member of LTSE, you can ask FINRA: https://brokercheck.finra.org/
I do not have a preferred broker, and I have no idea how to find LTSE on Robinhood. I'm sorry if this is a stupid question, but how would an average person find out what companies are listed on your exchange?
No companies are listed on our exchange - yet
Re: The Long-Term Stock Exchange Opens for Business
#363My understanding is that the market cap of a company listed at LTSE will be far less than of the same company listed at NYSE or NASDAQ since there will not be a as much interest by both many institutional and retail investors. Is my understanding correct?
Definitely not
Re: The Long-Term Stock Exchange Opens for Business
#364I 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.
Will the exchange impose any restrictions on the buying or selling of stock?
Re: The Long-Term Stock Exchange Opens for Business
#365@eries Isn't this a raw deal for executives and potential executives of listed companies? It introduces new corporate governance rules (no short-term incentives, buybacks, etc) without alleviating the existing regulatory burden of quarterly filings, GAAP, etc.
if a company's executives feel like gaining outperformance by doing extra work isn't a good deal, maybe don't invest in that company? I'm not an expert, but I do play one on TV sometimes
Fixed the typos. Yeah that's kind of my point. You are going to have less interest from investors - but not only that you will have less interest from boards or executives. What's the advantage of being listed on the LTSE, if all I get are more rules? It's a neat option for investors, but there's two sides to every market. What does it offer that a long-term-conscious board couldn't implement themselves?
I can't say "I'm starting a food truck which will sell popsicles that don't melt even in the face of great heat. Sure the suppliers have to put in a little extra work to make sure they don't melt, but you as a buyer will benefit" - that doesn't really work unless there is a path for those popsicles to be created and offered for sale in a way that makes sense for the supplier.
Re: The Long-Term Stock Exchange Opens for Business
#366Earlier quoted context omitted.
If investors are not irrational about the long term, then I don't see how there can be a problem. Prices will correctly reflect long-term expectations, and managers who are paid in options/hold equity will face the right set of incentives. If managers focus on the short term it's probably because it maximizes long-term value.
There's a lot of literature on this topic, and many empirical studies that call these assumptions into question. Just picking one at random from the set I've seen recently: https://www.ey.com/Publication/vwLUAssets/EY_Poland_Report/%...
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Re: The Long-Term Stock Exchange Opens for Business
#367I always thought that the LTSE would be an excellent crypto/ICO use-case.
Re: The Long-Term Stock Exchange Opens for Business
#368My understanding is that the market cap of a company listed at LTSE will be far less than of the same company listed at NYSE or NASDAQ since there will not be a as much interest by both many institutional and retail investors. Is my understanding correct?
Definitely not
You can't just say "Definitely not" and leave it at that. You have to explain why or you come off as a huckster.
Re: The Long-Term Stock Exchange Opens for Business
#369I haven't read every comment here but is this a direct repeal to the common business logic: "do what increases the shareholder's profits"?. i.e. moving business focus away from pure profit and onto values that benefit the greater good (environmentalism, diversity, etc.)