371–380 of 561 posts
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?
Definitely not
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> But if you prevent people from selling, then you're preventing the market from holding a company accountable when its management messes up. Is it even possible to hold management accountable for anything at all? Personally, I think executive compensation is the real culprit. I've tried to think of ways to put a cap on compensation but I can't think of any way especially since the management of one company is on the…
> Is it even possible to hold management accountable for anything at all? Of course, it's the way things work now. And it has nothing to do with compensation. Employees are held accountable by management, and are fired when underperforming. Management is held accountable by the board -- and is similarly fired when underperforming. CEO's are let go all the time. And the board is held accountable to shareholders -- as…
Excited and hopeful that LTSE might make that type of thinking engrained in all businesses!! Just might take building a stock market to get there :P (which is an incredible feat)
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?
Definitely not
Big brain: Link your blog explaining your site, main site is unaffected by DDOS
Galaxy brain: Link your blog explaining your site hosted by a 3rd party. No DDOS.
Nice work, everyone.
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> It’s governed by laws beyond our control as surely as the behavior of materials are governed by thermodynamics. It's funny you make this comparison. Because so many of these supposed laws about "the market" violate an effective equivalent to the second law of thermodynamics for information systems: P=/=NP. The claims often made about the transcendent nature of the laws governing "the market" violate the computation…
This isn't known to be true. In terms of computational complexity, market clearing is PPAD ( https://en.wikipedia.org/wiki/PPAD_(complexity) ). It may turn out that PPAD is computationally tractable even if P != NP, though it is thought to be unlikely.
But I also think you are misunderstanding the argument I was replying to in the first place, because a lot of the claims about "the market" are about the second order allocation of resources that markets cause and not (just) the clearing of them. For example market clearing is how we arrive at the price given the buy and sell orders, but the original goal was the efficient allocation of resources. For which markets are obviously not a perfect solution (it's relatively easy to create order books which end up with unfulfilled orders despite money/weight being available to argue for that allocation), even if they are a good approximate solution (via market clearing). The claims about "the market" are market fundamentalism, that the market is the ideal allocation structure, that we can't find a better or even equivalent solution, because that's just how good markets are. That was what I was rejecting. Not market clearing.
Congratulations. "We shape our buildings; thereafter they shape us." -- Winston Churchill Though I barely understand such things, I'm very excited by your LTSE and Katsuyama's Investors Exchange (IEX). Listening to your interviews about LTSE, my takeaway is that your goal is to allow companies to be judged on their own merits, instead of someone else's. So one side effect may be to help migrate private equity funded…
> 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…
Eric Ries gives some pretty good examples. One is to effectively decouple HFT trading from long term value investing:
https://www.acquired.fm/episodes/season-5-episode-10-the-lea...
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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?