5 ms·

I read this article and skimmed the original and I'm still not sure what the exact details of this exchange are. No robo/quant investing? Minimum hold periods?

• Maximus9000 6y ago
  Me too. According to the wiki page: > Operating principles: In an earlier SEC filing, LTSE said that its corporate governance rules might include: increased voting rights for shareholders who hold company stock for long periods of time, restrictions on offering short-term incentives to executives, disclosure of impact of any stock buybacks, and requiring companies to have a board-level long-term product and strategy committee. https://en.wikipedia.org/wiki/Long-Term_Stock_Exchange https://en.wikipedia.org/wiki/Long-Term_Stock_Exchange
  • imagin8or 6y ago
    So you make a fund which holds the stock of the listed company long-term, and trade the fund as normal... this doesn't seem robust yet.
    • liminvorous 6y ago
      This would add a level of indirection to stockholders trying to influence the company though, right? You have to make the fund managers put pressure on the company to give you short term gains, rather than pressuring the company directly.
    • andreareina 6y ago
      In a prior post the founder claimed that there are ways to deal with that. After all, AIUI stocks in the States are already actually held by the Depository Trust Corporation, so the system already deals with indirection.
• imagin8or 6y ago
  Agreed. I suspect that it's more like "The Stock Exchange For LongTerm(TM) Certified Companies", so more like the requirement that exchange-listed companies are at least 70% public. Presumably that could mean requirements on board memberships, dividend levels, types of employment perhaps? I find it a bit hard to see what stipulations they would have that aren't just good governance.
• claydavisss 6y ago
  Eventually, the only policy with teeth will be a minimum investing period. So don't worry about reading news of waste or fraud at a company, you can't sell anyway.
• bob33212 6y ago
  It looks like a SaaS analytics platform. Maybe they will have different data than normal Quarterly reports coming in from companies who want to be part of the exchange.
  • jansan 6y ago
    Porsche SE was banned from certain stock indexes because they refused to publish quarterly reports. They claimed that too frequent reporting is not beneficial for companies. You can purchase Porsche SE stocks, but they are not listed in the DAX, which is the largest German stock index.
• jovial_cavalier 6y ago
  There is no difference in incentives on the market itself. They just make the companies which are traded on their platform sign an agreement before they are allowed to be traded. I think in practice this means that no one will use this exchange...
• bo1024 6y ago
  Same here. I was looking all over the site for "the idea" or the differentiator ... couldn't find it. I think most of the approaches you mentioned wouldn't hold up for a large stock exchange because some off-platform trading site would spring up to fill the gaps. For example, you have a minimum holding period, but off-platform you can "sell" your shares at the current market price, then transfer them for free once the holding period ends. Or something. I think you have to change the way the shares themselves work somehow (or how dividends work, etc). I'm not sure, seems like a hard problem.