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The obvious way of ensuring long-term performance is to slow down the buy/sell process. For example, the company could offer a discount on its stock for anyone
by zackbloom 5y ago
The obvious way of ensuring long-term performance is to slow down the buy/sell process. For example, the company could offer a discount on its stock for anyone who agrees to hold it for six months. This seems like a more practical solution than a whole bunch of policy nods which, as far as I can tell, can't actually prevent someone from day trading the stock based on short-term performance. Am I totally off base?
- eries 5y agoNope, that's a very good idea. I personally don't think long-term investors should have to pay the same price to buy stock as speculators. But in finance this is still considered a very radical notion, so I think it will be some time before we see this idea adopted
- JumpCrisscross 5y agoHas the LTSE considered paying dividends based on holding time?
- eries 5y agoYes, I think that’s something companies may consider eventually.
- tedunangst 5y agoCan you backdate dividends? Each quarter, pick a random date 1-2 months back as the date of record.
- _delirium 5y agoBoth NYSE and Nasdaq rules require the record date to be announced at least 10 days in advance, so a mainstream U.S.-listed company can't backdate it. Whether it'd pass SEC muster if we take exchange rules out of the picture, I don't know.
- gregwebs 5y agoI think this does exist already as corporate bonds.
- dempsey 5y agoThese all seem like complicated ways of avoiding charging more for trading. Make trading expensive and it will become less voluminous and short term. Allow companies to exclusively list where trading is purposely expensive.