How does the Long-Term Stock Exchange differ from other stock exchanges?
The Long-Term Stock Exchange is the only U.S. national securities exchange created specifically to provide a public market option for companies and investors who focus long term.
What stocks will trade on the Long-Term Stock Exchange?
The Exchange will offer trading in all U.S.-listed stocks, including those listed on other national securities exchanges such as the New York Stock Exchange and Nasdaq. A main feature of the U.S. securities markets is that regardless of where a company chooses to list its stock, the shares will trade everywhere. Thus, stocks listed on the NYSE or Nasdaq will trade on the Long-Term Stock Exchange and vice versa.
Would investing in a stock on the Long-Term Stock Exchange prevent me from trading the stock?
No. The Long-Term Stock Exchange will not impose holding periods, lockups or any other restriction on securities listed or traded on it.
What provisions with respect to voting does the Long-Term Stock Exchange require?
None. There are no voting rights provisions in the rules of the Exchange. Issuers can structure the rights for their shares in any of the ways that current law and regulations allow.
The Long-Term Stock Exchange has proposed to reward shareholding by offering shareholders more of a say the longer they own their shares. What can you tell me about that?
Though the Exchange has discussed such provisions, they are not part of its rules. The rules of the Exchange contain no provisions about voting rights.
How will the Long-Term Stock Exchange support companies and investors who focus long term?
To list their shares for sale on the Exchange, companies would agree to adopt and publish a series of policies that are consistent with long term-focused principles. The policies are designed to provide investors with insight into the way the company operates its business for the long-term.
What does the Long-Term Stock Exchange mean by a principles-based approach?
The long-term policies that companies who list on the Exchange agree to adopt and publish are based on five underlying principles. The principles state that long term-focused companies consider a broad group of stakeholders, measure success over years and decades, tie compensation of executives and directors to long-term performance, engage directors in long-term strategy, and engage long-term shareholders.
Why are short-term pressures a problem for public companies?
Short-term pressures can lead companies to sacrifice long-term value creation in order to satisfy expectations from one financial quarter to the next. Measuring results through a short-term lens runs counter to the experimentation and investment that contribute to the creation of value over time. With listing rules that support companies and investors who measure success over years and decades, the Long-Term Stock Exchange supports experimentation and investment, a focus on doing right by stakeholders, and attention to long-term strategy.
Don’t short-term investors make markets more efficient by surfacing problems with management that get in the way of producing value for shareholders?
Sometimes they do. But short-term activists can pressure companies to sacrifice experimentation, investment and attention to all of their stakeholders in ways that undermine the creation of long-term value. By supporting alignment between companies and their long-term shareholders, the rules of the Long-Term Stock Exchange aim to minimize the impact of short-term activists while promoting accountability for long-term performance.
Would the Long-Term Stock Exchange prohibit companies from adopting dual-class shares?
No. Like every national securities exchange, the Long-Term Stock Exchange will allow companies to structure their shares however they choose to. But by providing a public market option that supports companies’ pursuing their long-term vision, the Exchange can help to address some of the concerns that cause companies to use dual-class shares or provide companies that maintain such shares with a way to discontinue their use.
It has been said that the Long-Term Stock Exchange is Silicon Valley’s exchange. Is that accurate?
No. The Long-Term Stock Exchange is built for companies in every industry and location that aim to build their businesses, advance their visions and create value over time.
Why do companies and investors need another stock exchange? Couldn’t a company go public on a traditional exchange and still focus long term?
In theory, yes. But from the moment companies go public, they encounter pressures to prioritize the short term in ways that begin to cannibalize their futures. By listing with the Long-Term Stock Exchange, companies would agree to abide by listing standards that support their commitment to creating value over time -- a commitment that shareholders and other stakeholders can take seriously. In short, listing with the Exchange signals the company’s commitment to the long-term in a way that investors can consider when valuing the company.
Would companies that list on the Long-Term Stock Exchange report quarterly earnings?
Yes. By law, all U.S. public companies are required to report earnings at least quarterly. The difference is that the listing standards of the Long-Term Stock Exchange are designed to change the narrative for success so that the quarterly results become part of a long-term narrative. The more meaningful measures will become the company's progress toward its long-term goals.
The Long-Term Stock Exchange aims to encourage companies to go public. But isn’t a large share of the economy being driven by privately held companies?
Thanks to an abundance of private capital, companies can stay private longer. That comes at a cost to all of us, including workers who depend on retirement accounts that invest in public company stocks. By the time some companies finally do go public, investors may have missed the opportunity to profit from the innovation that the company pioneered while private.
Will companies be able to list on both the Long-Term Stock Exchange and another exchange?
When will the Long-Term Stock Exchange be able to accept listings?
We expect to announce a date once all administrative and technical prerequisites are complete. To learn about listing with the Long-Term Stock Exchange, please email us at firstname.lastname@example.org.
Who can be a member of the Long-Term Stock Exchange?
The exchange is open to any registered broker-dealer who is a member of at least one other national securities exchange and is able to clear trades. Members also can register with the Exchange as market makers.
How might the Long-Term Stock Exchange affect broker-dealers?
We hope that broker-dealers view the Exchange as a partner. Those with whom we’ve spoken welcome a stock exchange that they can interconnect with easily and trade on at low cost, and that encourages companies to go public. The Exchange’s focus on attracting issuers rather than maximizing revenue from trading and data holds the potential to strengthen ties between broker-dealers and their customers.
What is the relationship between the Long-Term Stock Exchange and LTSE?
The Long-Term Stock Exchange and LTSE are affiliated companies. The Long-Term Stock Exchange is one of only five companies authorized to operate a national securities exchange. LTSE sells software and services that companies use to build their businesses and address pain points and plan at each stage of growth.