What is the Long-Term Stock Exchange and who is it for?
The Long-Term Stock Exchange is an SEC-registered national securities exchange built for companies and investors in every industry who share a long-term vision.
How does the Long-Term Stock Exchange differ from other stock exchanges?
The exchange is designed to show how companies commit to operate in long-term, multi-stakeholder ways. Pursuant to the exchange’s listing standards, companies adopt policies that comply with long-term principles covering stakeholders, strategy, compensation, and engagement with directors and long-term shareholders. The standards give companies latitude in implementation to account for varying business models and industries.
What are the benefits of listing on the Long-Term Stock Exchange?
Listing on the exchange helps companies operationalize the long term. Taken together, the long-term focused listing standards and the binding commitment to adhere to them are designed to help companies:
- Offer metrics beyond price-determined benchmarks that investors can use to value the company’s performance over the long term
- Preserve the flexibility for management to innovate consistently and to invest in initiatives that pay off over time
- Better align with requirements for the growing share of investment capital allocated according to environmental, social and governance (ESG) mandates
- Reinforce resilience by aligning with employees, customers, communities and other stakeholders
How will the Long-Term Stock Exchange support companies and investors who focus long term?
By making their long-term strategies, practices, plans and measures public, companies that list on the exchange offer investors, employees and other stakeholders a more holistic understanding of how the company is governed to deliver value over years and decades. That aligns them with investors who share their time horizon and provides incentives and obligations to maintain a long-term focus in both operations and strategy.
What stocks will trade on the Long-Term Stock Exchange?
The exchange will offer trading in all U.S.-listed stocks. A main feature of the U.S. securities markets is that regardless of the exchange where a company lists its shares, the shares trade everywhere. Thus, stocks listed on the NYSE or Nasdaq will trade on the Long-Term Stock Exchange and vice versa.
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.
Why are short-term pressures a problem for public companies?
Short-term pressures can lead companies to cannibalize long-term value creation in order to satisfy expectations from one financial quarter to the next. That creates risk for companies, their shareholders and other stakeholders, and society. Measuring results through a short-term lens also runs counter to the experimentation and investment that contribute to innovation and the creation of value over time.
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.
Would investing in a stock on the Long-Term Stock Exchange prevent shareholders 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.
Does the Long-Term Stock Exchange reward long-term investing by offering shareholders more of a say the longer they own their shares?
No. The exchange’s rules do not take a position on enhanced voting rights for shareholders. Our software affiliate, LTSE Services, has designed a tool to facilitate enhanced voting, should a company choose on its own to implement that.
Will companies that list on the Long-Term Stock Exchange be able to use dual-class shares?
Yes. Like every other exchange, the Long-Term Stock Exchange permits companies to adopt more than one class of shares. It is generally up to a company to determine its share structure.
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 that aim to build their businesses, advance their visions, do right by stakeholders, and create value over time.
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 should be 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. The Long-Term Stock Exchange provides a new way of being public that aligns with companies’ long-term visions. That may encourage more companies to become public.
Will companies be able to list on both the Long-Term Stock Exchange and another exchange?
Yes. We designed our exchange so that it can accept dual listings; another exchange can be the primary exchange and the Long-Term Stock Exchange can be secondary.
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.