What is the Long-Term Stock Exchange and who is it for?
The Long-Term Stock Exchange (LTSE) is an SEC-registered national securities exchange built for companies and investors in every industry who share a long-term vision. Companies that choose to list on the Long-Term Stock Exchange reaffirm their commitment to inclusive and sustainable business practices that are aligned with their employees, customers, shareholders, and communities as part of our listing principles. You can learn more about our exchange here.
How specifically does the Long-Term Stock Exchange differ from existing exchanges?
The Long-Term Stock Exchange is the first and only U.S. national securities exchange built on the premise that companies and investors perform better when they are enabled to focus on long-term strategies. To support this, the Long-Term Stock Exchange requires companies that list with it to publish and maintain a series of long-term policies. Our market model, which we call the Very Simple Market (VSM™), is free from the conventional exchange incentives that benefit from volatility and speculation.
What stocks trade on the Long-Term Stock Exchange?
In short, all stocks. The exchange offers trading in all U.S. exchange-listed securities. A fundamental feature of the U.S. equities markets is that stocks are not restricted to trading only on the primary listing exchange. Stocks listed on exchanges such as the NYSE or Nasdaq can trade on LTSE and vice versa. You can learn more about this concept from our blog.
How can I trade on the Long-Term Stock Exchange?
Most individual investors purchase and sell stocks through brokers. Broker-dealers may become members of and execute trades on any number of venues, and are required to meet best execution obligations for their customers. Any registered broker-dealer who is a member of at least one other national securities exchange may apply to become a member of LTSE. You can see the full list of our currently approved members here.
How will the Long-Term Stock Exchange support companies and investors who focus long term?
By making their long-term strategies, practices, and plans, 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. This 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 kinds of companies stand to benefit from the Long-Term Stock Exchange?
LTSE offers companies in every industry a public-market option that supports consistent innovation, ties with long-term shareholders, and alignment with employees, customers, and other stakeholders. The exchange offers an option to dual list for companies that are either public already or that are planning to go public.
What does the Long-Term Stock Exchange mean by a principles-based approach?
The long-term policies that companies are required to adopt must be consistent with five principles, which offer companies guidance as to the key elements, while providing flexibility for diverse companies from a broad range of industries.
LTSE has eschewed a prescriptive, one-size-fits-all approach and believes that companies can manifest their focus on the long term in myriad ways. The principles hold that long-term focused companies consider a broad group of stakeholders, measure success in years and decades, align compensation of executives and directors with long-term performance, engage directors in long-term strategy (and grant them explicit oversight of this strategy), and engage long-term shareholders.
Would investing in a stock on the Long-Term Stock Exchange prevent shareholders from trading the stock?
No. The Long-Term Stock Exchange does not impose holding periods, lockups or any other trading restrictions 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 require companies to adopt enhanced voting rights for long-term shareholders. The decision of whether to offer enhanced voting rights rests with the company.
It has been said that the Long-Term Stock Exchange is Silicon Valley’s exchange. Is that accurate?
The Long-Term Stock Exchange is for companies in every industry that aim to build sustainable businesses and advance their visions over time.
Who can become a member of the Long-Term Stock Exchange?
Any registered broker-dealer who is a member of at least one other national securities exchange and is able to clear trades may apply to become a member. Members also can register with the exchange as market makers. You can see the full list of our currently approved members here.
What are the requirements for listing?
Besides meeting financial and governance thresholds that mirror those of other U.S. exchanges, companies that list on LTSE are required to publish and maintain a series of policies designed to provide shareholders and other stakeholders with insight into their long-term strategies, practices, and plans. Detailed listing requirements can be found in our Rule Book here.
Where can I see the companies listed on your exchange?
You can find the updated list of companies that have listed or intend to list with the exchange here. If you'd like to be notified about such announcements, we welcome you to sign up for our newsletter on our website.
What is a dual listing?
Dual listing refers to a listing of any company’s securities on two or more U.S national securities exchanges. A company dual listing on LTSE could be a private company conducting an initial public offering and listing concurrently on LTSE and another exchange, or could be an existing public company that chooses to also satisfy LTSE’s listing standards.
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
Are companies that list on the Long-Term Stock Exchange 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.
Are companies 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.
Do companies that list on the Long-Term Stock Exchange report quarterly earnings?
Yes. By law, 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 are viewed in context as part of a long-term narrative.
Why are short-term pressures a problem for public companies?
Long-term thinking can help companies prioritize the well-being of their customers, employees, and stakeholders while creating the environment for sustaining innovation. Short-term pressures can force companies to undermine the creation of value over the long term to satisfy expectations from one financial quarter to the next. This type of short-term thinking has been shown to lead to behaviors and practices that erode value over time. The Long-Term Stock Exchange provides companies with a public market option that focuses on their broader vision, metrics of success, and creating shared value with all of their stakeholder groups, including ultimately, their investors.
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?
An abundance of private capital coupled with the short-term pressures in the public markets have led to companies staying private longer. That comes at a cost to all of us, including workers who rely 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. LTSE is a public market option built for companies and investors with a shared long-term vision. It offers companies an opportunity to demonstrate their commitment to a higher standard of governance that measures success by impact over generations.