U.S. regulators approve new Silicon Valley stock exchange

[PeterBocan]

U.S. regulators on Friday approved a new stock exchange that is the brainchild of a Silicon Valley entrepreneur, a move that will give high-growth technology companies more options to list their shares outside of the traditional New York exchanges.

 

Quote

The LTSE is a bid to build a stock exchange in the country’s tech capital that appeals to hot startups, particularly those that are money-losing and want the luxury of focusing on long-term innovation even while trading in the glare of the public markets.

 

The new exchange would have extra rules designed to encourage companies to focus on long-term innovation rather than the grind of quarterly earnings reports by asking companies to limit executive bonuses that award short-term accomplishments.

 

Source: https://www.reuters.com/article/us-usa-sec-siliconvalley/u-s-regulators-approve-new-silicon-valley-stock-exchange-idUSKCN1SG21K?utm_source=reddit.com

[duncannah]

Sounds good, I suppose?

[PeterBocan]

IMO, It is good for research-based startups where launching a product may take years of engineering and research. It's basically a market-based funding of research, where (relatively) short-term losses are sacrificed for the long-term benefits.

[williamcll]

It's gonna get hacked.

[PeterBocan]

10 minutes ago, VegetableStu said:

inb4 this becomes kickstarter valley ._.

(or maybe it'll turn out as imagined, i dunno i'm not a stocks person ,_,)

most likely it will. The difference is that when a Kickstarter project sinks, you have no say in the project/company/startup and you are only relying on the honesty, morale and manners of the startup founders to return remaining money, but once you own stocks of the startup, you have access to all information and financial status of the company. This may turn many projects into endless sinkholes and turning them into endless zombie projects that never produce anything. In that case, it's very hard to tell when you should cut the losses short, (i.e. should I dump another X million USD into the project and wait another 6 months, or should you just end it right now).

[bcredeur97]

long term growth is good. Right now we always get in a bind with people trying to make quarterly profits and end up with no real innovation because all they do is add another camera to their phone or w/e. This should incentivise actual innovation

 

This is kinda big. We'll have NYSE and also an exchange in California now (CASE?). Neat. 

 

edit: actually it'll be called the "LTSE" long-term stock exchange

[rawrdaysgoby]

Well there are pros and cons but oh wells...

[DrMacintosh]

Oh, The State of California is gonna love having high stakes trading happening here  

[justpoet]

On 5/12/2019 at 9:48 PM, DrMacintosh said:

Oh, The State of California is gonna love having high stakes trading happening here  

The taxes they will impose to kill the market before it even starts...

[MoonSpot]

What the hell is the NASDAQ even for then?

Is this move just to get out of a knowledgeable regulatory body and dump a mess of shit all wild west like?