(Karachi) The Long-Term Stock Exchange (LTSE), the 14th regulated exchange in the United States, has opened for business with a mission to support companies and investors who share long-term vision, Founder and CEO of LTSE Group Inc. Eric Ries stated in a blog post on Wednesday.
LTSE, which was founded in 2019 and is based in California, is the only national securities exchange built to serve companies and investors who share a long-term vision. The exchange offer firms a public-market option designed to sustain growth over long period.
"Today, after months of booting up, I am thrilled to report that the Long-Term Stock Exchange has opened for business with a mission to support companies and investors who share a long-term vision."https://t.co/4Pey6j7kpl
— Paul Graham (@paulg) September 9, 2020
On Wednesday, the exchange started trading of all US exchange listed securities. As part of the LTSE's policy, long term-focused companies should consider a broad group of stakeholders and measure success in years and decades.
The companies must align compensation of executives and directors with long-term performance, engage directors in long-term strategy and engage long-term shareholders.
Eric Ries said, "We are thrilled to open our exchange, which allows companies that are long term and investors who are long term to come together for mutual benefit."
He added, "Modern companies want to innovate consistently, minimize pressure to hit short-term targets, join with long-term investors, and run their businesses with the stewardship that stakeholders and society demand."
Ries said he wants to address the current shortcomings in existing markets. He pointed out that innovation has been "held hostage" to boom-bust cycles - a problem that needs a solution.
The LTSE founder maintained, "As we adapt to a difficult world, a public market that offers companies the resilience of long-term governance and supports the creation of value over time can help to put our society on the path towards a sounder future."
He stated that if the exchange had been established in the years before the COVID-19 pandemic hit the world, the business and trading environment for majority of stakeholders would have changed dramatically as they would be better equipped to deal with the outbreak.