US stock market watchdog SEC regulators have given their approval for the arrival of a new stock exchange. It is an initiative of investor and adviser of start-ups Eric Ries from Silicon Valley. He wants to offer fast-growing technology companies an alternative to the ‘traditional’ walk to Wall Street.
Ries does not like the fact that companies and investors generally focus strongly on achieving short-term profits. At its so-called Long-Term Stock Exchange, or simply LTSE, companies will be encouraged to stop receiving bonuses for short-term goals. Shareholders will also have more voting rights here as they hold their shares for longer.
The first interested companies are expected to be able to apply later this year for a listing on the new stock exchange on the American west coast. LTSE will still need the technical preparations in the coming months.