Galt's Gulch

New Stock Exchange plan: Could it really work?

Posted by $ blarman 7 years, 10 months ago to Business
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The problem in the current stock market really is a focus on short-term earnings. In theory, this could have a huge potential to push the focus out to more long-term thinking.
SOURCE URL: http://www.bloomberg.com/news/articles/2016-06-12/silicon-valley-s-audacious-plan-to-create-a-new-stock-exchange?cmpid=BBD061316_BIZ

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  • Posted by freedomforall 7 years, 10 months ago
    Real solution: Take away the equities issuance monopoly from wall street banksters. Allow any individual to issue shares freely on the internet to anyone without government interference.
    Have to crush the central government first to get this free market reform since free marlets do not assist the powerful in crushing competition. Thats the purpose of corrupt congress, courts, and executive branch of government.
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  • Posted by CircuitGuy 7 years, 10 months ago
    I am a fan of Ries' The Lean Startup and am intrigued by the idea. I didn't understand from the article and brief search how it's different beyond sharing the names on shareholder proxies with management and giving more voting rights with longer ownership. If that's the only difference, his idea rests on the idea that a) long-term investors don't care about analysts and b) short-term thinking hurts companies by short-term investors voting.
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    • Posted by $ blarman 7 years, 10 months ago
      I think that part of the point was that it is the prevalence of short-term thinking when hiring managers that has led to many of the disastrous business decisions in the past twenty years. Short-term thinking is for looters; long-term thinking is for producers. It isn't about whether or not we care about analysts, but whether or not the analysts continue to focus on the short-term.
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  • Posted by $ jbrenner 7 years, 10 months ago
    I am not against the short-term view of most stock markets, but it sure would be nice to have a market that rewards companies for innovation.
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    • Posted by $ Olduglycarl 7 years, 10 months ago
      Agreed.
      By focusing on short term gains, you invite fraud and fail to judge a corporation for it's true worth in a free market way...if they suck, sell or do not invest, if they are honest, innovative and provide value then invest and hold on to your stock. Short term gains can be gotten with futures, currencies, resources etc. Do what you will but know your not doing business any favors and you are probably supporting a system that is focused on the stock holders instead of the consumer...as I've said before, focus on providing value for the consumer and the stock holders will make out just fine.
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