SEC Approves The Long-Term Stock Exchange: a stock exchange built for tech startups
For tech companies, going public is often fraught with pressure — they’re suddenly expected to deliver positive news every quarter, and they might push innovation to the wayside in the quest to become profitable. They should soon have a better alternative, though. The SEC has approved the creation of the Long-Term Stock Exchange, a Silicon Valley-based platform aimed at tech startups that want to go public while taking their time to develop products and services. The exchange will have rules to limit executive bonuses, require more disclosure for milestones and reward long-term shareholders with more voting power.
The green light required revisions before the LTE could receive the SEC’s blessing. Companies on the LTSE will be allowed to list stock on other exchanges.
For more see: Engadget