The Long-Term Stock Exchange Is Worth a Shot
Interesting idea, but seems impractical because it causes very weird incentives:<p>* Can a company exist in both the &quot;normal&quot; exchange and the &quot;long term&quot; exchange at the same time? If so, can I short on the normal exchange and buy on the long term exchange for some free voting power that increases over time?<p>* Many (most?) consumer-facing brokerages make a significant portion of their revenue by lending out their customers&#x27; securities. Voting rights transfer to the borrower of the security. Would this be the same in a long-term exchange? If yes, then this will break the existing revenue model. Online brokerages will need to make the money elsewhere (likely by charging higher trading fees), and this will push consumers back into existing exchanges with low cost trades.<p>* How long until there is a secondary market for buying and selling voting rights?