US regulators approve of new Silicon Valley Stock Exchange

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US regulators approve of new Silicon Valley Stock Exchange

On Friday, the 10th of May 2019, the US regulators had stamped approval of a new stock exchange, which happened to be a brainchild of a Silicon Valley Entrepreneur, Eric Ries, 40, an American blogger and author of the much-cherished “The Lean Startup”.

The move would likely to proffer high-growth tech companies an additional option to raise funds outside of the conventional NYSE, at a more flexible manner, analysts suggested. Later on, Friday (May 10th), the US SEC (Securities and Exchange Commission) had approved the LTSE, or Long-Term Stock Exchange, a Silicon Valley-based national securities exchange, what it called a move to enhance governance and to reduce short-term pressures on public listings.

Besides, analysts had also added that the LTSE could have been an alternative stock exchange for United States’ tech capital, likely to appeal more and more money losing tech companies and start-ups, who had been longing for a luxury of long-term innovation, meanwhile averting the crucifixion of the public markets.

According to SEC, the LTSE would be requiring more disclosure for investors and would include more rewards for long-term shareholders and voting power. Although, LTSE may sound as a complete complacency at the very first gaze, questions were raised whether it would turn out to be a money-trap for the small investors.