[ad_1]
Porridge UpOn Tuesday, the clothing consignment company announced the listing of its shares in a double listing long-term stock exchangeLTSE, or LTSE, is a national stock exchange designed to promote sustainable principles and a long-term focus among investors and companies.
“This is another indication of ThredUp’s long-term commitment,” said CNBC CEO James Reinhart. “We’re here to make a difference. Not for two or three years, but for 20, 40, 50 (years).”
It is the second company currently listed with LTSE. Reinhart says he first read about the market a few years ago and has been in talks to list it on the stock exchange over the past two years.
LTSE was founded by technology entrepreneur Eric Riess in 2016, But it took several years to get it up and running. For a company to be listed on the LTSE, it must define a set of principles to ensure that it will adhere to certain long-term commitments, such as environmental improvements or corporate governance standards.
In ThredUp’s LTSE listing, for example, the company calls “the environment” one of its “most important stakeholders.”
LTSE launched in an effort to address Cash That companies were maximizing shareholder profits above all else.
Reese told CNBC that the new exchange wants to “reverse the epidemic of short-term thinking.” “The incentives we’ve created around financing, around the capital market, make it harder for companies to do the right thing.”
Reese joins others, including billionaire investor Warren Buffett and JPMorgan Chase CEO Jamie Dimon, who have argued that such short-term thinking is bad for companies.
“People will realize that the definition of profit that we’ve used for the last 25 years is wrong, that what profit means is maximizing human prosperity,” Reese said.
For all its lofty ambitions, the path has never been easy for an exchange like the LTSE’s – and it certainly hasn’t been until now. There are more than a dozen stock exchanges in the United States, but most trading takes place on the New York Stock Exchange and the Nasdaq Stock Exchange, making it difficult for alternatives to gain traction.
LTSE first received approval from the US Securities and Exchange Commission in 2019, and began trading in September 2020. The market struggled to regain traction, but saw a distinct boost in 2021 when the software company Asana included with it.
LTSE works similarly to other exchanges, with the same ticker symbol across all trading platforms. The company’s opening and closing price will be set the same way it has been since it went public, usually giving weight to the underlying exchange on which it operates.
Like any public company, LTSE-listed companies still report quarterly earnings, but stock exchange standards are designed so that earnings reports are intended to give context to the long-term narrative of a listed company.
A dual-listed company may be listed on the LTSE in conjunction with an initial public offering or, like ThredUp, may be a public company that is initially publicly traded elsewhere and chooses to meet the LTSE’s criteria for listing. ThredUp first went public in March 2021 and is currently listed on NASDAQ.
LTSE’s announcement comes at a difficult time, given the increasingly difficult retail environment. to 2022The company reported a loss of $92.3 million, or 92 cents per share.
But Reinhart noted that industry challenges speak to ThredUp’s commitment to long-term, forward-looking policies. “It was always easier to do those things later,” he said. “Sometimes companies need to lead and show people that they can.”
“It would have been really easy (for Reinhart) to cancel it or put it off because it’s such a difficult time,” Reese added, saying that the double list lays a foundation for “future prosperity at a time when the natural human impulse is to be afraid.”
Another company, Communications Platform twiliolisted on LTSE but delisted in 2022, Quoting cost Fears.
For its part, LTSE said it would continue to follow the long game from here.
“We’re not in a rush to make predictions about how (LTSE) will take over the world overnight, because in the end we only want the best companies,” Reese said. “For us, it’s about creating a real club of the very best to show there’s a new way forward.”
[ad_2]
