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SEC Gives A Nod To Silicon Valley Exchange—Report

The US Government has allowed approval for creation of a Silicon Valley-based stock exchange on Friday. This was after regulatory criticism in the previous year.

With backing by Marc Andreessen and other prominent Silicon Valley figures, it is a result of the nation’s top tech titans frustrated with the public’s requirement for short term profits. The new exchange would help take off the pressure for short term profit and allow a long-term approach that benefits both the company and the investors with steady value addition. Investment and innovation cycles would be bettered in this manner, as per the website.

Zoran Pelkov welcomed the decision as being favorable for upcoming companies that seek to create sustainable businesses for decades. He is a top executive working for the LTSE.

The LTSE claimed that it could start operations down this year once due technical and administrative formalities were fulfilled. The present announcement was a huge boost as per Eric Ries, the CEO of LTSE Holdings.

Ries, who is also a venture capitalist and an author, holds a major chunk of the holding company of the exchange and helped contribute financially to it, as per government records. He first brought this idea up in 2011.

An important feature of the stock exchange would be increased voting power in proportion to an investor’s holding period. Executive pay cannot be tied to a company’s short term pay anymore. These rules are to be followed by firms to be listed here.

Ries said that the exchange’s mission was so good that it almost sounded fishy, but that most certainly wasn’t the case.

Commissioner Jackson Jr. of the SEC had earlier criticized the exchange’s structure as conferring excess power on founders and initial investors, costing shareholders who joined in later.

Ries informed CNBC of his belief that the next generation of companies wanted a broader distribution of power, in response to Jackson’s concerns.

Shannon Riley
About Author
SR. CONTENT WRITER at Global Market News Wire

Having an experience of 4 years, Shannon has earned the position of the senior content writer in our organization owing to her hard work and dedication. Shannon deals with writing news and articles relating to the recent trends and events in the world of Business. In her free time, Shannon likes to watch videos and documentary for the various business tycoons from all across the world. she also maintains a personal blog presenting informative information relating to different businesses.

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