The Long-Term Stock Exchange is a national securities exchange that was approved by the U.S. Securities and Exchange Commission in May 2019. It’s not a well-known stock exchange — to date, ThredUp is only the third company to join and the second company currently listed.
It bills itself as a “principles-first” stock exchange that requires companies to publicly detail their long-term strategies for growth that include sustainability goals. Among them: Aligning board and executive compensation with long-term performance, making board members active participants in decision-making, and creating goals for the decade, not the next quarter.
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Listing on the LTSE is no different from other stock exchanges. A company that is listed on the LTSE will report quarterly earnings, have a ticker symbol, and have an opening and closing stock price. Shareholders can trade their stock.
LTSE says its climate and sustainability-forward policies are more strict than current standards. While many companies pledge carbon neutrality as a decade-long goal, the LTSE requires listed companies to publicly disclose long-term climate goals and update them. Progressing toward the goal is a requirement of the listing and companies that don’t comply could be subject to being delisted.
“It is time for decisive action. Companies have punted too many promises to their stakeholders on the environment, social causes and who they are building for,” James Reinhart, founder and CEO of Oakland, California-based ThredUp, said in a statement. “By dual listing on LTSE, we are codifying the critical relationship between ThredUp and our long-term stakeholders and ensuring our success is their success.”
Asana, the work management platform, dual-listed on the LTSE in 2021. Twilio, the cloud communication startup, went public on the LTSE and New York Stock Exchange at the same time, but voluntarily delisted on the platform at the end of 2022 due to cost concerns around maintaining a dual listing.
There are some benefits to offering a more long-term outlook. Quarter-over-quarter changes in revenue or gross profit are not indicative of a company’s health, but can provoke dramatic changes in stock value. We’ve written about how mass layoffs may have stemmed from appeasing shareholders ahead of earnings calls.
As it is, the public markets have been extremely volatile — companies were quick to ride the inflation high and go public, and valuations climbed into the trillions. But that all came crashing down in 2022. Wall Street saw its worst year since 2008, and companies either cut or indefinitely delayed their IPO plans.
Illustration: Dom Guzman
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