The Next Generation of Stock Exchanges: Creating Local Stock Exchanges as Hubs to Support Local Living Economies

http://www.corporation2020.org/pdfs/SummitPaperSeries.pdf
Author: Katovich, John
Source: 2007 Summit on the Future of the Corporation
Year: 2007
Number of pages: 8

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Abstract:

Local, small- to medium-sized companies constitute the lion’s share of the U.S. economy yet lack opportunities to be traded on national stock exchanges. These companies are directly connected to our well-being since their assets are by definition locally sited and owned. They hire neighbors, and their success benefits residents. Capital access for such enterprises must be established. We must explore what a new kind of local exchange might look like, which could create an easy way for community residents to invest in local businesses. A local exchange could include small companies in various stages of their lifecycle—some in a moderate growth phase. And business owners could sell minority stakes to local residents (primarily non-accredited investors) who are devoted customers, who share their vision, or who want to support local businesses. A local exchange might also develop responsible social reporting standards, and encourage listed companies to amend articles of incorporation to take stakeholder interests into account.