CCTP004: Local Stock Exchanges

with John Katovich

CCTP003: What is Money?

with Marco Vangelisti

Local Stock Exchanges with John Katovich and Amy Pearl

Are local stock exchanges the answer to the local investing question? Learn why the answer is likely no.

On this episode of ComCap The Podcast, John Katovich of Cutting Edge Capital takes us on a journey starting from high hopes around local stock exchanges to the hard truth about the challenges – understanding this topic is central to finding the right answers to the question of local investing liquidity.

In this episode you’ll learn:

  • Why a local stock market is probably not the answer to the local investing liquidity question
  • Why regulations around investor protections have to be taken into account.
  • Why our current stock market is not the same as it was in 1940. (In 1940 investors held stocks held stocks for an average of 7 years, by 2007 that was down to 7 months)
  • How high frequency trading is transforming the stock market, shifting transaction time to as low as 11 seconds
  • Why an exchange would not work economically if it needed to make money or be self-sustaining.
  • Whether a general “bulletin board” would work.
  • What is “speculation” and “arbitrage”.
  • The difference between an ATS and an exchange.
  • How nonprofits could participate in the sale of securities. A non-profit could operate at ATS, as long as it operates under a charter that allows it to regulate the market of the postings (buy/sell) and assumes the responsibility of broker dealer.

“By the time I left the world of exchanges, there were 0 local companies on any exchange, regional exchanges were really no longer regional exchanges…”

John Katovich

President, Cutting Edge Capital

Provocateur 

Amy Pearl, Hatch Innovation

Guest

John Katovich, President of Cutting Edge Capital

Are you in?

Meet us at ComCap17 in Monterey, CA

Interested in bringing capital back to your community?

Are you in?

Meet us at ComCap17 in Monterey, CA

Interested in bringing capital back to your community?