The US government approved Friday's creation of a new Silicon Valley stock market following regulatory criticism late last year.
"It sounds too good to be true for the people out here … today's SEC announcement is a big step," said Eric Ries, CEO of LTSE Holdings, to CNBC on Friday afternoon.
Ries, an author and startup Wiz who first shared the idea of exchange in 201
Earlier applications indicated that the longer an investor participates in a business, an important aspect of the exchange may include scaled voting rights. Listed companies may also be required to follow certain rules, including a prohibition on linking executive compensation to the company's short-term financial performance.
The Stock Exchange was filed on November 9 with the Securities and Exchange Commission According to the Wall Street Journal
report, Commissioner Robert Jackson Jr. was criticized that the structure of the stock market founders and early investors in startups cost excessive power granted to other shareholders.
Asked about Jackson's worries, Ries According to CNBC, he believes the next wave of companies looking to go public "wants to share power on a broad basis."
According to the website of the stock market is a "market that reduces short-term pressure and promotes a steady innovation and investment cycle." Long-term value creation would benefit companies and their investors alike. "