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Published Jun 10, 2024

The Texas Stock Exchange + Is Short Selling a Dying Strategy? | Prof G Markets

Scott Galloway and Ed Elson delve into the impact of meme stocks on market manipulation, the democratization of venture capital through platforms like Fundrise, the Texas Stock Exchange's market influence, and the waning trend of short selling.
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  • Exchange Foundation

    The Texas Stock Exchange is set to challenge the duopoly of the NYSE and Nasdaq by offering an alternative trading platform. believes this competition is beneficial, as it provides more options in the largest equity market globally. However, he also notes the political undertones of this move, highlighting Texas's appeal due to its zero state income tax and business-friendly environment 1.

    I like this in the sense that I think we need more competition. I just think it's a good idea to have more than two options in what is the largest equity market in the world.

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    adds that Texas is attracting a significant amount of business, making it a progressive place despite common stereotypes 2.

       

    Political Implications

    The Texas Stock Exchange is not just a financial move but also a political statement. and discuss how the exchange is positioned as a red state alternative to the 'woke' policies of the NYSE and Nasdaq. This politicization is evident in the complaints about regulatory overreach and board diversity mandates 3.

    My guess is, intentionally or not, they're going to position it as red state versus blue state.

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    Scott also speculates that Elon Musk might be a key player behind this initiative, further emphasizing the political motivations 1.

       

    Business Migration

    Texas's business-friendly policies are a significant draw for companies considering relocation. notes that Texas is now tied with New York for the second-highest number of S&P 500 companies, just behind California. This trend is supported by Texas's zero state income tax and lower regulatory costs, making it an attractive option for businesses 4.

    Texas is now tied with New York for having the second highest number of S&P 500 companies in the state.

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    also highlights the state's progressive cities and robust infrastructure, which further enhance its appeal 2.

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