SBSE – The small business stock exchange is a protected stock market for small businesses and micro investors. Giving access for small business to establish capital gain, while drawing the line between investors and market manipulators.
There is a time in every python programer life where financial algorithms find there ways into the regular work routine, I never thought that it will happen to me, but it did, and I slowly found myself experimenting with more and more financial algorithms, optimizing the portfolio, analyzing historic data, I even found myself going to a python meetup where I won the raffle and got one of the new financial algorithms theory books, it was almost like a sign that this is something I need to do. What I didn’t realize that although this is all great learning and fun, in many ways it is completely removed from reality, as my impact on the market is 100% meaningless, if I am interested in a stock which may even be profitable for me, my little contribution could easily be manipulated by the real player of the market, and as to algorithms unless I’m working at one of the large companies who co-exist at the exchange and run high frequent algorithms from there, I am actually a few steps behind.
Don’t get me wrong, I am all about the idea of hyper capitalism, and that a real market define it rules by the nature of competition, but at the same time I guess the competition just kicked me out of the game, not completely I guess, but in many ways I am a 2nd or perhaps 5th-9th grade player, since I do not have the capacity to compete. This is where I realized that even though I was making some money from my investments, my participation in the market and the impact that I make is not about contribution or self profit.
So I decided to kick the big players out of the game, and treat them the same way they treat me. I decided to open the Small business stock exchange. a place where being small is an advantage. The market operate in a similar way to the way any other stock market works, aside to two additions.
- The stocks traded in the market represent business who profit less then 20 million dollars annually.
- An investor in the market can only invest up to 1 million dollar in a specific stock.
In many ways the modern market operate in a similar way to the format of micro loans or kickstarter, just that you don’t need to have a specific product pitch and the investors actually own a part of the business as a true investor will. While SBSE is about promoting hyper capitalism and investor profit, the main contribution of the market is actually to two sectors that somewhat been left behind.
Investors VS hedge funders
SBSE is first about investors, any investor but not one that is simply looking to manipulate the market, in many ways we forgot the idea behind investing vs gambling or manipulating, SBSE will strive to be a place that put real investors first. a place that one may feel more comfortable supporting a local business or a startup, while actually being able to contribute to their profit.
SBSE will be a place where businesses can grow and gain capital through sharing their funds, with limiting the risk of market manipulation. The idea behind SBSE is to stimulate the economy rather than the big players, giving a way for new startup and small business to compete with chains and profit.