Nasdaq OMX Corporate Solutions and Loyal3 today announced a strategic partnership to introduce and distribute a revolutionary new technology called a Customer Stock Ownership Plan (CSOP), designed to foster a deeper loyalty between brands and consumers.
Beginning immediately, NASDAQ OMX Corporate Solutions, Inc. will offer companies access to the CSOP, powered by LOYAL3, enabling eligible companies the ability to sell stock directly to customers through social media outlets or the Web in just three clicks, and in amounts as little as $10. The CSOP will also be fully integrated into the Corporate Solutions suite of services, allowing customers the opportunity to access and promote their CSOP through GlobeNewswire, Corporate Intelligence and their Investor Relations Website.
"A CSOP allows companies to increase loyalty, branding and liquidity through customer stock ownership," said John Jacobs, Chief Marketing Officer and Executive Vice President of The NASDAQ OMX Group, Inc. "We're excited to offer eligible companies the opportunity to create deeper loyalty between their brand and consumers, and look forward to introducing a segment of the market that may not be currently investing to an easy, affordable stock ownership program."
"At the highest level, CSOPs are about democratizing the stock market, making the American dream of stock ownership possible for tens of millions of people," said Barry Schneider, CEO of LOYAL3, inventor of the CSOP. "With its easy three-click technologyTM, low minimums, no fees to buy or sell stock and the ubiquity of social media, CSOPs are uniquely engineered to provide market access for everyone."
Schneider adds, "According to the Federal Reserve, only 17.9% of families invest directly in stocks. This low penetration among American families exposes a market inefficiency that CSOPs seek to remedy. We believe CSOPs will become a material new source of capital formation for equity markets, providing added liquidity to fuel innovation and jobs creation."
LOYAL3 is currently working with recognizable consumer brands to introduce the CSOP platform and loyalty and branding benefits. These companies' CSOP programs will be available to consumers this summer, wimmer, with a large number of additional companies planned for launch in 2012 and beyond.
Companies pay for the CSOP technology platform because they are motivated to convert customers into more valuable customer-owners. LOYAL3 is a registered transfer agent for the limited purpose of administering CSOPs, which utilize the same regulatory framework as a Direct Stock Purchase Plan (DSPP). Notably, unlike traditional retail shareholder strategies, the CSOP structure doesn't burden the company with added costs or administrative tasks. CSOPs deploy 100% electronic communication and LOYAL3 manages all CSOP participants for the companies.
The CSOP, built on web development platform Ruby on Rails, utilizes proprietary micro-payment technology, processing large amounts of small transactions cost effectively, all within a highly scalable architecture. Additionally, Ruby allows each CSOP to be custom-branded with record speed and efficiency. All core function code has been custom written with attention to the highest standards of consumer privacy and security.